One of the secrets of successful investing is the ability to identify market trends well in advance of the curve in order to maintain a competitive position. Here is one historical trend that perceptive real estate investors have been following for some time now. Those who have been paying attention realize that the cult of home ownership no longer rules the real estate landscape. Gone are the days when renters can be ignored. There are far too many of them to ignore.
All across North America, the millennial generation is changing the face of the game when it comes to home ownership. For the most part, it simply does not interest them. Many cannot afford to buy in Calgary, and others who can afford to purchase a home are instead choosing to rent in order to maintain mobility and free up disposable income for travel and recreational pursuits. They do not wish to be tied down to the responsibilities associated with mortgages and home ownership.
These young millennial workers, along with their baby boomer parents, continue to question the suburban lifestyle and flock toward urban centers like Calgary. The trend is led by millennials but reaches across all demographic lines. In response to this repositioning, developers and investors need to shift some focus away from condos and single family homes and move toward purpose built, multi-family rental housing.
Given today’s low mortgage interest rates and Calgary’s high rents, the time is perfect for investors to capitalize on properties that offer positive cash flow and return on investment. Calgary’s residential rental properties are the ideal investment vehicle for anyone seeking immediate returns in an uncertain economic environment. Even those who already own a home might wish to consider investing in a two-family home with sufficient rental income to help pay down the mortgage on their own home.
Former single-family homes converted into two legal dwellings make for attractive investments in Calgary where the average rental on a two-bedroom apartment rose nearly 6% last year. Remember also that a developer or owner profits on the sale of a condo or detached home only once while they hold the potential to profit on the rental of the same property for perpetuity.
The trends sparked by the millennial generation will influence the real estate industry for many years to come and continue to reposition rental properties in the real estate hierarchy. Work with your Realtor to see if investment in purpose built rental housing makes sense for you.
Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.
About Bryon Howard
Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.