You may have read our recent article about why investing in Edmonton real estate can be lucrative when done correctly. We outlined a popular way investors look to profit off real estate, and that is by owning rental properties. However, it requires some financial cushion and the means to keep up with maintenance costs, mortgage interest, etc. If you’re looking to own a rental property or several, you may be looking for something a bit newer and more up-to-date. Perhaps in a particular, more favourable neighbourhood. If you’re deciding where to invest in Edmonton real estate, check out these 5 neighbourhoods!
It’s no secret that the Southside of Edmonton has been roaring for the last few years. It’s become increasingly appealing for young families and newlyweds. There are excellent schools in the area, and an influx of businesses have begun moving south. The nearness to popular Edmonton spots like IKEA, Southgate, and South Common is a nice bonus as well. Terwillegar is home to plenty of single-family homes, as well as townhouses and duplexes. If you’re in the market for a newer home to invest in, this is a great area to begin your search.
Garneau is an incredibly popular part of the city, primarily thanks to its close proximity to the University of Alberta. For a student, there is nothing better than the luxury of walking or biking to school. It means they can save on parking, gas, public transit, etc. Garneau is no stranger to high-rise condos and low-rise apartment buildings, and of course, the charming character homes in the area. With the University of Alberta hospital also close, it’s a popular area for resident doctors and nurses.
In recent years, Ritchie has gained considerable favour, with many millennials, families, and professionals happily calling it “home.” Residents of the neighbourhood are welcomed with trendy cafes and eateries and some of Edmonton’s best outdoor culture, with Mill Creek Ravine nearby to cycle and jog. Ritchie is a great spot to consider investing in, especially if you’re looking for long-term renters. You will be pleasantly surprised to find out that people who move to Ritchie generally are in no rush to leave, thanks to the fun lifestyle culture that the area provides.
Although an older area of Edmonton, Westmount still proves to be a crowd favourite. Just off of 124 Street, Westmount is home to an eclectic mix of historic character homes, newer infill dwellings, and single-family homes. With the neighbourhood being in central Edmonton, it’s easy to access most places in the city from your home. For students at NAIT or MacEwan University, Westmount is undoubtedly a favourable neighbourhood thanks to its proximity. The Brewery District is just a hop, skip, and jump away, making Westmount a popular place to settle down for young families and college-aged folks.
Another centrally located area of the city, Oliver’s accessibility to some of Edmonton’s best amenities is a real win. Oliver is one of Edmonton’s oldest neighbourhoods, which means you will see plenty of single-family homes, as well as older apartment buildings and condominiums, which are always favourable for renters. The area is close to Jasper Ave and The Brewery District, meaning nightlife, coffee shops, restaurants, and gyms aren’t more than a few minutes away!
If you have the tolerance to interview, help, and oversee tenants, owning a rental property is a great investment opportunity. Typically, you charge enough rent to cover your expenses initially, which means things like taxes, maintenance, utilities, etc. Because the Edmonton market is constantly evolving, your rental property will be susceptible to ups and downs as well.
There is a long-term appreciation of the housing market. One of the luxuries of investing in real estate is generating cash flow. Your cash flow increases after mortgage payments and expenses are made. Paying down your mortgage means you build your equity. When done right, it’s a great way to earn a profit!
Purchasing a rental no doubt requires commitment. You need to be prepared to interview and oversee tenants and help with any maintenance issues that come up. You will need to cover utility costs and, of course, your mortgage in between tenants. Just like the market, your rental property will be susceptible to ups and downs. Ensuring that you will see a profit from your property, you’ll have to come up with a number to charge your tenant. The intent is always to have cash flow coming from your rental.
Whichever Edmonton neighbourhood you choose to invest in, the opportunity to profit off real estate is thriving here in good ol’ YEG.