Calgary vs Vancouver - Please help!

[Christine32]

Hi Everyone,
We have been living in Calgary for almost 5 years (we arrived here as permanent residents). We never worked in oil and gas but still managed to build up a life here. We have 2 kids and we bought a small house last year (by getting mortgage). Now we are extremely concerned about the economy and we believe this time it will not bounce back that quickly ad it used to be other times when there were economic downturn in Alberta. I lost my job 6 months ago and couldn't find a job since then. My husband works in sales which is a very sensitive field, he might actually lose his job too soon. He could have an opportunity to get transferred to Vancouver where the company's business is going just great. We flew to Vancouver for 4 days to check out the city and we just loved it and it is obvious that businesses are doing great there, constructions are ongoing everywhere in and around the city so in terms of potential sales opportunities that city would be a gold mine for my husband. However we are very scared of moving agagain with 2 kids, sell the house that we just bought since what if the economy goes back to normal soon and now we sell the house with a huge loss (renting out wouldn't be an option as we would not be able to manage it from Vancouver and paying a property management company is just way too expensive). Although our real estate agent told us that in our price range we coukd still sell the house for a normal price now but maybe in a year we couldn't sell it at all...
We heard that living in Vancouver is way more expensive than in Calgary but honestly we didn't experience this. Renting and buying a property is more expensive but the actual living expenses are absolutely lower. And again my hubby wouldn't have to worry about losing his job there.
We are totally confused and don't know what to do. Relocation would be expensive too but again what if things are getting even worse in Alberta??
What do you guys think?? Do you think Alberta still has a future without the oil business or people should leave now if they find an opportunity elsewhere - in our case in Vancouver?
It is such a hard decision to make and we have no family or close friends here to ask. So I am just curious how other people see Alberta's situation.
Any input is greatly appreciated!
Christine

 

[mrbeachman]

It is really hard to say.

If you just bought a house, you must have put a substantial downpayment. If you decide to sell it it will most likely be at a loss once the realtor fees and other costs such as breaking up a mortgage are taken into consideration.

My opinion of Vancouver is that it is nice to go as a tourist, but in reality it is extremely expensive to live. Don't forget that you will be probably paying a lot more tax. After a while it is just another city and your enthusiasm may soon fade. However, if your husband has a job offer from his company then it is hard to argue against that. But I wouldn't put fate in Vancouver as a city. It is just another bubble city with no real economy. At least Calgary has a chance of bouncing back once the price of oil goes up.

 

[Christine32]

Thank you so much for your reply, it is greatly appreciated!!

It is really hard to say.

If you just bought a house, you must have put a substantial downpayment. If you decide to sell it it will most likely be at a loss once the realtor fees and other costs such as breaking up a mortgage are taken into consideration.

My opinion of Vancouver is that it is nice to go as a tourist, but in reality it is extremely expensive to live. Don't forget that you will be probably paying a lot more tax. After a while it is just another city and your enthusiasm may soon fade. However, if your husband has a job offer from his company then it is hard to argue against that. But I wouldn't put fate in Vancouver as a city. It is just another bubble city with no real economy. At least Calgary has a chance of bouncing back once the price of oil goes up.

 

[mrbeachman]

Maybe you could let us know in a few months what your decision was.

A few points.

I have recently read a CBC article where it says that there is a 30% rise in suicides due to the loss of jobs in the oil patch. Things sure do look very gloomy in Alberta.

If you do decide to move I don't see why you should hire a property management company to take care of your tenants. Property management in Canada is useless and they can't even screen the applicants properly. I am renting my condo from Thailand and I am not using a property management company although I will be required by law to do so if I become a non resident. My advice is to rent your property yourself and spend more time until find a good couple/family who will stay there long term. Before you leave find a handyman who will take care of things if there are any issues with toilet/appliances/etc.....


Personally I can't see oil prices staying low forever. Remember a few years ago everyone was screaming there will be end of the world because there is not enough oil. It's all politics. But that still doesn't mean there is future in Alberta or even in Canada. Pay a close attention to your financial situation and make a decision accordingly. Certainly don't wait for things to turn around as you may wait forever.

Good luck.

 

[steaky]

If you do decide to move I don't see why you should hire a property management company to take care of your tenants. Property management in Canada is useless and they can't even screen the applicants properly. I am renting my condo from Thailand and I am not using a property management company although I will be required by law to do so if I become a non resident. My advice is to rent your property yourself and spend more time until find a good couple/family who will stay there long term. Before you leave find a handyman who will take care of things if there are any issues with toilet/appliances/etc.....

I wouldn't say property management companies are useless but it's good to have somebody looking after while you are a non resident of Canada or living in a neighboring province.

I heard many people from Calgary came to Vancouver for work, but couldn't find one and then returned to Calgary.

Btw, wondering if the OP has any plans to relocate to another country which might have a better economy than Canada?

 

[steaky]

(renting out wouldn't be an option as we would not be able to manage it from Vancouver and paying a property management company is just way too expensive).

How about leaving the home vacant? I heard many homes in Coal Harbor of downtown Vancouver are owned by overseas buyers and they live there in a seasonal basis. Furthermore, the cost of property management in Vancouver is less expensive if you compare with Hong Kong (which is another bubble city with no real economy).

 

[mrbeachman]

Good idea.

If the property is in good location I would actually look into an agent who specializes in AirBnb rentals.

I had that idea myself, but my condo board does not allow AirBnb rentals. With a house that would be a non issue.

 

[Christine32]

Thank you for all the inputs!

Just wonder what AirBnb rental means?

Experts now say that the oil price will go up slowly next year to $80 as a maximum so it will never go back as high as it used to be and oil business will never be the same as it used to be. We are now requesting information from the mortgage company about the penalty we would have to face with in case we decide to sell the property. We couldn't just leave the property vacant since paying the mortgage for it and pay for a rent in Vancouver at the same time would be too much financial burden for us. The good thing is that my husband would have a job in Vancouver right away.

Good idea.

If the property is in good location I would actually look into an agent who specializes in AirBnb rentals.

I had that idea myself, but my condo board does not allow AirBnb rentals. With a house that would be a non issue.