There's more to it than just buying a condo

In last week's column, I discussed a client who recently purchased a rental property that will    return 17 per cent annually on just the cash flow and mortgage repayment.

That's a pretty good return, especially when considering that return will increase as more principal is paid down, and as the property starts to appreciate in value.

However, there is more to consider than just buying a condo and renting it out. Our client is a smart buyer who followed three basic rules when it came to buying her investment property. While these rules are simple, they are also important.

City council has approved a new four-year budget that will see property taxes in the city rise by 4.5 per cent next year, followed by three consecutive years of 4.7 per cent hikes through to 2018.

The increase means the average Calgary household will part with an extra $71.40 in property taxes
next year.

"This is a lean budget for a growing city," said Mayor Naheed Nenshi. "Council had important debate and discussion about the issues that matter most to citizens – from enhanced snow and ice control to investments in public transit to the fees for water and recycling.

*Sandstone City: A series looking at the people, architecture and culture of Calgary's sandstone glory days

Stephen Avenue fire almost 130 years ago sparked Calgary's sandstone era

As the Calgary Stampeders celebrated their Grey Cup win Dec. 2, little did they know they were revelling on the site of a once-tragic fire.

On Nov. 7, 1886, flames ravaged downtown Calgary, destroying about 18 buildings that ranged from hotels and barns to saloons. While no one was killed, losses added up to more than $100,000 – an astronomical sum for the times.

A survey by Manulife Financial found almost one in five homeowners expect they'll be accessing home equity to supplement their retirement income.

The Manulife Bank Debt survey, which questioned more than 2,300 Canadians, finding nearly one in five respondents see their home as part of their retirement income equation.

Improving inventories help ease price growth pressure

Calgary's residential resale housing market posted relatively strong November activity reaching 1,782 units, a three per cent increase over the previous year, and nearly 13 per cent above long term averages.

"Relative to other major centres, economic growth in Calgary remains one of the strongest in the country," said CREB® chief economist Ann-Marie Lurie. "Employment opportunities and relatively higher wages have encouraged people to move here, supporting the demand growth in our housing sector."

Meanwhile, new listings growth continues to outpace the gains in sales, supporting a 22 per cent year-over-year rise in November inventories to 3,849 units. While inventories have recorded significant gains, they remain below long-term averages for the month.

As city council continues to work through day five of the budget, today brought up some questions about Calgary's Parks funding.

Ward 10 Coun. Andre Chabot wanted to cut one Community Services and Protective Services lifecycle program by more than $2 million, the results of which citizens would notice, said Anne Charlton, director of Parks.

Charlton said the fund is used for "hard materials", such as paving, tennis courts, a mix of 8,000 benches and picnic tables, 463 back-stops at ball diamonds and 8,000 soccer goal posts among other things.

Calgary City Council continued it's budget talks for Action Plan 2015-2018 today.

This morning council continued its discussion on the city's utilities and environmental protection, including Calgary's water services.

"The numbers are extraordinary and I start to worry that we are building a system in water and wastewater we will just not be able to afford in future generations," said Mayor Naheed Nenshi to city staff.