How To Invest in Calgary Real Estate For Better Returns?

One of the best investments you can make nowadays is definitely in real estate. With the right vision and ideas, you will be able to take things to the next level and make better returns from investing in Calgary real estate market buying income generating rental properties. If you are first time home buyer with smaller budget, investing in a condo and apartments can be an option. The idea is to know how to do it, when to invest and what cautions you need to have in mind selecting a rental property in Calgary’s real estate market.

Question: Is Investing in Real Estate A Good Idea?
The reason is simple, real estate is one of the few industries where prices mostly go up in long term because it is a tangible asset that appreciates over time. You will notice that in most major Canadian cities be it Toronto, Vancouver or even pockets of Calgary, single family homes, townhomes, condos and apartments prices have appreciated year over year.

On top of that, rental property in Calgary or in any other markets can provide you steady cash flow income while you provide a shelter to someone or a family. Even after global pandemic last year, the prices of real estate in Canada overall have largely gone up. It’s the best way for you to make money in the long term, and the return on investment considering its stability, can be great.

Must Do Your Homework!
Yes, you still need to study the market and find the right investment opportunity, so you must do your own due diligence and be clear what you are looking for. Avoiding typical pitfalls such as buying in a cheap neighborhood that lags decent appreciation or rental rate, or ending with a property that has structural issues or just paying too much will be a great starting point to steer clear of.

End of the day, the property must check all the tick boxes to be a good fit for an income producing rental property and something that also appreciates in long ter.

Real Estate Investment Tips
Here are top 10 tips to help you start on the right footing when you are ready to invest in Calgary real estate for income producing rental properties for better returns and lower risk. Working with an experienced Calgary realtor or a property management company in Calgary can make a great difference in ensuring your end goals are appropriately met.

1. Estimate Your Affordability
It’s important to realize that rental property prices in Calgary real estate market can vary quite a bit depending on type, location and proximity to amenities. Study your credit rating, savings for down payment and additional costs that can increase overall your investment property costs. Some of the costs element to consider can be registration, brokerage, stamp duty, advocate fees, administration charges, even loan processing fees.

All of these can add up when you buy an investment or rental property in Calgary. That’s why you want to pay attention and prevent any problems shooting over your basic budget. That can make a huge difference over all in terms of profitability and actual returns you get from investment property. You can check your mortgage affordability using this nifty Mortgage Calculator!

2. Preparing for Mortgage Approval
Having an above average credit score is very important for real estate buyers especially if you are looking for an investment or rental property. It will make it easier for you to acquire the adequate mortgage amount but also at a competitive market rates. Lenders will require a multitude of documents, like identity and address proof, a statement of assets, bank statements for the past year or less, income tax return, salary slips and others.

Every lender might require different documents, but these are the most common ones. A good rule of thumb for real estate investing is to have a home loan eligibility letter from the lender. This way you know they will support your quest to find a good rental property, Condo and Apartments or another single family home.

3. How to Pick Best Investment Property?
Ideally, you want to take a lot of things into consideration. First, the property has to be in a great location, it offers transportation nearby, and the location should be close to hospitals, markets and any amenities you may need. The type of house, layout, parking, number of bedrooms and whether it’s new or used is also very important.

Aside from these, you also want to check for security, outside condition, gardening, extension capabilities and communication systems. Any experienced Calgary realtor or property management company professional will tell you to look for these things, and they can be very important!

4. What to Look For in New Condo and Apartments?
Many people depending on their risk profile and net worth like to invest in new condo and apartment projects that can offer a great return in shorter period of time especially in a rising real estate market. If you are considering this option, you want to see the booking amount for rental properties, how much you need to deposit and if you can get a pre-approved loan.

The Property Management company can assist you with that. Since this is still being built sometimes, you want to know the completion timeline and if there is any withdrawal clause. Ideally, you want to have a warranty system in place, just to be safe and ensure it’s all working the way you expect. You can also work with a property management company if you want to avoid any possible issues and challenges.

5. Study the Builder Reputation & Record!
When you’re having a new home, condo and Apartments or anything similar built, you obviously want the best of the best to work on it. Studying some builder reviews online can give some insight into the matter. You should also talk with multiple builders regarding the completion timeline, expected construction quality, interior design, fittings used and so on for your rental properties. Once you have this information, it will be a lot easier to assess everything and ensure that it all works as expected.

6. Consideration For A Sub Urban Investment Property?
If you want to invest in income generating rental property in Calgary real estate market for long term, value for money and appreciation potential is very important. Buying at the outskirts of the city might not seem appealing at first, but at the rate cities are expanding, that might become the hottest investment location for rental properties. Some nearby Calgary suburbs with great long term growth potentials to be considered can be; Okotoks, Airdrei, Cochrane and Chestermere. It’s important to become a visionary and think ahead, especially when it comes to rental properties. Then the potential can be incredible every time.
7. Booking A Pre Launch Investment Property
The reason you want to do that is because you will have a 10 to 25% discount upon purchase. Booking early does have its benefits. That’s why you should always be on the lookout for newly announced constructions. This can be a goldmine, especially if you want to invest in multiple properties. Using a Property Management company can also come in handy, so keep that in mind!

8. Look for Right Size Properties
You don’t need to invest in large rental properties to make a profit. It makes a lot more sense to invest in smaller properties. Rental properties book faster if they are smaller. Plus, smaller apartments and homes sell faster because they are more affordable.

There are other advantages, like having less money locked in a property, liquidation is quicker, and you have a larger buyer range. That makes selling the property a lot easier, when you decide it’s time to get rid of it. Plus, Property Management companies will charge you less for a smaller property!

​9. How A Realtor or Property Management Company Can Help?
There are some things you want to ask your property agent. For example, you want to know the occupation history of that property and who owns it right now. On top of that, you want to see if the property is new to the market or if it was there for a long time. Normally if a property sits for a while without no one buying it, something is wrong and it can be a red flag.

Your Calgary realtor can provide you not just some of the top Don’ts but can also provide you vital market statistics to make a better decision. You should also be able to have direct contact with the seller’s agent when you buy Condo and Apartments or any property for that matter to inquire and address all your questions.

Similarly, working with a professional property management company or property leasing company like LeaseWell means they can help you with current rental market in Calgary in terms of what are the fair rental prices, vacancy rates and what kind of tenants you can target and what is the current vacancy fill lead time in your target community where you plan to buy your investment or rental property.

More over many a time they can connect you with an experienced Calgary realtor specializing in investment property to with focus on meeting your investment or rental goals. This can be invaluable and save you not just thousands in savings but also avoiding costly mistakes in choosing the right property.

10. The Bottom Line
​These tips and tricks are very helpful if you want to start investing in rental properties, Condo and Apartments, homes or anything else. Yes, this is not easy, but it helps you bring in the results and value you are interested in. There will always be challenges as you try to find the right investment.

​But in the end, with enough trial and error, you will be able to make it work. Ideally, you want to start following our guidelines and ideas, then adapt and adjust based on your local situation and trends. One thing is certain, you should always consider investing in real estate, since it can bring in an amazing return on investment!
LEASEWELL is a premier property services company in Calgary. We help landlords with management of their rental property more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. ​For more please visit our website or contact us at