[SideShowCecil]

It might have been twenty years ago, I keep forgetting I’ve been in Alberta for ten years now. Time flies.

Stevenpfo Stevenpfo:

Did they hard cap the rent in Ottawa or limit the amount they could raise the rent?

Rent increases were capped at 3.7% per year.

By the mid nineties the rent controls were relaxed some. The 3.7% cap on increases remained but only so long as a tenant remained in the apartment. When the unit became vacant the landlord was free to set whatever rent they wanted. After a new tenant moved in the 3.7% increase cap came into effect again.

I remember the market became really competitive after that. Rents on newly renovated apartments started dropping. Landlords were offering free TVs or three months free rent on a three year lease. The building I was renting in at the time finally replaced their death trap elevators at a cost of nearly 3 million bucks.

To be fair a high volume of inexpensive new homes in the burbs also contributed to lower vacancy rates in the rental market.

[eh1eh]

A little moderation wouldn't hurt in AB right now, but as a rule it's not a good thing.
P.S. Colegeroo, $600 to $1200 is a 100% increase not 50%.

[Clogeroo]

$1:

P.S. Colegeroo, $600 to $1200 is a 100% increase not 50%.

Opps.

Also it is Clogeroo. Like the song.

[eh1eh]

eh1eh eh1eh:

A little moderation wouldn't hurt in AB right now, but as a rule it's not a good thing.
P.S. Colegeroo, $600 to $1200 is a 100% increase not 50%.

My bad, thinking college.

[Banff]

I think the whole thing has got out of hand and isn't restricted to rent but mortgages are worse . I know I wouldn't buy in Alberta (nor rent ). What needs to be done is not necessarily rent caps but earnings based I doubt a conservative rent cap of annual percentage means anything for many people infact I know it doesn't .

Most of you are positioned in roughly 50 to 55% of your income which may or may not include taxes and bills such as utilities (renting or mortgage only excluding credit cards and blah blah blah ) You all hover around in that percentage area . Sometimes it exceeds 60% and bounces around from time to time or month to month but rarely if ever drops below 50%. When you are consistantly in the 55 to 60% range you are eventually going to have to downsize or kiss your ass goodbye because eventually you're going to fuckup on your payments . When your rent or mortgage payment is 25% of your income even without taxes or bills you will never or rarely screw up depending on your spending habits .

To answer GFPBs question, most (the few of them that exist) which are downtown for $100k payments $400.00 per month are cooperative style based on vacancies , high interest , added condo , maintenance , and management fees , and buy/sell property value increases . Some or Most of these deals include all the participants to be stuck with the cost of those who default on payments . Defaults could be only $30.00 each but in excess of $100.00 depending on how many defaults or vacancies but it all adds up when you include everything including utilities . I highly doubt these deals are not within cooperative status ...a company could never survive otherwise .

[grainfedprairieboy]

Banff Banff:

To answer GFPBs question, most (the few of them that exist) which are downtown for $100k payments $400.00 per month are cooperative style based on vacancies , high interest , added condo , maintenance , and management fees , and buy/sell property value increases . Some or Most of these deals include all the participants to be stuck with the cost of those who default on payments . Defaults could be only $30.00 each but in excess of $100.00 depending on how many defaults or vacancies but it all adds up when you include everything including utilities . I highly doubt these deals are not within cooperative status ...a company could never survive otherwise .

Wow. Are you ever wrong. Did you just make that up?

[Banff]

grainfedprairieboy grainfedprairieboy:

Banff Banff:

To answer GFPBs question, most (the few of them that exist) which are downtown for $100k payments $400.00 per month are cooperative style based on vacancies , high interest , added condo , maintenance , and management fees , and buy/sell property value increases . Some or Most of these deals include all the participants to be stuck with the cost of those who default on payments . Defaults could be only $30.00 each but in excess of $100.00 depending on how many defaults or vacancies but it all adds up when you include everything including utilities . I highly doubt these deals are not within cooperative status ...a company could never survive otherwise .

Wow. Are you ever wrong. Did you just make that up?

Do Tell ?

[1Peg]

grainfedprairieboy grainfedprairieboy:

You can buy with zero money down at TD bank and have a mortgage of under 400.00 while gaining both in equity and natural rising prices.

Correct me if im wrong, you can only get 0 down if you have credit, and your credit is flawless.

[sad1234]

I have flawless credit but I only make enought to get a mortgage for $100,000 which in Edmonton would be a shack. So I'm left spending $900 a month a rent. If I did get a mortgage it would be a lot less then what I'm paying in rent...

[DrCaleb]

There has to be something done. I don't favour rent controls, but the old way of a maximum increase per year was a good balance. Landlords were limited IIRC to 10% yearly, no more than 2 increases per year, unless there were substantial improvements to the propery. That was scrapped.

Now landlords can raise it as often and by as much as they see fit. One of the bigger rental property owners has stated they won't build new rental units until their average price is $1600 a month for their units.

Given that price is a function of supply and demand, and the supply isn't increaseing - then that is another method to control rental prices. Build more units, or not allow rental units to be sold as 'condos'.

Just my

[EmperorLiam]

TD is good for mortgages, but they are very picky who they lend to.

Rent controls are a bad Mdea. Houses are still CHEAP compared to other places in Canada, and here we have fewer taxes, so its not bad at all.

[NWCanuck]

As someone in the edmonton market I can substantiate the rental claims of 1200 clams for a 2 bedroom suite in run of the mill housing. Rental increases were restricted to once a year and mine is going up a whopping 27% in Feb. Not a happy new year - needless to say I'm bailing on that place.

As for rent controls - depends what you mean. Setting a hard cap on a per square foot basis/ apartment type really has problems economically. Owners, like anyone need to keep pace with the rest of the economy but in this case are also a big part in what drives inflation. If a maximum percentage cap on increases was introduced (or any cap restriction for that matter) the government is obligated to provide tax breaks to the apartment owner. In short, it is possible to muffle the effects of a boom/bust economy that exists in the oilpatch but you have to control the money that gets removed from the industry as well.

As for buying into the market - hold off is my advice. The collapse of the sub prime lending market in the US is impacting their overall economy; paired with lower purchasing power of their dollar they will be buying less of what we're selling. This will slow our economy as well, resulting in a drop in prices for property. HOWEVER, Edmonton's economy is being driven primarily by the heavy oil upgrader facilities being constructed around Edmonton and Ft. Mac. If the demand for heavy oil is maintained, the costs for housing will stablilize and drop only a little. After all, these projects only inject so much cash - it's levelling out now. Someone phone Venezuela and see if they can get their leader to sound more like an asshat. The markets love a stable economy like Canada!