Last updated on September 4th, 2023
airbnb property investment canmore
Canmore is a mountain town in Alberta, located near the southeast boundary of Banff National Park. The city is an attraction itself where you will never run out of things to do. There are plenty of top-tier attractions such as the Three Sisters, Ha Ling Peak, Rat’s Nest Cave, Grassi Lakes and much more!
Canmore is certainly a favorite if you’re looking to invest in a property near natural landscapes. Hence, if you want to own a property with a beautiful view of the Rocky Mountains and earn a passive income at the same time, then purchasing a property in Canmore is the way to go.
Our earlier blog post “Best Places to Airbnb in Alberta” states that Canmore is certainly a catch for property investors. But there are certain factors that investors should consider before investing in a specific location such as the possible property profitability. Moreover, it’s also important to know the Airbnb regulations in Canmore to avoid breaking the laws.
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“Canmore’s economy is significantly supported by worldwide tourism, it is less volatile than the commodity-based local economies in many other Canadian markets. Canmore is quickly increasing in popularity for global real estate investors as more people realize what a smart investment it is.”
– By Devin Sthepens on Canmore Real Estate Group
In this article, we’ll discuss the important metrics in order to gauge the best property investment, specifically when buying rental properties in Canmore. This includes the best website recommendations for property investment, the prices and properties for sale in Canmore, along with each property type’s gross rental yield, cash-on-cash return, and annual revenue.
Pros of buying a property in Canmore
Canmore is one of the best mountain towns destinations in Alberta thanks to its proximity to the Rocky Mountains. But this city is not popular solely for that reason because it also has a fascinating arts & cultural scene. However, what else is there to know? Here are some of the major reasons why you should consider buying a property for Airbnb in Canmore:
Low crime rate
While one should always be aware of their surroundings, Canmore will allow you to take a break from violent crime issues as it’s regarded as a safe town in Canada. The crime rate here is lower than the national average and it’s decreasing year over year.
Canmore offers a safe environment, yet you may need to be aware of other living beings such as bears and elks.
Proximity to other cities
One of the main advantages of investing in Canmore is its convenient location since it’s close to major cities like Calgary and Banff. Hence, traveling between these cities is not a hassle. Moreover, you get to drive while enjoying the fantastic views offered by the mountain town atmosphere
In addition to this, Canmore is located close to major attractions like the Kananaskis Country and Banff National Park. The city is also just 1 hour and 10 minutes drive from the Calgary International Airport.
Dream city for outdoor lovers
Canmore is the perfect location for outdoor lovers and people who want to maintain an active lifestyle. If you like to engage in exciting activities such as hiking, biking, and climbing, then Canmore is the place for you. Aside from great recreational activities, Canmore also offers a thriving arts, cultural, and dining scene with museums, galleries and top-tier restaurants.
Thanks to the number of overnight visitors that arrive in this mountain town each year, the tourism sector is one of the main economic activities in Canmore. This surely is a catch for property investors who are aiming to cater to tourist accommodations.
Cons of buying a property in Canmore
Aside from the pros of investing in a property in Canmore, let’s discuss some of the cons so you can know what to expect when living in this beautiful city. It’s always better to look at the two sides of each coin in order to properly set your expectations.
High cost of living
Investing in a mountain destination surely has its benefits, but sadly, the living costs and housing market prices are not one of them. Currently, the average property price in Canmore is $830K.
While the housing market in Canmore is pricey, it’s still considered one of the cheapest world-class resort towns in North America. Furthermore, being a worldwide destination with a solid tourist market, the return on investment is secured.
airbnb property investment canmore
Is Property Investment Profitable in Canmore?
Using an Airbnb income calculator, it was discovered that a 2-bedroom apartment in Canmore can generate an annual revenue of C$89,296 with a steady occupancy rate of 78% and a nightly rate of C$276.
airbnb property investment canmore
Cheap townhomes & cottages for sale in Canmore
Buying a mountain property will not only let you have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream. It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through.
Here are some of the profitable properties in Canmore along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
124, 901 Mountain Street, Canmore, Alberta T1W0C9
1. Studio-type Property for Sale Canmore
- Located in the Grande Rockies Resort
- Asking Price: C$67,995
| GROSS RENTAL YIELD | 48.67% |
| ANNUAL REVENUE | C$33,096 |
| CASH ON CASH RETURN | 120.26% |
4, 140 Rockyledge View NW, Calgary, Alberta T3G5Y4
2. 1-Bedroom Type Property for Sale Canmore
- Located close to all amenities including shopping, restaurants, bike/walk paths, Rocky Ridge YMCA and easy access to Tuscany LRT
- Asking Price: C$229,000
| GROSS RENTAL YIELD | 24.84% |
| ANNUAL REVENUE | C$56,894 |
| CASH ON CASH RETURN | 24.84% |
201, 1151 Sidney Street, Canmore, Alberta T1W3G1
3. 2-Bedroom Type Property for Sale Canmore
- Few minutes walk from Downtown Canmore
- Asking Price: C$124,999
| GROSS RENTAL YIELD | 61.73% |
| ANNUAL REVENUE | C$58,531 |
| CASH ON CASH RETURN | 159.41% |
2826 16 Street SW, Calgary, Alberta T2T4G4
4. 3-Bedroom Type Property for Sale Canmore
- Near South Calgary
- Asking Price: C$534,900
| GROSS RENTAL YIELD | 25.09% |
| ANNUAL REVENUE | C$133,982 |
| CASH ON CASH RETURN | 49.50% |
3, 806 5th Street, Canmore, Alberta T1W2G4
5. 4-Bedroom Type Property for Sale Canmore
- Located right in the heart of Canmore and just two and a half blocks from Main St.
- Asking Price: C$849,000
| GROSS RENTAL YIELD | 26.97% |
| ANNUAL REVENUE | C$228,996 |
| CASH ON CASH RETURN | 55.15% |
Takeaway
Choosing a specific location to invest in a property is certainly an important decision, so it’s always important to conduct market research for accuracy to avoid losing your time & money.
Canmore offers a fascinating location and a strong tourist market – thanks to its proximity to natural attractions, plenty of outdoor activities and thriving arts & cultural scene. Thus, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted and potential revenue is calculated using an Airbnb profit estimator. However, investors with a limited budget may need to reconsider investing in this market due to its high housing values. But they don’t need to worry as there are still other top markets for Airbnb in Canada with affordable real estate.
