Contrary to popular belief, the first step to buying a great investment property isn’t having your offer accepted — it’s putting in the hours of research weeks and months before you ever make an offer. One of the most important things to consider when buying an investment property is the location and what characteristics in each neighbourhood are going to make a property more or less appealing to tenants.
Jobs — and whether they’re available in the area — are going to be one of the major concerns of your tenants. What jobs are available in the area is also going to affect who your tenants are and how many people are looking to rent. Buy an investment property near a university, and you’ll likely have a nearly endless supply of students looking for housing between September and May, but you may face vacancies each summer. Buy near a large hospital, and you’ll likely still benefit from a decent number of young nurses, doctors, and other professionals looking to rent close to work, but you won’t have the summer lapse.
Schools and Amenities is another important feature to keep in mind. Tenants may or may not have kids, and they may or may not be planning them. If you’re renting out a single bedroom condo near a university, this will likely be less of a concern than if you’re investing in a three bedroom home in the suburbs, but it’s still important to keep in mind. Tenants who do have or are planning for kids will likely not rent in a location that doesn’t have a nearby elementary school. And a designated school that’s perceived as less than ideal (high dropout rate or many “problem” kids) may also chase tenants away. Other amenities such as grocery stores, parks, malls, theatres, and C-train stations are worth keeping in mind as well.
Future Developments such as the new C-train line in the SE of Calgary are useful to keep in mind when buying your investment property. Homes or apartments that will directly benefit from these developments will likely see an increase in value after they’re complete. New developments like schools and hospitals may also create jobs and attract new people to the area. On the other hand, a new condo development in the neighbourhood may just pose competition for tenants, and a new suburb might eliminate much loved green space. It’s behooves an investor to keep both the pros and cons of any new developments in mind and to balance the two when choosing which new property to purchase.
These are just a few of the long list of things you’ll have to consider when buying your investment property. A few others you’ll want to consider are: What are the property taxes like in the area? What is the average rent for the neighbourhood? Is it a safe area or is there a high crime rate?
Buying a rental property can be a great investment, but it’s important to do your research and work with an experienced realtor who can guide you towards the best areas and away from potential problems. If you’re ready to buy your first investment property in Calgary, I’m here to help! Call me today at (403) 660-5319.