Real estate in Calgary has shown to be profitable. With an investment property in this area, you can generate ongoing cash flow from rental income in addition to long-term capital gains. Additionally, you can get money by using its equity to buy other properties.
Calgary is Canada's fourth-largest city, making it simpler to identify your ideal investment property there. There are a tonne of properties available. Unfortunately, this makes choosing the right one for you a little difficult. But I can guide you towards the best course of action.
1. Find out how walkable the property is.
Make sure a Calgary investment property is walkable before buying it. The greatest location is one that is close to the city hub. Since it is easier for them to collect supplies and fulfil their other demands when a rental is more walkable, the majority of tenants prefer those locations. When looking for somewhere to eat, work, or have fun, individuals have a wide range of possibilities to choose from. Additionally, walkability aids in attracting tenants who have no qualms about paying a higher rent.
2. Verify that the property is in a desirable neighbourhood.
There are several neighbourhoods in Calgary, including Beltline, Victoria Park, Crescent Heights, and Brentwood. Which neighbourhood is the finest place to look for an investment property worth your money?
Crime danger is one of the items to consider. It could be difficult for you to get tenants if you choose a neighbourhood with a high crime rate.
It is advisable to assess the rental markets in the city's various neighbourhoods. When most of the rentals in a neighbourhood are still vacant, something is wrong. It might be brought on by ongoing power outages or insufficient water supply. The last thing you need is a rental property where your tenants would constantly complain or endure hardship.
Before looking for an investment property in a neighbourhood, you can also take its general state into account. Are other properties kept up to date? What degree of cleanliness is there?
Keep in mind that all of these factors will directly affect your home. Nobody wants to live in an unclean neighbourhood when the bulk of the homes are in poor condition.
The renters in your rental home will be secure, healthy, and content if you pick a great neighbourhood.
3. Take into account the nearby amenities
This is an additional method to employ when looking for a profitable investment property in Calgary. The following are some amenities to be on the lookout for:
- Schools Hospitals
- Bars and eateries
- Facilities for parks and recreation
- Shopping malls
- Transportation in general
The comfort that these amenities provide is something that most tenants yearn for. Renters will certainly compete for your investment property, for instance, if it is a short distance from a medical centre.
This is due to their immediate access to medical care in the event that something were to happen to them or their loved ones.
In order to draw tenants, the property you want to buy needs also offer certain features. A fitness centre, internet connection, and large, free parking places are a few examples.
4. Think About the Risks
Most investors forget the hazards involved because they are so excited about all the benefits of owning an investment property. For example, even though you'll receive a passive income, certain renters can be a real pain. It can take some time before you start to benefit from the property's advantages if you don't find enough renters because you'll have to cover all the costs.
Additionally, there is no assurance that your rental revenue will cover your mortgage payment in full.
When purchasing an investment property in Calgary, consider all of these unfavourable scenarios and be prepared to cope with them.
5. Ask for Assistance
It's simple to plan out how you'll buy an investment property. Once you start hunting for it, things might not be so simple. Thus, you shouldn't be reluctant to ask for assistance. Get a top Calgary realtor that focuses on investment properties to start. The majority of us are knowledgeable with the real estate industry in this city. We can lead you and give you sound counsel on how to succeed as a real estate investor.