Keping it Real Es­tate

Alberta Venture - - The Money Book -

hospi­tal and within 10 years will in­clude 1,300 multi-fam­ily res­i­dences, a public li­brary, schools and 16 acres of green space which will all be ser­viced by Cal­gary’s Green Line LRT once com­plete. And, lastly, cal­cu­late how much in­come you will gen­er­ate from this in­vest­ment. What is the typ­i­cal rent of houses in the area and how much will re­pairs and main­te­nance cost? home sales in the prov­ince rose 4.6 per cent in 2016 from a year ear­lier.

If the op­ti­mist in you is com­mit­ted to in­vest­ing in real es­tate, know that the key is lo­ca­tion. Look for a home in a safe com­mu­nity, close to schools and ameni­ties and in an area that has po­ten­tial to grow. For ex­am­ple, the up-and­com­ing Seton de­vel­op­ment in Cal­gary is al­ready home to the city’s new­est Do you want to pur­chase a rental prop­erty? It’s a com­mon in­vest­ment and for good rea­son: it’s a tan­gi­ble as­set, less volatile than stocks and it’s for the long term. Cur­rently, Al­berta is a buyer’s mar­ket and it looks like it will be that way for a while: hous­ing prices are down and the fed­eral gov­ern­ment’s new mort­gage rules – an ex­panded stress-test to all in­sured mort­gages – could fur­ther lower hous­ing prices as some home­buy­ers will no longer be able to af­ford a down pay­ment, forc­ing them to rent and mak­ing more homes avail­able on the mar­ket. But an eco­nomic down­turn can make it dif­fi­cult to se­cure ten­ants and a house pur­chased at a bar­gain can fur­ther de­pre­ci­ate. De­spite Al­berta’s roller­coaster econ­omy, ac­cord­ing to the Cana­dian Real Es­tate As­so­ci­a­tion,

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