YES! Plenty of money can be made out of Edmonton rental properties this year and since you’re reading this article, it’s safe to assume that you’re on the catch as well.
This Thursday, we listed down the most important things that you should remember before you start this business venture. This path is quite exciting (just ask our Managin Partner, JP Dumlao) and risky as well.
You can make money-sure, BUT you could also lose some (or plenty of it) as well. Take caution and read on.
Note: You can access all our available Investment Homes For Sale in Edmonton through our Edmonton MLS Listings page.
REMEMBER TO: HAVE YOUR FINANCES IN PLACE
A low-interest mortgage and stable “primary” income are that things you should put in place first before you purchase a rental property. Emphasize on the primary income. You should treat a rental property as an alternative source of income, if you rely solely on the money that will be coming out of the rent, then are inviting financing trouble.
First off, rental properties always have the risk of having troublesome tenants. You can do all the background investigation you want on the prospect tenant, but when sh*t hits the fan and that tenant cannot anymore pay his debts (like Greece) then you’ll be in big financial trouble yourself.
In an emergency situation like this, you will need to come up with money to do repairs (if necessary) and pay for your mortgage at the same time. If you have a stable primary source of income, you can simply write-off the unpaid debt and move on to finding the next tenant. Of course, you can always opt to sue the tenant and seek payment for damages—that is if you have the time and extra resources.
Check out the mortgage rates in Edmonton: 2015 Edmonton Mortgage Rates: Low 2.20%, It's Time To Buy!
REMEMBER TO: ANALYZE AND STUDY THE CURRENT REAL ESTATE ENVIRONMENT
Sure sounds boring (we know) but it’s a must if you’re really going to take this business venture seriously.
There’s a saying that “you should not investment in something you do not know”. Our Senior Partner, Serge Bourgoin had been in the financial sector for over a decade and he’ll be the first to tell not to put your money in an investment that you’re virtually illiterate of. That simply is just being irresponsible in handling your financial resources.
The Edmonton real estate industry, like any other industry, has a cycle. It’s important for you to know where the industry stands today in order to determine if you’re going to buy or pass. Obviously, this article is written to encourage to buy-in this time of the year. Mortgage rates are low, home prices are attractive and there is a rise in the rental side of the industry.
DON’T FORGET TO: PURCHASE THE RIGHT PROPERTY FOR YOU
Here’s the last bit that we’d like for you to remember, you can be tricked into thinking that a particular property is perfect for your intended venture. Sure, the property has great square footage, good location and a decent interior. With all other things being equal, the main question you need to answer here is-can you afford it? The right investment property for you is the one that you can afford without stretching your budget.
Start low then work your way up to the high-end. Check these properties here which starts at below $200,000:
View more investment properties here: Exclusive Homes For Sale in Edmonton
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