Investing in Real Estate in Winnipeg
Are you interested in investing in Real Estate in Winnipeg? Perhaps buy a rental property, hold on to it for a few years and then sell it, hopefully at a nice profit? Here are a couple of useful tips:
First of all, there are 2 main ways to invest in real estate: fix-n-flip houses for a quick profit, or buy and hold (while renting it out) and then sell for a profit. I have personally invested in both but I prefer to focus on the buy-and-hold method for a number of reasons, which would take a little too long to explain in this post.
Just the other day, I met with a real estate investor from Saskatoon who had come to Winnipeg and purchased some property. His first effort was a 4-plex in a very run-down part of the city. He soon found that the tenants were less than desirable, often skipped out on the rent, usually left a mess and sometimes even damage.
So this investor went into a complete different direction and purchased a luxury home. Now the tenants have been great, rental payments come on time and the owner has less trouble in that department. However he found that the luxury home did not appreciate as quickly (being already a very expensive house to begin with), and with such a large cash investment, the rent he collects, barely covers the costs.
So my suggestion is to focus on houses in between these two examples. Not run-down dilapidated houses, and not super-luxury homes, but good, clean affordable housing in the $200,000 range. This may be small two-story homes, or even side-by-sides, but whatever the house may be, it should be in a good area.
The benefits are that the cash outlay is not so great that the rent barely covers the costs, and these types of homes tend to appreciate the most in value. The reason is that these 'lower priced' homes are always desirable as entry-level homes for first-time buyers.
This segment of the market is really what is driving Winnipeg's real estate boom. So investing in those types of homes is a wise, prudent choice.
If you are interested in purchasing such a home, please contact me anytime.
Alison O'Toole REALTOR® Investor
Century 21 Bachman & Associates