A national real estate magazine that compiles an annual list of the best neighbourhoods in Canada has given North Red Deer a thumbs-up.
Canadian Real Estate Wealth Magazine has included the area in its Top 100 Neighbourhoods for 2013. The publication said that North Red Deer provides good opportunities for investors, thanks to relatively low home prices and rock-bottom vacancy rates that combine to give landlords an attractive rate of return.
The magazine also commented on the current strength of industries in the Red Deer area, and the city’s role as a central distribution centre for much of Alberta.
“From agriculture to petrochemical industries, the region continually attracts a high rate of migrant workers keen to capitalize on higher wages and lower tax rates,” said an article in the November edition of Canadian Real Estate Wealth Magazine.
“This year alone, home-start construction is up 32 per cent as more temporary workers settle into the area.”
The youthful age of city residents and Air Canada’s recent introduction of scheduled passenger service out of the Red Deer Airport were also cited as positives.
The magazine said the average house price of homes in North Red Deer was $314,860. With rents averaging $1,500, investors can expect an annual cash flow of about $5,472, it added. Price growth was projected at 4.13 per cent.
Ken Devoe, president of the Central Alberta Realtors Association, agreed that North Red Deer appeals to many renters. Some want to live close to Hwy 2 and Hwy 11, and with commercial and industrial development in the area and along Hwy 2, there are plenty of workers looking for nearby accommodation.
“If you work in one of the industrial areas you’re looking at a five-minute commute, as opposed to a 15- to 20-minute commute if you live in the south end,” said Devoe.
“As an investment property, it’s going to be good for rental.”
Housing prices in North Red Deer subdivisions like Kentwood and Johnstone Park are lower than in neighbourhoods in the south side of the city, he added. That gives landlords there a higher return on investment.
“Prices definitely are cheaper on the north end.”
Young families are also attracted to the area because of its price advantage, said Devoe.
Canadian Real Estate Wealth Magazine said in a release that its list was compiled on the basis of population, median price, price growth, vacancy rate, capitalization rate, infrastructure, investment cash flow and local economic conditions.
This is the second year that the magazine has published a Top 100 Neighbourhoods list. In 2012, Red Deer’s Sunnybrook subdivision was among the areas chosen for their investment appeal.
Among the factors cited for Sunnybrook’s inclusion was the price of homes and low vacancy rate there, as well as the availability of walking trails and green spaces, safe traffic flows, and the subdivision’s proximity to workplaces.
Canadian Real Estate Wealth Magazine’s list of the Top 100 Neighbourhoods for 2013 can be found in its November issue, which is scheduled to hit newsstands on Monday. Details will also be presented Oct. 5 and 6 at the Canadian Real Estate Wealth Investor Forum in Vancouver.