My house has increased in value over $700/day for the past nine months
May 17th, 2007 by Jens
Its true.
And I have had nothing to do with it.
In June of 2006, I purchased a condo on the south side of Edmonton. The condo was still under construction, and I didn’t move in until September. (when I moved in, the rest of the units were still selling at the same price that they were when I purchased)
My Condo:
2 bedroom
2 bathroom
2 floors (loft)
900 sq feet on main floor
400 sq feet on 2nd floor
1300 total sq footage.
$189,000 List price
$20,000 Down
$169,000 Mortgage
30 year amoritization period
5 year fixed rate @ 5.4%
The nitty gritty:
Just yesterday, I came accross a listing for a loft in the building beside me with almost identical square footage. Their building is made by the same builder, so everything inside is basically the same. I actually think the layout of mine is a bit better. The list price on this condo is a mind-blowing, jaw-dropping $388,500.00. This price is not out of line… I just happen to be living in one of the most explosive real-estate markets on the planet.
In a mere 9 months my condo has increased in value about $200,000.00!
Thats $22,200 per month, or $741.00 per day.
No matter how hard I try, I wouldnt be able to explain what is going on here. The city of Edmonton has produced this report about the socio economic outlook of the region over the next 5 years, and it gives a good start.
Driven by rising energy prices, phenomenal investment in the oilsands, strong construction activity, growth in personal income, and strong consumer spending, Greater Edmonton has had a decade of strong economic growth – the greatest of any Canadian city in the past five years. With oil and gas prices expected to decline, but still remain at historically high levels, and with $97.8 billion in major projects planned for Northern Alberta, future growth prospects are very solid. GDP growth is expected to average above 3% over the next five years.
View the entire report HERE.
I wish I could say that the increase in value of my property was due to research, planning and wise investing, but unfortunatly this one has absolutley nothing to do with me. A monkey could make a killing off of real estate right now. (as long as it had enough credit to secure a mortgage) My only advice to anyone living in Edmonton or Calgary is BUY! Banks are offering 40 year mortgages now, meaning that almost anyone *should* be able to qualify.
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