Investing in Calgary Real Estate

Posted by Call Centre on Wednesday, April 3rd, 2019 at 11:30am.

how to Invest in Calgary Real Estate When most people think of Calgary real estate investments they envision taking their money and putting it into some type of commercial property. This isn't the only meaning for a property investment though. Any time anyone buys a condo, townhouse, semi-detached dwelling, single-family home or a luxury property they are putting their money into an investment in the future.

That's indeed the beauty of the whole real estate investment game. You don't have to locate any type of commercial properties in order to make money. Since you have purchased your own home you have bought into an investment that is going to pay off for you somewhere down the road later.

No matter what seems to be happening the world over, or even in the rest of Canada, real estate has always been a solid investment opportunity. Things can go up and they can go down but in the long run you know that things will get stabilized and that you will end up making money on the investment.

For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.

Why Real Estate Is the Best Investment You Can Make

Investing in commercial real estate is great for a lot of people but the vast majority of Calgarians don't want to play this type of investment game. That is fine. As long as you do end up owning your own piece of the real estate pie here in Calgary you can be considered as an investor.

When you're looking at investment opportunities, owning your own home is the best one you could possibly make. Whether the market is suited for buyers or for sellers should not really be of concern to you. Real estate is a long-term investment opportunity and should not be viewed in the short term only.

Tax Free Investment

How many investments can you make in your lifetime that are totally tax-free? If you're living in your principle residence, the taxman won't ever be knocking on your door asking for a piece of the pie. While you can purchase some investments with a tax-free savings account, you are limited in the amount you can invest every year. With a home, you can buy the biggest and fanciest one that you can afford without having to worry about meeting limits on your investment.

Enjoy Your Investment

While it may be nice to buy GICs, stocks or mutual funds, you won't be able to enjoy them while you have them. The most you'll get is a piece of paper showing your investment. With a home, it is quite different. Every day you’ll be able to enjoy your own place as your investment continues to grow. What can you really do with a piece of paper anyway besides filing it away or at best making a paper airplane out of it?

A tax-free investment that you can enjoy throughout the years is something that you simply can't find with any other types of financial opportunities. When you consider the long-term perspective and how much use you’ll get out of your home in both the long-term and short-term future, it's clear to see why real estate is truly the best investment you could ever make.

It's Not Just About Commercial Real Estate

When most people think about Calgary real estate investments they think about owning a commercial building that they can lease out to businesses or to individuals. When you consider commercial investments, they are definitely a very lucrative way to put money into an investment and get money back from it, sometimes quite a bit.

There is another way to invest in real estate, however, without doing it commercially. That is by purchasing your own home.

Yes, purchasing your own property is a form of real estate investment. Any time you purchase a house, land, commercial building or condo, you are making an investment. The money that you put into your property now is going to grow in the future. In fact, there is no better return for your money, in most cases, than by investing in properties.

There are so many real estate opportunities available right now that it's incredible. Anybody that has extra money should be putting it towards a portfolio of real estate investments for the future. Many people decide to do this as their retirement nest egg and it is always a good idea.

How to Build up a Diverse Real Estate Portfolio

When most people think about investing in real estate they have thoughts of buying a property and then renting it out. There are other ways, however, to build up a diverse portfolio in the real estate industry so that you don't end up putting all of your eggs into one single basket.

Invest In Syndicated Projects

With real estate real estate syndication there is a leader also known as a syndicator that looks for the best investment opportunities and brings people together to purchase them. Individuals can end up owning their own title or partial shares, depending on the type of syndication. With this type of opportunity you'll have to read the fine print carefully in order to make heads and tails of it. A good real estate lawyer should be consulted and you should only sign on the dotted line when you're confident about proceeding forward since these types of deals can involve high commissions and fees. When you find the right one though, the gains can be tremendous.

Real Estate Investment Trusts

This is the type of investment opportunity that gives you the chance to purchase a type of real estate stock and become a shareholder. In Canada, the most well-known REIT is RioCan, which invests in retail properties on a large scale. With a REIT most of the profits and incomes are paid out to the shareholders so that the REIT does not have the responsibility of paying tax. REITs can be purchased like any other public company/stock. If you are interested in REITs, a Canadian online discount brokerage is a great way to start investing from the comfort of your home.

Real Estate Funds

You may want to consider purchasing real estate mutual funds to help build up your portfolio. As an example, the Great West Life Real Estate Fund paid a return of 16.3% to fund holders in 2012. There is some risk involved, however, so it is best to read up more about these real estate funds first before putting a lot of money into them.

Buying Property

This is the old-faithful way of investing in real estate to see a profit. It's a tried-and-true method that seldom fails. In most cases you can expect your investment to grow at the same rate of inflation at least. When you retire, it's easy to liquidate this asset when needed. The best thing about buying a property in Calgary is you don't have to rent it out either to consider it an investment. Every time you make your monthly mortgage payments on your own place you are building up your equity and putting your money into a safe and secure type of fund that you can count on to pay off in the future.

Avoid These 5 Common Commercial Real Estate Mistakes

When you are first starting out with investing in commercial real estate here in Calgary you're going to receive a lot of advice about what you should be doing but maybe not so much about the mistakes you should be avoiding. Real estate investments can be extremely lucrative as long as you put in the effort and learn how to get into commercial real estate properly.

Wondering how to invest in commercial real estate while avoiding the common pitfalls? Here are the top five commercial investment mistakes that most first-time investors make.

Rushing Into The Opportunity

With the lure of big money in front of you, it's easy to rush into real estate investing without first securing a proper foundation. Like anything else, this is going to be your own business and you need to learn more about it before taking any action.

There are plenty of home study courses on the Internet that will show you the ins and outs of starting up your own business for investments. You need to treat this investing as a business and learn a lot about what you're getting into before delving headfirst into an opportunity.

Failing To Plan

Any of the investors that have become very successful with commercial real estate investing have made a plan for the future first. If you were to open your own restaurant you wouldn't just go ahead and start it without having a firm business plan in place first. It's the same for investing in properties. A good plan will lead you to success and no planning will usually end in failure.

Not Negotiating Properly

When you're negotiating for a commercial property you'll be talking to some heavy hitters that are experienced in the field. You'll want to work with a commercial real estate agent that has excellent negotiating skills to make sure that you come out on the winning side - especially when you're first starting in the business.

Purchasing Too Quickly

Most people are anxious to get their first sale under their belt since this is when all of the action and excitement starts. You'll have to have patience by your side, however, and head into your first sale slowly. You want to go over the properties that are available and if there's nothing that looks appealing right away you'll need to be willing to play the waiting game in order to end up with the right commercial property.

Expectations Too High

Don't expect to get into this business and see your first million in the first year. It takes time to build up a real estate portfolio and your first profits may not materialize right away. Talk to some experienced real estate investors to really find out what your expectations should be. While some real estate investors plan for short-term profits others look for higher-end profits that will be seen over a longer period of time.

Invest in Calgary Real Estate Today

Investing in Calgary real estate is one of the best ways to protect your hard earned money for the future. If you haven't taken a look at the properties for sale in Calgary recently take a moment to do so now. You too can become a part of this lucrative investment activity without having to drop a dime into any commercial properties.