Over the past five or six years, investing in real estate in Calgary has gotten a negative reputation. After the housing collapse in 2008, home values fell, dragged down by foreclosures as well as the fact that there were very few buyers out there, meaning that prices had to drop because of the simple effect of the law of supply and demand. Now that things are starting to turn around, there are many opportunities to find investment property; Calgary is just one of many markets available. Take a look at some of these tips that other Amansad Financial customers have followed when looking for Calgary investment property.
Investment Properties Calgary
Keys to Investing in Property in Calgary
1. It’s tough to flip a unique property.
It’s true that buying that one house with the widow’s walk or the turquoise paint will guarantee that you get a conversation piece. However, these homes don’t flip easily. Instead, look for a floor plan and features that will appeal to your everyday couple. This way, you’ll be able to get the house out on the market and sold as quickly as possible.
2. Envision what a property can become.
If you’ve ever seen that Tom Hanks movie “The Money Pit,” you know there are limits to this. However, if you can walk into a property and envision how great that property could be with some minor renovations, you will do well in real estate investments. Always look at where you can take a property — not where it is today. If there is no room for improvement, you will have a hard time turning a profit.
3. Find a group of repair professionals that you trust.
Once you have a few Calgary investment properties up and running as rental income, it’s important to have a collection of pros who can swoop in, repaint, put down new flooring when needed, and make repairs so that the next tenant can move in. A lot of the time, tenants don’t treat properties that do not belong to them with a lot of respect, so after a moveout, there can be a lot of repairs that are necessary. Each day you have to spend looking for these pros is another day of lost rental income.
4. Keep a reasonable scale to your investments.
You’ll have a lot more success renting out one- and two-bedroom units in Calgary. Larger units mean families with children in most cases, which means a lot more upkeep for you as the landlord. Instead, focus on flipping smaller properties by making reasonable yet attractive improvements, or make renovations that make your properties attractive without being lavish. The more you spend, the more you’ll have to charge to make a profit, and you’ll price yourself right out of the market.
5. Don’t buy the nicest house in the neighborhood.
Calgary Investment Properties
This is sound advice whether you are planning to live in the property or use it as an investment. If you live in the nicest house in the neighborhood, you’ll be frustrated by all of the dilapidation around you. Even if you’re in a gentrifying neighborhood, if you buy the nicest house, you’ll never turn as much of a profit as the guy who bought an older house and did the improvements himself. In a rental situation, you won’t be able to get tenants that match the quality of the house, because they won’t want to live in the neighborhood’s nicest dwelling.
So are you looking for a condo or townhouse as an investment to rent? Consider 2520 Palliser Drive SW #1808. Listed at a steal at $212,000, this property (MLS C3633861) features hardwood floors and exposed beams in the upper floor. The condo is pet friendly and sits attractively within one of the more mature condo communities in southwest Calgary.
Maybe you’re more in the market for a single family home. 6519 36th Avenue Northwest (MLS C3628095) is a cozy, classic three-bedroom home. You can use the third bedroom as a study or office if you don’t have children yet. The back yard features an attractive deck that looks over the entire lot. An open plan on the main floor gives the living room and entrance the feel of considerable space, and the kitchen allows in a great deal of natural light.
If you are looking for investment properties in Calgary, Amansad Financial has connections with realtors who can find you the right property for your needs. Give us a call today!