Investing in real estate is a risky business. It’s a fact recognized by investors in Edmonton all the way to Manila, the Philippines. It’s the universal truth.
But that’s not to say that it's bad business. Sure, the Canadian government may change the mortgage rules but if you work smart enough, real estate investing can be really profitable venture.
If you’re really serious in going into real estate investing, here are a few things to consider in order preparing yourself in this exciting business.
- ALWAYS SEARCH FOR EXCEPTIONAL PROPERTIES
This means combing through for sale listings in the neighborhood of your interest and finding properties with the potential for a grate rate of return for your money.
Remember, with or without the new mortgage rules, there will be a demand in the rental market and home values eventually rise in the long-term.
- ACQUIRE PROPERTIES THAT ARE CASH FLOW POSITIVE
This is in support to our point #1. Always do the math, especially in this market environment. More money in, less money out!
If you like to crunch the numbers, here’s an awesome Rental Property Calculator that you can play around with: Rental Property Calculator
- OBTAIN PROPERTIES THAT YOU TRULY APPRECIATE
This business takes time, effort and devotion to successfully pull-off. Unless you’ll be focusing on flipping homes, you should own real estate investments that you will love.
- EXAGGERATE THE EXPENSES
Once you have your real estate investment, you have to anticipate that things will eventually be broken or damaged. Sometimes it’s normal wear and tear, other times, it’s because of your tenant. When preparing the budget for repairs or replacements, always try to exaggerate the expenses. In this game, it’s better to be prepared than sorry!
- TARGET THE WORKING CLASS MARKET
The safe bet for your first rental investment is in a neighborhood close to schools or offices. People studying, migrating or simply moving to the neighborhood to work will need a place to live-in… and that’s going to be your place. This strategy will help keep your vacancy rate low and profits high!
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Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
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