Real estate is a great investment. Like most investments, there is always some risk. However, time and time again real estate has proven itself to be a fairly safe investment that allows investors to see a big return. There are three main ways people invest in real estate, each with their own unique ups and downs. Read through these carefully and consider which option may be best for you.
Vacation Property: Many people are investing in properties to use as vacation homes. The two most popular areas Calgarians are investing in right now are Arizona and Radium. This is a great option if you want to get use out of your investment personally. Buy during a buyer’s market, enjoy the property, then sell when it is a seller’s market. Timing can be tricky, though, and if you want a property in the US there will be different taxes and laws to work around.
Rental Property: Another way to invest in a property is to buy a home and then rent it out. The best way to do this is to find a home that has a legal upper and lower suite already. If you can’t pay for the entire investment property upfront, this is a great way to essentially have other people pay it off for you. Once you have made a profit, sell the home and make an even bigger profit. Be wary of who you rent your property to, though. Sometimes renters can do more damage than good—and it will cost you.
Flipping Property: A popular trend for property investors is to purchase a property, fix it up, then sell it for more money than it was purchased for. This is a fun opportunity to turn something outdated into a renovated oasis. Infill homes are especially popular for this mode of investment because the locations are so great. This type of real estate investment requires a lot of capitol but the rewards can be huge. Be cautious that the space won’t take more work than it is worth, though.
Not sure which option is right for you? Contact us. We can sit down with you and discuss your goals as an investor. We would love to partner with you and help you find the perfect property.
Your Calgary, Bowness & Montgomery Realtor® Ken Richter