Nine-point strategy to find your ideal investment property

You need to be on top of mortgage and tax obligations and potential income and tax benefits and write-offs you’ll receive.

Focus on the anticipated financial benefits from an investment property: are you seeking an outright profit from day one, or is the purchase strategic to minimize tax or develop a long-term wealth portfolio?

As an experienced agent in Saskatoon, I’ll always suggest to my investor clients that they seek professional financial advice to avoid unforeseen costs.

Picking the right property in which to invest requires an equal amount of attention and research. And if you’re looking at an investment property right now, you’re likely ahead of the curve.

To help you search, I’ve listed nine critical considerations in deciding on an investment property. If I can assist you in locating a suitable apartment or house, please do not hesitate to contact me.

1. Vacancies—Always look at the number of vacant rental properties in the neighborhood. You don’t want to invest where there’s an oversupply of properties—it’s a sure sign that rents will be going down.
2. Rental income – Compare the rents being asked for similar properties. Can you make your numbers work at the going rate?
3. Future developments—Are any significant new property developments about to come onto the market? A release of several hundred apartments places pressure on rental incomes and can result in a short—to medium-term fall in values and rental competition.
4. Employment – Neighborhoods with readily available employment are usually rental solid performers. Find out about major local employers in your target areas. This can be positive if there is a strong hospitality and casual workforce, which is usually evident in tourism centers and university towns.
5. Entertainment – Finding a location close to cafes, restaurants and movie theatres is gold if you want an apartment with young professionals as tenants.
6. Neighbourhood—The locality influences the type of renter. Any location near a university or major hospital will attract students, lecturers, doctors, nurses, and others employed in those institutions.
7. Schools – A rental property near a school with an excellent reputation can be an effective investment strategy, especially if you’re considering investing in a house. Families who rent are usually longer-term tenants. You may struggle to find a tenancy if education requires a long bus trip.
8. Crime—Check local crime statistics, as vandalism and petty crime can diminish the value of your investment and diminish your returns.
9. Taxes—Do your due diligence on your preferred locations. Look for areas with higher property taxes and local tax levies.

I hope you’ve found this list helpful. If I can help you secure an investment property, please do not hesitate to contact me. We can discuss tenant preferences and rental income trends and the best way to attract long-term reliable renters for you.