The Top Home Models For Real Estate Investors
When it comes to real estate investing, more and more people are choosing to invest in brand-new homes to try and attract tenants. As well as being more desirable to renters, new construction homes also save you money as they need fewer repairs and are all covered by the Alberta New Home Warranty by default.
Sterling’s new Evolve line of homes offers investors even more advantages. These homes are specially designed to be more affordable, so you’ll be able to get more bang for your buck. Look for these homes if you want to maximize your earnings.
Front Attached Homes
Many investors prefer front-attached homes because of their appearance (they tend to look more like ‘traditional’ homes) as well as their versatility. For instance, the Allure model is a three-bedroom home that comes with a side entrance option, ideal for investors who want to build out a suite that’s independent of the rest of the home. It’s also a great choice for multigenerational families who want a home with a separate space for an elderly family member.
The Asset model is sure to be your biggest asset. The main home is 1,559 square feet, which is the perfect size for a family. It includes plenty of must-have features in the design of the home, such as a walk-in corner pantry, a large foyer, an upstairs laundry, and a bonus room on the second floor. You can include a legal suite in the basement, which increases your income potential. This is a great option for someone who wants to dip their toe into real estate investing because you can easily live in the main home with your family while renting the basement out.
When it comes to laned homes, the Sansa model has big benefits for real estate investors, including an attractive starting price of just $326,900. The main floor has an open-concept layout, which is perfect for socializing. Upstairs, you’ll find a full master suite and two secondary bedrooms. With this model, you have the option of adding a basement suite with a separate entrance, and since it’s a laned home, you may even be able to include a garage suite. That’s three potential streams of income!
The Streetwise model is also an exceptionally good choice. The basement suite has a separate entrance from the main home, while the main home has everything a family who wants to rent could be looking for. Since this model has a low starting price, investors can create a positive cash flow from day one. Rent provides a regular return from your property investments, which offsets your expenses and interest payments. Our ROI calculator is designed to examine the potential return you might receive from an investment property.
Duplex Homes are a perfect choice for people who prefer a more separate living space, and they tend to be more affordable than detached homes, so you can hit the ground running. It’s possible to purchase only one side of a duplex home, but many investors choose to purchase both sides. By turning the basements into income suites, you can end up with four rental units. Best of all, many years down the road when it’s time to do something like replacing the roof, you don’t have to worry about coordinating with another homeowner.
The Revive and Renew models are part of our Evolve line, and one side of the duplex starts at just $338,900. With a price like that, you can easily afford to buy both sides of the home. The main living section of each of these models has around 1,500 square feet, which is a nice size for most families. We also make it easy for you to turn the basements into legal suites, so you have a lot of opportunities for income.
Townhomes are a great choice for investors who prefer to do less exterior maintenance on their homes, and if you plan to own multiple properties you can cut this down even further by purchasing multiple townhomes next to each other.
Our Deville and Davinci models both have well-planned designs. There are three bedrooms on the second floor and an open floor plan on the main floor. They’re also very affordable, with both models starting in the low $300’s. And with walk-in closets, quartz countertops and 9’ ceilings on the main floors, and availability in up-and-coming neighbourhoods like Manning Village and Sienna, you’ll have no trouble attracting high-quality tenants.
A Bungalow might not be your first thought when you consider buying an investment property, but there are a lot of benefits. For one thing, they’re perfect for people looking to downsize their homes, especially older tenants who don’t want to deal with stairs.
They can also be a great choice for multigenerational families. Models such as the Solace have the option to build a legal basement suite with a separate entrance, allowing older relatives to live with their family while maintaining their independence. Or if you prefer, you can simply rent the home as two completely different suites.
At first, the sheer number of available and high-quality new homes can seem a little overwhelming. You might also worry that the higher initial cost compared to resale homes could decrease your profits. However, with less running costs, higher rental prices and the ability to move people in right away and not having to renovate, they more than pay for themselves. Not sure which model is right for you? Come talk to an Area Manager about your options and get started right away!
Originally published June 21, 2019, updated July 7, 2020