Alberta: All Aboard the Investment Capital Express
Alberta, Canada isn’t just booming from oil money and internal investment within the province, it is attracting significant amounts of direct investment from the rest of the country and from around the globe.
Why Alberta is the World’s New Favorite Investment Capital
Alberta’s financial strength is making it the most desirable global haven. With its solid energy backbone, healthy banking system and a government serious about encouraging sustainable growth, as well as acceptable tax rules, and legal protection for investors there is unlikely anywhere safer to stash cash these days. While not a new world destination by any means, Alberta is certainly seen as being prime for getting in at a level where there is still plenty of growth to come and the potential of at least a 5-20 year period of positive returns. Unlike many wobbly investment hot spots of the past, Alberta isn’t relying on just one fad to maintain its solvency. All commercial real estate sectors are sitting on a firm foundation with low vacancy rates and good demand for multifamily, industrial and office properties and units, though of course it is perhaps retail properties and local shopping centers which are currently drawing the most interest from investors. When it comes to signals for future stability and growth Alberta definitely checks all the boxes and more with well-balanced population growth, among the lowest unemployment rates in the world and incomes continuing to rise simultaneous, while residential real estate remains incredibly affordable based on historical figures.
Alberta vs. the Rest of Canada
Whether the east wants to admit it or not, unless there is a major and well above expectations rebound on a global scale in the very short term or the government changes its direction on new regulations and changes to immigration and mortgage lending the days are numbered for old hot spots like Vancouver and Toronto. Developers can keep on building, borrowing and hyping up their projects but sooner or later it is going to catch up with them. Savvy investors are already fleeing to Alberta with their capital while others are flocking in search of work and financial advisors plead with their client to cash out and head to Alberta too. All of this will only bolster the Albertan economy and make it more appealing for investors from further abroad.
Alberta vs. the World
China isn’t the only one with a bulging property bubble scaring flight capital out in a hurry. Singapore, Hong Kong and Malaysia all have major issues too which could blow up and crush personal net worth if it doesn’t flee to AB too. In many cases foreigners are being blocked out of these markets by new government regulations including demands for higher taxes and larger dollar amounts of minimum investment for any hope of getting in. Even previous international hot spots like Dubai are killing their most appealing assets in easy residency permits and tax free living. This just means more money for Alberta. As for the U.S. even though Canadians made up as much as 23% of all international buyers south of the border last year recent dismal job numbers, a stalling economy and anti-Canadian rhetoric is sure to have more Canadians investing at home, with many Americans chasing the dollars to Alberta to invest in commercial real estate or set up retail outlets.