Having an investment property can be a great way to receive a steady income stream through rental income, provide diversification for your portfolio, and act as a hedge against inflation! If you’re thinking of investing in property to help you achieve your financial goals, there are a few key things you need to look for to ensure you’re making a wise investment.
Location, location, location
The old real estate adage still rings true when it comes to investing in property. The location of your investment property is crucial to its success, so look for properties in high-growth areas or those with strong rental demand. This will help ensure you get a good return on your investment.
If an investment property is in good condition, it will be easier to keep up and will require less work to maintain. The condition will play a big role in how much it will cost to maintain and repair over time. If the property is in need of major and costly repairs, it may not be a wise investment.
Potential for growth
When you’re looking at an investment property, one important consideration is its potential for growth. Renovations, rezoning, or adding an extension can increase the value of the property and make it more attractive to future renters.
The right price
Of course, you’ll want to get a good deal on your investment property. But be careful not to overpay in the hopes of making a quick profit. It’s important to do your research and find out what similar properties in the area are selling for. This will help you get an idea of what the property is really worth.
A solid rental return
If you’re planning on renting out your investment property, you’ll want to make sure it will generate a solid rental return. Look for properties in areas with high rental demand. This could be near universities, public transport or employment hubs.
A professional property manager
If you’re not planning on managing the property yourself, it’s important to find a reputable and professional property manager. They will be responsible for finding tenants, collecting rent and maintaining the property. A good property manager will help you maximize your return on investment.
Get an inspection
The condition of the property is also important so make sure to get a building inspection before you purchase to avoid any nasty surprises. The inspection will help to determine the amount of money that will need to be spent on repairs and renovations. It will also give you an idea of how much rent you can realistically charge.
Purchasing a property can be a rewarding opportunity and investment, but it’s important to know what to look for. By keeping these things in mind, you’ll be well on your way to finding a great investment property to achieve your financial goals! If you’re looking for a property management company in Calgary to help you get started with your new property, contact GIL Property Management & Sales today!