5 Tips for First-Time Calgary Real Estate Investors

July 22, 2015
By Cody Battershill

5 Simple Tips for First-Time Investors Looking for Success

Investing in real estate for the first time – whether in a single-family or condominium style property – requires many of the same buying steps as with most typical residential transactions.

Good news is if you have bought a property for yourself before, then you should already be familiar with the process.

Many consider doing investing in real estate as a means of gaining a consistent tertiary income while having renters pay the mortgage, which to me sounds like a great way to begin building a nest egg for later on in life.

For all those first-time investors out there, here are some things you should know before making any important investment decisions with your hard earned money.

#1 - Talk to your bank or mortgage broker

First-time real estate investors, one of the first things you should do is to consult your bank or mortgage specialist and get pre-approved for a dollar amount. This way you aren’t wasting your time looking for a home or condo with a price that isn’t realistic for your budget in the first place.

Knowing exactly how flexible you are when it comes to price will also help you make a decision quickly and capitalize on a great deal if you do happen to come across one.

#2 - Hire an investment-savvy real estate agent

Use an experienced local real estate professional who has invested in a property or two of their own.

As with most things in life, we learn about the ups and downs best by experiencing it first-hand, therefore any lessons learned by your agent in the past will be translated into expertise for him / her and will be put to work to help achieve your investment goals.

If you aren’t sure if an agent has had his / her own investment ventures in real estate before, just ask!

#3 - Find out what areas are best for rental properties

One crucial aspect of investing in a rental property is to find one that is located in an area where renters want to live.

For example, if you were to invest in a two-bedroom condo, some ideal neighbourhoods to begin your search in would be notable rental areas like the beltline communities of Victoria Park and Connaught, or perhaps a Business Revitalization Zone (BRZ) such as Kensington or Marda Loop.

If you aren’t familiar with particular neighbourhoods, your best option is to rely on the knowledge and expertise of an agent to help you find an area which fits best with your investment goals.

#4 – Remember that investing is a business

The prospect of making money off of your real estate investment is much more likely if you are to treat it as a business.

As a first-time investor, it’s always a good idea to draw up a business plan that highlights all the details and includes realistic goals for one, three, five and even 10 years down the road of life.

Keep in mind that the general rule of thumb for budgets is to add an extra 10 percent on your total number to cover any extra and unforeseen costs that might come up along the way (and they do!!).

#5 - Property managers make life easy

Property management companies really are the way to go for first-time investors who would prefer to pay a small fee in exchange for not having to spend any time with managerial duties.

After all, who wouldn’t want a team of dedicated industry professionals who are proven to generate higher rent incomes, have more industry connections and know all about tenancy legislation working for them?

See more at Calgary Real Estate Investments & Property Managers today.

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As a top-producing REMAX real estate agent in Canada, I have had the opportunity to help many people realize their property investment goals and make the best decisions and would love the chance to do the same for you.