There is one simple thing that you should remember when considering a real estate investment property in Edmonton, or anywhere in the country really: do your research first. It’s true that an investment property can be a very profitable endeavor; however, it isn’t for everyone. For those who are looking to “get rich quick” without putting in any work, it would be best to pursue another form of investment.
Questions to Ask Yourself:
- Will you self-manage or hire professional management?
- How much money are you planning to put toward the property?
- How long do you plan on keeping the property for?
- What are you expecting for a return on your investment?
- Are you purchasing a property just for resale?
- Have you done your research?
Location, Location, Location
Finding out which cities are the best to invest in is of paramount importance. Not all locations are equal. Did you know that Edmonton and Calgary both rank in the top five best Canadian cities to buy real estate in? You’ll also need to investigate the specific areas that are the best for finding renters, which usually means good bus routes, lots of businesses, and a low crime rate.
Next, you will need to determine which type of property is the best fit for you (whether that’s a commercial building, single family dwelling, or undeveloped land). It is also important to decide if you will be purchasing a property that needs repairs, or something that has recently be upgraded. An experienced property management company can be a great asset in making these types of decisions.
Know the Law
Finally, it is crucial for all real estate investors large and small to know the law.
Landlord and tenant laws will differ from area to area, and you need to know what to expect in the case of unforeseen circumstances. The most common landlord complaints are unpaid rent, repeated late payments, and negligence leading to damage of property.
These issues can be mitigated substantially through proper preparation and self-education.
This means having a list of guidelines for your tenants to follow, keeping meticulous records, and always having a contract or lease agreement.
Remember: Paying attention to details and planning ahead is a sure recipe for success.