You're thinking to invest in Real Estate? It is never too late!
Investing in Real Estate can be quite lucrative if done properly, but it could also be disastrous if not done carefully. Ensure yourself that your investment is a safe one by using our buyer's broker services, we will educate you on the real estate market and guide you towards the best investment available.
1- Employment Opportunities
Locations with a growing job market tend to attract more people. More people means more renters, especially if you target an area with large rent/owner ration. If you noticed a large corporation moving to the area, migration will follow. Universities, college towns are now also viable option as there is the steady flow of today’s meeting off-campus housing.
2- Location, Location & Location!
The quality of the location will influence the type of renters attracted to your rental property. Proximity to transportation, hospitals, schools, major business centres, restaurants and shopping. The more central location, the greater the demand
3- Rent
For income properties, your monthly rent is your staple. Find out what the average rental rates are in the area. Can you achieve the above or below the average? At the very least, you are going to want to cover your mortgage payment, taxes and miscellaneous expenses like insurance.
4- Safety
No one want to live in an unsafe neighbourhood. You can inquire about crime rates. Statistics Canada is a great resource, and even the local police department can tell you whether the neighbourhood is safe and secure.
5- Amenities
What attractions are nearby that will both be a draw and requirement for renters? Things that must be considered our shopping Malls, parks, movie theatres, gyms and access to public transportation.
6- Schools
What are the top considerations for your renters may hinge on the school district as specific schools that they want their children to attend. Researching the local schools will be a key viable which can increase your rental pool as well as significantly impact the overall appreciation of your investment property.
7- Future development
What developments are planned for the area which would positively or negatively impact the value of your investment property? Is it a high growth area or one that is currently in decline? A neighbourhood in the early stages of gentrification might result in a faster and higher appreciation for your investment property.
8- Inventory
Is there a lot of inventory available on the market? Make sure you look at the market trends for the last few years as you don’t want to be in the seasonal trend only one making your investment decision. You have to review the vacancy rates that have existed based on inventory levels and how this may impact your monthly rental rates.
9- Property taxes
These costs affect your bottom line. Review the taxes and the current market value assessment and determine if they are high, and if so, whether there is a reason.
10- Insurance
These are additional cost that erode your bottom line returns. Of course, you don’t want to invest in areas where you cannot get insurance, like flood planes or possible proximity to natural disasters. You can do your research with your insurance agent to determine the risks of claims that might exist and if you can get coverage at all.
* Some of the data and information was taken from The Gazette, June 15th 2018