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REAL ESTATE INVESTMENT OPPORTUNITIES IN ALBERTA AND BC

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Growth in Real Estate sales and value expected for Alberta

The Canadian Real Estate Association reported on Dec 15, that resale housing activity rose in November 2011, despite ongoing global financial uncertainty. This is good not only for the Canadian economy but also for the real estate investor.  The association predicted that the province with the strongest growth in sales in 2012 is going to be Alberta, with a potential growth rate of 6.7%, according to a December 12th article in the Calgary Herald.  With an increase in sales comes an increase in prices expected to be 1.6%, based on the continued job growth and balanced economic performance of Alberta.

Gary Morse, the president of CREA stated that homebuyers are expecting mortgage interest rates to rise, and are doing more research into how mortgages work and take into account their current and future debt (CREA, 2011).  With this in mind, consumers are looking for excellent deals when securing mortgage financing.  While many economists anticipate a slight rise in interest rates, they should remain close to current levels to support growth.  With the strong energy sector growth in Alberta, it should be a stable real estate investment market for some time.

 

Real Estate as an Investment

Investing in real estate is an excellent way to get a positive return on your money through a rental property.  Investors put a small percentage of their own money into a house, shop with a mortgage broker and find excellent mortgage rates to provide a solid return on investment.  Since real estate generally appreciates by at least 5% on average, with that number changing dramatically in high growth areas like Calgary, Edmonton and Vancouver, the investment is further leveraged by tenants paying off the mortgage.  This enables you to save money, take advantage of growth in equity and have the maintenance of your mortgage paid by renters.  In times of economic uncertainty, real estate is a safer place to invest your money than the stock market.  There are also a host of tax benefits and many other benefits to investing in real estate.

With mortgage rates at historic lows, it is a good time to invest in property.  By doing your research you can find markets that have great growth potential to provide a higher return on your investment.  Real estate is not a liquid investment, so you will have to invest for a period of time if you expect to make money, but with tenants paying down your mortgage it makes it easier to maintain a property with less capital.  As the equity in your investment property builds, your money grows into home equity, which can then be taken out in the form of a home equity loan to invest in another property once enough cash is available.

If you are thinking of investing in Western Canada, it is wise to work with a mortgage broker who understands the Alberta and BC markets and provide service in both.  One Stop Mortgage can provide mortgage broker services and financing options in both provinces.   They will not only provide you with the information needed to make an informed choice, the Mortgage Brokers there will find the best financial product to fit your needs and help you to find the best rates possible.

 

How to get started?

The easiest way to get started is to begin researching the areas in which you want to buy a property.  Using resources such as the Canadian Real Estate Board you can get a good idea where the experts believe the growth markets to be.  An even easier method is to contact One Stop Mortgage, where the team of mortgage broker specialists makes mortgages simple.  They can help you discover the various financing options that are available for your specific needs and can arrange mortgages within the same day.  The One Stop Mortgage group can also provide partial interest mortgages, which are a great product for families who want to invest in the same property.  With One Stop Mortgage you can get the right real estate and mortgage advice you need to finance your investments and begin on the path to financial freedom. 

The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at sergio@onestopmortgage.ca.  The team of Mortgage Brokers at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

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