Monday, July 03, 2006


Dean Pariposh, of Toronto, said he thought about buying rental properties in Calgary, but then calculated that he would be paying out more in mortgage and maintenance expenses than he was taking in from tenants. He went to Edmonton instead, bought several properties and raised the rents by 20 per cent. (There is no rent control in the province, so rents are negotiated much like any other contract.) Although there have been numerous stories in the local press about tenants suffering from sudden jumps in rent, Mr. Pariposh said none of his tenants gave notice to move out. For him, it is a confirmation of his investment strategy: Incomes are rising, so tenants can afford to pay more, and the flood of workers into the province means there is competition even for more pricey accommodations. "They can complain all they want -- there's a shortage of housing."

Just another snippet from the latest story about Alberta's booming real estate industry. Sure the seemingly instant returns are enticing. But stories like this one make you think. Makes me think, anyway.

Gee, I wonder why there's a shortage of housing in the first place?

No comments: