It is fair to say that investing in real estate is a tool used by every established individual, whether in a passive home ownership scenario, or in depth by many who have accumulated wealth. Even second mortgage lenders or those involved in tertiary lending will often purchase real estate, open a credit line, and lend capital while hedging themselves against inflationary pressure on their cash holdings. Sitting on cash could be dangerous to anyone who truly understands the risks of economic swings in Forex markets or global inflationary pressures from products such as oil. When you are playing a game of numbers, especially where miniscule changes can impact your financial portfolio, real estate is a must have component to any balanced investment strategy.
When deciding to own a home as an investment vehicle towards comfortable retirement, or in creating a diverse portfolio of revenue properties, having an edge on what could outperform in valuation appreciation is key. In Canada foreclosures simply don’t have the same appeal that many US investors take comfort in. For this reason, value driven purchasing with a firm grasp on what is progressing is the key to finding hidden gems. Understanding the purchasing process and what to look for when getting into your first investment properties could make or damage your outlook and ability to keep pursuing a real estate portfolio. The Rose Calvelo Team can advise you on Calgary’s opportunities through educating you on how our local market stacks up on a broader Canada wide scale. We can introduce you to mentors, and we promise to provide up to date blogs from those well informed on our continuously updated website feed based on what’s new in real estate investment at home and abroad.
Your financial success and level of comfort in real estate investing is of the upmost importance to us. Contact us for advice or to aid in strong negotiations to purchase a property you have your eyes set on. Coming into these deals where you are positioned against other sophisticated investors requires research and a firm grasp of the numbers. Education on the market trends will be required to make your investment flourish sustainably and to be sustainable throughout the various market conditions you will face in a long term ownership scenario.
When deciding on areas to purchase real estate, It is important to separate land value and construction cost. So much of the overall value of a property is the raw land cost which can fluctuate greatly in both buyers’ and sellers’ markets. Land cost fluctuates based on local supply and demand, where construction costs fluctuate based on global material costs, local labor markets and perhaps the local dollar’s buying power. Location is key to ensure your purchase will hold its value and ideally appreciate in value, as alternatives for others to acquire property in key areas will become scarce.