5 Major Benefits of Investing in New Home Real Estate in Edmonton
As an investor and/ or landlord, you may have never considered purchasing a brand-new property to rent out. However, now is definitely the time to give new construction another look. Recent changes in the market make now an exceptionally good time to buy a new property in Edmonton with the intention of renting it out and here’s why:
1. Retain Value Longer
Naturally, you have concerns about whether or not a property will retain its value. This is not typically something you have to worry about when buying a brand new home. In fact, your investment is a bit safer. New Edmonton communities are designed with buyers in mind. They have things like walking trails, and they’re always near shopping centres. As construction pushes further and further out, your new home’s location becomes even more desirable.
2. Great Market Conditions
Edmonton is currently a buyer’s market, which means we’re not seeing a big increase in new home prices. Builder costs, though, are increasing. While we are currently able to keep our prices from rising, this trend won’t last forever. Eventually, we’ll have to increase the cost of homes to cover our increased costs. If you wait a year or more, you may be looking at higher prices.
At the same time, there seems to be an increase in demand for rental units. This may be related to the changes in mortgage rules. It could also be related to a strong job market. People who move to Edmonton to work need a place to live. They often rent until they’re ready to buy a home.
3. Attracting Tenants
You don’t want an empty property, but that won’t be something you need to worry about if you purchase new construction. Since it’s brand-new, your property is going to look especially attractive to renters. It will have features many other rental units don’t have, such as an ensuite in the master bedroom, walk-in closets, and mudrooms by the entryway. You can also choose to include updated design details like quartz countertops and a tile backsplash in the kitchen that are already included in all Sterling Homes specifications. Clearly, your rental home is going to stand out from the crowd.
It will also stand out for being quite a bit larger than the average apartment. This usually means you’ll be able to charge far more than the going rate for apartments (especially with the high-end features mentioned above). The rental price for an entire home – even a townhome – is a lot more than the price of an apartment.
4. Fewer Repairs
Are you getting sick of tenants constantly calling you when things break down? Sometimes, the cost of all of these repairs really cut into your profits. The great news is this will be significantly minimized with a brand-new home. Since everything in the home will also be brand-new, there just aren’t repair issues. In the unlikely event a defect in the home arises, it may even be covered by new home warranty. This is an especially attractive feature for those who want to dip their toe into the rental market but don’t have a lot of handyman skills.
5. Double Rental Income
As you build this new rental home, you can ask us to create a separate rental suite in the basement or above the garage. These units will be created to comply with all of the rules for rental suites, and the suite will have a separate entrance for that tenant.
This will allow you to have two separate rental units for the price of a single home. One home might be appropriate for a family, with three bedrooms and an open space for living and entertaining. The other would probably be a one- or two-bedroom suite with a full bathroom and living area. This would be well-suited for a young professional, college student, or single retiree. Renting to two tenants gives you the opportunity to earn even more money.
Now is the time to consider purchasing a new construction home to add to your rental portfolio. In a buyer’s market, you’ll be able to get a great deal on the property, and the higher rent that you’ll be able to charge will make it well worth your effort. Come talk to one of our Area Managers today to find out which style of home might be best for the rental situation you have in mind. We have lots of ideas for income suites as well, so don’t forget to ask!