Investing in property in Calgary is always a risk. Several factors can have a negative impact on investment, which can deter people from taking the leap.
But if the investors – whether first-timers or seasoned prospectors – were to contemplate investing in real estate, especially considering the high number of homes for sale in Calgary, they have to consider the following factors to make sure their investment is sound.
1- Purpose of the investment
What is the primary goal of the investment? Is it to rent it out or to sell it in a few years? Without this firm base, it will be challenging to determine if the investment is worth it in the long-run. Given the high-risk investment in real estate, not having clarity on purpose may lead to financial distress that can damper any plans. When you have a firm goal, you can make the necessary adjustments to invest.
2 – The location of the property
The old saying “Location, Location, Location” still rules and remains a decisive factor when it comes to investing in real estate in Calgary. The proximity to amenities, such as hospitals, schools, as well as peaceful neighbourhood areas and popular sites, will elevate the value of the property, especially as the years go by. Always consider the location of your investment as it can prove hugely influential in the future.
3 – The valuation of the property
The assessment of a property will have a decisive effect on future sales, insurance premiums, and taxation. It is, therefore, imperative that you check the value of the property to determine if the investment is worth it in the long-term, whether the plan is to sell it or rent it out. Having a thorough understanding of the overall value will help analyze if it is a worthwhile investment. Speaking to a Calgary real estate agent can prove useful in this department, as they will be able to assess the condition and status of the property for you.
4 – The renting rates of the area
If you have bought an investment property, you’re going to need a renter to guarantee that you can pay the bills. For this reason, it is essential to speak to a Calgary real estate agent about the renting rates of the area. There is no point investing in a property if the renting rate can’t get you back the money you need to fund the investment. If the rent is worth it in the long-term, then you can consider making the investment final.
5 – New renovations for the property
Does the property require any upgrades to make it liveable? Better yet, is it worth it to invest in new improvements to enhance the value of the property? Consider the condition of the property, and if you require any additional improvements to the property. This will make a significant dent in your value and mortgage. But the improvements will enhance the value of your property over the years.
When it comes to your next Realtor, make the right choice. With Jesse Davies Team on your side, you’ll be worry and hassle-free. Contact us today and see how we can make your dream home a reality!