Edmonton Real Estate
While Edmonton’s real estate market has recently taken a downturn, many people are hesitant to purchase investment property in that area. To most investors it seems unwise to buy a product that is decreasing in value, and the recent influx of investors into the Edmonton housing market has shown that dealing with this type of market is not for everyone. When handled properly, there is decent money to be made in Edmonton’s current real estate market.
"I buy property for the monthly income. The periodic property gains are secondary. Because my properties have positive cash-flow, I am less concerned by down turns and less dependent on upswings to make a profit." – says Robert Kyosaki, author of "Rich Dad / Poor Dad." It is this type of thinking which allows savvy real estate investors around the world to weather the bad markets and profit in the good ones.
Basically, investors buying investment property do not have to put money into these homes every month. The rent from the tenants covers the mortgage, maintenance, and other expenses. Some investors will even increase their down payment to get the monthly payments to where they would like them to be. If the real estate value drops, the investor is still making a profit from the property and can afford to "Weather the storm." This way, the investor does not need to worry about the value of the property increasing in order to turn a profit.
"I buy property with the intention of never selling it." – says Walter Sanford, World Renowned Real Estate Investor and Trainer. When buying a property with the intention of selling it right away, one is more likely to overlook certain aspects of the home, such as maintenance and cash-flow. However, if an investor has the mindset of purchasing it to keep it forever, concepts such as a 5 year plan of maintenance and what the neighbourhood will be like in 20 years, start to come into play.
When investing in Edmonton property, a wise investor will be able to obtain a monthly cash flow with it right away. If the investor would still want to own the real estate in 15 years, or would be willing to sell it to his/her own client, then when the market turns around there will be a very decent profit to be made.
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