Real estate has always been a popular investment choice. While there is no clear-cut answer as to what the best option is in terms of real estate investment, there are some key factors that one should consider when looking into investment options. Kelowna real estate pros take a look at these factors and highlight some key tips for investing in real estate.
Kelowna Real Estate Pros Recommend Starting Investing With Condo Rentals
Rental condos can be a great investment if you are looking for a steady flow of cash right away. They are a fairly straightforward investment, and because the initial investment is relatively low, you can enjoy higher returns each year.
While condo investments are relatively hassle-free, Kelowna real estate pros note that it is always a good idea to check for potential future costs such as special levies. Take time to assess how old the building is, inquire about restrictions on rentals, and review minutes from strata meetings before you invest.
Single-Detached Home Rentals
A single-detached home is typically a bigger investment than a condo, which means the rate of return each year will be lower and you might experience a negative flow of cash for the first few years. However, if you’ve got the patience, investing in single-detached homes can often give you greater potential for capital gains.
If you can find an older home in a fantastic location, you have the potential to collect rental income for 10 to 15 years. Then, if the location is prime, you could potentially sell to a developer for an increase in cost.
Apartment Building Rentals
By investing in an entire apartment building or complex, you have total control – you own the property and don’t have to deal with strata councils or bylaws. While it might be tempting to step back and let the money roll in, it can be worthwhile to upgrade from the get-go. By doing so, you can also attract higher-quality tenants.
While location is key for any real estate investment, it is incredibly important for commercial properties. Keep the neighbourhood in mind if investing in commercial properties, as the neighbourhood will determine the kind of business tenants you attract. Commercial properties are great investments if you’re wanting a reliable income that won’t experience fluctuations in utility bills or property taxes.
All-in-all, real estate is a great investment choice. Taking these key tips from Kelowna real estate pros into consideration will help you make the best decisions when it comes to investing in real estate in Kelowna.