We as real estate consultants, often get the question about what to look for while investing in real estate.
It can be complicated for an investor new to the industry because the market is filled with confusing scenarios that could scare investors away.
Investing in commercial and residential properties can pay you good returns. However, you need to be cautious about each step mentioned in the procedure.
You also must determine the set of geographic boundaries you want to focus your investment in. Be clear about whether you want to keep the property to yourself or outsource it.
Here’s are some of the checks you should apply on the property you like before investing:
Safety is the first thing every individual or family look for before purchasing a property.
Nobody would want to live in a neighborhood that isn’t safe.
You can do this by visiting the local police station and looking a look at the crime stats for the area.
Statistics Canada is also a useful resource to find crime rates in different areas of the country.
Humans are always attracted more towards regions that have a higher potential for financial growth.
A property located in a vicinity where commercial activity happens daily can offer good rent and return on investment.
Areas with developing job markets attract more renters and buyers.
Statistics about the labor market in different areas of Canada can also be found on Statistics Canada.
If a large company is moving to the vicinity, they will attract a huge chunk of followers towards them. Therefore, look for areas that have some big industrial names functioning nearby.
The quality of the location will influence the renters attracted to your rental property.
The most important factor for making any real estate investment is its location.
Different things play a role in this factor such as access to transportation, schools, hospitals, shopping malls and restaurants.
If the location offers more convenience to the renters, there will be more in it for you as an investor.
Keep in mind the future of the area. Is the area considered valuable by main realtors soon?
Is any silicon valley giant or a company of the same stature thinking to make a move there?
Run all these questions through your mind and do an analysis before deciding on the future potential of the area.