5 Reasons Now Is a Great Time to Get into the Real Estate Market in Edmonton
As a property investor, you’re always watching market trends to decide the best time to buy for the highest rate of return. While it’s true that Edmonton’s real estate market has experienced some volatility over the past 15 years, good news for investors is on the horizon.
For the past several years, home and condo prices have taken a dip due to the downturn in the oil and gas economy. These prices have begun to rise for a few reasons.
First, the pandemic has created a natural demand for new homes. As people are spending more time at home, they realize their current living arrangements no longer work for their situation. For homeowners, this means the demand for home purchases is increasing, which is driving up prices. For renters, this means there’s an increased demand for available rental properties.
Our current market conditions, combined with these price increase factors, make for an ideal investment period right now. While purchase prices are on the rise, we’re seeing the beginning of the curve which could mean equitable value increases for investors in the coming months and years.
Low interest rates allow your investment to earn equity faster, which in turn leads to the ability to make additional property purchases sooner. Build your portfolio in less time!
These rates also provide better flexibility in revenue for your property. Competitive rental rates can attract more renters and allow you to keep your condo rented consistently. Alternatively, a lower interest rate - and subsequently a lower mortgage payment - gives you more room for profit when charging typical rental rates.
Overall, these historically low interest rates empower you to make better business decisions for your investment properties.
Mortgage Qualification Restrictions Can Benefit You
One, properties have a better chance at retaining their overall value, meaning you have a more stable financial situation from which to plan your portfolio.
And two, those who cannot qualify for the mortgage they seek due to these restrictions will remain in the rental market, providing opportunities for you as an investor to find the best renters for your property.
Equitable Rental Rates Provide Opportunities
Currently in the Edmonton condo market, the purchase price in comparison to typical rental rates is highly profitable. Unlike some investments where the rental amount breaks even, the condo market is poised to provide flexibility in your ROI and turn a monthly profit. This creates opportunities for investors to utilize cash flow over value appreciation for future investments.
More Demand Means Faster Closings
Due to the increase in demand for properties as noted above, sellers are also closing on sales faster than even just two years ago. This means you can close on your condo purchase and start renting much sooner, putting more revenue in your pocket.
Despite the challenges the Edmonton housing market has faced in the past several years, it has grown hotter over the past 12-18 months, creating a perfect storm of investment opportunities. With prices on the rise and potential interest rate increases coming, now is the ideal time to select your best investment and capitalize on growth opportunities.