We get it! Navigating the world of real estate can feel overwhelming for even the most seasoned home buyer. Like you, we were once first time home buyers too and often when we look back on our own journeys and ask “how could it have been better, how could we have understood the process better at that time, how can we better empower our customers in their journey…

This guide is designed to help you feel at ease and be more prepared to make, what could be, the biggest and most exciting purchase of your life.  If this guide doesn’t answer all of your questions, please let us know what’s missing or how it could be improved so that we can make sure future versions of it continue to help others.

Download our Edmonton Home Buyer’s guide here and learn more about the home buying process.

I have to say that searching for properties with these buyers will stand out in my memory for a long time.  Who would not like checking out and searching for the perfect view in Edmonton?  The River Valley in Edmonton is ideal for anyone who wants to wake up and say “wow, I love this city” and the Le Marchand tower is the perfect place to start.  Elegant, stylish, and commanding – The LeMarchand condo they bought will be spectacular after some epic renovations, close to all core activities, the University and the eclectic vibe of Downtown.

Over the last year, the very definition of what an Edmonton Adult Condo (in Alberta) has changed drastically. Until now, there was no legislative precedent in terms of what could or couldn’t be done when it came to set age restrictions in a condo. The NDP bill is designed to provide “families with children housing options in the new year if proposed changes to Alberta’s human rights legislation are passed”. The proposed bill includes some key aspects that are extremely important to keep in mind if buying an Edmonton condo is something you are considering this year.

Not All Edmonton Condos Will Be Affected

There are some exemptions to this bill. Most importantly, Edmonton condo buildings can set an age restriction of 55+. This is good news for many of our clients who are interested in downsizing and moving into the condo life while benefiting from neighbours in a similar age and life demographic.

The Bill Won’t Change Your Life Anytime Soon

For those condo owners that have bought into “age restricted” buildings such as 18+, these new rules will not come into effect for another 15 years. According to Hugh Willis, spokesman for the Canadian Condominium Institute in northern Alberta, he believes that the “15-year transition is a “common-sense compromise” for owners who will have to decide whether to switch to a seniors-only building or open up to families with children”.

What This Means To You

When buying an Edmonton condo it really comes down to your life over the next 5-7 years. This is typically the amount of time one owns a property so it is important to factor in all potential lifestyle factors. When my husband and I purchased our first home, which is a condo, we too had to make the decision of whether we would be okay with buying a condo that had age restrictions in place. While we didn’t know when we would consider having children, it still was in the back of our minds and I am honestly so happy we decided to purchase in a condo building that would allow us to grow as a family if we chose. We welcomed Harrison into our life 1.5 years ago and are still so happy that we made the choice of living in a condo that would welcome our son.

No one can predict the Edmonton Real Estate Market and if we had been forced to move when I found out we were pregnant with Harrison, it would not have been ideal in our lives both from the market factor but also our preference for the downtown life.

During this time though, I have also had the amazing opportunity to work with many incredible seniors (some of my 80-year-old clients) who are so full of life. For them, it was important to find a place that offered a more low maintenance style living alternative, but also a place where they could connect with like-minded individuals. Ultimately, we found them great properties in 55+ buildings where group outings, holiday gift exchanges, and card games were the norm.

At TruHome, our goal is to get to know YOU our clients and truly understand what is important in your lives. From here, we can match you with the right property.

This past month, according to Airbnb, Edmonton made the list of top trending destinations for rentals, ranking in 3rd behind Ganagneung, Korea and Bournemouth, UK. Only 2 Canadian destinations made the top 20 list with Fernie, BC at number 17. Our new ranking indicates Edmonton has seen a 284% increase in bookings¹! Wow. Edmonton? From someone who has personally benefited from renting out income properties with this particular service, here’s what I’ve learned.

Edmonton Property investors have typically maintained two means to make rental income:

1. Long-term rentals, usually for 1 year or more.  A typical one bedroom Edmonton condo could yield around $1000.00 per month.
2. Shorter Term Rentals. These would typically be between 3-6 months and usually are furnished. A 1 bedroom would rent at around $1200.00 per month.

But now, property investors can choose services like Airbnb.

A typical night stay in an Airbnb in Edmonton, for a 1 bedroom condo (not shared accommodation) works out to an astounding $100.00 per night on average².  Add cleaning service fees and you are looking at typically $120.00/night with average utilization being 80% – you are now making around $2500 per month.  Sounds like a no-brainer right?

Well, we would love to say yes, but there are some considerations prior to jumping on the Airbnb train.

Are you allowed to Airbnb your Edmonton Condo?

By owning something, it is natural to think that you can do what you want; however, when you sign on to condo living, you are also agreeing to the condo associations bylaws. In many condo buildings in Edmonton, you will find a clause in the bylaws that advises that short-term leases are not permitted. Airbnb rentals are by the night, and most travellers usually average 3 nights or less, this, by definition, would not be allowed.

In this case, you can consider pursuing the Airbnb rental or you can look at ways to change your condo bylaws.

If you pursue moving forward with renting your Edmonton condo via Airbnb, please consider the following:

• The condo board may consider taking legal action against you.
• The board can deactivate your key-fobs, thereby making it difficult, if not impossible for your Airbnb tenants to get into the building.
• The board can deny access to the building and/or your unit to anyone attempting to occupy the unit in violation of the short-term lease rule.

If your condo association is limiting your options for renting out your YEG pad, you can work with the owners in your building to consider changing the bylaws to be more inclusive of rental agreements like Airbnb. This could be a long process as it can be difficult to change the bylaws of a condominium. The reason for this is that it requires approval from 75% of the total unit factors (residents) in order to be able to change, withdraw or replace, through a special resolution, a bylaw.

Change can happen. It does take time and a willingness from all parties it will affect. To influence change or help in decisions within your condo, we always recommend joining the board and becoming a part of the process.

Consider what CRA will want from you…

Using Airbnb could result in your yearly tax accounting getting more complicated since it is situated in a bit of a grey area from a taxation perspective. The government may consider your use of Airbnb as essentially operating a mini (very mini) hotel. Due to this, they may expect you to charge and remit taxes just like any other commercial operation.

Depending on your municipality and local rules, there may also be local hotel taxes that are expected go to the city that you would technically be responsible for collecting.

So what can you do? Be aware. Talk to your accountant about implications from a tax perspective sense. Read the condo bylaws and ask questions before you buy. Research the rules surrounding Airbnb from the municipal perspective.

Be sure you have the right insurance in place

Chances are your standard insurance policy does not include the use of services like Airbnb.

If something ever happened in your unit and you need to make a claim, or worse, if something ever happened to someone in the unit and you were being sued, your insurance company may not cover you if they found out that the occupant was from Airbnb.

Keep in mind, Airbnb does offer Host Protection Insurance in Canada, so be sure to read up on what it offers and how it can work with your own personal insurance to protect your assets. Talk to your insurance company and determine with them how they can work with you.

Conclusion: We agree Airbnb is great. Just put in the time to prepare your unit and determine if Airbnb is the right choice for your investment strategy.

At present time, perusing Airbnb.com you can see there are dozens of landlords using the website to rent out their condos downtown. Similar to the conflicts of Uber, Airbnb also needs to be looked at from a personal level, a condo level, a municipal level and a provincial level.

The fact that Airbnb usage is so high in Edmonton reflects that there is a need and desire for it in our marketplace. The question is, how can Real Estate investors navigate the world of Airbnb to ensure they are staying within the law and protecting their future cash flow in a positive way?

At present, the safest way an Edmonton real estate investor can use Airbnb is by pursuing home purchases that sit outside of condo regulation. There are great options, especially in mature areas of Edmonton (Westmount, Inglewood, Forest Heights, Ritchie etc) that offer homes with legal basement suites or attached home styles that are priced at similar rates to typical condos in the core.

Chat with our team to discuss your investment needs. We are here to help you navigate the Edmonton real estate market better.

Caitlin Heine,

TruHome Advisor

Caitlin Heine, your TruHome Real Estate Advisor has been using the services of Airbnb for years both in Edmonton and Vancouver. She understands what it means to invest in Edmonton Real Estate and strategies to navigate positive cash flow.

More information here:

https://www.ahla.ca/wp-content/uploads/2017/09/Edmonton-AB.pdf

¹ http://edmontonjournal.com/news/local-news/edmonton-is-a-trending-global-travel-hotspot-airbnb 

² https://www.airbnb.ca

*We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with Airbnb, or any of its subsidiaries or its affiliates. The official Airbnb website can be found at http://www.airbnb.ca The name “Airbnb” as well as related names, marks, emblems and images are registered trademarks of Airbnb.

The best part of our job is when we get to work with super awesome clients. This holds true with helping our buyer move into this awesome home in Magrath Heights. First of all, this neighbourhood is such a wonderful gem located in Southwest Edmonton. The house itself is an attached single family home – meaning no condo fees with little to no daily exterior maintenance. Located only a couple blocks from the park and right along the Larch Sanctuary, this is a perfect place to call home for families and nature lovers.

If you are looking to buy a home in Magrath Heights or sell your home – be sure to give our Edmonton real estate team a call.

We all dream about our perfect home, the one with open concept, bright and spacious rooms beautifully laid out with that living room set you saw at Restoration Hardware. You can almost hear the leaves sway gently as you step out the front door onto that beautiful tree-lined street in Ritchie. Then, you wake up, in front of some headline about Canada’s new mortgage “Stress Test”, and reality sets in.

Don’t Panic. It may not affect you and even if it does, you’re the resourceful type after all. You know how to stretch a budget and now you’re remembering that perfect living room set you saw at Structube. Everything is going to be okay.

Here’s What You Need to Know

On January 1, 2018, all buyers that are ready to buy a home with a 20% down payment or greater, that are used to today’s way of qualifying for a mortgage, won’t be able to receive as many mortgage dollars as they thought they might be able to. This new “Stress Test” being implemented will reduce your borrowing power by 25%. It will also apply to refinancing a home and will reduce your refinancing ability by 25% compared to today. There’s still time to avoid these changes. If you’re considering buying in the near future, speak to someone today to see if this will affect you.

Mortgage qualifications are changing on January 1, 2018, and you can expect more adjustments to rates and qualifying factors coming soon.

A Bit of the WHY Behind These Changes

Over the last year, we have seen a few changes to the way mortgages work and people apply. The first Stress Test implemented in the summer of 2017 was done so to reduce the purchasing power of high ratio buyers (buyers with less than a 20% down payment). This was done to be sure buyers could easily afford and renew their mortgage in an economy where house prices may be high and rates are going up.   

As of January 1st, 2018, the new Stress Test will apply to conventional financing, (buyers with a 20% down payment or more). This stress test will look a little different. For a buyer with 20% down, the Stress Test says that all lenders must qualify the borrower(s) at the Benchmark Rate. The Benchmark rate on the day of this writing is 4.99%

As mortgage Brokers, we have a formula that takes the interest rate into account along with your debt and your income and we produce a mortgage number that falls within an acceptable range of your borrowing opportunity. It is important to know that your contract rate is different than the Benchmark rate. That means the contract rate for your mortgage with good credit, a good job and an acceptable down payment and all things looking great would likely be between 2.99% to 3.09% for a five year fixed term. And this is the rate that your payment would be based on. ( so this is good) BUT…

As of January 1st 2018, buyers with a 20% down payment or more or that have equity in a home and are refinancing must qualify for a new mortgage or refinance at the greater of the Benchmark rate which at the time of this writing is at 4.99% or an interest rate 2% higher than the contract rate that your payment will be based on. This qualifying procedure will reduce your purchasing/refinancing ability by 25%.

Why did the rules change…well, the Federal Government is saying that rates are on the rise. They are also trying to control the overpriced housing market in the bigger cities like Vancouver and Toronto and we all have to follow suit.

The current stress test reduces a new buyer’s purchasing ability by 20% and the Stress test being implemented Jan 1st, 2018 reduces a conventional buyer’s purchasing ability by 25%. So, I can tell you that you could have had a bigger mortgage last summer but those days are changing.

Don’t Panic

Times have changed, but what has not is that owning a home is a fabulous asset in your financial portfolio, and often, an appreciating asset at that! Start shifting the rooms in your dream home and be prepared to get creative. Keep planning and dreaming about home ownership! Owning that home of your dreams is very, very possible. It just might take an extra step to get there.

At River City Financial we believe in financial education, we think that is where the power is. Yes you can still get a mortgage for your new home easily enough and yes you will still find stylish furniture that will fit into your new Edmonton house. Things are just a little tighter in the financing world today than yesterday, and your furniture will still look great in your new place!

Come chat with us at River City Financial and we will a have a full conversation and help you make the best decision for you. Anyone on my team at River City Financial will help you get ready for the next steps of home ownership and understand what you can afford.

Yvonne Wilchewski

River City Financial, Broker/Owner

CFF Bank Center, Owner

Yvonne Wilchewski is an accredited mortgage broker in Edmonton, Alberta. With over 20 years of experience in the Mortgage Industry, she offers mortgage ideas that will be profitable for you and your family. River City will strive to get you the best rates possible along with the best product for your specific mortgage needs.

Understanding Edmonton’s Flood Maps

At TruHome, we aim to provide our clients with the information needed to make educated choices about buying a home in Edmonton. In 2017 there has been much talk about the release of the Edmonton flood maps and what they mean. One of the most common questions we get related to this topic is: What are the chances of my house flooding?

Of course, the reality is that no one can fully predict the future. However, it is possible to understand how at risk your home may be and what you can do to reduce the chances of flooding.

Understanding Drainage Systems

Flooding can be caused by a variety of factors. The first factor to look at is the City of Edmonton’s drainage system.

During severe rainstorms, the City’s current drainage system can be overwhelmed, leading to potential basement flooding and/or dangerous amounts of water pooling on streets and roads.

After severe storms in recent years, the City of Edmonton decided to proactively study flood mitigation. This research completed by the City primarily concentrated on Edmonton neighbourhoods built before 1989. The reason newer communities were not reviewed is because they have different drainage systems that are expected to be able to handle more severe storms.

The city modelled a large four-hour rainstorm over each area, which is assumed to be the worst-case scenario for rainfall for Edmonton. Two different issues were looked at in the model: surface ponding and surcharge depths.

We have highlighted the results of this study below. However, more information about Edmonton surface ponding and surcharge depths can be found at the City of Edmonton Data website. 

Understanding Surface Ponding

Surface ponding reflects how deep the water would be on the street during a severe rainstorm. The City of Edmonton’s acceptable standard is <0.35m, which is displayed as green on the map below. Orange corresponds to water that would reach half-way up a car, while red indicates water reaching just over the hood, and maroon reflects an even higher depth.

Understanding Surcharge Depth

Surcharge depth demonstrates how full the City of Edmonton’s pipes would get during a high volume rainstorm. As the pipe over fills, the extra flow of water may increase the chance of basement flooding. Red indicates that the pipes are at their capacity.

Historical Flooding

The City of Edmonton has also mapped out all reported historical flooding. To view your Edmonton house with all three pieces of data together, refer to the maps provided by the City related to Edmonton Wide Flood Mitigation. 

While this data provides a general idea of what could result on your street, this does not mean it will work exactly as predicted. That being said, the model seems to match up with flood history, and is still a valuable tool to understand where the problem areas in the city may be.

Future Direction

The City of Edmonton council reviewed the flood mitigation study last month, and have decided to move forward with a further risk-based analysis. This is expected to be released in August 2017.

The goal is to figure out the optimal sharing of risk of these extreme storms between the City of Edmonton, insurance companies, and disaster response to be allocated from the federal and provincial tax dollars.

The City of Edmonton is planning to allocate some level of infrastructure funding to help with flood prevention, but at some point it “might cost less to deal with the problem when it happens, if it happens” stated city councillor Ben Henderson , Ward 8 when he was interviewed by the Edmonton Journal.

Understanding River Levels

Another factor when it is comes to flooding is due to the rise of the river’s levels. There have been occasions where some neighbourhoods have been blocked off to non-residents due to high tides. This can certainly cause some alarm.

You can check out Edmonton’s Flood Hazard map to see where the flood hazards for the river and creeks are. Also, if you live in Cloverdale, Riverdale, or Rossdale, you can sign up for Edmonton’s storm and river level alerts.

Steps to Take

After checking out the potential flooding risks related to your home, what can you do? There is excellent information on the City of Edmonton website about flood prevention tips. You may also be eligible for a backwater valve grant. Finally, you can also get a free flood prevention home checkup by calling 780-944-7777.

Protecting Your TruHome

There is a risk with living in any building anywhere in the world. At TruHome, we want to help you be informed and aware of the risks involved and how to possibly reduce those risks.

Have questions or looking for guidance on buying or selling Edmonton Real Estate, get in touch and let’s chat. 

Does your child plan to attend a post-secondary institution once they graduate from high school? If the answer is yes, then it’s never too early to start thinking about purchasing an Edmonton investment property they can live in while attending school.

Whether you are looking for a second property you can rent to family, or you desire a well-maintained home your children can live in (and you can visit!) while attending college or university – there are a variety of options available in many central Edmonton neighbourhoods.

Step One: Determine Your Budget

There are a host of variables at play when choosing the right property, so determining your budget from the get-go will help you zero-in on finding the perfect place.

Remember that properties closer to post-secondary institutions are often easier to rent, which also makes them more expensive to buy. So if price is a concern, consider looking for places on direct transit routes within a reasonable commute from the school. This will increase your options and provide more opportunities for getting a better deal.

Another factor to remember is to budget between $300-500 per month for condo fees.

If close proximity to school is more important than the price point, try looking for places built with solid construction and multiple bedrooms close to your preferred post-secondary institution. Properties with well-maintained character and curb appeal will help set you apart from other market properties when the time comes down the road to sell.

Step Two: Map the Commute

Again, it is always a great idea to purchase housing for post-secondary students close to major transit routes. This will increase the chances of finding other student tenants if your child will have roommates.

Surprisingly a typical commute using transit in certain neighbourhoods can be shorter than driving and parking. Google Maps is an excellent resource for verifying a true commute time. For example, Queen Mary Park is a 20 minute transit commute to the U of A compared to a 30 minute commute from Ritchie – even though they are on opposite sides of the river.

Step Three: Identify Parking Needs

If you are in need of permanent parking, remember that heated and underground parking can add some extra costs to the purchase price. However it may be a gain when it comes to resale. You can find some good deals in older and smaller buildings with outdoor parking. If it is a house with an older garage, you might want to consider rebuilding a garage suite to add more value and rental opportunities to your investment property, while also solving any covered parking needs

If you plan to buy a condo, determine if an elevator is essential, as this will help you focus your search. 

Step Four: Elbow Grease + Creativity = Good Value

If you have the skills, doing cosmetic improvements and renovations as a family can save a lot of money, and will also give your child the opportunity to personalize his/her space. Look for properties that could really be improved with some new flooring, paint, and modern light fixtures. Not only will you get some added-value down the road, it could also turn out to be a really memorable bonding exercise with your adult (or soon-to-be-adult) child.

Step Five: Make Some Room For Sharing

When it comes to bedrooms, it is always a great idea to have at least one extra bedroom for a potential roommate, and even more if you plan to visit often, or if you have multiple children who plan to share the home.

It’s helpful to look for properties with bedroom layouts that have more privacy between bedrooms. Other “must-haves” include a functional kitchen with adequate storage space, and at least one bright and spacious communal space. In-suite laundry that is organized for shared use can be a real bonus for busy post-secondary students.

Step Six: Identify House Rules Before Move-In

Once you have purchased the property, sit down with your child (or children) and discuss expectations of the living arrangements prior to them moving in. Writing out the rules, terms of agreement and  expectations will help keep everyone on the same page and will reduce conflict and misunderstandings.

Here are a list of some relevant topics for conversation:

• Is the housing only available while the child is attending school?
• What will the rent be and when and how should it be paid?
• Will a security deposit be required? How about for roommates?
• Who gets to decide the appropriate roommates?
• Are overnight visitors allowed?
• Who will take care of renovations and fixing problems?
• Who will pay for the utilities and maintain any outdoor spaces?
• What are the rules for parents stopping by and entering property?
• Are romantic partners allowed to move in? Will they need to pay rent, and how much?
• What are the building by-laws regarding pets, smoking, children and long-term visitors?

If you are considering purchasing a property for your child or children attending an Edmonton post-secondary institution, the TruHome team can help you choose the best options when it comes to condos and homes in some of these Central Edmonton communities: Downtown |  Oliver | Queen Mary Park | Garneau | Strathcona | Ritchie

Love your space but want to make it feel more like your own? Try adding texture to your walls and get an instant feeling of personalization.

 Whether you’re renting, renovating, or the proud new owner of a home, here are some simple ideas to help make your space your TruHome.

Get Your Wallpaper On

Fashion designer Bridget Smatlan of Fridget Apparel brings her design skills off the runway and into your home with her custom wallpaper installation service Tops Wallcovering. The savvy designer has an eye for detail and an unwavering commitment to using correct adhesives and surface preparation techniques. If done correctly, wallpaper can add an instant boost and focal point to any room.

Art for the Commitment-phobes

Looking for a more low-profile way to give your walls a little je ne sais quoi ? Edmonton-based Oliver Apt. designed a series of magnetic frames to hold your beloved art, music posters, and prints. The Prof. Prints series retails for $30 CAD and comes in three sizes and the choice of white ash or walnut finishes. Each kit includes countersunk holes to screw directly to the wall, as well as gold and white twine for hanging.

Plaster on the Warmth

Who says green living can’t be fashion-forward too? High Street’s Carbon Environmental Boutique proudly carries the American Clay line of natural earth plaster. These non-toxic plaster finishes come in a wide selection of earthy-tones, and can be applied on traditional wall surfaces – adding warmth and texture to your living space.

Hang Some Modern Nostalgia

Macramé is back in a big way, and nobody knows how to use it better than interior designer Julie Adams from Of Quartz Interiors. Check out her website and sign up for one of her plant or wall hanging workshops to make your own macramé work of art. You can also purchase ready-made wall hangings from her online shop.

Finnish with Fabric

Sometimes the simplest solutions can make a big (and memorable) impact. This is definitely true when it comes to using textiles as art. If you want a temporary solution to add colour and texture to any size of wall, try framing fabric and watch how it instantly transforms a space. We are especially in love with the selection available from Finnish design company Marimekko.

Spring is just around the corner, making it the perfect time to start preparing your two-wheeled beauty for a few months of glorious bicycle bliss.

Join the Network

If you are an avid cyclist, you will already know that construction is underway for a $7.5-million bike network that will provide seven kilometres of separated lanes for cyclists in downtown Edmonton. When complete, the Downtown Bike Network project will be similar to bike networks found in Calgary, Vancouver, Montreal or other major Canadian cities.

Edmonton Bike Swap

Looking to buy, sell or donate a bicycle?  Be sure to check out the Alberta Bike Swap, Saturday, May 13 from 2:30 – 4 PM at Northlands Edmonton EXPO Centre. This annual event is a perfect opportunity to sell a bike that’s been taking up space on your balcony or collecting dust in the garage, and an awesome opportunity to get a great deal on a new-to-you bicycle inspected and ready to ride off the lot.

Tune-up for Spring

If it’s a spring tune-up that you need, you’ll appreciate the friendly service at MEC’s Bike Shop, located in Oliver. Tune-up packages range from basic to premium, or you can choose individual bike services and repairs. This is also the place to check out for unique bicycle storage solutions for your house or condo.

Hands-on Help

More of the DIY-type? Then you are going to love the Edmonton Bicycle Commuters (EBC) fully-equipped, volunteer-run community bike workshops at BikeWorks North and BikeWorks South. For a small hourly fee, you will have access to specialty bicycle tools needed to repair and maintain your bicycle, as well as access to friendly  mechanics on hand to answer any questions you may have.

Choose Your Ride

When it comes to shopping for a new ride, Edmonton is home to a variety of of bike shops geared for all levels of cyclists. Garneau’s Redbike is the place to go if you are looking for function and European style. They also have a number of group rides you can sign up for on their website. Western Cycle and Revolution Cycle carry a wide selection of mountain bikes, scooters, and road bikes. MEC and United Cycle offer bikes and other sporting accessories at multiple price-points. Also be sure to check out Velocity Cycle at the new Ritchie Market.

Thinking about moving to a cycle-friendly neighbourhood? The TruHome team can help you choose the best options when it comes to condos and homes in Edmonton’s Central communities. Be sure to explore these great Edmonton neighbourhoods: Downtown |  Oliver | Queen Mary Park | Garneau | Strathcona | Ritchie