A Beginners Guide to Buying an Investment Property in St. John's

St. John’s real estate is on a good many investors radar these days. Some of these people are seasoned real estate investors; others are just beginning to feel their way. If you’re new to the game it’s often hard to know where to start?

As always it’s good to begin with the preliminaries:
• do you want to go residential or commercial,
• do you want to flip a home or buy and hold,
• do you need a property that provides an immediate cash flow?

If you decide to buy and flip keep the following in mind:
• look for a home that is undervalued due to cosmetics,
• look for an unkempt home in a very good neighbourhood,
• consider a home with a special feature such as a sought after view or adjacent to a river,
• look for a property that can be subdivided to create another building lot which can be sold.

If you decide to buy and hold, consider the following:
• Properties with a basement apartment generally provide a better return on your investment dollar,
• Properties that are close to schools, parks, and amenities are easier to lease,
• Rental properties make most sense if you are willing and able to do some of the maintenance work yourself.

If you’re unsure about investing in real estate in the St. John’s area the following investment check list created by the Alberta Real Estate Investment Network (ARIEN) may help.

Is the average income increasing faster than other areas?
Is job growth increasing faster than other areas?
Is the population growth increasing faster than other areas?
Will the area benefit from a real estate ripple effect?
Does the area have multiple major employers?
Is the area good for retirement?
Does the area have major transportation improvements slated for the future
Is there an increase in material costs?
Is there a labour shortage?
Is the area a desirable place to be?
Is the economic development office progressive and helpful?
Has the political government created an economic growth atmosphere?
Is the area’s infrastructure being built to support growth?

Have you bought an investment property? Any thoughts, advice or caution you would like to share with us? 

If you would like assistance buying an investment property or have questions please call or email. I'm always happy to answer any of your real estate questions.

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