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.