Is Cochrane a Good Investment?: The real estate market means different things to different people. For some, getting into real estate is all about homeownership. These people are often desperate to buy a house and start putting the rent money in their pocket.
They want to take root, make new friends and perhaps raise a family in a welcoming community with good schools and facilities. If they plan to rent out part of their home to help offset mortgage payments, they can choose a Cochrane community where secondary suites are legitimately allowed.
For others, real estate is more about getting into the market and anticipating equity growth in their biggest personal investment. Sure, they want a house but equity growth is an important consideration they want to maximize.
Over the past 10 years, Cochrane’s population has exploded; an increase of over 82 percent. It has been one of the fastest-growing cities in Alberta. Cochrane is significantly more affordable than Calgary, often allowing you to enter a similarly sized home for 10-20% less than Calgary.
Cochrane hosts a diverse real estate community with a wide selection of developers and builders to choose from. In Cochrane, you’ll find everything from apartment-style condos to duplexes and unique live-work townhomes and single-family homes from affordable starts to large estate homes with 3-car garages. This growing city boasts of a huge variety of lifestyle options at almost no cost.
In addition to the variety of home styles available, at least part of Cochrane’s development came from the city’s progressive, educated, and affluent population, as well as a like-minded municipal government, which allowed Cochrane to live, work and work. A modern and charming place.
Did you know that there is no business tax on Cochrane and secondary suites are encouraged? This combination of desirable factors resulted in the rapid expansion of new residents, facilities, and businesses that continue to add to the benefits of living in Cochrane.
Steps to Invest in Real Estate in Cochrane, AB
Investing in real estate has long been a wealth-building route. Real estate is an asset that can provide both ongoing income and price appreciation, making it attractive to those looking for long-term growth and low risk.
However, there exist some real estate investment strategies that sometimes fly under the radar, so to speak. Here are three lesser-known real estate investment strategies that can pay off in a big way:
Short term rental
Many investors like the idea of permanent income and the security of having tenants sign long-term leases. However, for that security, they would trade some of their potential earnings. And short-term rentals, which charge a one-night rate — like a hotel — can often provide more rental income than properties that are rented out over the long term.
For example, a long-term lease in a desirable location with a ton of tourist demand might be rented for $1,000 per month, but could go for $100 per night as a short-term rental. . If such a property was filled with visitors on just half the days in any given month, the investor is looking at 50 percent more rental income ($1,500 versus $1,000).
Properties on or near college campuses can often generate more income than similar properties close to campus. Reason: College housing model has been established for property owners to rent space not only per month but also per student.
This means that a place where five students can live generates more income per month than a similar residence that sleeps only three. If the investor can convert more living space into additional sleeping space, he can increase the monthly income from the property.
As a short-term rental, the income potential is higher than that of a traditional long-term lease. A $1,000 per month traditional asset might be what students pay $300 per month, so having four or five students means an income of $1,200 or $1,500.
Land without buildings may not be the most attractive real estate investment in terms of income, but the land is durable, versatile, and scarce. As Mark Twain once said: ‘They ain’t making it anymore.’
Vacant land usually has lower acquisition and carrying costs than land with structures on it. They can make low-cost land attractive to ‘flippers’ who want to buy less and sell more. And like buildings, land can be auctioned or similar emergency sales. An investor may have to do more work to find vacant land at bargain-basement prices, but those deals are over.
Finding a piece of vacant land with the current owner who has no plans for it could be tempting if it can be developed further down the road. At the income end, the land can be leased to farmers, hunters, or other business owners who need it.
There is no secret that people have made a fair amount of money throughout history by investing in real estate, and some less common ways of going about it can provide greater returns.
Advice for New Real Estate Investors in Cochrane, AB
The world of real estate financing can be both challenging and satisfying in equal measure. As such, if you are planning to enter the industry any time soon, you might want to take a look at the following useful tips:
Network with Realtors
Realtors can be real estate investor’s best friends. Since they often have information on the latest developments in the local market, they can prove to be an invaluable source of information when choosing investment options.
In some cases, the realtor will also be able to give you information about homes that are not yet on the market. Before your competition knows that a home is available, you can submit an offer.
Find a Reliable Lender
You don’t want to run out of money halfway through a project. In an ideal world, you might even try to be friendly with two or three lenders. That way, if one of them falls through, you ever have alternate and contingency options.
Location, location, location
It may sound like a cliché at this point, but when you are investing in real estate, choosing the right location is paramount.
Of course, this doesn’t mean that you should only search for properties in the best neighborhoods – but it does mean that the area you buy in will put a cap on your potential earnings. In other words, you should avoid putting $300,000 in a neighborhood home that never sold for more than $200,000. It is highly unlikely that you will ever be able to get that money back.
Know about all the businesses and Government services in Cochrane at https://www.cochrane.ca/