10 Things to Consider for Calgary Real Estate Investment Properties
What should investors be looking for when they are thinking of purchasing an investment property in Calgary? Jesse Davies Team knows how overwhelming and stressful it can be for investors. We have the knowledge and experience in finding rental properties and understanding the rental market to get you started.
Investment Property Considerations
Below you will find ten things that investors should always evaluate and consider when going after that ideal real estate investment property.
- Location: Look for properties with a good Walk Score, close to amenities, transit, hospitals, schools, restaurants, and shopping. The area that you choose will have an impact on the type of renter that will be attracted to your rental property.
- Employment Opportunities: Picking a property with a growing job market means that more people will be migrating in search of new employment opportunities. When new companies and colleges are in the area, you can count on the increasing number of renters looking for a prime location.
- Condo Fees: If you are looking into purchasing a condominium as your real estate investment, one of the most important things that you need to consider are your condo fees. The proper investigation should take place to avoid any unnecessary costs. When buying a new condo, you are required to pay the developer an occupancy fee— also known as “phantom rent.” The occupancy fees cover the period between the time you take occupancy and the time you take ownership.
- Rent: Do your research and find out what the average rental rates are in the area. You should at least try to cover your mortgage payment, property taxes, and insurance.
- Property Taxes: Review the property taxes and the current market value assessments to see if they are high and if so, why.
- Safety: Safety is an essential factor for renters to choose their neighborhood. You can find out about crime rates with the local police department, or you can search through Statistics Canada.
- Schools: Choosing a rental investment property in a good school district is also something to consider as renters with children will be looking into moving near the best schools.
- Inventory: Look at the market trends and check if there are many houses for rent. You don’t want to be in a seasonal period when buying your investment property. Review the past vacancy rates based on inventory levels and see how this may impact your monthly rental income.
- Insurance: You want to avoid investing in areas that would be hard to get home insurance, such as in the flood or the floodplains zones. Your insurance agent can help you research and find out if any claims exist and determine the risks.
- Future Development: Look at future development plans in the neighbourhood and what kind of impact they would have on your property – good or bad.
Investing in a Calgary Condo For Sale
Single family homes and condos are the best and easiest investment properties to manage. If you are looking for something that is low maintenance, then a condo would be your best choice. Generally, Condominium Corporations will be responsible for external maintenance, upkeep of the common areas, and water usage. The proper research and comparative analysis will minimize your risk for unnecessary expenses.
When you are ready to purchase an investment property, consider selecting the right Calgary realtor to provide you the guidance and advice to get you on the right path. Jesse Davies Team makes the process of selecting and buying your investment property much more comfortable. Contact us today and see how we can start to build your wealth through real estate investments. https://jdrealestatecalgary.ca/