If you were holding rental property in Edmonton 2009 is not a year you will forget for a while. It's nothing new though just another trough in a city where up and down cycles come regularly like trains.
As prices on properties dropped more and more rental properties came on the market. Many investors were left holding properties that weren't selling at the price they hoped for. They had wanted to flip but market forces changed. Some of these impromptu landlords just wanted to get the money sucking property rented.
What do you do when the market is flooded with properties that don't sell? You rent for cheap! You offer stuff! You beg you plead and you cajole renters to get into your suite. The mortgage has to be paid right? I used every technique I knew to get rented and then some new ones too. Luckily we've seen this all before and were able to get get rented. For new investors it's a hard initiation for your first few properties.
Edmonton shuts down over the winter. It's one of the coldest places on earth and no one is going to be hauling a sofa around no matter how much beer they get.
It's only 5 days into the year and things just seem more positive. Consumer confidence is higher and hiring across Canada looks very optimistic for 2010.
High vacancy rates and price drops make for motivated sellers. As you become a more season investor these are the exact dips in the market you look for to increase your portfolio.
It takes mettle when all the news is bad but mettle IS what it takes.
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