Investing in Edmonton Real Estate

Posted by EdmontonRealEstate.ca Team on Tuesday, May 21st, 2019 at 10:07am.

What to Know When Investing in Edmonton Real EstateThere are so many reasons for wanting to invest in Edmonton Real Estate right now. But just remember that when you're buying a property as an investment, it's still important to consider everything like you would if you were buying your own home. A wrong move can easily lead to headaches that could end up costing you money.

Nowadays, it's a lot easier for investors to operate in Edmonton. For one, there are numerous Edmonton real estate directories available on the Internet. These portals enable you to have access to almost every property for sale in Edmonton at the click of a mouse button. The advantage of using such resources is that they provide one-stop shop services by listing contact details of the real estate who is listing each property.

For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.

What to Consider When Selecting an Investmetn Property

You need to consider several factors when hunting for an investment property in Edmonton. Consider the 'potential' of the home more than its actual sales price. Research about the latest developments in Edmonton, and try to identify up-and-coming areas of the city. You see, there are many properties located in areas that will be developed in the near future. Many real estate magnates have made it big with this kind of real estate strategy.

Different Strategies for Purchasing Investment Homes

Another tip is to look for foreclosed homes in Edmonton. These will undoubtedly be available at a lower cost, although not all of them are in such good condition. The trick here is to find the ones that need only minor repairs. And save on costs, the quickly renovate the home, and get it back on the market.

What Type of Investment Property Should You Invest In?

What type of property should you invest in? The answer to this question depends on current market trends. For example, in the summer season houses are usually more in trend, while condos tend to be popular all year round. Getting a feel of the market through thorough and careful research will give you some better insights.

Income-Producing Real Estate Investment Types Worth Considering

Those new to real estate investment may have a difficult time deciding what type of real estate investment to add to their portfolio. Explore some popular types of real estate investments to find out which one may suit specific goals.

Non-Residential Real Estate

Aside from stocks and savings, non-residential real estate offers Canadians a way to add an income stream that can be controlled to an extent. A history of high confidence in real estate investment means that investors continue to get significant returns from this investment option.

Commercial properties often involve fewer tenants and long-term leases. Tenants hope to secure better rates and investors benefit from building relationships with professionals interested in maintaining the conditions of the property. An office building is an example of a commercial property.

Commercial, industrial and retail are three types of non-residential real estate. They are similar in that all allow for long term leases and professional tenants. Retail may be attractive in that investors may also be able to get a percentage of sales from their tenants. This often serves as motivation for making improvements to drive traffic to retail properties. Examples of retail real estate are shopping centers, traditional malls and strip malls. Properties such as warehouses, storage units and assembly plants fall under the category of industrial real estate.

Residential Real Estate

Investors may choose from single-family or multi-family buildings when looking at potential residential real estate opportunities. Owners or investors receive monthly payments and short leases allow for regular increases in rent. A lease is generally for 12 months but longer term leases are possible. However, there may be lapses in payments when tenants move out.

Mixed-use real estate allows investors to benefit from short-term and long-term leases. The building may house commercial, retail and/or residential tenants. Investors can depend on longer term leases for steady revenue from retail and commercial tenants, while being able to take advantage of demand in the market for residential housing.

Protection for Investors

Investors may want to protect their personal assets when getting into real estate investment. Some may choose to decrease their risk and invest with others in a joint venture or limited partnership. Pooling resources can make it easier to look into additional investment opportunities. Investing through the creation of a legal entity, such as a limited partnership or limited liability company, can also provide investors with another layer of protection as they diversify their income streams.

Research Carefully Before Making a Purchase

Above all else, remember that the key to success to investing in Edmonton real estate is careful research. The more you know the market, the better you will be able to spot a good deal. To do this, it would be great if you could develop a relationship with a trusted real estate agent, who can notify you of any likely new home that comes up.

For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.

By Justin Havre

 

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