Canmore’s real estate market has grown immensely in the last ten years. Thanks to the real estate market appreciation, many home and condo owners have developed great wealth. Buying a condo is a more accessible investment for real estate investors. Purchasing a condo investment can be a great investment tool for savvy individuals. Buying an investment condo in Canmore involves a strategic set of decisions to consider.
Why Invest In A Canmore Condo
Condos have widely become the investor’s choice of real estate. The reason is that the cost of acquisition is lower than a house. Condo rents are more robust when a cost-benefit analysis is put in place – i.e. the rent to square footage and carrying costs and hassle equation suits condos over houses for most investors.
Condos tend to be newer construction and modern styling, which draws higher rents from tenants. Not to mention that the benefit to the landlord is that there is a better chance that the newer fixtures and amenities will not break down and need replacing in the near term.
The building’s property manager handles the snow removal and other elements that allow the property to run smoothly.
Invest In Canmore Or Banff?
Visitors to the Bow Valley may first fall in love with Banff, but Canmore is the better investment due to Banff National Park rules regarding residency and ownership. Canmore also has roughly 20 times the number of home sales each year. The selection of condos in Canmore is far greater. Also, Canmore is where most people live (a town of more than 15,000 people); no matter whether they work in Canmore or Banff – employment equals rents.
Financing
No matter your financial position, it’s essential to purchase investment real estate with financing in place. In other words, use other people’s money (i.e., a bank or different lender.) Leverage is vital to building wealth. With this in mind, it’s critical to know what you can afford before you begin looking for real estate. Speaking to your bank or a top-notch mortgage broker is a step in the right direction. Financial projections are integral to success. Plugin your projected numbers, including potential rents, to decide what condo is the better investment.
Choose Your Zoning Wisely
There are also zoning rules in Canmore that limit one’s ability to rent out homes. Whereas condos more commonly have a designation to allow shorter-term rentals. Note that Tourist and Vacation zoning differs. Whether you want to invest in longer-term renters or shorter-term rentals is an important step.
➤ For more information on Canmore real estate, check out:
- Investing In Canmore Real Estate
- Top 5 Canmore Condos
- Best Canmore Neighbourhoods For Families
- Canmore Real Estate Market Stats
Treat A Condo Investment As A Business
Our most successful real estate investors are those who set a business plan in place and execute their decision-making based on those key fundamentals. A risk assessment and due diligence are necessary at every step. Proper advice is also needed from the best experts for the job. Don’t overlook tenant and landlord rules; doing so will lead to hassle and potential liability.
Reshuffle The Deck
If you have a business vision to own more than one property, it’s critical to consider how you can re-shuffle. In other words, how can you take what you currently have and look at things differently to create more? It’s sage advice that was given by a mentor twenty years ago. We have given out this advice to clients for years, and we have helped them become millionaires many times over with our guidance. Re-shuffling the deck can include simple opportunities like re-financing, sub-dividing land, and unlocking other opportunities to increase rent. Unlocking capital in terms of cash flow and other forms of liquidity is the name of the game in time. Capitalizing on what others may miss is essential when running an effective investment business.
Important Tip
A wise investor takes each opportunity between tenants to make improvements that will lead to better rents and better quality of tenants. Again, a condo real estate investment is best run like a business. Making upgrades goes a long way towards success.
Want to learn more about how we can find you a great Canmore investment condo and make you proud?
Click right here to get the conversation started. Or you can contact us by phone/text at 403-688-6881 or by email at ryan@citytosummit.ca.
