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Real estate investors who are considering condos as investments are entering a solid condo market. Condo sales have been doing very well in Calgary because of the migration into the area for jobs. No investment is a sure thing, though, and even in a good market, investors still need to do their homework. No matter what the market is like, I can offer a few tips based on my experience in this market.

Always do the math.

Every investor has a different set of financial circumstances and expectations. What you pay for a property is obviously a big factor. However, investment calculations need to consider mortgage carrying costs versus cash in the deal. Look at any tax implications in the short and long term. Plan how to handle utility costs and property taxes in establishing the right rental fee.

Have a good idea of how long you are going to hold the property and why.

This is important to factor into expectations for return on your investment. In the short term there is the cash from rental income but it takes time to build value from market appreciation.

As with any real estate, it’s all about location.

Know the neighborhood, current rental rates and who makes up the rental population. Some neighborhoods are in transition either up or down. Get details on the local rental market from your Realtor®.

Check too the economic trends outside the local neighborhood.

Those trends have a significant impact on neighborhood real estate, e.g., mortgage rates, employment figures and market stability.

Consider the pros and cons of new construction versus established properties.

With new construction, you can get a better price and staggered payments in the pre-selling phase of a condo development. Initially, you will have significantly low maintenance and upkeep costs. However, there is uncertainty in the final value of the property once it is finished. It’s good to know the track record of the builder regarding on-time completion and building quality. You will need to find tenants who are looking for new construction. Existing condos have a track record of income, and the sale price reflects this value. The characteristics of current tenants give you a good foundation for finding the right tenants for your purchase.

I have a lot of experience working with condo investors. Some have made good investments and others, not so good. I’m glad to put my experience to work in making the right information available to my clients to help them make the best business decisions.

Are  you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.

About Bryon Howard

Bryon Howard and his team of Calgary real estate professionals sell an average of one home a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 1% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.

The new year brings good tidings for Albertans, like projections of sustained economic and housing market growth. But for those who are building a new home in this booming city, there’s more great news. In case you didn’t know it yet, hopefully by next month, home builders will already be mandated by law (specifically by the Government of Alberta’s New Home Buyer Protection Act) to provide warranty protection for new homes, so all new home buyers and investors in Alberta will soon enjoy protection for their investment! That should give you peace of mind like no other.

Here’s a quick look at the coverage:

• one year for labor and materials;

• two years for defects in labor and materials related to delivery and distribution systems;

• five years building envelope protection (protection for the building’s exterior shell, including its roof and walls), with a requirement for the warranty provider to offer the consumer the option to purchase additional years of coverage; and

• 10 years for major structural components.

Covered are single-family homes, condominiums, modular homes, mobile homes, and dwellings on recreational properties, but not dorms, work camps, hotels, and rental apartments.

Alberta Minister of Municipal Affairs Doug Griffiths described the warranty program as “one of the strongest warranty programs in the country.”

When the Act takes effect, the Alberta government will require builders to show proof of home warranty coverage to obtain building permits for all new homes constructed in the province.

Currently, new homes in Alberta are not legally protected by warranties, but people are encouraged to choose builders who offer such protection.

I just wanted to quickly share with you the good news, but if you need more information on this exciting development, you can visit the Government of Alberta website. Now you have all the more reason to choose Alberta for your new home!

Are you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.

About Bryon Howard

Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 2% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.

In buying a home, it’s always great to know that your agent understands what you need and want for your family as well as being clear on what to expect in the process. Watch as Calgary’s top-producing, real estate agent, Bryon Howard, talks about how he helps his clients buy their dream home.

Are  you looking to Sell or Buy a home in Calgary and need someone who won’t rest until you’ve found your dream home or until your home is sold? I’ll work hard to earn your trust and to deliver exactly what you need. Contact me at 403-589-0004 or at TheHowardTeam.net.

About the Author:

Bryon Howard and his team of Calgary real estate professionals sell an average of two homes a week. He is a member of the MLS Million Point Club, which ranks him roughly in the top 2% of productive realtors in Calgary. His aim is not just to please clients but to help them buy/sell a home in Calgary at the best price, in the shortest time, and with the least hassle. He is a member of the RE/MAX House of Real Estate that leads in the Canadian market. Learn more about Bryon at TheHowardTeam.net.