If you are considering a purchase of an Edmonton multi-family property, this article is for you!
Multi-family real estate investment can be a wise investment move for even the beginner investor. These properties offer a multitude of benefits which make them an attractive option for your real estate portfolio, even for a first time “home buyer.” Due to the density of population that can reside in multi-family real estate, it is considered the most affordable option for renters, who come in all age groups, meaning that demand for this sector of the housing market will always remain high. As an investor multi-family properties offer a source of reliable passive income to meet your long-term goals. We’ll cover 5 reasons why you need to start investing in Edmonton multi-family properties.
Lower Overall Unit Costs
Because of the shared expenses across the units in a multi-family structure, such as the roof, walls as well as many of the systems within the building, such as plumbing, the cost to build per unit is lower. What this will mean for you when you begin investing in Edmonton multi-family properties is a lower initial cost per unit for your investment dollar than other types of property. Because foreclosures are much rarer in this sector, lenders typically charge lower financing rates, saving you even more money over the long term. Because of the shared structural aspects in addition to all amenities being shared, maintenance tasks are lessened per unit, thereby lowering the overall annual cost of maintaining the investment. This money-saving advantage attracts many Edmonton investors to multi-family properties.
Increased Monthly Income
As for your passive income stream, the more units per property, the overall negative financial impact of vacancies is lessened as well. The best part of all, other people are paying your mortgage and expenses, while building your equity. Whether your focus in multi-family properties lies in smaller properties, those with two to four residential units or larger multi-family investment properties, with five or more units, benefiting from the potential for high earnings through this type of investment far outweighs the risks. This is a major reason many choose to start their real estate investment business with Edmonton multi-family properties.
Faster Portfolio Growth
As you continue to purchase units your investment leverage grows, allowing your real estate investment business to continue to increase. This means you have the potential to fill your investment portfolio with more and more multi-family units over time, meaning even more passive income and a better standard of living in the future. Due to the ability to locate and purchase a property with multiple units in the same time frame it would take to find and purchase a single-family property, there is an innate quickening of growth in your portfolio by investing in Edmonton multi-family properties
The taxman cometh! Perhaps I should have put a trigger warning on this image. My apologies.
While you cannot avoid the taxman altogether, multi-family investing offers many tax incentives to keep him at bay.
A major reason many start investing in Edmonton multi-family properties are the tax incentives. Expenses for maintenance and other costs you may incur from the rental property as well as a portion of your mortgage interest can be deducted from your investment income. Depreciation is a number calculated based on the age of the structure, allowing the owner to make a predetermined amount of the value as an expense, out of the deterioration which occurs over a given period of time. This amount is deducted from the income and therefore not taxed.
How Sunrise Home Buyers Can Help
Let us here at Sunrise Home Buyers help you develop a plan to meet your short and long term goals. At Sunrise Home Buyers, we take the time to listen to your needs and concerns. While it may seem complicated, investments in Edmonton multi-family properties all come down to the numbers and what they will mean to achieve your goals as an investor, both over the long and short term. Additionally, when it comes to real estate, the location should never be last on the list when shopping for an investment property.
At Sunrise Home Buyers our experts will make the process easy, helping you find the best property for your dreams and guiding you each step of the way. Your real estate investment success is our job!
Want to learn more about multi-family inevsting in Edmonton, Alberta? Read the article, 5 Tips For Selling Your Unwanted Multi-Family Property In Edmonton from our awesome Edmonton real estate blog!
Why not get started on the road to a better tomorrow with Sunrise Home Buyers today? Send us a message or call (587) 982-7576 now!