What Should You Know if You Want to Invest in Calgary Real Estate?

If you’re thinking about investing in Calgary real estate, you are making a great choice. You’ll need to consider whether you plan to manage the property yourself or hire a management company because your annual return will decrease with the use of a company. Some people don’t have the patience to be a landlord because a good tenant is critical to maintaining the investment.

When deciding to invest in real estate in Calgary, you’ll need to consider a few factors like the property’s history, the location and the return on investment. Here is a look at what you should know before taking the plunge.

What will the ROI be?

ROI, or return on investment, is a priority when making any investment including real estate. The amount of money you’re going to make from the investment is the reason behind doing so, which means you need to decide how much return you could reasonably get.

A rental property is not usually worth the investment if it’s not going to have a structured revenue flow with manageable and expected costs. Having a stable cash flow with a property that is appreciating over time is a great investment though.

Property history and location

Is the location the best you can afford for your budget? Find great neighbourhoods with the average age in the community and number of vacant rentals. Keep in mind the crime rate as well.  What is the history of the property?

How long were the owners living there and was it ever in foreclosure? Knowing about liens on the property and the yearly property tax amount will tell you if this is a good investment and if you’ll have your yearly bottom line reduced.

Finally, ask yourself the condition of the property in terms of how much maintenance costs will add up to, find out the mortgage rules, get a realtor that can calculate how much you could make yearly on the property and consider a marketing plan for the rental.