If you're looking to add real estate to your portfolio, now may be the best time to buy a condo in Calgary for investment purposes. By adding real estate, you'll be able to diversify your portfolio and may be able to see great returns on your money in the not-too-distant future.
Timing is everything when it comes to making a real estate investment. In order to lower your risk factors you'll want to take a look at the market as it stands now and look through various Calgary market forecasts for the upcoming future. It won't do you any good to simply look at the Canadian predictions for real estate since every city market really stands on its own merits.
One of the reasons why you may want to consider purchasing a condo now is the low interest rates. By securing an investment property now, you'll have low rates on your side for the term of the mortgage. It's always difficult to predict when the interest rates will rise so keep that in mind.
The other thing to look at is the vacancy rate. The rate has been close to 0% for a long time now and people are scrambling to find a rental property in the city. With all of the net migration into Calgary, there never seems to be enough quality rentals available for the people that need accommodations when heading into the city.
You'll have to take the factor of supply and demand into account for the future as well. When you're driving down the streets of Calgary you'll see a number of new condominium buildings under construction. What is the rental demand going to be in the upcoming few years once these buildings have been completed and new buildings are under construction? This is the time to look at the forecasts and predictions for condo demand versus supply.
One other thing that you'll need to consider is how the investment property will affect your taxes. In most cases, you'll be able to deduct the cost of your mortgage interest as an expense along with other landlord related costs.
Now may be the perfect time for you to invest in a condo here in Calgary to add diversification to your portfolio. With the interest rates so low and the demand for housing so high, many savvy investors locally, nationally and even internationally are putting their money into condo investments in this city.