When it comes to multi-family investing in Alberta, one key question keeps coming up: Should I buy a brand-new building, or should I invest in an older one and renovate?
The answer depends on your goals, budget, and appetite for risk. Let’s explore both paths.
Investing in New Multi-Family Developments
- Tenant Magnet
New construction units often rent faster thanks to modern finishes, better layouts, and lifestyle amenities. Tenants are willing to pay more for spaces that feel fresh and contemporary. - Predictable Operating Costs
With warranties in place and less risk of major breakdowns, your maintenance expenses remain low in the early years. - Long-Term Financing Benefits
If your project meets CMHC MLI Select’s energy efficiency standards, you could access industry-best financing terms, a game-changer for cash flow in both Calgary and Edmonton markets. - Attractive Suburban Growth
In Calgary, suburbs like Evanston and Legacy are seeing new multi-family projects thrive. Edmonton’s Southwest suburbs and central infill zones also offer compelling opportunities where demand outpaces supply.
Investing in Existing Multi-Family Properties
- Lower Barrier to Entry
Older properties often come at a fraction of the cost of new builds, making them more accessible for first-time investors. - Opportunity for Higher Returns
Through renovations and repositioning, older properties can be transformed into high-performing assets. Examples include:- Upgrading common areas
- Adding in-suite laundry
- Improving landscaping
- Rebranding for a modern tenant profile
- Central Locations
Many older multi-family buildings in Calgary’s Kensington or Bridgeland and Edmonton’s Whyte Avenue are close to schools, transit, and shopping areas where rental demand is consistent. - Tax Benefits
Capital improvements can sometimes provide added tax advantages, reducing your taxable income while building equity.
Balancing Risk and Reward
- New builds give you stability, modern appeal, and access to better financing, but often require more upfront capital.
- Existing properties let you enter at a lower price and “force” appreciation, but they come with more management and renovation challenges.
Final Takeaway
The Calgary and Edmonton rental markets are heating up, with thousands of new residents arriving each year. Whether you choose to build new or breathe life into older properties, Alberta offers investors a rare mix of affordability, demand, and growth potential.
The key is to align your strategy with your goals:
- Want a steady, lower-maintenance income? Lean toward new builds.
- Want higher upside with sweat equity? Look to existing properties.
For many investors, the smartest strategy is diversification, holding both new and renovated assets to capture the best of both worlds.
