BUYERS

The Calgary market is highly conducive to real estate investors’ success and profit. Alberta’s natural resources, provincial budget surplus, employment creation and growth, low tax rate and proximity to natural attractions are some of the factors that draw investors to Calgary Real Estate.

Several factors are important to consider before the Real Estate investment decision is made. Below are listed the factors along with a brief summary of their importance and the way in which this plays a key role in an investment decision. The factors for Real Estate investors are generally similar for investments across the globe, however the order of importance and significance of the top factors is important to consider, as that can skew a decision between one option and the next.

Factors that directly and indirectly affect buyers’ purchasing and resale decisions are:

1. Location, Location, Location
2. Financing and Amortization
3. The Subject Property (land, residential, commercial)

Location, Location, Location:

It is important to consider your investment goals before choosing the property that best suits your needs. Each quadrant of the City of Calgary has something different to offer in terms of amenities and demography. Depending on your investment objective, it is important to choose the perfect property in the quadrant that most meets your objectives.

Financing and Amortization:

There are many factors that differ in the North American market as compared to real estate markets elsewhere in the world. Canada offers long amortization rates (up to 40 years) with secure banks at low interest rates. This differs from other parts of the world, where financing is not as commonly offered by banks, rather by developers and amortization periods are much shorter.

There are many mortgage professionals who are able to assist you in preparing all documents prior to your Real Estate purchase and are also able to advise you in the best course of action in terms of length of time for financing, security, best interest rates, etc.

Choosing the Best Property (type of Real Estate Investment):

Finally, the properties themselves are the final important piece of the investment puzzle. Choosing the right property is important if rental income is your investment goal. Calgary’s strong rental market is currently attracting many investors. The rental market is sustained in part by the executive rental demand created by the oil and gas corporate head offices that are located in Calgary. Executive rentals are an excellent way for buyers’ investments to cash flow with the security of stable tenants. The majority of executive rental tenants are high paid executives with top level management positions in oil & gas sector corporations and the rental market for higher-end luxury homes is currently very strong.

Similarly, if investors are looking for asset appreciation over time or the highest ROI possible, choosing the right property is of prime importance and is an integral part of the investment decision for obvious reasons.