Hands down, real estate is one of the best investments all over the world. It rings true from Edmonton to Manila, Philippines. For those who are looking to diversify their investments out of the stock market, we at Team Leading Edge have pieced together the three main ways on how one could make a profit out of real estate investments.
First things first, unlike stocks, bonds and mutual funds, you can buy real estate properties below market value.
For newbie investors, retirees and all those who would like to have passive income, owning rental properties is king. Cash flow is the main focus when investing in rentals and a perfect way to boost cash flow is buying properties that are below its market value, do the necessary renovations and determine the ones that will provide steep rent to purchase price ratios.
Depending on your neighborhood, single-family rentals yield better returns that multifamily ones.
Flipping properties is simply defined as buying a property, fixing it and selling it for a higher price. The success of flipping properties mainly rely on the real estate market condition. During a boom period, which is what we see now in the Edmonton real estate market, flippers have the freedom to dictate their price.
If and when you would like to try flipping, foreclosed properties such as our listing here and fixer-uppers are the main sources of homes.
Real Estate Investment Trusts (REITs)
Investopedia defines REITs as “A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages”.
It’s one of the easiest way to invest in real estate because the trust is the one that determine what to invest in and takes care of all management concerns. As a warming, REITs can be like the stock market, your profits may fly or dive depending on the performance of the trust.
Here’s a list of available REITs in Canada and also, here’s an article made by the financialpost.com entitled “Canadian REITs based on foreign assets on a buying spree”
There is a few more ways to make a profit out of real estate investments like vacations rentals but the three mentioned above carries the mother lode.
To find all the available Edmonton homes for sale, you may check out our Edmonton MLS listings as it is one of the fastest and up-to-date MLS in the market.
Carpe Diem! Good luck on your investment!
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