If you are looking for a long term investment opportunity that generates income month to month, can have exceptionally high returns when you sell, gets you off the mutual fund roller coaster and gives you something tangible that gives you more control, then investing in real estate may be right for you.
Real estate investment opportunities traditionally involve properties that produce income. When properties are held for appreciation in value, they are also referred to as investment properties.
There are many different types of properties that investors can purchase and own, depending on a variety of factors that will best suite the circumstances of that unique investor. Typical examples of revenue or investment properties most commonly held by investors include:
Single family homes, condominium townhouses and apartments
Duplexes (2 attached homes)
Triples or 4plexes (3 and 4 attached homes respectively)
Rooming houses (where bedrooms are rented out separately and kitchens, bathrooms and other living spaces are shared)
Low and high rise apartment buildings
Industrial and commercial buildings
Raw land held for appreciation
Properties that can be fixed up and resold
In making your decision to purchase investment and revenue properties in the Calgary area, there are some factors that should be carefully considered, especially for people who are who are just starting to explore real estate as an investment. Experienced investors can always review these factors to stay focused.
What are your investment goals and objectives?
How much time are you willing to spend looking after and managing your properties?
How much capital are you able to contribute?
Will you require additional financing and if so, where will you get it?
How much return do you expect? In what time frame?
Keeping these in factors in mind, there are other considerations:
Economic conditions. Is the market favourable for buying this type of property? What rates are available for mortgages?
Location, location, location! Consider the neighbourhoods that your property will be located in. How is the rental market in the area? What type of tenants will you be likely to get there? Is the area within your budget? Is it conveniently located so you can readily access your property for maintenance or showing prospective tenants?
Investment term. Are you buying to hold onto the property so it can appreciate while your tenants pay off your mortgage? Are you looking to renovate and get a quick sale?
Rental market. Is there a demand for rentals in the areas that you are considering? Close to inner city, near the C Train route and close to U of C are some areas with high rental demand in Calgary. Is there a demand for newly renovated properties in the area? You don’t want to find yourself with the most beautifully renovated home in a generally poorly maintained neighbourhood.
Education is key to successful investing in revenue properties. The more thought and planning and goal setting ahead of time, will result in a safer and more enjoyable investment experience with higher returns and less stress.
If you are thinking about starting to invest in real estate or looking to buy investment or revenue property in the Calgary area, I invite you to contact me with your questions or a no obligation consultation.