Investing in Grand Prairie Real Estate: Located in the northern part of Alberta and the center of the region, known as the Peace Zone. Being one of Canada’s fastest-growing industries, Grande Prairie is also known as the Swan City because it is located on prime breeding grounds for trumpeter swans.
As of 2016, the population of Grande Prairie is approximately 63,166. Due to its rapidly growing popularity, that number is sure to grow, and with it the number of real estate opportunities.
This is the right time to come to Joe Grand Prairie Realty. If you’re looking for something quieter but still want to stay close to downtown, Grande Prairie is also close to the following communities: Peace River, Beaverlodge, Fairview, Manning, Wembley, Sexsmith, Spirit River, and Claremont.
Grand Prairie has many attractions and nature activities for the whole family. One of the more popular places in Grand Prairie for outdoor recreation is Muskoseppi Park.
Know the types of Real Estate if thinking about Investing in Grand Prairie Real Estate
There are many types of residential homes in Grand Prairie for you to choose from. You’ll find everything from affordable homes to luxury homes, to single-family homes, condos, townhomes, and more. There are also new developments happening every day! So be sure to ask your Grand Prairie real estate agents about any new development homes being put up for sale.
If you’re looking to invest in a commercial space or buy a business, Grande Prairie has that too! From existing businesses, vacant lots, warehouses, and even agricultural land, there is no shortage of commercial real estate opportunities.
Economy-wise, the growth in the housing market is a direct result of the natural gas industry.
The median home value for Grand Prairie increased by 4.2%, while for the province decreased by 2.7% during most of 2018.
House prices have increased and are far stronger than the strong centers. Calgary is down about 5% and Edmonton is down about 1.4%.
Vacancy rates in Grand Prairie also continue to decline. While the vacancy rate was 4.9% in 2017, it fell to 3.6% in 2018. This trend is expected to continue in 2019.
Rent is increasing. The average rent price increased by 10.9% in 2018. Therefore, the rent price for a two-bedroom apartment in 2017 was $1,012. Apartment. Grand Prairie, Alberta real estate market is hot right now. This is one of the many reasons to invest in Grand Prairie.
Buying a Property in Grand Prairie, AB
There is no denying the fact that real estate has produced some of the wealthiest people in the world. As such, it is understandable why so many people are drawn to the world of real estate investing.
That said, the guarantee of real estate investing is not unpredictable and it is something that beginners often forget.
Due diligence is vital to being successful as a real estate investor. Due diligence means doing your homework for a property before actually making a purchase. Here are some tips to help you in this consideration:
1) Find the right location.
Any successful real estate investor will tell you this is important. When it comes to investing in real estate, location is most important. It can make all the difference between buying a money-making machine and a money pit.
What makes the location right? When choosing a rental property location, keep the following in mind:
- An area where the crime rate is low. Safety is one of the top priorities for quality tenants.
- Neighborhood with a decent school district. If your target renter is a parent with school-going children, make this a priority.
- Area with low property tax. Property tax is an expense. And the higher the property tax, the less income will be left for you.
- An area with a growing job market. Jobs attract people. And the more people there are, the bigger the tenant pool.
- A neighborhood with lots of amenities. Good examples of amenities include movie theaters, restaurants, malls, and parks.
2) Calculate your operating expenses.
Operating expenses are part of running any business and the rental business in Grand Prairie is no exception.
When running a rental business, general operating expenses include mortgage payments, property taxes, repair and maintenance, and property management costs.
Generally speaking, operating expenses on your new property are likely to fall between 35% and 80% of your gross rental income.
Let’s say you charge $1,500 for a month’s rent and it takes $600 to run the business. Your operating expenses go up by up to 40%. As a general rule of thumb, expect to pay 50% of total operating expenses.
3) Buy turn-key property.
Are you proficient in large-scale home improvement? If so, choosing a fixer-upper would probably be a wise choice.
If you answered ‘no’ to any of the above, it may be in your best interest to simply buy a turn-key property.
Although it may cost more, a turn-key or a move-in ready home requires little, if any, work. This means that you can start advertising your property to potential tenants right away and if you are lucky, start collecting rent from the very first month itself.
4) Calculate your rate of return.
At the end of the day, if you are like most investors, your goal is to make money from your investments. It’s no surprise that many investors ask themselves – what is a good return on investment for rental properties?
There are many methods for managing the rate of return of a rental property. In this example, we’ll stick to either the capitalization rate or the cap rate:
Suppose you bought an investment property and paid $100,000 in cash. You also paid s in closing and remodeling costs. This now brings the total investment in the property to $110,000.
Let’s say you charge $800 per month. This means that assuming the tenant does not vacate, you will earn $9,600 ($800 x 12 months) in rental income that year. Let’s also assume that that year’s operating costs cost you $2,000.
In such a case, this would mean that your net annual return would be $7,600 ($9,600 – $2,000). The result, 6.9%, would then be your property’s rate of return.
These are the foremost tips for buying an investment property in Grand Prairie. Always do proper attention before diving in with hundreds of thousands of dollars.
If you planning thinking about Investing in Grand Prairie Real Estate and planning about Business at https://www.gptx.org/
