Edmonton is a growing city with a very diverse economy and plenty of multi-million dollar projects planned or taking place. In the most recent Growth Monitoring Report Edmonton was found to be the fastest growing city in all of Canada. Because of this continued rapid growth, there’s one thing the city needs a lot more of.
That is housing.
The demand is here; for working professionals and growing families, to find a place to live and settle in here.
But not everyone is in the position to buy right away.
What does this mean for investors? There are a lot of opportunities to buy a new construction investment property in a brand new Edmonton neighbourhood.
What Should I Know About Edmonton’s New Neighbourhoods?
As more and more people move to the Edmonton area every year, the need for more places for them to live grows; that whole supply-and-demand thing. And because a lot of these people have families, high-density housing (apartments and condos) aren’t always the best solution. The increasing need for low-density housing (single-family, duplexes, townhomes) means new neighbourhoods need to be created.
In fact, Edmonton has a long-term plan (we’re talking 50 years) to add not just new neighbourhoods, but to develop new “Urban Growth Areas.” These areas will hold up to 195,000 people.
In the short term, smaller neighbourhoods are growing inside and around the city to accommodate all that low-density housing demand. For example, brand new communities like Rosenthal in west Edmonton is located within Lewis Farms. Walking trails, spray parks, playgrounds, Costco, West Edmonton Mall - you name it. This area has everything a new-to-Edmonton family needs.
The above is just one example of the many new communities springing up in the Edmonton area. These new communities are selling as fast as they can be developed, meaning if you want to get a property in one of these up-and-coming developments you need to buy fast. Doing so also gives you the opportunity to buy premium lots with large yards and scenic views that will only help to increase property value over time.
Why Should I Buy an Investment Property in a New Development?
Here at TriUrban, we highly recommend buying an Edmonton investment property in a brand new neighbourhood. We really mean brand new. We suggest getting a property in a new development as soon as you can get in. Yes, that does mean before the development is complete.
More Choices When Buying New Construction Properties
When you invest in a property in a new Edmonton neighbourhood, you’ll reap all the benefits of a new construction investment property. You also have more choice in what you invest in. Take a look at the different property styles to find the right real estate investment for you.
New Homes Are Designed With Investors in Mind
Being able to add a garage suite or a rental suite with a separate entrance is a major plus for people looking to invest in Edmonton's new construction real estate market. These floor plan modifications allow you to rent to multiple tenants, which means you can maximize your rental income.
At TriUrban, we know what features today's renters are looking for and can help you lock in a new home build at a great price so it increases in value even before you find tenants. We can help find the right home with just enough square footage so you don't pay more versus what you can rent it out for.
The new home construction market in Edmonton is very competitive, with many builders and communities to choose from. Often, builders will offer special discounts or free upgrades on certain models. This means you can get some great additional features in your investment property that other landlords in the rental market won't be able to offer.
As a real estate investor, you also have leverage with quick possession properties that are ready to purchase. Builders need to move these homes quickly and will offer discounts, so you get the benefit of a great price and can start generating rental income pretty much right away.
When you buy a property in a neighbourhood that isn’t fully developed, it's normal to expect that not all the amenities will be in place yet. But that’s actually a good thing. What this means is you can get an investment property at a lower price than if the house was in a fully-developed, established neighbourhood.
Since these new Edmonton communities are growing so fast, the amenities will be quick to show up, and your property will be worth a lot more in no time.
There’s a reason the new developments along the outskirts of the city are selling out so quickly. People want to live there. It’s no secret that a community where everything is brand new, including new schools, recreation areas, and more, will attract people seeking the best amenities. These are exactly the kinds of people you want as tenants.
TriUrban’s team of professional investors knows exactly what will make a neighbourhood a good one for investing. So we know which of the up-and-coming developments are the best ones, and that’s where our new construction properties are. Plus, we have excellent relationships with plenty of local builders, to ensure our properties are purpose-built and perfect for attracting the kinds of tenants you want.
Originally published November 28, 2017, updated June 19, 2019