Edmonton Real Estate Investor: population

"Alberta's minimum wage rose from $7 to $8 this Labour Day long weekend. The raise brings Alberta in line with the provinces of British Columbia, Ontario, Quebec and Manitoba, which all have $8 minimums.

The Northwest Territories, Yukon and Nunavut all have slightly higher minimum wages.

Minimum wage is lowest in the Maritimes, where it ranges from $7 to $7.50 an hour." Read More

I don't think this will have much of an impact as less than 1.7% of wage earners in Alberta are earning minimum wage. I hear countless stories of fast food restaurants trawling the teenage customers offering incredible salaries because there just isn't anybody to do the work.

Alberta has the youngest population in Canada. Its incredible economic growth promises high paying jobs and is attracting young workers from across the country. The younger work force reflects both the economy's current strength and future growth potential.

"In a relative sense, we do have a somewhat favourable situation in terms of economic growth,"
"Having a younger age overall could potentially mean more younger workers -- that's good for the economy because it means you have more entry-level workers, you can pay them a bit less and so it contributes to economic growth." Frank Trovato, Professor of Demography and Sociology at the University of Alberta.

The effect on Real Estate is that many of these young workers will be having and raising their families in Alberta. As their families grow they housing needs will increase and bolster the resale housing market.

I know where I am investing and I wouldn't stop investing there for anything. I might buy a few houses in some parts of Ontario, where the cash flow is good.

If you are a savvy investor you could invest in Saskatchewan but you must be very careful on timing.

"..... the majority of people from Alberta buying are Saskatchewan people cashing in and moving back home. They're tired of the 45-minute commutes, the hassles. They've got huge equity, and can still find a comparable house here for much less than in Edmonton or Calgary...."Saskatoon Remax broker Trent Lipka

As long as more native Saskatchewans keep returning home you could buy and sell your property to them at a profit, or perhaps to other investors who rely on the greater fool theory. Invest, but have a solid exit plan that includes carrying your property in the event that it doesn't sell. When people start moving to Saskatchewan at the tune of 100,000 a year I will start buying there; that number is a long way off from the 800 that moved in two quarters of 2006.

Times are a-changing and there is no longer the big decision between renting and buying. More and more Canadians are choosing to purchase a house rather than rent. It is now easier to buy a house than it has ever been before.

"Low interest rates and attractive financing options mean Canadians are increasingly choosing to buy instead of rent, even though home prices are rising more rapidly than rents, a new study suggests.

According to a Statistics Canada report issued Friday, many Canadian households have moved from renting to home ownership during the past two decades. Lower interest rates, more attractive financing options and relatively strong economic conditions have encouraged more households to buy homes, in turn driving up house prices, the report said." Read Article

What does this mean if you are investing in real estate?

More potential buyers for your property. As it is Canada has the fasting growing population in any industrialized nation on the planet, coupled with more people buying means a increase in demand and rising housing prices.

How does this affect Alberta?

Alberta's incredible economy and booming job market is behind the nation's fastest growing population; a 10.6% increase over the last 5 years. So more people are moving to the province for work and they need a house to live in. They will either rent yours and once they save their downpayment - they will buy one of yours. WIN-WIN

The old-style main street and picturesque river winding through town is part of the charm that is attracting people to Okotoks. Okotoks is the fastest growing city in Alberta.

"Property values, which used to be a bargain compared to the sprawling suburbs of Calgary some 18 kilometres north, have doubled in the last four years." London Free Press

The Okotoks story is similar to many other Alberta communities. The province had nearly 49,000 housing starts last year. Alberta's overall population has increased 10.6 per cent since the 2001 census and will continue to grow with the Oil sands incredible workforce needs. In fact we have only just begun to see the migration that will occur in Alberta and that certainly means a rise in house prices.