Q: I currently own a condo in North Vancouver. I’m looking at selling my condo and buying a building in Edmonton or Calgary that would create a cash positive situation through rentals.
I know that the appreciation here would be greater; however, with that comes a huge mortgage. Do you think this is a sound move? Also, are those areas a good to purchase in?
A: It would depend on how attached you are to your current condo, how much you are getting for it and what you would like to accomplish long term.
Depending on how old you are, extra cash for you and your family (passive income) can sometimes be the very best decision. As far as investing in Edmonton and Calgary, they are well situated cities with strong fundamentals. However, you are not buying the city, you are buying “the deal.” Research, research, research and do not buy long distance -go there.