Purchasing real estate in Calgary or pruchasing a home in Okotoks has been a profitable option for investors for a very long time.
Many southern Alberta investors have made hundreds of thousands of dollars (in some cases millions) by purchasing properties, building equity, and then selling for a profit.
If you have questions about how to start building your real estate portfolio just ask Okotoks Realtor Jay Magnussen - an expert on the local rental market and a real estate investor himself!
Here are four key considerations when deciding to invest in housing in Calgary or Okotoks:
Purchasing a property and renting it out to cover the mortgage may seem like an attractive opportunity, but as the old saying goes "don't bite off more than you can chew." One of the most common ways to lose money in an investment property is to fail to rent the property out and then not being able to afford the monthly payments. Try to budget so you can afford to pay the mortgage on a monthly basis even if you can't rent it out (due to some unforeseen circumstance).
Location is one of the most important points to consider when purchasing a property for investment purposes. Look for nearby rent-drivers, such as colleges/universities (MRU, SAIT, UofC), public transportation, highways and other attractions. Of course, the better the location is, the more expensive the property will be, but the easier it will be to rent.
3) Condition of the property
Don't let the cosmetics of a prospective property put you off. Put on your investor hat and look at everything with a dollars-and-cents point of view. Ask yourself, "What can I do to improve this place?" or, "How will adding this or fixing that impact the value of the property?" Plus, if a property meets most of your criteria but isn't the prettiest looking home on the street, you may be able to get it for a lower price.
4) Do your research
Study the local market or ask our team of Okotoks Realtors for advice, consistently review the stats and look at the properties available in your target area. You never know when the right property at the right price will present itself. Our Remax real estate team can set up an automated search will will send you homes for sale as soon as they are listed to keep you in the know about the cost of property.