Calgary is a growing city with a booming real estate market, making it an excellent destination for real estate investors. Investing in Calgary real estate can bring in high returns if done correctly. However, as a beginner investor, you might not know the ins-and-outs of the industry, causing you to make costly mistakes. Therefore, before you jump into the market, it is crucial to educate yourself on the basics and learn from those with experience. In this blog post, we will enlighten you on the top ten tips for investing in Calgary real estate.
Research, research, research
Before investing, it’s mandatory to conduct extensive research to know the city’s real estate market well. You should evaluate and analyze every detail of the area, including living permits, the market’s state, mortgage rates, the land’s value, and buyers’ behavior. Information like this should determine if a potential investment is worth it or not.
Become familiar with the area
You should visit and explore the area you intend to invest in personally. Check that it has the amenities and infrastructure that attract a high demand from renters. The amenities you should have in mind include proximity to work, parks, grocery stores, restaurants, schools, hospitals, and improved transportation services.
Establish your budget
Determine how much you are willing to invest in real estate before investing in Calgary. Understand your long-term and short-term financial goals as they inform your budgeting. You may choose to invest in student housing, residential properties, or commercial entities.
Join investment groups
Joining investment groups offers numerous benefits to a beginner investor, such as a group that frames the best investment deals. They share information on the best deals and provide the investment capital to buy real estate, making your investment process easier.
Hire an experienced realtor
Hiring a reputable realtor is valuable for a beginner investor. Apart from knowing the area like the palm of their hand, the real estate agent will advise you appropriately and bring you closer to the best investment deals. They keep you from making harsh mistakes that come from newbie investments in the real estate market.
Invest in growing areas
Investing in growing areas guarantees that the property acquired will increase in value over time. So, getting property that will appreciate as time passes is essential. Examples of areas in Calgary that are growing include East Village, Beltline, and the Mission district.
Analyze more than the average yield
The initial investment reward that investors get regularly is the return on investment (ROI), measured in the property's cash flow. However, it's essential to consider other intangible benefits that come with investments, including property appreciation, sustainable demand, and tenant quality.
Check your Taxation as a Non-Resident
As a non-resident, investing in Calgary Real Estate has some tax implications that may not be immediately evident. Thus, it’s essential to check the tax laws and regulations for the region as it will inform your investment strategy.
Build sustainable relationships
Investment in real estate is a long-term investment, and forming sustainable relationships with key partners such as contractors, real estate agents, and home inspectors is advisable. It ensures the investor receives useful advice in managing the property.
Maintain Properties
After buying properties, maintain them diligently and keep the tenants happy. In addition, keep detailed records of service requests, leases, receipts, and expenses, ensuring proper maintenance and added value when you decide to sell the investment property.
Investing in Calgary’s real estate market can be a lucrative venture that pays huge rewards if done correctly. The tips above will help you become a seasoned investor able to take advantage of the real estate market's opportunities. Keep in mind that as a beginner, research, planning, and learning from others' experiences are crucial before investing. Once you’re ready, don’t hesitate to embrace this fantastic opportunity in the heart of Calgary!