Thinking about buying an investment property in the Edmonton Real estate market? Smart move! But if you haven’t bought many or even a single property before, you may not be sure about what constitutes a solid investment or how to invest in the most effective way. To help you, we’ve created a list of 3 questions to ask before buying your first investment in Edmonton…
Remember opening a gift as a child? There was the anticipation of what gift was inside the wrapping, the excitement of taking off the layers of gift wrap, and the final seconds just before seeing what gift you received. And then the elation…or the let-down, depending on whether you really wanted that toy or if it was a sweater knitted by your aunt.
When buying your first Edmonton investment property, there are similar emotions that build-up to the moment that you put the key in the lock and open the door. Will this investment live up to its expectations or will you end up being disappointed?
The answer lies in answering these 3 questions to ask before buying your first investment in Alberta…
Have I done my due diligence?
This first question can be easy to answer but few investors do a thorough analysis of the investment property. Doing your homework means making sure that this is a good investment compared to other options.
You have probably heard the formula, “look at 100 properties, put in offers on 10, buy two or three”. But all too often, beginner investors get hyped up, rush out with a real estate agent, look at 4-5 properties, and then buy one of them.
You don’t need to look at 100 properties because a good Edmonton wholesaler will do much of that legwork for you. But never forget that you still need to learn how to analyze the numbers so that you are comfortable and confident with your investment choices.
Is the timing right for me?
Is the timing right for you right now? Perhaps you need to get your financial affairs in order to a greater degree so you can invest when you’re ready? Taking on an investment property in Edmonton will take up a great deal of your time, energy, and finances. And that is the case regardless of whether the property is turnkey (ready to go) or needs significant renovations.
Many beginners buy a property but they haven’t thought through their current financial situation thoroughly enough, their ability to add another activity to their schedule, nor their current life stage. If you don’t know your own financial situation, you may struggle and worry way more than necessary.
Preparation and knowledge always trump hope and change when you are looking to buy your first rental property in Edmonton. Determine your timing and you’ll save yourself a great deal of stress and actually accelerate your path to financial freedom.
Will this investment actually bring me closer to my goal of financial freedom or passive income?
Most people find an investment property that will pay them several hundred dollars a month and they get excited about the cash flow but they lose sight of the steps involved in achieving financial freedom. You need to determine your end goal, and then ensure the next step on your journey is a step in that direction. That link in the previous sentence provides a GREAT opportunity to help determine what your ultimate real estate goal is and how to get there. WARNING: there is math involved…but it’s a necessary part of the process.
Think about what your current expenses are and make it your first goal to acquiring enough properties to cover your current expenses. At that point, you’ll start achieving financial freedom and can look at quitting your job, going part-time, and investing further, to build your wealth.
Looking For Edmonton Investment Properties?
At Titanic Properties, we are actively seeking out Edmonton income properties on a daily basis. That involves speaking with and meeting with potential Edmonton home sellers on a constant basis. If you’d like to be added to our Edmonton wholesale real estate buyers list, just fill out the form on our Edmonton real estate investors page.