Though investors can do little to change the economic climate in light of the economic crisis, there are several measures that can be taken by investors to plan their next move.
Despite the headlines that Canada will be the next country behind the US and Europe to catch the tail end of the financial crisis, smart investors will take a step back and analyse the country’s strong economic fundamentals and take measures that can set them up for big profits down the line.
Exert your buyer power
The current economic climate is an ideal time for buyers to exercise their power. This can be in the form of negotiations to select properties below market value, to stay well within your budget, and to see positive cash flows and capital growth in the long run.
While some real estate markets in Canada have seen a rocky road, especially the Vancouver and Toronto market, many areas, primarily those in Alberta, are emerging as the best Canadian cities to invest in real estate.
Tip: identify the markets that are set for growth, and jump in while many other buyers are running for cover.
Focus on fundamentals
Sticking to the fundamentals of real estate investment will serve buyers well while the majority of the buying community struggles to stay levelheaded. Location is always key, and one must always consider proximity to work, infrastructure, hospitals, educational establishments, cafes and restaurants in the area; all being the best drawing cards in terms of popularity among both tenants and owners.
The property must appeal to the whole spectrum. Even if it is a long-term property investment, one must also consider that if by chance the property would need to be sold, it fit all the right ingredients to be sought after even if the market was down.
Tip: Properties in blue-chip locations are sold at a premium when the market is booming, but when markets slow, its times like these that buyers can enjoy prime real estate properties for a more achievable market value.
Look for areas that can weather any downturn
One must always consider fundamentals such as population growth, infrastructure spending, and job growth, which are the ingredients that create a big demand for property. Notwithstanding, many of these areas also offer affordable prices, which is a win-win on all fronts.
Tip: before investing in a selected area, consider some key questions, such as:
– What kind of economic development programs are in place to encourage economic growth?
– What are the major infrastructural projects?
– Is there a significant GDP growth in the area?
– Are unemployment rates falling?
Based on the above, we think that the best place to invest in property 2013 in Canada is Alberta.
Article from http://www.viproperties.com/blog/real-estate-investmentdecision