Best Real Estate Investing Options

If you have money that you would like to invest in real estate, there is no better way than to maximize it. Using your money wisely, and planning for the future, can ensure that you make the most of the property while securing your investment (and future) in the process. 

We look at the pros and cons of four of the best real estate investing options available. 

Principal Residence Property 

Perhaps the most important method for real estate investing in Calgary is for your principal residence property. This is the house that you will live in and make your primary residence.  It is more than just a residency; you are making a long-term investment.

When owning a principal residence property, you pay off the mortgage to the property while growing your wealth. You will need the initial capital (known as the down payment) to secure the property. 

Once the property is yours, you can use it for rent (option three below) or improve it before selling it for a higher price in the future. That extra income will allow you to reinvest it in other properties or ventures. 

The only downside is that you will have to maintain it, and of course, pay off the mortgage, which can be challenging and decisively long-term. 

Residential Rental Property 

Perhaps the most common and significant way in which you can invest your money. With so many houses and condos for rent in Calgary, there is ample opportunity to buy an investment property. 

Owning a Calgary rental opens up the opportunity to earn an income through the rent collected, and pay off the mortgage on the rental property. It is the smartest way to go about making money while securing your investment for the future. 

However, owning a rental property is not easy work. As an active investor, you will have to manage the people of the property and maintain it. You will also have to invest in repairs and improvements, thereby requiring a very hands-on approach. 

Therefore you have two options: you can manage it yourself, or hire a property management company in Calgary to do it for you. While there will be a fee for their services, having a property manager look after your apartment ensures that all maintenance, repairs, and most significantly, the management of the renters are handled. 

Investing in Commercial Rentals 

Commercial properties can include anything from office centres to shopping malls. If it has the space to be used as a commercial property, it can be rented out to businesses. The owners of the property (you) can earn significant income through the rent from their tenants (the businesses). 

However, commercial investments do not have the same level of ring to it compared to residential properties. The main drawback is the expense that comes with acquiring, managing and maintaining the commercial property. 

As you will be looking after businesses and their employees, you have to ensure that the property is up to standards in appearance and safety. It is very much an active investment, requiring you to be very hands-on with managing the property and dealing with tenants. 

Between the expensive upfront capital and the complexities of managing it, many investors tend to opt for residential properties instead. 

Airbnb Your Property

Perhaps the most modern manner in which you can maximize your investment. Whether through your own property or a rental, you can rent out the space to earn you some extra cash. 

You have the opportunity to rent our guest suites, spare rooms and whole houses for a rate that you deem justifiable. You will have to consider factors like amenities, distance to attractions, transportation and the space itself to set a rental value. 

Much like Calgary rentals, you choose who you want to rent your space, after reviewing their ratings on the platform. You can rent it out to them for a night, weekend, or month. 

However, the main downside is that tenants are not always reliable when looking after the property. These short-term tenants do not typically take good care of the property as much as long-term tenants usually do. You also have to be entirely aware of any regulations and laws when it comes to Airbnbing your property.