Real estate investing can be a highly-rewarding enterprise for those who are willing to hang in through the inevitable ups and downs of the market. As in any investment, there are certain risks involved. The most successful players manage to mitigate the risks and maintain a steady course and “eye on the prize” mentality through down cycles. Are you one of those people with fairly low risk tolerance who wants to reap the benefits of real estate investing, but you are hesitant to dive in? If you are, here are a few strategies for dipping your toes into the market.
Buy a Condo to Rent Out
Calgary has a large inventory of condominiums and a steady stream of qualified renters. The condo sector of the market witnessed a noticeable price decline in recent months, following years of frenzied appreciation. With the region’s economic forecast looking brighter, now might be the perfect time for a newbie investor to enter the market.
Build a Legal Secondary Suite in Your Home
Recent changes to Calgary’s zoning by-laws have made it much easier for homeowners to create legal secondary suites within the existing footprint of their homes. Check with your Realtor or consult the city’s website to see if your property is eligible for a legal rental suite. Then start planning your next investment with all the extra income you will derive from your new rental stream.
Find a New Home but Hold onto the Old One
New investors quickly learn that three-bedroom, two-bath starter homes make perfect rental properties. So, instead of selling your beloved first home when it is time to move up, why not take advantage of the next big market upswing and hold on to it for a while in the hope of seeing some appreciation? With the right tenant leasing the property for a few years, you can potentially generate income and equity. This is a smart strategy for novice investors.
Real estate investing requires a goal-oriented strategy plus a little bit of patience. If you provide the patience, The Howard Team can help you overcome the first-time jitters and craft a strategy to launch your career as a real estate investor.
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.