The location of a property will determine the type of renters that will want to live there. Central areas generally have the highest demand, but less-pricey options in working-class areas often have better cash flows. Opt for high-growth areas over those that are in decline. Safety is also an important concern. Renters steer clear of unsafe neighbourhoods, so make sure your income property is in a safe and secure area.
The monthly rent you can charge for a given property will be crucial to determining whether it could be a solid investment. Determine average rental rates in the area to make sure the rent you charge will be able to cover your mortgage payment, taxes and other expenses like insurance every month.
Shopping, parks, restaurants, schools and public transportation are just a few of the amenities renters will be looking for, so make sure they are nearby when choosing a property.
An area with a high number of vacancies, indicated by a lot of housing inventory on the market, means it might be difficult to find renters for your property. It might also reduce the amount of rent you’ll be able to charge, impacting your cash flow.
- Property Taxes
Property taxes are a cost you will have to shoulder with any investment property, so make sure you review the most recent tax assessment to determine if they are high, and if so, why that is the case.
This is another cost you will have to factor in when determining your cash flow. Try to avoid areas where your coverage options might be limited or non-existent, such as a flood plain or other area that is susceptible to natural disasters.
January market improves over last year
At 4,112 total units, January’s inventory was 18 per cent below last year’s levels, according to CREB®, which released its monthly housing summary today.
“While housing conditions continue to favour buyers, a slow transition toward more balanced conditions is helping to ease downward pressure on home prices,” said CREB® chief economist Ann-Marie Lurie. “Conditions have improved over last year, but people need to remember that last year’s market was one of the weakest on record. Despite the appearance of a major shift in activity, the transition in the housing market is going to be a slow process.”
Calgary housing market to see increased stability, signs of change in 2017: CREB®
The worst might be over for Calgary’s housing market, according to CREB®, which is forecasting transitional conditions throughout this year on the back of renewed optimism in the oil patch.
The forecast, captured in the real estate organization’s 2017 Economic Outlook and Regional Housing Market Forecast report, comes after more than two years of recessionary conditions that have been manifested by sales and price declines in virtually every corner of the local market.
After a tough year for the ‘other half’ of Calgary’s real estate market, the city’s apartment/attached segments are expected to see gradual turnaround in 2017
Lower prices and added choices created buyers’ conditions in Calgary’s attached and apartment sectors in 2016. But a slow recovery is expected in 2017, bringing both sectors into better balance, says CREB®’s 2017 Economic Outlook & Regional Housing Market Forecast.
The degree to which they’ll the “other half” will get there will differ, however. While the attached sector is set to post positive overall numbers, apartment sales and prices will be moderated by persistently high inventory levels.
Few surprises, but still highlights for Calgary’s housing market this past year, say experts
In a year of sales declines, price adjustments and mortgage rule changes, the one constant for Calgary’s housing market in 2016 was the number of challenges it faced as the result of soft economic conditions, say industry observers.
Yet officials also maintain challenges for some created opportunities for others. And, perhaps more importantly, there is renewed optimism heading into 2017 thanks to improving numbers during the second half of this year and a series of large energy infrastructure announcements.