What are your investment goals? There are three ways to make (or lose) money by investing in Calgary real estate:
Ever wonder who’s buying all the condos you see changing Calgary’s landscape? Investors. In fact, a study found that 40% of Calgary’s condos are owned by investors. Here’s why:
The ConsIf you’re living in the other upstairs (or downstairs) apartment yourself, you’ll need to cope with the noises and smells of your tenantLandlord headaches: repairs, renovations, tenants that don’t pay their rent Having tenants in leases may make it harder to sell your home when the time comesComplexities with the legalities of suites
While it isn’t as popular as it was a few years ago, flipping houses (in other words, buying a rundown house and renovating it for profit in under a year) happens every day in Calgary. It isn’t for the faint of heart – but it can be hugely profitable.
The ProsA proper quality flip in a good neighbourhood will be in high demand (many of today’s buyers want the fully done-up house)Cash! There are certainly lots of examples of houses bought for $775,000, renovated and sold for $1,235,000+.
The ConsRenovations always take longer and cost more than you expected. With a flip, every dollar spent and every month where you have to pay a mortgage counts.No matter what HGTV tries to tell us, flipping for profit isn’t easy – it takes a lot of time and can be a risky venture for someone who isn’t a contractor or tradesperson. If you’re considering buying a home to flip it, make sure you’re working with a REALTOR, who knows the game and can make sure you buy the right property, put the right amount of money into it for the neighbourhood and sell it at the right time.