Why Cornerview is Calgary’s Best Selling Townhome Project
Cornerview townhomes in NE Calgary has been the best selling townhome project in Calgary in 2023. What’s crazy is that the projoect hasn’t even officially launched yet!!
Why? Because it is cash flow neutral using TODAY'S interest rates and rents - let's take a look:
Current Rent = $2,650/mo
- Mortgage @ 5.89% = $2,420/mo
- Property Tax = $205/mo
- Insurance = $50/mo
- Maintenance Fees = $0 (free for 2 years)
= CASH FLOW = $-25/mo < I would pay $25/mo to make $60,000 of appreciation on a property in a year!
BUT there is MASSIVE UPSIDE POTENTIAL.
Interest rates will come down at some point and rents will continue to go up (3 beds are up 42% YoY in Calgary) - so if we assume mortgage rates at 5% and rents grow at just 5%/year, then by the time you get the property in 2025/26:
Rent Forecast @ 5% Growth/YR = $2,920/mo
- Mortgage @ 5.00% = $2,196/mo
- Property Tax = $205/mo
- Insurance = $50/mo
- Maintenance Fees = $0 (free for 2 years)
= CASH FLOW = $469/mo ! ! !
This is the biggest mistake I see people making when analyzing real estate investments; they are too conservative on their assumptions. If you did this analysis in Toronto or Vancouver, the Cash flow would be negative $2000/mo at today's rates. This is why Calgary is so appealing to out-of-province investors - the numbers still work!
This year I have helped over 140 people from across Canada to buy pre-construction properties in Calgary. I make real estate investing easy so Contact Me to learn how you can invest in this property.