When done correctly, investing in Edmonton real estate will see you earning equity and cash flow. Investors profit off real estate by owning properties and renting them out. A financial cushion needs to exist if you want your investments to work out; it will be your responsibility to keep up with maintenance costs, mortgage interest, etc. If investing in real estate is something you’ve found yourself interested in, here are some logistics you should consider.
Living near amenities, schools, trails, and popular spots will always factor into your rental value. Suppose you are investing in a property to rent to students. In that case, you want to be near Macewan University or the University of Alberta. Think Westmount, Oliver, Strathcona, and Garneau. If you’re looking to invest in a home for long-term family renters, looking in the suburbs around great schools and parks is probably a good start. Think Terwillegar, The Hamptons, Windermere, and Edgemont. REALTOR.ca is the best place to begin your property search.
Know your budget
Arguably the most critical piece of the investment puzzle will be your budget. Figuring out what you can spend and what you can afford to upkeep will make it easier to begin your property search. Sorting out your finances should take place before you even contact a real estate professional. After being approved for a mortgage, you’ll know where you can start looking! Remember that you’ll be paying out both REALTOR® and legal fees and any other fees that arise during the buying process.
The anticipated return on your investment
The odds are that if you’re looking to buy real estate to utilize it for investment purposes, you’ll want to get it on the rental market sooner rather than later. You will need to consider how long it will take to secure a renter and one you trust. Some investors want long-term renters in their properties, and others are alright with short-term rentals. The latter typically depends on location; for example, if you purchase a condo in downtown Edmonton, you can always expect to find a renter, so short-term might be acceptable. You should be aware of how much profit you anticipate earning to select the best option for your investment. In between tenants, you will be responsible for paying the mortgage and utilities, which renters typically cover. That is another thing to keep in mind when considering your investment return.
The traits of the home
The state of the property you plan to buy is an essential element to consider. Attractive properties typically have structural integrity, a good layout, and excellent features like a balcony or in-suite washer and dryer (if you were to purchase a condo, for example). Another element of the home worth considering is the space. How many bathrooms do you need? People tend to think that they can make do with one shower and then quickly realize that it’s hard to live with multiple people with only one shower. If your goal is to utilize your property for a long-term rental and you’re hoping for a family to move in, you will want to think through what the home can offer multiple people living in one space. Think bathrooms, kitchen space, a finished basement, etc.
The bottom line
Investing in Edmonton real estate is a great way to see a profit when done properly. Once you have gotten your finances squared away and know what kind of property you’re looking to invest in, you can begin looking at the market. If you haven’t found a REALTOR® yet and are looking to work with a professional in Edmonton or Calgary, we’d love to hear from you! Our team is ready to help you find your newest investment property — you can connect with us here.