An Investor’s Guide to Choosing the Right Area

Kelly L. Macdonald | April 2nd, 2017

 

Successful real estate investors understand that productive investment properties require much more than just a pretty façade.  Location and growth potential are the driving forces in real estate investing and the best predictors of success.  Canada is a huge country and Calgary’s diverse neighbourhoods present investors with a dizzying number of options. It’s all enough to make a novice investor’s head spin.  Before making that first move into the investment market, sit down with your Realtor to carefully consider this advice for investing in the right area.

Location Rules – Everyone knows that location matters, but what are the factors that go into determining a good location?   For an investor, a “good neighbourhood” is one that holds the greatest potential for profit – both long and short-term.  Tree-lined streets with well-maintained homes are nice, but not necessarily the most important considerations for investors.  Proximity to transportation, places of employment and the availability of good schools and amenities are what today’s buyers and renters are looking for.  Since all work and no play is an unhealthy combination, access to parks, recreation and cultural centers is also important.  Calgary is blessed with dozens of neighbourhoods that possess all of these attributes.

Pay Attention to the Economy – An economy on the upswing is a key ingredient for real property investors.  A thriving economy boosts the real estate market in a myriad of ways.  It attracts job seekers and frees up money for those same job seekers who will need a place to live.   When choosing an investment property, look in communities with a steady, strong demand for housing fueled by solid institutions such as universities, hospitals, retail hubs and corporate parks.  Don’t forget to check out local development plans that may impact the economy and the housing market – for better or worse.

Look for Signs of Growth -  The best investment properties are found in areas that have room for all kinds of growth – population growth as well as economic.   Room for growth equates to room for appreciation for real estate investors.  A well-established neighbourhood may not offer an investor the same growth potential as an up and coming community with room for improvement.  In Calgary, the expanding youth sector of the population has fueled the real estate market for decades.

The best advice I have for first-time investors is to work closely with a professional Realtor to steer you toward the right investment property – in a location that offers room for growth and appreciation.


Are you buying or selling a home in Calgary? Do you want an agent who has the enthusiasm and energy to get things done, with your best interests in mind at all times? Contact me at 403-617-8758, kelmacdonald@gmail.com or www.kellymacdonald.ca and let's make good things happen!

 

 

About Kelly Macdonald

Kelly Macdonald is a Realtor® with The Real Estate Company in Calgary, where she has been living (and loving it!) since she was 10. Kelly offers her clients a unique mix of youthful vigor, creativity and technical and design savvy on one hand, and professionalism and transactional expertise from her business degree and strong administrative background on the other. Kelly is also a devoted wife and mother of two, with whom she finds time from her busy schedule to play scrabble and walk by the beautiful lake of their home in Southeast Calgary.