By: Helison Aniyi
How to Find the Perfect Investment Property in Edmonton?
Tags: real estate
Alt. text: A panorama of Edmonton.
Are you looking out to invest in Alberta, CA, real estate market? If that's so, you couldn't have found a better place to begin. Today, we'll talk about finding the perfect investment property in Edmonton, the capital city of the aforementioned Canadian province. Before jumping into the real estate game, one must know all the nuances of making such a decision. Once you're done reading this text, we're sure you'll have no trouble finding the ideal investment strategy. Therefore, don't go anywhere!
Wait, is Edmonton a good place to invest in real estate?
First things first, we might want to consider the basics. That being said, it's completely natural to pose the question: is Edmonton an excellent place to invest in real estate? Most experts would agree that the answer is positive: yes, it is. Of course, Calgary might sound like a better option to many. However, investing in Edmonton is the safer option. Calgary property prices aren't so consistent, and they tend to rise and fall unpredictably thanks to the city's oil-based economy. Edmonton enjoys a more diversified economy thanks to the city being the province's capital. Also, the Alberta capital is home to the University of Alberta, where about 60k students take their first career steps.
Since we started talking about the demography, let's see some predictions. The numbers we've been provided with by the provincial government tell a good story for real estate investors. Currently, the city's home to about one million folks. In the next 20 years, the Edmonton population will reach two million citizens, according to the data mentioned earlier. Also, the city has a so-called busy real estate cycle and consistent and strong employment figures, making it a fantastic place to invest in real estate. Let's consider precisely how you'll do it!
Edmonton is a great place to invest in real estate.
Alt. text: Edmonton during winter.
Before you begin the hunt for an investment property in Edmonton
Okay, so before you begin your hunt for the perfect investment opportunity, it might be good to consider paying a visit to your mortgage broker or the bank. This is very important since mortgage rules & restrictions differ for investment properties vs. the so-called owner-occupied real estate. Therefore, it's crucial that you get pre-approved for a mortgage before you start the hunt. Otherwise, you might be wasting both time and energy, which, of course, isn't good.
Oh, and speaking of time and energy
That's right; you’ll want to dedicate some good time to investment property research. Once you've done the task from the paragraph above, you're going to need some time to guarantee that a certain property is the best possible choice for you. In other words, you'll want to designate some free time to:
- Viewing properties in person.
- Browsing the online offer.
- Driving around the (newly built) neighborhoods to figure out your area of choice.
Don't have time to conduct this research in a thorough manner? If that's the way things stand, just make sure you're working with a realtor that has a good understanding of your needs and objectives. Basically, you're in need of some professional assistance.
Designate some free time to spend on your search for the ideal investment property.
Alt. text: An hourglass.
Figuring out whether an Edmonton investment property's right for you and where to find it
Here we'll show you how to figure out whether a property's worth investing in and where you can find it.
#1 Browse real estate listing websites
As we've briefly mentioned above, you're going to have to dedicate some time to browsing real estate listing websites. Even though it might seem a bit time-consuming, finding your way to a property in this manner is always possible, so we recommend you try it out. Sometimes, you can leave your email address on a website and wait for the listing to arrive in your inbox.
#2 Consider the fix-and-flippers
Did you know that there are folks who "fix and flip" properties at a low price (below market standards), renovate the place thoroughly to enhance its value, and resell it as quickly as possible? Coming into contact with a reliable fix-and-flipper might be a solid way to find the perfect investment property in Edmonton, as the folks over at Number 1 Movers Canada told us. That's because all the necessary renovations have already been done. Just so you don't have to worry about it.
#3 What about bank-owned real estate?
There's a little something called REO (real estate owned by a bank). It might be an additional source of your ideal investment opportunity. Here's the thing: most banks aren't so keen on stepping into the real estate market game. Therefore, once they foreclose on a real estate property, they'll be anxious to get a so-called nonperforming asset off their books. Contrary to what we said about a fixed-and-flipped property, obtaining one in this manner might require you to handle certain repairs. Also, you'll have to be prepared for paying in cash. So, where can a person find REO properties? You can obtain some info on them by reaching out to a bank or browsing the web for "foreclosed, distressed, and defaulted investment properties."
#4 Make sure that you've looked at multiple properties
Of course, something is tempting about picking out the first property that catches your eye (love at first sight). However, that's not very advisable. You've got to look around to find a property that fits your needs perfectly. In other words, you need to know what's out there before deciding. Also, this will give you a greater sense of the area you've chosen as your target. All in all: don't be afraid to scan various neighborhoods and different investment opportunities.
Don't fall in love with the first property you see.
Alt. text: The Edmonton skyscrapers at sunset.
#5 Think about the vacancy rate
You'll want to opt for an Edmonton investment property that has a low local vacancy rate since investing in an area that has the aforementioned rate higher than 5% is kind of a risky decision. In an ideal scenario, your objective is to find an area that has a lower rate than that or, at least, one that's dropping. Oh, and another thing: this is crucial if you're looking to invest long-term or in properties where the demand for rental space is very high.
A couple of words before we say goodbye
Okay, folks, so that's about it when it comes to finding the perfect investment property in Edmonton. Now you know what's there to be done in order to make a profit in the real estate market of this beautiful Canadian city. Hopefully, you won't have much trouble stumbling upon a phenomenal investment opportunity. If you're on the lookout for more info about Edmonton real estate, follow that link.
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