Many moving parts go into looking for an investment property in Edmonton. Finding the right property will depend on a few things, including your goals and finances. Here are 3 frequently asked questions about home buyers looking for an investment property in Edmonton!
What are the best neighbourhoods for real estate investment in Edmonton?
Many investors want to know which neighbourhoods are best, and the answer to that is it depends on your investment. First, have your REALTOR® look for neighbourhoods where property values are stable or increasing over time, as it’s a sign of a healthy real estate market. Also, neighbourhoods with high rental demand often have low vacancy rates and steady income rental, which is always good to keep in mind! If you are buying a condo to rent to a student, looking in neighbourhoods like Oliver or Strathcona are good places to start. If you want to purchase a townhouse with the intention of a long-term rental for a family, you might want to look in suburban areas like Terwillegar or The Hamptons.
Will I make more money by fixing and flipping a property?
A fix-and-flip project involves buying a rundown property, fixing it up, and selling it for a higher price. Before you jump into it, though, you need to consider the potential profits against the renovation costs and demand for the property. You and your REALTOR® can figure out what kind of renovation the property needs and how much it can sell for post-renovation. It’s important to work with experienced contractors and other pros in the industry to help you with the renovation process, reducing risks and flops. Keep your eye on current market trends and buyer preferences, making sure your investment property in Edmonton aligns with the market. Fix and flip projects certainly have the potential to earn you a good profit, but nothing is guaranteed. So, be thoughtful, cautious and thorough in your approach.
How do I finance my real estate investment property in Edmonton?
Several financing options exist, like banks’ conventional mortgages, private lenders, or partnerships. Conventional mortgages from banks or lending institutions are the most popular choice. They are great if you have a good credit score and a stable income. Private lenders offer alternative financing solutions with more relaxed terms and faster approval processes, but they may come with higher interest rates and fees. If you want to share the risks and rewards of the investment property in Edmonton, you can collaborate with other investors or entities through partnerships. To make the right decision for your investment goals and financial situation, you have to work with a mortgage broker specializing in real estate investments. Understanding your chosen financing option’s terms, interest rates, and repayment schedules is fundamental to minimizing financial risks.
Realty Unleashed can find you an investment property in Edmonton!
Realty Unleashed has helped many clients find the right investment property in Edmonton and Calgary. Many moving parts go into finding the right property, and we would love to help you through the process! If you are looking for a Calgary or Edmonton REALTOR®, please fill out the form below and someone from our team will get back to you soon!
