This past week, we’ve been advocating strongly on the utilization of Edmonton real estate properties as an investment option to grow one’s wealth.
Yes! Now is the best time to for you to join the fray and become a certified Edmonton real estate investor. Single family homes offer a great ROI to those who are willing to take the risk.
Below is are brief descriptions of the pros and cons of owning an investment home in Edmonton.
Note: Remember, you can access all our available investment Homes For Sale in Edmonton through our Edmonton MLS Listings page.
FINANCES. One of the most important factor on the list. Most single family homes that are being rented out are low-maintenance so that means lower cost on the expenses for repairs. In a correctly structured lease agreement, the tenants can and will be responsible for landscaping and some minor repairs. Tenants are also responsible for the payment of utilities.
You earn big from the rent and pay little for the tax and insurance. WIN-WIN.
LESSEE. We put the lessee (or more commonly known as the “tenant”) on the PRO side because, more often than not, tenants are the ones the will provide you the money and will be the ones to take care of your property at the same time. With a thorough background check, you can have yourself a really good tenant that pays on time and is responsible enough on the use of the property.
Okay, these two factors are enough to fill our PROS section. Now we go to the CONS.
UNOCCUPIED. There is this risk that the investment home will be vacant for a certain amount of time. Although we mentioned in the beginning that rental homes are low-maintenance, the amount of time that it remains unoccupied means that you will lose a few dollars for its upkeep. This one thing that you will surely need to avoid.
EXPENSES. Now, now, don’t get confused on this one. In our PROS section, we mentioned that “finances” is considered as the upside. In here, we would like to show you that it’s a double-edged sword. Sure, finance will be acknowledged as an advantage if the investor pulls it off properly.
But it seems that there are still a few investors that are walking on the losing end. Rental properties also need maintenance, repairs, renovations and sometimes upgrades. IF you, as the investor, don’t have spare money or emergency cash on hand to accommodate these things, your expenses would be hit and the finances could get ugly.
You might lose money instead of earning one.
All good businesses have a fair amount of risk associated with them. If you can mitigate or avoid these potential risks, then surely, success will your friend.
There are plenty of available investment homes in Edmonton, so be sure to do your research and stay away from the CONS that we’ve mentioned here.
You can call Team Leading Edge to help you get started with this business venture anytime. Their skills and experiences will be most beneficial for you. Good luck!
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