Thinking about starting a real estate portfolio? A traditional investor might follow the trend and invest in Toronto and Vancouver. But there is a new market in Winnipeg, Manitoba that is ripe for the picking.
Compared to other investment areas, Winnipeg is proving to be quite the differential choice. The city’s immediate surroundings have a substantial number of rural residential neighborhoods. Demand for such housing has increased thanks to an emphasis on remote work environments by companies. Households are now looking for less dense and more spacious communities.
Investing in Winnipeg real estate can offer several advantages. As a landlord and investor, you get to earn extra passive income. As demand for property increases, the value of your property will also increase, and you can realize a sizeable profit at that time.
To enjoy such benefits from real estate, you must lay down a proper foundation. Research into established and upcoming neighborhoods will be a must. You will also need to investigate market trends and the economic and political situation.
Pillar Property Management has been bringing quality property management services to the Winnipeg area since 2017, and our extensive property management expertise has made the difference from many of our clients.
Why Invest in Winnipeg Real Estate?
One of the biggest considerations for investors is the cost of acquisition of an investment property. The common preference is for an investment with a low entry cost with medium to good returns. With traditional real estate investment options such as Vancouver or Toronto, this is not possible because the cost of entry into the market tends to be high.
But if you are interested in Winnipeg real estate, you’ll find lower entry costs and good returns. Compared against the average price in the country, Winnipeg’s properties are quite affordable. For investors with a limited budget, this Manitoba city should be on your watchlist.
Winnipeg is also experiencing an increase in population. With some of the lowest business costs in North America, a few manufacturing, pharmaceutical, and assembly companies have set up in the area. An example is the French-based food company Roquette. The company has established a multi-million-dollar plant right outside of Winnipeg.
With such a thriving job market, people are relocating into the area to take advantage of the available opportunities. Rental property investors can take advantage of the increased demand for housing.
Taking a more critical look into the economy of Manitoba, you will find that it is stable and growing. The GDP of the province has been steadily increasing, which foretells of good returns for the different sectors of the economy.
The Winnipeg real estate has been slow to respond to a rise in demand for properties. Prospective investors can seize the opportunity of such a favourable situation. The affordability of the area and steadily growing economy make the area an appealing one.
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Tips for Buying Investment Property in Winnipeg
Tip #1: Negotiate the right price
Put a buyer and seller in a room and the main topic of negotiations will be the asking price of the property. As an investor, you should know that almost every element of the property is negotiable.
In a typical real estate purchase contract, there are many other items to be considered. One such item is the closing costs. You can negotiate on the escrow fees, title search fees, notary fees and so on. Other items to be negotiated include the down payment, fixtures and appliances and closing date.
You should be able to negotiate for the different elements in the terms of agreement. Have a futuristic view of your financial needs over the next few months. The final offer on the table should allow you to meet your other obligations and needs.
Tip #2: Location, Location, Location
The phrase is usually deemed the number one rule when it comes to real estate. And rightly so, the location of your property could mean the difference between good returns and a poor investment.
Before sinking your resources, you will need to perform a comprehensive analysis of the options in the area. Some variables you can compare include the market value, capital growth, occupancy rates, returns, neighborhood and amenities.
Tip #3: Conduct a cash flow analysis
Each month, there will be money flowing into your account as income and some moving out in the form of expenses. This analysis is important for an investor and cannot be assumed. Investment property has several expenses associated with them.
Start with performing research into the legal and financial obligations as a landlord. You need to get concrete information and simply not assumptions. That done, you will be able to predict the flow of money accordingly.
The last thing you want is to have a property in your portfolio that you cannot afford. You will need to keep your calculator close. The goal is to know whether you can afford to purchase and maintain the property or not.
Tip #4: Get a professional inspection
The fittings and fixtures might look new and impressive. The color-washed walls and interior décor are striking and beautiful. But what about the plumbing? Is it up to code? What about the foundation? Is it still solid?
A house inspection might look like a costly service, but it is quite necessary. A professional inspector’s input can save you from costly repairs and renovations in the future. Another benefit of a house inspection is the peace of mind knowing you get your money’s worth.
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Winnipeg offers an excellent opportunity for the investor exploring into differential investment market alternatives. Exploit the current situation and enjoy passive income in the comfort of your home.
Real investment is a journey. It does present a wonderful opportunity to build your portfolio and get good returns. But it requires extensive research, planning, expertise in the local market and focus.
Interested in the Winnipeg real estate market? Set up a meeting with the real estate experts at Pillar Property Management. Our team can offer professional advice gained from years in the industry. We can give you the necessary tips towards being a Winnipeg real estate investor. Contact us today!