Lower prices. Check.
Buyers market. Check.
Right time for an investment property? Check.
With real estate numbers trending downward, you might think it’s crazy to invest in additional properties. Although the economy is affecting many Calgarians, for some, the current climate is a great opportunity to either enter the real estate market or to invest in a second property.
If you’ve always wanted an investment property, the current buyers market has plenty to choose from, especially the apartment sector. Over the past three months there has been a steady increase in the number of condos listed in Calgary. The increased inventory levels give potential homebuyers an edge in negotiating a favourable asking price. Increased listings mean you have greater options of selecting where in the city you want your second property. You want a 2-bedroom near your current home? No problem. If you prefer a 1-bedroom downtown, there’s plenty to invest in.
Before searching for an investment property in Calgary, I advise you to do your due diligence and examine all your finances. Talk to real estate agents, brokers, lenders and family before jumping into the world of two properties. Target a specific demographic, for example, young-single professionals often work and prefer to live downtown. Students on the other hand prefer to be close to colleges and public transit.
The hard reality is that in the current economy, there is an increase in the numbers of motivated sellers. And we’re not talking about home-sellers that use the term “motivated seller” as a marketing strategy, we’re referring to people that are truly motivated to sell. As we mentioned, it is a hard reality in the city that some homeowners cannot afford their current mortgages due to lower income, loss of employment or relocation. With job losses and wage cuts, there will be an influx of foreclosures properties that will be listed in the new year; however, most people want to avoid foreclosure and rather sell their homes quickly.
Investments, whether it’s the stock market or real estate are long term-commitments and I believe in Warren Buffet’s philosophy of holding onto your investments for at least 10-years. Calgary is a major metropolitan city and although the housing market currently is slumping, property values are always going to hold and prosper in the future. For more information on investment properties in the city of Calgary, feel free to contact me today at firstname.lastname@example.org