If you’re looking to complete a property flipping project in one of Alberta’s sought-after neighbourhoods like Spruce Grove, Stony Plain, Parkland County, or the Edmonton region, you’re in for a fun and rewarding experience. Just as it is a fun hobby to some or a means of added income for others, property flipping can also be a business or main source of income for many people who are well versed with real estate and renovations. There are a variety of reasons why you might want to flip a piece of Parkland County real estate or one of the many Edmonton acreages available for purchase. Before you start, though, it’s important that you understand what you’re getting into. If you’re looking to flip a piece of Edmonton real estate, consider these advantages and disadvantages before committing to the project.

Pro: Great Financial Gain

Of course, the number one advantage of property flipping is the financial gain that so many people achieve. Many people have amassed significant wealth with a simple property purchase, renovation, and sale at the right place and the right time. A major part of their success involved having a solid understanding of the trends in the real estate market. If you can buy and sell at the right time, you could earn a lot of money simply by flipping a property.

Con: Relatively High Risk

One major disadvantage when it comes to property flipping is the relatively high risk involved. In order to profit from a property flip, you will need to buy low, invest into the property, and sell high. This means leveraging changes in the market – knowing when prices will drop and when they will rise. Either buying or selling at the wrong time will greatly reduce your property’s value – and if you happen to both buy at a poor time and sell at a poor time, you could find that your newly renovated property is worth less than it was worth when you purchased it.

Pro: A Fun Project

Many property flippers who thoroughly enjoy the project have a keen sense of interior design or a good grasp of home renovations and improvement, or both. Having a passion for design and renovation will certainly help to make property flipping a fun and rewarding experience. This is especially true for home flippers who are able to undertake certain home renovation or decorating projects themselves, without having to involve too many contractors. First and foremost, your property flip should be a labour of love.

Con: A Big Mess

For those who don’t have an understanding of home renovations, especially for those hiring contractors for the first time, it is common to find yourself in a big mess – both literally and figuratively – when it comes to renovating the home in preparation for its sale. When dealing with contractors, it’s very common for things to run behind schedule or for fees to go well above what was initially quoted. A property flip is a major project with all sorts of intricate details, and there are a thousand different things that could go very, very wrong. If you’re not prepared to take that risk and deal with the fallout, you will neither enjoy nor profit from a house flip.

If you are interested in undertaking a project with a piece of Spruce Grove real estate, Stony Plain real estate, or Parkland County acreages, you can find immediate financial benefits as well as longer term financial gains in each of these areas. Most importantly, it’s crucial to understand your own qualifications and knowledge when it comes to property flipping, and to be able to assess your ability to deal with challenges that will arise when you flip a property.

For a better understanding of what’s involved in property flipping, I’m always happy to answer your questions. Feel free to call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Investing in real estate can boost the value of your financial portfolio in several ways while also giving you flexibility. People will always need housing, and depending on your goals, you may decide to use your second home as a rental property or simply renovate and flip it. There are lots of great homes in Spruce Grove, Stony Plain, Parkland County and the Edmonton region. Here are just a few reasons why you should consider buying one as an investment property.

Housing Values Tend to Rise

Buying real estate is a good investment because the value of a property tends to appreciate over the long-term – sometimes at a rate of as high as 6 percent per year. In Edmonton, the total value of all property sold went up by 15.3 percent from June 2013 to June 2014, according to the REALTORS Association of Edmonton. Buying an investment property in Edmonton is a great way to take advantage of rising property values.

Diversify Within The Sector

Real estate can diversify your portfolio by putting money in something other than stocks or bonds. Even within your real estate portfolio, though, you can diversify even further.

When you start purchasing investment properties, you may decide to put part of your money toward single-family homes, part of your money toward duplexes, and part of your money toward acreages. Investing your money in different kinds of real estate means that if one market does poorly, you can still recover.

Hold the Property in a Trust

When real estate is held in a trust, it may be possible to hand that property down to future generations. This means that an investor’s children or grandchildren will be able to take advantage of a mature revenue stream to pay for college or other living expenses.

Property placed in a trust or a retirement account may also enable the property to grow in value while shielding those gains from some or all capital gains taxes. Over the course of many years or decades, this savings could be in the tens or hundreds of thousands of dollars.

Someone Else Can Manage it for the Owner

Those who don’t have the time or skills to do repairs or otherwise manage a property can hire someone to do it for them. This can free up your time to focus on your investments, even if you don’t have a lot of experience maintaining homes or commercial property.

For those who may live in another part of the country, being able to have someone else oversee the upkeep of the property and manage tenant needs ensures that your responsibilities as a landlord are being met. If a tenant’s minimum needs are not met, that tenant may be able to leave the property without paying current or future rent. Having a caretaker or property manager means you get a great income stream without the hassle.

If you’re looking for a house that you can rent out to tenants, the Edmonton area is a great rental market where you can turn a profit. Buying an investment property can sometimes get complicated, but an experienced real estate agent can coach you through the process.

For more information about investing in real estate, or to find your next great investment property, call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

In the hunt for a new home so far you’ve covered Spruce Grove real estate, Stony Plain real estate, Parkland County real estate, Edmonton real estate, Parkland County acreages and Edmonton acreages. That’s quite a bit of land to cover, but for good reason. There’s one feature in particular you’re looking for in your new home: a secondary suite.

What Is a Secondary Suite?

A secondary suite is a section of a single detached house that contains all of the features of an apartment, like a kitchen, a bathroom, a bedroom and a living space that remains separated from the main house. Basement apartments are a common example of this type of living space.

What Size Should It Be?

According to Edmonton bylaws, a secondary suite should be at least 30 m² (about 325 square feet) and no more than 70 m² (about 750 square feet). In total, the main house and the secondary suite should be at least 360 m² (3875 square feet).

What Are the Advantages to Owning a Home With a Secondary Suite?

The biggest advantage of purchasing a home with a secondary suite is being able to rent out the unit. Depending on how the space has been divided, most suites can accommodate one or two people. The rent collected on the suite can serve as additional income for homeowners, which is a fantastic way to supplement mortgage payments. Adding a secondary suite can also be beneficial when it comes time to sell your home. Houses with secondary suites usually have a higher property value compared to other houses of a similar size. With a secondary suite, you’ll earn more on the sale.

Are There Any Restrictions to Be Aware Of?

As with most major renovations, zoning restrictions and certain bylaws act as guidelines for building and maintaining a legally sound secondary suite. Check zoning policies for your location to determine how they will impact your situation. In general, there are a few standard rules with which a secondary suite should comply. First, only single detached homes may contain a secondary suite. Second, the suite must fulfill all fire code regulations upon inspection.

Does Owning a Secondary Suite Impact My Taxes?

The short answer is, yes, it does. If you chose to rent out the suite and take on tenants, the rent money collected must be documented with the CRA as earned income when it comes time to file your income taxes for the year.

Is City Funding Available for Suite Renovations?

There are certain grants and funding options available for homeowners seeking to either add a secondary suite to their home or renovate an existing suite. Upon receiving approval and funding, renovated suites will be subject to inspection by city officials to confirm that fire code and building code regulations are met.

Secondary suites are the next wave in creating affordable housing solutions for homeowners and renters.

Have more questions about secondary suites that need answering? Bring them to me! I would be more than happy to discuss any issues related to home ownership and Alberta real estate. Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

As a realtor in the Spruce Grove, Stony Plain, Parkland County and Edmonton region, I help people buy and sell property.  But I also own several revenue properties myself, and that experience has taught me a few things about dealing with people in rental situations.

Being a landlord in Alberta can be rewarding and daunting.  I recently took a 12-hour course from the Edmonton-area Landlord and Tenant Advisory Board.  (Call them at 780-496-5959 or visit their website where you will find lots of good information.  As well, tenancy forms are available for sale including tenancy application, tenancy agreement, inspection report and notices).  I am one of those people who try to focus on the most important points of such a course and keep them in the front of my mind.  No doubt you have heard the saying that the three most important things in real estate are location, location, location.  What’s the most important thing to remember as a landlord?   At the end of this course, what I concluded as a landlord was:  Put all tenants on a “fixed-term lease”.

A fixed-term lease has a start date and an end date of the lease.  Unless the lease is extended beyond the end date, the tenant is expected to vacate the property on that date.  No notice is required; the lease IS the notice.  This is beneficial to a landlord in many ways.  It gives you an opportunity to see what a tenant is really like.  A bad tenant can be both financially and emotionally draining.  Initially, I put all my tenants on a 3-month lease.  That is usually enough time to figure out what you have.  If they appear to be good tenants, I may extend the lease period to perhaps 6 months or a year.

There is one technicality that you should remember.  If you have tenants on a fixed-term lease and the lease expires and you take the next month’s rent without signing them onto another fixed-term lease, then the lease converts by default to a month-to-month lease.  Then your hassle factor increases dramatically when you try to evict a bad tenant or sell the property. I advise everyone to put their tenants on fixed-term leases. 

I talked to three people this past week who were trying to get rid of bad tenants: chronically late rent, damage to the home, people living in the house who were not on the lease…. My first question is always:  Are the tenants on a fixed-term lease?  Guess what the answer was in all 3 instances?  Now the landlords have to go through a daunting process requiring them to give various notices in a proper and timely fashion (if not given properly, they are null and void), perhaps bringing their problems to a judge and maybe or maybe not getting an order to vacate, and so on.

My best advice to landlords?  Put your tenants on FIXED-TERM LEASES.

Comments or questions about this article?  Please call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.