What do you think of an investment that comes with the promise of long-term appreciation plus an immediate return?
It sounds like it may be worth looking into – right?
With interest rates at an all-time low and stocks and bonds seesawing between volatility and the doldrums, real estate investment has emerged once again as a reliable vehicle for those seeking to build wealth. It is the rental market in specific that is enjoying a renaissance of sorts. For a number of reasons, urban dwellers are drifting away from homeownership and toward the rental market.
For the first time in several decades, investors in Calgary real estate with a focus on the rental segment are realizing an immediate income stream while building equity at the same time. This is due largely to the low cost of borrowing money combined with high rental rates, low vacancy rates, and societal changes that are pulling people back toward city centers. The result is that thousands of renters are now living in single-family homes or owner-occupied single-family homes with brand new secondary suites.
On top of the economic and social conditions that favor the growth of the rental market, the City of Calgary has recently enacted building code changes that make it easier to create a secondary suite or legalize an existing suite. Many homeowners are using income from secondary suites to pay down their mortgage, supplement monthly income, and help elderly relatives and young adults in need of a private, but affordable space.
In doing so, they are also building equity and adding to the value of their property at the same time. Others are purchasing a second investment property and using the revenue from the investment property to pay down the mortgage on their residence.
To illustrate how this works, let us take the real-life example of a brand new Highland Park property valued at $750,000 with a $562,500 mortgage balance to see how the presence of a walkout rental suite together with the main house rental generates immediate value for the property owner.
Building Summary:
Completed Value of Home $750,000
Deposit $187,500
Mortgage Balance $562,500
Rental Summary:
Main House Rental (3 bedrooms 2.5 bath with garage) $2400/mo
Walkout Rental (2 bedrooms, 1 bath with garage) $1600/mo.
Expense Summary:
Mortgage @2.8%
$2,808/mo.
Taxes
$360/mo
Management Fee
$100/mo
TOTALS:
$4,000/mo
$3,268/mo
Net to Owner
$732/mo
$8,788/year
Combine this $8788 annual income stream with a mortgage principal pay down equal to $16,000 and a modest assumption of 1.5% annual appreciation and this property owner can boast of an investment yielding a 19% annual return – a healthy number by any standard!
If you are interested in becoming a real estate investor or if you are already an investor looking to enhance the value of your existing assets, work with an experienced Calgary Realtor. Returns like this sometimes only around only once in a lifetime. Do not wait too long.
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 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.
Potential buyers may be visiting numerous properties on a Saturday afternoon. As a seller, your first priority is to get them in the door. If your house’s curb appeal is not eye catching, they may simply decide not to stop at all. Your home’s curb appeal will always set the tone for what potential buyers expect when they first walk inside.
Most people’s buying decisions are based on emotional responses and the curb appeal starts the love affair or will end it before they even walk in. This doesn’t mean you have to completely overhaul the outside of your home for it to sell. Just pick a few exterior home improvements that will have the most impact and go from there.
Here are a few tips to add some curb appeal for your home to achieve a higher market value.
1. Add planters
Adding planters can go a long way toward creating the perception of a well-kept home. Planters can add colour to a porch or patio and are quit eye-catching.
2. Spruce up your driveway
The driveway is one of the first things a buyer will see, so it’s a good idea to freshen it up. Adding a sealer can refresh a tired driveway and is an inexpensive makeover that can be accomplished in a short time by almost anyone.
3. Create a welcoming porch
An empty porch can look stark and cold. If you have a porch large enough to accommodate furniture, set up a nice table or a bistro set for dining and lounging. It’s also a good idea to add some colour with plants in containers.
4. Repaint
Giving the exterior of your home a fresh coat of paint can do wonders for curb appeal. Try painting your house in the colour of homes in a more expensive neighbourhood. It’s a great way to create the perception of quality while doing something you probably already should have done.
5. Spring for new accent pieces
Adding a new mailbox, house light or house number is a cheap and cheerful way of updating your home’s exterior. Shops like Walmart and Canadian Tire usually stock simple yet stylish, well-priced options for these items.
Other simple things you can do are putting a fresh coat of paint on the front door, mowing the lawn, trimming the bushes, cleaning the windows, sidings and gutters, and add a wreath to the door to enhance that welcoming feeling.
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 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.
When you’re ready to buy a home, there is definitely something very appealing about choosing a brand new home. With a new home you get to pick out the countertops, finishes and so much more – basically have it designed just the way you like it. New houses often come with more space and better appliances, require less immediate renovation work, and are more energy-efficient than older ones — and all at a competitive price.
New developments are continuing to pop up all over the city, so buying a new construction home in Calgary is fast becoming a great option for prospective home buyers. Before undergoing the process you should be aware of the how buying a new construction home is different from buying a resale home. First of all, you typically won’t have the opportunity to walk through the home before you sign on the dotted line. Most brand new homes are purchased using specs and a floor plan, the house won’t be built for a few months or more.
In Calgary, new homes are covered by the Alberta’s New Home Warranty Act. The warranty will protect new home owners if upon completion, your new home has any deficiencies with the workmanship or materials. It also applies to both houses and condominiums, and typically the standard coverage lasts for up to five years after you take possession. The foundation of the home needs a year or two to settle so structural issues may not be discovered early on. As the foundation of your new home settles, you will be able to tell if there are any issues that need to be addressed, and have them dealt with at no additional cost as it is covered under warranty.
With a new home comes the ability to purchase upgrades such as top of the line appliances or better finishes. This is a great opportunity for buyers to get what they want while working within their budget. Upgrades can become costly, so it’s a great idea to work with an experienced Realtor to negotiate your behalf.
It’s my role to help buyers make sure they are getting the best value for every dollar they spend. If buying pre-construction is something you’ve been thinking about make sure you and your realtor do your research on potential builders and developers. Basically, don’t buy a house — buy its builder. As an expert in the Calgary real estate market, I have the knowledge and the negotiating skills to help you find the home of your dreams.
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 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.
Canada’s low mortgage rates have been in the news for so long that they have essentially become the norm. The 18 percent plus rates of the 1980’s are ancient history. It seems that we have become so accustomed to cheap money, that we have forgotten that it might be temporary and just maybe, it may also become a thing of the past. Although the Bank of Canada hasn’t given us any indication of a rate increase in the immediate future, it’s still important to use our (borrowed) money wisely and plan for the future. After all, most of us are locked into 25-year mortgages, and we know just how much change can occur over two and half decades.
Be aware of how much a change in interest rates will affect your housing costs. To put things in perspective, a $350,000 mortgage would cost the average buyer $1570 per money at a borrowing rate of 2.5%. If rates went up just 1%, the same mortgage would cost $1750 per month. That’s a $180 difference. What’s even more significant is that same 1% increase would add an additional $54,600 to your cost of borrowing over the lifespan of your mortgage.
Take advantage without over extending yourself. It’s hard to predict what will happen to interest rates over the next few years. Even some of Canada’s most educated economists were surprised when the overnight rate went down instead of up. That being said, it’s a wise idea to be prepared for a rate increase. If your mortgage renews at a higher rate at the end of your current term, what will it mean for your household budget? Do you expect your income to be the same, or are you planning on starting a family? Talk to your mortgage professional about your long term plans so they can choose a financing option that meets your needs.
Take advantage of your pre-payment options. The best way to protect yourself against a future rate increase is to decrease the size of your mortgage. Some mortgages allow you to increase your payments each month, or make a lump sum payment up to a certain percentage of the balance. In most cases, it makes more sense to tackle your higher interest debt first, but if your credit cards are clear, you will never regret knocking a few thousand dollars off your mortgage. Remember, the quicker you pay it off, the more you will save in interest over the long haul, and that could amount to tens of thousands of dollars in savings.
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 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.
As anticipated, home sales in Calgary Market Information were much slower this spring compared to last year. Inventory remains very high, and buyers continue to exercise caution. Despite the surplus, property values have remained strong. The Calgary Real Estate Board reported that the average price in April was only down 1.04% over the prior year. This is good news for homeowners that are continuing to build equity as they pay down their mortgage.
It’s safe to say that the rock bottom interest rates have played a key role in keeping buyers active in the market. To put things in perspective, the Bank of Montreal is currently offering a 5-year fixed mortgage rate at just 2.74%. This means a $300,000 mortgage, amortized over 25 years, would only cost $1,380 per month. For many families with some savings in the bank, buying a home is still more affordable than renting.
If you are thinking of making a move this year, a smart pricing strategy has never been more important. Buyers in this market have plenty to choose from, so they are more likely to steer clear of an overpriced property. That’s not to say you need to sell yourself short. The latest CREA numbers are proof that Calgary’s home values are strong and sellers can expect a fair offer if their home is priced well.
It’s equally important to align yourself with a Realtor who can put together a selling strategy that works for your property and neighbourhood. The numbers demonstrate what is happening in the city as a whole, but the market trends vary from one area to another. The size and style of your home can also make a difference. According to the Calgary Herald, detached bungalows have increased in value by nearly 4%.
As always, proper staging, enhanced curb appeal and cleanliness go a long way in setting your home apart from the competition. Preparing your home for the market isn’t always easy, but a little extra effort can go a long way and pay off big when it comes to appealing to the right buyer.
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 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 spring market is already in full swing in Calgary. There is no doubt that our real estate climate is quite a bit different during the same time last year. Although we’ve had a bit of a slow start, it’s important to remember that we are constantly comparing the market to 2014, which was a record-setting time. If you are seriously considering making a move, the changes in the economy have made it essential to have a smart plan in place.
As a buyer, you are in an excellent position to find exactly what you are looking for, without finding yourself in a bidding war over and over again. First-time buyers need to take advantage of the current market conditions while they last. The interest rates are unbelievably low and entry-level homes are in abundance. Still, many like to exercise caution in the market – values may decrease or a better deal maybe just around the corner. The key is to not wait too long. We have seen similar states in Calgary in the past, so there is really no guarantee that this buyer’s market is here to stay for the long haul.
As a seller, recognize that buyers are still seeing the value in the real estate market. They may be a little more cautious than they were in 2014, but they certainly know good value when they see it. Homes are taking a little longer to sell simply because there is no shortage of inventory. Now, more than ever, it is crucial to have a strong pricing strategy and go the extra mile to make sure your home shows a 10+. There are plenty of resources available, and home stagers, in particular, can make an ordinary home look quite exceptional for a reasonable investment.
If you are finding yourself on both sides of the transaction, be sure to work with an experienced Realtor who can help you create the right strategy to accomplish your real estate goals. Should you buy first then, put your house on the market? Should you set out to find your ideal home after selling? The right answer varies depending on the type of property you have and are seeking to upgrade to. In a buyer’s market, it is advisable to sell your home first. This will allow you to move forward knowing exactly how much equity you’d be able to bring into your new purchase.
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 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.
What do buyers really want? Achieving a quick and stress-free sale requires a unique strategy for each home. The Calgary real estate market is in a much different place than it was last spring, but that doesn’t mean you should put your real estate goals on hold. These four smart tips will help your property stand out and appeal to the right kind of buyers:
Know how your property compares to the competition. It’s important to understand what buyers are looking for. Check out some of the listings nearby, and work with your Realtor for an honest evaluation on how your home stacks up. Does your home have certain features such as a larger yard or updated finishes that others might be lacking? Be sure to showcase the details that make your property stand out from the rest.
Take the time to make a great impression. Getting your home prepared for the market is hard work, but it will be well worth the effort. Whether it’s a professional staging or deep cleaning, give your place the TLC it needs to look its best. Don’t be afraid to ask for help. There are a lot of competent people just a phone call away.
Price it right. Price is the number one driving factor for a quick sale. Particularly in a challenging market, it’s important to fine-tune your strategy. Buyers are highly educated, so they won’t be willing to pay more than the market value in today’s economy. Take a look at recent sales in the area, and determine an asking price that will motivate buyers to check out your listing as soon as it hits the market.
Anticipate deal breakers before they happen. Ordering a home inspection ahead of time is a great way to avoid potential problems during the sale process. This will give you the opportunity to fix any problems with the home or detect some of the bigger issues that might scare buyers away. Some buyers try to use the details of a home inspection as a bargaining tool, which is why the home should be presented with no surprises. This will help you finalize the negotiations on the spot.
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 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.
There is no doubt that this year is much different than the last. As we head into the spring market, many home owners are wondering how the recent changes in Calgary’s economy will affect their real estate decisions. Here are a few things worth noting:
Homes may take a little longer to sell. According to CREB, homes are taking an average of 38 days to sell. This is longer compared to the 33 days last year during the same period. Consequently, the number of sales transactions has dropped significantly. This means that buyers would rather wait on the sidelines for a better deal to come along if they are skeptical of the value.
Values have dipped slightly, but there hasn’t been a dramatic drop. Does a challenging economy impact our real estate values? To a certain degree, yes, but it would seem that the headlines have a more significant effect on consumer behaviour. In fact, a recent article in the Calgary Herald explained that our city has actually been through a similar slump five different times in the last thirty years. Home values were only slightly affected in each case and always managed to bounce back eventually.
Buyers are out there; they are simply exercising caution. Have consumers lost interest in Calgary’s real estate? Are buyers unwilling to trade up to their next home? The truth is, buyers are still active in the market. Some are just holding off on making a purchase in case prices drop, while others are simply hoping for a little more clarity on what the future holds.
Buyers have far more to choose from this year. If you were house hunting last year, one thing was for certain – there was very little to choose from. Today’s market is quite the opposite. Inventory is plentiful, and there is less competition. If you are selling your home, but aren’t desperate, price it well and don’t feel pressured to sign the first offer that comes your way. Remember, this isn’t the first time Calgary has weathered a tough economy. Despite everything, this city remains a highly desirable place to live and own a home in.
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 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.
