Investing in real estate can be quite overwhelming to newbies because it’s a broad field. Many beginner investors fail because they jump into this industry without proper knowledge and preparation.
However, professionals at REP Calgary homes for sale advise that it’s vital to ask real estate questions if you want to be successful. It’s quite impossible to understand everything about the world of property investment when getting started.
The only way of familiarizing yourself with the latest trends and market statistics is by asking experienced realtors questions. That way, you’ll avoid making unnecessary costly mistakes. This article highlights some critical Calgary real estate questions and answers.
- What’s A Good Investment?
- How Much Money Does An Individual Need To Start Investing In Property?
- Should I Invest In Calgary Real Estate Market?
- How Does An Individual Choose The Investment Property To Buy?
- Does Owning A Condo Have Advantages?
- Is There An Excellent Time Horizon For Investment Property Holding?
- What Are Some Of The Risks Of Investing In Real Estate?
- How Does One Avoid Problems With Tenants?
- How Can I Find Good Tenants?
- How Does One Keep Renters From Damaging Property?
- Bottom Line
What’s A Good Investment?
This type of investment gives enough cash flow that can hold the property. Using this simple evaluation technique can help you to withstand any rent reduction that mat occur.
How Much Money Does An Individual Need To Start Investing In Property?
If you intend to invest in real estate using a mortgage, be prepared to have money for a down payment because most banks expect a 20-30% down payment. However, if you have enough money, you can finance your down payment.
You can do this by applying for an equity mortgage using your existing property as collateral, or an unsecured credit line.
Many properties can make excellent investments but require lower down payments. However, this can reduce your property choices. Therefore, it would be best to find a rental house that suits your needs and situation.
Should I Invest In Calgary Real Estate Market?
Calgary can be an excellent market to invest in because of its population. It’s currently the fourth largest city in Canada and has a significant rental population that needs rent houses.
Unfortunately, the rental houses have remained stable for many years despite the increase in the rental markets. This pressurizes the rental industry, but it’s an excellent investment opportunity. Also, there are no rental controls in Alberta, making it easier for landlords to raise rents.
How Does An Individual Choose The Investment Property To Buy?
Calgary has many investment properties that you can select, ranging from condominiums to apartment buildings. The type of property you select depends on the work you intend to do and the sacrifice you’re willing to make.
If you’re looking to invest in a property but are working full-time, it would be best to own a condo.
For a condo, your primary responsibilities will be leasing the property and doing the interior maintenance. This lessens your work compared to owning a house that would also require you to do external maintenance.
However, you’ll have to pay some condo fees to have your landscape and exterior maintained. This should not be an issue because everyone may require you to hire someone to do some little maintenance work.
Does Owning A Condo Have Advantages?
Buying a condo has several benefits, including the freedom to select a house in a good complex and location. Furthermore, because numerous condos are being sold, you’ll have a wide variety to choose from.
That’ll enable you to select your preferred neighborhood and unit style. On the other hand, if you want to sell it, you’ll find a more liquid market than the apartment one, enabling you to dispose of your property within a short period.
Is There An Excellent Time Horizon For Investment Property Holding?
Real estate experts advise that when searching for an investment property to buy, you should find one with a time horizon of fewer than five years because time is a factor when investing in real estate.
The longer you stay in a property, the more its value will appreciate. When this happens, rents increase with time and create more cash flow.
Therefore, don’t make the mistake of selling your property after holding it for very many years because it’ll not give you a better return on investment.
What Are Some Of The Risks Of Investing In Real Estate?
Some greatest risks of investing in property include being forced to sell after a short period. This may disorganize you because the buying and selling expenses for properties are high. Coupled with this are the real estate agents and lawyer fees that considerably add the costs.
Therefore, if you sell your home before it has gained equity, chances are you’ll experience losses. The other risk you may want to look out for is vacancies. You should select a property that’ll attract potential buyers. You can do this by maintaining your units frequently.
How Does One Avoid Problems With Tenants?
Problem renters can turn to give you a major headache if you’re a landlord. The best way to prevent such people from occupying your home is to conduct a thorough screening.
Their history with previous landlords, credit status, and current employers’ information can help you identify their character.
Furthermore, having good security deposit rules will enable you to keep off jokers. As a rule of thumb, you shouldn’t allow tenants who can’t pay their first month’s rent and security deposit into your property. Such good management tactics will help you to keep off problem renters.
How Can I Find Good Tenants?
Most tenants look at two vital things before renting a house: price and condition. If your home is overpriced or in bad shape, expect a poor choice of renters. Such conditions will only attract tenants with credit problems or those who can’t find any other rent places.
On the other hand, if your house is priced well and is in excellent condition, you’ll attract good tenants.
How Does One Keep Renters From Damaging Property?
One common question that most landlords are concerned about is how to keep tenants from destroying their property. However, this depends on the type of tenants you’ve chosen. If your house is in good condition, it’ll attract responsible tenants who may not damage your property.
When vetting possible tenants, you can also use your gut feeling to select those you’re comfortable with living in your house. If they pass these qualification standards, they’ll less likely to damage your property.
Asking the right questions before investing in property isn’t a sign of weakness or foolishness. Instead, it would help you get more knowledge from experienced realtors and give you tips for maximizing the potential out of your rental units.