Without much dispute, there is always a lot of emphasis placed on the importance of location when it comes to deciding on anybody's next house purchase. This is attributed to the fact that proximity to some amenities is vital for convenience's sake. Hence, when someone is contacting his or her real estate agent, ideal location and proximity will be one of the key requests. There are indeed a lot of desirable amenities, but there are actually four most prominent desired amenities. The consistency of these amenities being included in the wish lists of potential buyers is worthy of acknowledgement.
Near eateries, stores and service venues
Most potential buyers are more than ready to pay an extra amount of money for the sake of close proximity and easy access to restaurants, eateries, stores and service venues. If these amenities are within a walking distance, it is even better. In this fast-paced and bustling society, people are time-savers. Hence, close proximity will greatly appeal to them as shorter distance translates to less travelling time. Also, with close and integrated proximity between the residents' home and these amenities, you will certainly observe that the region will grow more vibrant because of more activities and business opportunity fuelled by the very value of convenience.
Near a variety of transportation means
Although close proximity to useful amenities is indisputably desirable for anyone as previously discussed, it is understandably and obviously not at all feasible or prudent to cramp all possible kinds of amenities to one region. This will then give rise to another amenity which is extremely vital for an ideal home location: transportation, particularly public transits. If access to any amenities is not within a convenient walking distance, then access to the means of transportation which would eventually take them to the amenities is certainly of emphasized importance.
If you are trying to sell a house which is just a few minutes away from the public transit station, you have got an absolute winner in your hands. Furthermore, houses which are rooted in the middle of vibrant malls and amenities are often more expensive and hence most people would prefer living in the suburbs to be financially prudent. This further corroborates the need for close proximity to public transit stations.
Near well established schools for the children
If you happen to be trying to look for a house that is suitable for a family, another essential aspect certainly also needs to be addressed and that is your children's education. It is important to have a decent school within the vicinity of your house because schools usually start early in the morning, most of the time, even earlier than work. Also bringing into the picture the tons of work these students must complete, a school which is too far might inflict unhealthy lifestyles brought about by sleep deprivation, which established research had proved its rising infiltration into the lives of modern-day teens.
Hence, to prevent sleep deprivation, make sure that school is near-by so that your children does not need to arise much earlier in order to punctual, and does not have to waste so much time which could've been channelled to their schoolwork, on travelling home.
However, keep in mind that it might not be very prudent to be extreme at the other end of the stick by buying a home located right across the school either. The environment might be a little chaotic and might even be vulnerable to petty crimes which some adolescents might be inclined to due to their lack of mature discernment.
Near child care centers
Rising costs of living, hectic schedules and aspiring goals are factors which sustains today's modern-day prevalence of dual-income families. This means that the child's parents will have to depend on child care centers to look after their children. It is obvious that it is good for these centers to be nearby, so that it takes less time to drop the children off at the venues and this will make the chances arriving late for work decrease.
Near hub for entertainment and social activity
The close proximity to community centers and sports venues are always attractive, especially for families. It would then be easy and convenient for them to have quality time together during the weekends and public holidays. Also, some parents might want to provide their children with external classes so as to nurture their hobbies and passions. It is good for these classes to be in close proximity as most parents would prefer not to travel a very long distance in a back and forth fashion. For example, if your son loves to play tennis and wants to grow in this sport, choosing a place near a venue with good courts and facilities will indeed save a lot of travelling time, energy and even cost.
When people are buying investment properties in Calgary, many of them make a mistake of placing too much emphasis on its interior design, structure and function and not enough on its location. It's good to refrain from such a mistake as although much of your life is spent at home, indeed more of it spent outside!
If you are looking for the perfect piece of real estate, you will be in need of a professional agent. We are able to provide personal, reliable, accommodating and informative assistance. A great property buy will enhance your lifestyle and should be addressed with due emphasis!
A lot of things come to a person's mind when it comes to putting up their houses for sale in Calgary – prices, profits, renovations, and the list goes on. These things are valid and worthy of pertinent emphasis however, most people forget to include another less direct but immensely crucial aspect: the safety of your children. During the phase of selling and advertising your one, you are obviously going to expect a lot of outsiders to be walking around your house for viewing and inspection. Above all, the more direct concerns of selling a house, your children's safety is, without hesitation, paramount. This article will be discussing tips on how you can maintain the safety of your children while you are selling your home.
Strangers for house-viewing
If a stranger approaches your home, knocks on the front door and requests to be let in for the house's viewing, do not just let them in without question. You should let them know that you want to have a brief conversation with their real estate agent first for confirmation before letting them in. To do this, you should request for their agent's contact number and then call them to check that the people on your front doors are legitimate potential home buyers in the market.
If you still feel uneasy about these people, you can recommend them to make an appointment with your agent first and then come back another time. You might think that this is unnecessary or too troublesome, but if you really gave it a careful thought, you are putting the safety of your children and yourself at stake if these people happen to have ulterior motives. Although the chances of this happening are fairly low, it is still possible - do not risk it.
Removal of photographs
It might also be a good practice for you to remove any photos you have of your children from the walls or tables. Your real estate will certainly be taking photographs of your home and you do not want any of these pictures winding up on the Internet. Again, people might view this as extreme measures or describe the habit as being too "paranoid", but the risk is still there and you want to give your children the highest degree of protection.
Moreover, the Internet is riding a dual-track progress - it is getting more dangerous as much as it is getting increasingly competent and useful. Hence, to protect your children's identities and rights to privacy, make sure that no one is able to use the Internet to put their identities at stake.
Removal of printed schedules
Keep any schedules with printed information about your children's whereabouts at various timings out of sight for the entire house-selling duration. In fact, any kind of schedule ought to be removed from sight, not just your children's. You certainly do not want any of the strangers to discover when you will be present at home and when you will be heading out.
Avoidance of social media usage during house viewings
It is advisable for you to warn your children against logging into their Facebook, Instagram or Twitter accounts using a large-screen computer while strangers are roaming the grounds of your home’s compound. It is not enough going through the efforts of taking down photographs and printed schedules if strangers are able to take note of your child’s username and derive much more information and insight about her upon accessing her account anytime.
If you children are adolescents, chances are they might get a little sulky for not being able to use their laptops openly while there are strangers. However, tell them the rationale and educate them about safety. The strangers will be viewing your entire house, so there is no “private space” in this case.
Keep an eye on your children at all times
There are two people you should always keep an eye on: your children, of course and the home viewers. Do not be too carried away with advertising your home that your forget to keep an eye on your child. Although it is highly unlikely, something can happen to your children right at that moment. After all, you are letting people you do not know or trust into the confines of your safety nest. Hence, you can never be too careful and it is good to be wary at all times. It is not necessary for any home viewer to talk to your child, so if they do, make sure you are always in close proximity to ensure that they do not have any negative motives.
In the midst of dollar signs and business, a lot of people tend to forget about their children’s safety in the midst of strangers. There is also another group of people who has an even worse mindset that bad things “will never happen to me”. You should remind yourself that no one ever expects anything happen to them… until they do. In order to have uttermost safety, you should also have a reliable real estate agent which knows how to handle house-viewing and uphold safety.
At Stampede City Real Estate, we ensure that our services are personal, attentive to your needs and highly efficient. We will make sure that during property viewings, the privacy of your family is maintained by providing the best guidance for you. Most importantly, we are committed to help you sell your house or condo in the fastest time possible for the best price!
Young buyers today are immersed into the modern culture and design, and hence it would not be much of a surprise if they prefer modern houses. However, this certainly does not render your old house unsuitable for competing in the housing market. Despite modernization, there are still plenty of young people who are in a search for the exclusive features which only older houses can offer. With this, this article will be giving you good tips on how to make your house more appealing and attractive to the younger people.
Have your home inspected
One of the key concerns which the younger category has pertaining to older houses is the possibility of great requirement for demanding restorations and maintenance. Tackling this aspect of your home will get your far in the housing market. You can indeed eliminate your worries by having your house inspected by a professional and then handing out advertising flyers of your house to potential buyers.
You will also be able to know ahead of time if there is any pressing issue which needs to be addressed or fixed in your house before it is being placed on the housing market. Also, if the young potential buyers view your house and it has no defect despite its old age, not only will they enjoy the "new-like" sense, but they will also judge your house as durable and longevity material to be able to survive handsomely despite its old age.
Provide repair credits
Most young people, for example newly-weds who are just embarking into a journey of family planning, might on a relatively tight budget. If you are willing to offer them a credit for certain fixings or adjustments, these potential buyers will definitely keep your house on their mental list of serious consideration. You can even go the extra mile by informing them that they can have the house renovated in a way which would be suitable to their own personal preferences.
Brighten up your home
One prominent feature of older houses which might not be very trendy today is the dark-coloured wood and tiny windows. This will then produce a very dark environment. Hence, to cater to the general preferences of the younger crowd, compensating for this lack of light is a must. You can install light bulbs, or decorate your house with more lamps. This is beneficial and appealing, as not only are you able to create a bright atmosphere, but your house is also able to exceptionally maintain its brightness during night time.
List out special amenities nearby
In a society where convenience and time is valued as gold, useful amenities within the vicinity of a home is a very strong attracting agent for prospective buyers. Therefore, diligently make a list of amenities which are fairly nearby to your house's location and present it to your young prospective buyers. One of the most important amenities is public transportation - this is the pinnacle of all forms of amenity-related convenience. If the potential buyer has a family or plans to have family, take note of nearby schools. Restaurants, fitness clubs and community centers are also worth acknowledging and informing them about.
As today’s population is getting more and more education, they are getting increasingly cognizant of how important it is to minimize the amount of damage done to the environment. Although this might not be the more superior factors of house appeal, it will act as an effective bonus point which will act as a ‘hook’ to the potential buyers which other houses might not have.
As issues of global warming and flooding have been attributed to environmental damage by a lot of voices and media, the younger and more informed people will like the idea of having a clear conscience by living in an environmentally friendly home. A simple way which you could make your home more green is to use more energy-efficient light bulbs, so that you will need less electricity to produce the same amount of light.
Many people with older houses immediately see the prospects of their house sale as bleak. However, this is not true! You can still maintain your competitive position in the housing market by investing the due effort on little tweaks. Furthermore, there is an emerging trend among the youths to be fond of vintage style.
If you want to sell your house and make it more appealing to the younger sector, hiring a professional real estate agent in Calgary is the best move you can make. Stampede City Real Estate is able to provide you with satisfactory services as our agents are equipped with commendable negotiation skills and have full expertise in property selling strategies. All in all, any house could be sparked back into shape and be ready for competition in the market – all you need to do is to contact us and let us guide you!
At the moment, Calgary is teeming and booming with real estate opportunities. Journals, magazines and newspaper columns in the local dailies have point this out often. But what really is in store for the avid real estate investor with an eye for the city? There is plenty to say the least. From direct property ownership and mortgages to debt and equity securities, Calgary hardly disappoints!
You only need to position yourself well and be on the lookout for the best deals. Then while at it, note that the aforementioned have one thing in common. They offer one or more tangible properties that underlie each investment. This is a huge benefit, given that when one is looking for underlying real estate opportunities, the type of property in question often comes up as the most important thing to consider after location.
Income producing vs. non income producing investments
The best real estate investment in Calgary is of course the one that can guarantee your Return on Investment within months. There are four main types of income producing opportunities in that regard. Retail, offices, leaded residential and retail. There are several other less known types such as mini storage parking lots, hotels and senior care housing. Non income producing real estate investment opportunities are just as diverse. They include vacation homes and vacant commercial buildings.
There is a catch behind non income producing opportunities though. You returns will come in through capital appreciation. Then note that if you choose to invest in debts secured by non-income producing real estate opportunities, your personal income must be enough to cover your mortgage repayments. That is simply because there won’t be tenant income to secure or guarantee payments.
Any realtor will be quick to point out to you that offices and other commercial spaces are the ‘flagship’ or ‘the highlight’ investment for most real estate investors. They often tend to be on average, the highest profile property types mainly because of their typical location in downtown hot spots and scintillating suburban office parks. There is always demand for pretty much obvious reasons. For starts, the demand for office space is often at its most fundamental level, tied to companies’ needs ample average working space per office worker. As more high profile and white collar jobs grow in places like Calgary, there is greater and more demand for office spaces.
Retail properties range from single tenant buildings to large, enclosed shopping malls. The power centre or rather where the action in Calgary is, as far as retail property is concerned is in large retail premises. That is to say real estate opportunities under the retail category, in enclosed mall formats are not doing well at the moment. That should not discourage you. The most successful people in the industry have always advocated for buying when everyone is selling and vice versa. Be sure to take such considerations seriously. Then while at it, note that the demand for retail space in Calgary has so many drivers. Location, population, visibility, security, relative income levels and population growth are just but some of the most common drivers. Note too that from an economic point of view, retail real estate opportunities often perform well in healthy economies when retail sales growth head
Real estate investment opportunities in this sector are often considered as the ‘staple’ or the ‘pie’ for lightweight real estate investors. They call for small average investments, are easy to manage and feature low operating costs. It gets a whole lot better with the fact that there are several types of industrials. It all boils down to the use of the building. Warehousing, research, distribution and manufacturing are all good examples of categories under industrials. There has even been a recent category in the name of full office build outs.
Multifamily residential homes
This is where you cannot go wrong. Multifamily residential homes in Calgary and in other places as well often deliver stable and consistent returns. That is simply because the demand for shelter will always be there. It doesn’t matter what the market conditions have to offer. In healthy markets, residential occupancy is always high. So your best bet is to invest in such markets, Calgary being one of them.
Remember to also conduct your own research as to what sells and what doesn’t. Check how other residential properties perform. Condos sell better in some neighbourhoods than townhouses. The same can be said about bungalows and detached homes. Finally, find your target market. Do you want to target high end home seekers, young working executives or middle income earners? Do you want to focus on apartments alone? Consider all these factors then focus on one. That way, you can come up with strategies to help you sell more with ease and within a short time!
So, you have finally decided that you want your very own home and you have your eyes on Calgary real estate listings. It is after all, what your friends recommend and rightfully so, because Calgary’s weather is pretty perfect. The locals are hospitable and friendly, amenities are within reach and most importantly, homes sell at pocket friendly prices. But even with all these benefits to go home with, you are still skeptical and afraid of making a silly mistake. Don’t worry, it happens. If anything, it is a good thing. The last thing you would want is buying that dream condo and later on realizing you were ripped off. So with that in mind, beware of the following mistakes often made by first time home seekers and avoid them.
Buying a home may sound simple. It is sometimes. But with a city like Calgary in the offing, you will certainly need help when looking for that dream home. That’s where major real estate experts often come into the picture. Forget about your own online market research. You will need someone who understands the market trends of the neighbourhood you want to invest in. so be sure to hire a realtor. They are not as expensive as most real estate blogs often paint them. Don’t feel intimidated to hire one.
Poor market research
This happens a lot. One goes online and conducts an entire market research there. There is nothing wrong with this approach. The only downside is the fact that it could be misleading. Online listings and some real estate blogs will do anything to rope gullible homebuyers. That includes lying about facts and figures. That is of course, the last thing you would want when looking for a home. Take your time to visit the desired neighbourhood. Find out what makes the neighbourhood special. Then while at it, ask a few locals what the neighbourhood has to offer in terms of cost of living and real estate prices. Be sure to also keep in touch with one or two local realtors.
Poor bargaining skills
Who said you can’t bargain for a home? You certainly can. Too bad most home seekers often fear to engage home sellers in a little price haggling feat. Some do but often do it wrongly, mainly with the assumption that the home seller is the one calling the shots. That is never the case. Take your time to bargain. If for one reason or another you are not good at it, have someone who has bought a home or two before to help you bargain. You will save a lot and learn a lot too in the process.
Using the wrong listings
There are thousands, probably even millions of listings not just in Canada but around the world with ‘too good to be true’ listings. Like you will learn as you hunt for your dream Calgary condo of townhome, the best deals aren’t necessary the cheapest deals. So forget about listings that claim to offer the cheapest deals. Cheap is after all, expensive.
Home finance options
You will always note a home on sale and just beside the ‘sale’ banner, an advert or two put up by home finance service providers. In other words, mortgage options. It is easy, very easy to easily fall for such adverts and consider home financing. Don’t do it. Take your time to find the best finance options. Like hinted above, engage a few experts. Let them help you find the best finance options and how flexible the available ones are, in terms of repayment. Realtors often know the best mortgage facilities. Ask them what you can do in that regard.
This is where things often get complicated. Truth is, you will need an attorney at some point. That inevitable means some paperwork will be involved. Two attorneys, one of you the buyer and the other for the seller must process a few legal conveyancing documents. Be careful. Do not sign anything you do not understand. Your attorney should help you understand what complicated legal terminologies mean.
This is a synonymous mistake with young, first time homebuyers. One simply comes across a condo and immediately makes up his or her mind that the condo or town house will fit his or her ‘urgent’ need for a home. Such decisions are often influenced by a home’s exterior appeal and of course, interior décor. Take your time to find out if there are better deals out there. The last thing you want is to buy that condo and find out the next day that there was a better one a few blocks away or in the next neighbourhood.
Poor choice of neighbourhoods
How secure is your desired neighbourhood? How does its real estate market perform, should you decide to put up the home for sale at some point? If you have made a wise choice on the neighbourhood to buy your condo, you will be spared a lot of agony later on so make sure you avoid making a poor neighbourhood choice in Calgary.
If you are someone with a good business sense, then you know what it means to try and break even when things are tough. You can never be sure of anything. In fact, contemplating loss is something that will cross your mind more often than not. It gets worse in the real estate sector, especially in competitive markets like the one Calgary has to offer. But such is what the business world has to offer. You have to be smart, you must be able to pull trump card up your sleeve when it matters the most. The following tips should come in handy.
Lions in the jungle hardly walk alone. That is pretty much what happens in healthy real estate markets. Stakeholders often work together. So do not at any point consider doing everything on your own. Involve other realtors and real estate developers within and about Calgary. There’s always a lot to learn from each contact you make such as new tricks on marketing, pitfalls to avoid, when to sell, when to buy and so on. These are things you won’t learn from laymen but from people you ply the same route. So make the necessary connections with condo, townhouse, and bungalow realtors.
Market smartly but like a mad man
It has been said time and again that marketing aggressively is all one needs to do in any business to succeed. That is half true and half false. The real estate market in any given area is always full of surprises with new trends coming up from time to time. One must be able to accommodate such changes in his or her marketing plans. So if you, for instance, notice that first time home seekers are turning to urban condos more than they do towards townhouses, shift your focus to condos and market aggressively from that end. Then make your presence felt online. Create a decent website. But over and beyond that, consider social media marketing and such outlets.
Create appealing impressions
Everyone knows for a fact that first impressions always count. Nothing is truer in the business world than that statement made in reference to real estate. First time home seekers are impulse buyers. They often get moved very easily by what they see. That means you must have the right properties with the right aesthetic appeal factors. Repaint your properties if you have to. Consider remodeling or renovating too. This may sound as extra expenses but they certainly aren’t. Any real estate developer should be able to shade some light on the importance of creating that first impression. So be sure to engage one as has already been hinted.
Identify your target market
This is perhaps the most important factor you will learn as far as real estate investment properties are concerned. Truth is, there is so much one can do in any real estate market. Opportunities are always there. It takes a smart mind to spot them. But then again, one cannot have his cake and eat it. The best you can do is identify what you are best at, what your budget can accommodate and what works for you.
Stick to condos if you want to resell later on to young, working executives. Go for residential detached homes if you want to resell to families with children. So don’t get too excited about the opportunities and act impulsively. Find what works for you, identify your target market and start marketing from there.
Don’t just be smart. Stand out too. Warren Buffet is a mogul for the same reason. He’s been quoted saying one must buy when everyone else is selling and sell when everyone is buying. Be sure to do to just that. Go for neighbourhoods your colleagues seem to ignore. Find opportunities there. Then develop them. This is what so many people like to refer to as taking risks, a cliché in the business world that is already out of place. In simple terms, be willing to take on opportunities that others are not willing to even consider. The road least travelled on can easily lead to paradise. Take that one.
Investing in real estate is pretty much like investing in the stock market. You have to be patient. There is no two way about it. The best deals in the market have gone down records for coming to fruition a decade after the investment ‘seed’ was planted. Buy, then wait!
Understand your market
The market is like a playing field. You have to know how level it is before playing on it. Do your research and understand how the market trend works. Adjust to the changes in pricing. Know what your target market wants. This may mean hiring someone to help you do surveys and conduct more research into the market.
All in all, there are many investment properties for sale in Calgary that can boost your fortune but to succeed truly as a real estate investor, make sure that you act smart, buy smart and sell smart!
The spring home-hunting season is fast approaching and many people will be either buying or selling a house of a sort. Some will enlist the help of a realtor in their home buying or selling task while others will request a relative or a friend who works in real estate to lend them a hand. While asking a friend who works in real estate arena to assist might seem like the right thing to do, experts warn that this could backfire on you. It is recommended that you hire a real estate professional to help you out as he has both the knowledge and tools to do a perfect job.
Here are some reasons why hiring a friend or a relative to act as your real estate agent isn’t recommended.
1. Your friend or relative may assume to know what is best for you
If you want a suburban bungalow and your pal pictures you in a downtown loft, this is apt to create tension. People are always assuming that they know what is better for their friends or what they want. Remember also that a friend or a relative does not have the boundaries a professional real estate agent in Calgary would have. And because your realtor friend assumes that you have done some research on the property before buying it, he will not educate you on the regulations and responsibilities of being a landlord in a new neighborhood. This could end up causing a lot of conflict later on with the new neighbors once you move in.
2. Your friend may not know the kind of neighborhood you are looking for when buying a property
Regardless of whether you are buying or selling a property, you need a professional with intimate information on the market in a specific geographical area. A friend will assume that you want to stay in a certain area of the city while in real sense, you want something different. He will assume that you know everything and choose an area you would never consider in the first place. To avoid this, it is recommended that you opt for a professional realtor as he won’t assume you know things you don’t. And because this expert knows the area the property is located intimately, he will clearly explain things to you as requested.
3. Opinion and preference disagreements could end up souring the friendship
If you are in a tough real estate negotiation with a friend, things could go really bad to worse when both of you disagree on the way forward as it is very easy to blur the line between your professional and personal life. If you don’t want to put your friendship at risk because of an extremely difficult business transaction, it is recommended that you opt for a professional as his interest will be solely commercial. Experts for example are forever referring their friends to other trusted agents in the market as they are a better fit compared to themselves in business transactions.
If for example your friend is handling a property deal for you and he asks for commission, you might not want to pay the amount he is asking making things really uncomfortable for both of you. If on the other hand, an outsider is handling the same deal, you will comfortably pay what is being asked without feeling as if you are being cheated.
However, if the friend treats you like other clients and is experienced on what he does, then this kind of deal could work out. He however has to take his job seriously and know the market you are shopping in for this to succeed.
4. Your friend might forget to give you a reality check
A professional realtor will tell you the truth as it is, and hence serving you as an objective outsider. A friend on the other hand will give half-truths about what is on offer so as not to jeopardize your friendship. For example, you might not like to hear that the list of homes you have is not viable for your budget as the prices on the properties is too high and what you are offering is too low. It is easier and more comfortable to discuss a housing budget with an agent as he is seen strictly as a professional and not a yoga buggy or a neighbor.
5. A friend may not put in enough time in your property selling or buying project
If a friend or a relative is helping you search for a property to buy, he might not want to spend time driving you around instead of working with other clients. This means you will be forced to do most of the legwork on the search listings. Simply put, a friend is more casual in his searching as he considers you as simply a friend who can also help him in the legwork.
While a lot of young people put real estate investments in hold until they are older or have bought their first home, it can be done sooner than you ever thought possible. In so doing, a young person can be able to leverage in his less than perfect lifestyle, below average credit score and limited financial resources into a worthwhile investment. But to succeed, he will need to be a little bit shrewdness in real estate dealings.
Although the idea of turning a first home into an investment goes against the all popular concepts of personal finance, if successfully done, it allows sufficient time to save money, develop credit and enjoy being young. So it is recommended that young people not to wait until they are past 30s before they could start to put their income to work for them.
By adding up how much a first home could increase in value while supplying you with a tidy rental income before your 30th birthday, you can realize how much of an investment it could turn out to be. Granted, the decision to turn your first home into an investment property can be a hard one as it requires some careful planning and lifestyle changes that most young people would rather not make.
Here are some top reasons for entertaining the idea of turning your first home into a real estate investment in Calgary before your 30th birthday.
1. There are cheap real estate options
Though a recent research done by a reputable realtor’s organization indicates that prices for buying a home are fast increasing, it is still possible for potential young home buyers to get a bargain by opting for distressed home sales. These are homes that the banks have foreclosed and thus are willing to sell them below the market value so as to clear their books. These sales help to drive the costs of homes on sale in a given area down, making them affordable to all with some money aside. And because there are hundreds of such homes in the country as we speak, any young person with money can afford them. Buying this kind of a home allows a young person to own a property for relatively less than the market value even when prices for properties of the same type are fast are increasing.
2. You are young
All the money you are spending enjoying the good things that life can offer could be well spent on “building a life” while still living in a small apartment. It is recommended that young people save money to build up their credit and for paying bills on time is quite possible if you know what you are doing. Building up credit while still under your 30th birthday will allow you to qualify for a reasonable loan that if properly utilized could have life changing impacts later on. Furthermore, a young person’s lifestyle allows for penny pinching, something that is almost impossible later on in life due to the increased obligations. Penny pinching leaves a lot of money that can be used to pay for a distressed home or for a first home’s down payment.
3. It is possible to buy a first home with FHA loans
Young people can be able to cheaply buy a property with the readily available FHA loans. These loans are availed to people who are under their 30s because the chances of them getting other loans can be quite hard as their creditworthiness isn’t the greatest. If you are in this age limit, and you decide to invest in a property, an FHA loan amount is the easiest way to pay for your purchases. But there is a catch with this type of a loan - you must live in the property you are seeking to purchase. A perfect way to fulfill this requirement is to buy a property with a number of rental units and make one of them your main residence. But before the loan amount is approved, the total income that can be brought in by the rental units is factored in.
4. Demographic changes
Due to a strong desire for the immigrant population to own a home, they are anticipated to account for about 40% of the housing ownership growth over the next couple of decades according to a research done by the Research Institute for Housing America late last year. This is clearly evidenced by the fast changing urban neighborhoods in the country today. As a young person, would you really want to miss out a chance to own a property in an area that is bound to experience values skyrocketing in a couple of years?
5. For rental income generation
In most locations, rent increases are outpacing buying increases due to tighter restrictions on loan applications and demand. Simply put, if you are purchasing an investment property, your monthly mortgage payments might be less that the market price for rent. This means you can make a lot of money with these types of properties as plenty of it will be left over after paying the mortgage dues. Reinvest the left over money in your property or in others that catch your interest.
Though buying a house in Calgary like in many parts of the country is considered a lifetime achievement by many people, the purchasing process can be confusing and difficult to navigate. But regardless these hiccups and many others you may find in the way, investing in property is a wealth-building tool. But before rushing to buy a house in Calgary, there are a number of factors that need to be put in mind. These factors include:
• Being financially aware
• Being aware of your personal tastes and preferences
• Your work circumstances before the purchase
It is good to remember that purchasing a home regardless of its type is one of the biggest single financial investments a person can ever make in his life. As such, it is important to take a step back and consider whether you are ready to make such a weighty decision and then take the responsibilities that come with it.
Here are some things you need to think about before buying your first home in Calgary.
A home is a measure of certainty
A home is a long term investment not only to live and raise a family but also to help store up equity. This being the case, if your career is the type that require you move every other year, or you are thinking of changing your job, or even are contemplating going back to school full-time some times in the near future, then it is not a good idea to out rightly purchase a home.
Because people’s circumstance are different, you can still purchase the home and rent it out for the period of time you won’t be using it. Still, it is recommended that you at least have a plan in place for 5-10 years before or after the purchase. If you can’t see yourself living in the home for at least that length of time, then it might not be a good idea to buy it, that is, until you are ready for it.
It is not a good idea to buy a home before performing a research on it, the owners and the area it is located. Use the internet to help out in your research. If you discover issues you don’t understand, it is recommended that you involve a real estate expert to help you out. Apart from this, an expert real estate agent can be of a great help during the bidding process as he has both the knowledge and tools to make it possible. The advice and assistance offered by this professional can be expensive, meaning that all this need to be factored in your home-buying budget.
Reasons for buying a home and not living in it
There are a number of reasons why people buy homes and then not live in them. For example, some people purchase homes as a way of building their net worth and not to live in them. In a brief summary, here are some of the best reasons for buying a home in Calgary and then not immediately moving in.
• When a newly purchased home is seen as a tangible asset: Unlike investing in things such as stock and bonds, you can see and touch a home once you have bought it. And because it is easier to understand real estate investments unlike investing in bonds and stocks, it is possible to significantly diversify your investment portfolio, especially since it has low volatility. But keep in mind that because it is a tangible asset, the home can take on a lot physical damages or have other issues that could end up having you pay extra to resolve.
• You are buying the home as an investment property, for example to bring in rental income: You may decide to turn a purchased home in a rental property so as to bring in some rental income for you. Since rent income these days has outpaced purchase price growth in almost all parts of the country, you could earn more in rent on your property than you have to pay in mortgage. Simply put, you can make more money on your investment property the moment you are able to charge more in rent than what you pay in mortgage, property tax, maintenance and insurance, and other related expenses.
You can also make more money by simply paying off all your home dues and then renting it out or by selling it when the market is right.
• The market is on an upswing mode: Buying a home in a place you don’t want to live in but that is desirable to renters is one of the best ways to earn money on your investment. If you can pay cash for the investment property, then you stand to gain more as the interest rates today are in their near all-time lows. If you are looking to purchase a home in an area where prices are on the increase, it is recommended that you consider buying foreclosed or short sales homes.