282% Return On Calgary Condo Investment?

I’m looking forward to this project, but the figures seem pretty questionable to me.   Can you spot all the far-fetched estimates? (click to view PDF)

(click to view PDF)

3 responses to “282% Return On Calgary Condo Investment?

  1. its like watching a car crash. Lamb is still looking for investors to finance the building. He has no experience in building in Calgary, and is building a huge project on a tiny site. Meaning, 7 floors of underground parking. Well, at least the residents can listen to the soothing sounds and patrons of the bottle deposit next door.Ouch. Apparently they are selling it out of a ballroom at the Westin – like its a Time Share! Free hotel coffee and juice and put your non refundable 25% deposit down. Cringe worthy at best!

  2. Why am I not surprised here? What a crappy calculations!!
    Who will pay tax on rental income? Who will account for maintenance? Advertising and such costs for rentals? And show me one property management firm that charges ONLY $ 185 for condo fees in downtown area??
    And conveniently forgotten rule of taxes – once you start making income from rental that part of Capital Gain will be taxed as regular income and not just half the marginal rate.
    And then there are probabilities, will you have renter all the time? That alone would take a big chunk out.

    Anyway, I still believe in long run it will be profitable but NOT at 282%.

  3. He seems to have left property taxes completely out of the equation. That should almost wipe out any rental gain – and the $185 condo fee is of course ridiculous. Think of the salary for the pool boy alone!

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