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2020 guide: 8 Things to consider for any Real estate Investment

2020 guide: 8 Things to consider for any Real estate Investment

One of the major reasons why Calgary Real Estate has been such an efficient wealth builder is because of the inflation rates. For instance, you bought the house 20-30 years ago. During this time, you would have paid off the property, it would have gained in value, as well as you can be producing positive cash flow every year. Real Estate is one of the most famous forms of investment as it is where you purchase, own, as well as you proceed for managing the property with the aim of profit. As compared with the other forms of investments, real estate investing includes the relatively favorable reward/risk profile, along with relatively reasonably low liquidity (ease of entry as well as exit). There is always the right time for investing in the Real estate market as well as for purchasing a house.  Finally, what counts is not only the real estate market but also where you are at in your life and the personal situation. 


For achieving lucrative goals of real estate investment, make sure to keep the below-mentioned 8 things in mind – 

1.   Location – Your investment’s location is the most vital aspect to consider. Ensure the fact that you perform complete research on the chosen area where you plan to invest. Are there any transportation hubs around the area? Is it secure? Proximity to calm conforming areas, amenities, scenic views, and neighborhood status etc., are important factors for residential property evaluations. On the other hand, proximity to warehouses, markets, freeways, tax-exempt areas, and transport hubs etc., plays a vital role in the valuations of commercial property. 

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In case you wish to invest in the Real estate industry as well as obtain anything out of the same, the chosen location will decide everything for you. A lot of places are the most suitable ones for distinct types of investments. Recognize the town which has a busy environment. In case you are unsure of the right location, it is suggested that you get the recommendation of professionals to offer you the tips. Never forget that in the property investment’s world, location holds the utmost significance. 

2.   Income Stability – An important question which you should address here is, “How stable is your income? What is the probability that it will stay the same or enhance in the upcoming 6 months? What about next year? In case you are doubtful of the future income condition, picking up the mortgage is not the brightest idea at this moment. Your investment in the sector of Real estate in Calgary is the financial commitment. In the beginning, it can take a lot more from you than it offers back. 

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The most relevant step for you is to check in case you are operating with excess cash right now. In addition to this, make the financial projection of your life’s next 6 months. Will the income still stay stable during this period? In case the answer is yes, then you have enough finances for making the real estate investment. If not, then first fix the personal finances. Always keep in mind that you will have to wait for a few months till you get a clearer picture of the future earnings or at least, you have built up the savings a bit more. 

3.   Latest condition of the Real Estate Market – The market of Real estate in Calgary changes from time to time. Have the prices of real estate gone down or up? Are you keeping a track of housing rates in the area? Once you have the idea of where you wish to live, you must check out for yourself how the housing rates have altered in the concerned area. In case the prices have dramatically gone down as well as your finances are exactly where you wish them to be, then you are in the right state for becoming the house owner. While in case housing prices are at the all-time high, you might wish to stay patient and avoid purchasing into the bubble that might burst soon. 

Hence, before investing in Real estate in Canada, do a bit of research in the area for finding out the prevalent market situations. After all, there is no denying the fact that they are an inevitable aspect of real estate investment. 

  1. The Credit Score – It will determine what interest rate you will acquire on the mortgage in case you get approved. This is a significant element that impacts the interest rate a lot. You should never underestimate its relevance as a few points down or up on the same can make a difference between hundreds of dollars over your mortgage’s lifespan. Thereby, before taking out the mortgage as a part of the investment in some residential property, make sure that you have a favorable credit score. In case it is fine, then you are free to go for investment in the sector of Real estate in Canada. If it is not, then look for a method to raise the same. 
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  1. Your goals with the property – Make it a point to think about your goals beforehand as well as decide in case purchasing real estate is mandatory for achieving these goals. Along with this, ensure the fact that price matches the budget because in case you overextend yourself, the financial life will turn out to become more stressful. All of us have different aims in terms of real estate. A few of us only want the shelter while others wish to stay in the thriving part of the city and on the other hand, some only desire to be capable of walking to work. 
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Maybe most significantly, it is often the bad of buying real estate only as of the investment decision. Yes, it is amazing in case the Canada real estate you are purchasing looks like an exceptional deal, however, this must not be your only criterion. In case your aim with the property is just making a few bucks off of it or flipping it instantly, then you are required to strongly reconsider as there are a lot of risks involved. 

  1. Safety – Safety, safety, safety, and safety i.e., you must insist on the location that offers you the highest level of safety. Nobody, not even you will prefer to live in a place with unimpressive safety. There is no denying the fact that safety is one of the most crucial aspects of the hierarchy of requirements for human beings. For all these reasons, while putting your money into Canada real estate, consider proximity to the local police station, the type of people who reside there, and friendliness in the neighborhood. Through this, you can stay assured that the customers will come searching for the right investment opportunities in a city like Calgary. 
  1. Characteristics of the property – The condition of a property that you aim to buy is a pivotal aspect to keep in mind. Appealing plots of houses or lands are generally surrounded by good quality infrastructures like street lights, tarmac roads, excellently-build pavements, and great drainage systems. Additionally, the fascinating house often has structural integrity, a good layout, accessories like barbecue spots in an outdoor patio as well as balconies, and an open floor plan. These are the characteristics to look for while making the Real estate investment. It is the features of a house or the plot of land that can repel or attract tenants. Keeping this in mind, choose the ones which provide you with appealing features for getting the handsome return. 
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  1. Taxes on the Property – Undeniably, taxes are the determining aspect for most of the investments. These considerations are the ones that a lot of investors will be searching for. The price of taxation will most importantly impact the investment at every level. Go through tax reviews as well as the market at large and then take the final decision of whether they are high or not. Along with this, you should also know the reason for current rates. 

Investments in the real estate sector provide you with a great risk-return high-value profile. Keen consideration of these above-mentioned elements will make you able to reap the benefits of Real estate investment while reducing the risks. Do not forget that any investment is the risk, however, if you are, at the right time, in the right place, then it can bring in amazing gains from the property for real estate investment. The point is to emphasize the fact that no “professional” can predict the correct time to invest in the real estate sector for you. 


Only you will know when is the right time for taking that next leap in your life to buy a house. Do not let a supposed expert suggestion become the deciding aspect in your house buying decision. Nobody can deny that the right real investment decision can prove to be extremely rewarding. So, in case you wish to join ranks of the successful investors in the real estate sector, these factors are the ones that you must proactively keep in mind.