Calgary Updates

Natasha Phipps

Francois: Welcome tonight, Natasha Phipps from Calgary CIR Realty, Phipps Realty. Natasha began her real estate investing at 20 years old. My goodness only a year, Natasha, I can't believe it. You've done so much. The family business is a new construction. And I have a few fun questions for Natasha. I had the pleasure to edit your podcast interview today, actually. I know all about you and your story and a few things so welcome and oops, you're muted. We're welcoming our guests.

Thank you, so welcome. And tonight we just wanted to have a brief chat about Calgary. It's your specialty. And you can tell us about some neighborhoods where investors should focus. Like I heard, suburbs, but what does that mean? Like suburban Calgary.

Natasha: It depends obviously what strategy we're looking for. Most commonly our investors are looking for a long-term buy and hold strategy right now and trying to maximize cash flow. To do that strategy and achieve the best cashflow you're right. Suburbs, secondary suites are really where it's at. And we're working with investors from all over Canada. And I talk to people from Ontario each and every single day. I think this year I haven't missed a day yet.

Francois: And if it's not going to get any better because we have 20 days to stay at home. We're going to be calling you. Make sure to call Natasha if you're bored and you're serious about investing because you offer something great. Like I heard you turnkey solutions, which sounds very appealing because it's a bit scary to invest at a distance. But with someone like yourself and the whole team, I think it's a great way to do it.

Natasha: We've done all the legwork to find good options that anyone can own from anywhere without ever having to set foot in Calgary. We have new construction, turnkey opportunities that are like legally suited, everything is done for you. Includes everything and then we also have the property management team in house set up to really take care of everything for you from start to finish. It's been a really big success over the last few years, and it's my baby, this secondary instruction space has been my baby. And yeah, couldn't be more proud of how it's been working out in the last few years here.

Francois: Amazing. And what neighborhoods would those be located? I really don't know Calgary, so please help me out east, west, north. I don't know.

Natasha: And just speaking generally, really secondary suites will work in any suburban community in Calgary. Because if we want something to turn key, we have to look at new construction. Of course, you're now limited to new construction areas. Now what works and is tried and true here in Calgary. Northeast part of the city. There's a couple of new communities, Cornerstone and Redstone, that we've been operating and running these types of properties now for several years.

Those are a slam dunk community on the train extension line. Some future improvements are coming but we also have lots like in the far South part of the city as well. Just to give some examples for the listeners or viewers, Saraco and Walden are two communities right now that we're focused on for the south end of the city.

Francois: Excellent. Yeah, please take some notes, investors out here, listening in. I know I read on our Facebook page. Some people were being priced out of markets while there's still room in Calgary. How much would a property like that cost? If you could give us an idea.

Natasha: Yeah. We're in the high fours right now. Prices have been going up here as well this year. It seems like that's the case everywhere and new construction materials of course are going up as well. They're affordable compared to many other major markets. You're in that 495 price point right now to get a legally suited semi-detached for the Ontario viewers or a half a duplex for those here out west. And the numbers still very much work there and our kind of your top performers.

Francois: What would it be like? Let's say you pay about 500 K. Can you get 5,000 in rent or what can you expect?

Natasha: You're no, not 5,000. You're around 3000 on your rents. Your cash flow position, obviously, depending on your mortgage, you should be in between the six and $700 mark a month after all.

Francois: Property taxes, what are they like? Just to give us an idea as well, because what taxation rate or the middle rate.

Natasha: It's not quite that straightforward for us. It really changes based on location. My house in the Northwest, he gets charged a lot higher tax than what in the same house in the Northeast. It's really variable, but for a property like this you're in that kind of 250 a month range.

Francois: Reasonable, lucky, nothing wild. Like some provinces have doubled taxes.

Natasha: That's wonderful. We got the whole team ready and set up for people here. And what I love about secondary suites here in Calgary is they've worked through any market. The highs, the lows, everything in between. These have always been steady. The steady strategy that has always been.

Francois: That's amazing. And one last, quick question. Legal versus illegal. I heard you mentioned that before, so brand new, obviously there hopefully legal but some older properties. What should people watch out for? What are telltale signs of an illegal?

Natasha: Most things you're going to see on the resale market or on the MLS will be illegal, unless it's blatantly obvious if it is legal it's not necessarily that there's something really illegal about the property it's at the city has certain requirements that have to be.

And those requirements are a must. Now at the end of this year, there are some major changes coming to secondary suites here in Calgary. It's no longer feasible or safe. In my opinion, to run a suite that's not legal by the city of Calgary. And right now is a huge opportunity for anyone wanting to legalize an existing one. Because the requirements have been reduced dramatically and the price to do so has also come down a lot. 
It's a great time to either pick up a property and legalize a suite or legalize the existing suite to have and make sure you're on the right side of things. And the changes that are coming at the end of this year.

Francois: Amazing. Thank you so much, Natasha. And Natasha is one of our regional sponsors, we're really happy to have you on.