6 Reasons Investors (and Tenants!) Love New Edmonton Communities
Are you looking for a property that is safe to invest and yields stable returns? Are you worried you might not be able to afford properties in metropolitan giants such as Montreal or Toronto?
If you answered yes to either of these questions, then Edmonton could be the solution!
Home to the magnificent River Valley, Edmonton is the capital city of the province, Alberta. With a population of about a million, Edmonton is often referred to as the “City of Festivals” because it hosts numerous festivals on various themes all year round.
But why is Edmonton the right place to invest? Here are some reasons why:
1. Real Estate Market Stability
Perhaps the biggest reason to be interested in Edmonton’s real estate investment landscape is the fact that the market is exceptionally stable. This means that the prices for rental properties have not dropped in recent years, but have increased at a steady rate.
Compared to other viable investments such as those in bigger cities, Edmonton offers higher and more guaranteed returns on each investment, making it a real estate no-brainer. Because the market does not dip frequently or too intensely, properties in Edmonton almost always yield a profit when flipped. It also means that you receive a guaranteed secure amount of returns on each investment.
2. Real Estate Rental Tax Deductions
The Canada Revenue Agency has allowed several deductible expenses that are generally associated with the rental business. It can significantly help landlords in managing their personal tax situations. This article will take you through some tax deductions that are eligible for rental properties that every landlord should know.
3. Low-Interest Rates
Most investors often need to take out a property mortgage to sort their finances and start investing. Steep interest rates often accompany these loans and mortgages, and borrowers can sometimes feel trapped.
However, don’t lose hope just yet. Edmonton offers some of the best mortgage rates in North America, making it a buyer’s Paradise. Although hampered by the first few months of the COVID-19 pandemic, Edmonton’s real estate market soon bounced back and is performing strongly. Fixed mortgage rates and 5-year mortgage rates help buyers commit to a loan and pay back easily.
4. The Power of Youth
Anybody with even the most basic knowledge of economics knows that when there is demand, there is supply.
Edmonton has an overwhelming population of young working-class citizens; in fact, the average age of an “Edmontian” is only 35 years. These residents are at that point in their careers where they are not interested in investing in a huge property by themselves and are looking for rental spaces instead. This means that the demand for rental properties is high, and so it is a venture worth investing in, for landlords and tenants alike.
New rental units can also be renovated and tweaked to suit the needs of these trendy individuals who might be looking for something more modern and electronically well-equipped.
5. Edmonton Job Market
Not only does the city of Edmonton has a strong supply of young tenants presently, but it also has the potential to attract many more such customers. With a steadily increasing job market, Edmonton is soon going to experience an influx of fresh graduates and individuals in the search for better job prospects.
These new residents will also be looking for places to rent, both big and small, and you will never have to worry about searching for suitable tenants. The tenants will come seeking you.
6. Family and Festivals
Edmonton hosts a whopping 50 festivals annually, attracting approximately 15,000 tourists. These versatile festivals include but are not limited to Edmonton International Jazz Festival, the Annual Pride Parade, it also has its very own DreamWorks Film Festival, and Canada Day filled with ice-cream and fireworks.
The tourists are often families visiting the city, and staying at the hotels can often be inconvenient and expensive. They often require more beds, toilets, and room space than the average hotel room can provide, and are on the lookout for rental spaces for the duration of their stay.
New investors can easily purchase a property such as an apartment or duplex and put it up for rent on a vacation rental website such as Airbnb. Interested families can rent these apartments out for the length of their vacation, and it is an ideal arrangement for both you and the occupant of your rental real estate.
For any real estate investor, expert or amateur, Edmonton is a great place to invest.