Hey, you know what would be great as a long term investment and would generate an awesome monthly income? A rental property! But let’s pump the breaks for a second before we dive in. Before you make a big investment (such as this one) lets weigh the good and the bad, as well as ask ourselves these questions to put us on the right track and properly prepare for what’s ahead.
Looking to buy a rental property in St. Alberta?
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Financially, is this a good time for you to buy an income property?
Before pursuing any big investment opportunities, it’s best to be comfortable in your current financial situation. Comfortable enough to make a big purchase and still cover your existing financial obligations. Be prepared for the unexpected by planning ahead. Ask yourself, do you have the minimum down payment for an income property? Are you prepared to make repairs before the property is rentable? Its better to be too prepared than not prepared at all.
What type of property do you want to invest in?
You may think the bigger the property, the better. But that’s not always the case. A bigger property comes with higher taxes. It’ll also be more space to maintain and the rent you receive may not be enough for upkeep. If it’s your first time as an investment property buyer, note that many like to start out by purchasing condos or single-family homes. However, multiplex units bring in the most income.
Where is the highest demand for rental properties?
You want to invest in a property that is located in a high demand place and will remain high in demand in the future. You want to keep your eyes out for properties that are close to hospitals, schools, public transportation, etc. Whatever makes your rental property desirable! Make sure you establish what kind of renters you want to attract. Is it students? Is it people who need access to public transportation or businesses downtown? Being able to answer these questions will aid you in picking the location of your new rental property.
Make sure to seek advice from professionals if you’re overwhelmed and don’t know where to start. Investing in real estate is a big commitment and should be considered from every angle. Contact your realtor and ask them what’s currently on the market and explore numerous options before you settle on one. Receiving financial advice can not only save you money in the future but can also give you a better idea on what kind of property you’d like to purchase, how much your comfortable investing and if this is the right investment for you.
Interested to learn more about rental properties and what’s on the market in St. Albert? We’d love to help! Visit our listings page here to find out more.
