Welcome to the first episode of our real estate investor series,
where we will dive into the 4 key elements of real estate returns. Whether
you're a new or seasoned real estate investor,
I will explain the 1st key element, which is value appreciation,
what it is, why it's important and,
how to choose the right investment property to maximize the value.
We've helped many investors successfully find and acquire the right properties,
tailored to their specific investment goals.
Be sure to subscribe to our channel where you'll find insightful real estate and
mortgage advice, as well as home and community tours.
Now let's get right into it. So what is real estate value appreciation?
It's when you buy a property and based on certain factors,
you're projecting that it will increase in value in the future.
This is a buy and hold strategy.
What we're looking for is the potential growth of a property by evaluating the
factors that will increase its value.
So stay tuned is I will break down the most important items to look for and that
will be at the end of the video.
So why is it important when investing in real estate and understanding the
factors that affect price in the future?
All investments have some risks since this is a usually longer-term strategy.
If you choose the right property in the right location, historically on average,
it does appreciate at a slightly higher rate than inflation.
There are several factors that impact the Calgary real estate market and home
prices. For example, supply and demand of housing.
Affordability, economic, or wage growth.
Gross Domestic Product growth, mortgage interest rates, and unemployment rate,
and much, much more. We're speculating on future growth,
so we can do our research to minimize the risks as much as possible.
Here are the factors that contribute to growth in real estate value.
And one of the things you need to consider is location.
And what I mean by that is accessibility. Things like public transportation,
drivability, walkability,
but we also have to think about property features such as curb appeal,
what the front of the home looks like from the curb. What the street looks like.
Is it wider? Is it treelined? Is it quieter or noisier?
And is there less traffic?
And we have to think about unique features of where it's located,
homes that are backing onto ponds,
parks and greenspace are much more valuable as well.
Then there's sunlight exposure.
And specifically people care about backyard sunlight because this is an extra
living space. The most desirable for backyards is South facing, Southwest and,
West backyards.
So the most important thing for an investor like you is what is there now in
terms of amenities and what does the future development look like?
We can separate those into two categories. Number 1, public investment.
And what I mean by that is what are the city provincial and federal government
doing?
And what are they investing to improve the area or communities in terms of
transportation? Roadways? Parks? You have to ask yourself,
have they planned any additional commercial zoning in those specific
communities?
You want to know as much as you can and what is being planned in terms of
infrastructure. For example,
billions of dollars of investment are coming from the city of Calgary to help
Calgarians get around much simpler and easier.
There are two big projects approved by the city of Calgary being developed now,
and areas that are near to these have already seen their home price appreciate.
Number one is the Green Line light rail transit or
LRT project.
This is an extension of the existing train line from 16th Avenue in
centre street.
And it's already approved down south to 130th Avenue Southeast.
This is a $4.9 billion investment by the city. Eventually,
the Green Line LRT will also extend North to 144th
Avenue Northeast in Livingston.
But this phase of the project has not yet been approved.
The second big project is the Stoney Trail Southwest Ring Road project.
Communities like Braeside, Cedar Brae, Oak Ridge, Woodvine,
and Woodlands. They used to be tucked away without the best access.
But with this Southwest Ring Road project,
you're going to get much easier highway access.
Also an add-on of that ring road project is a task of development,
which is a private development.
That's worth $4.5 billion on T'suutina First Nations Land.
And this development is going to be bringing tons of amenities like
entertainment, a resort, and an outdoor mall to name a few.
There's already a Costco in place there. Here's a big tip for you.
Each Calgary community has an area redevelopment plan or ARP for short,
which will provide a look at the city's long-term plans to increase
population density and revitalize the current infrastructure.
If you want to know a specific communities' ARP,
just leave us a comment below and we'll send it to you.
The 2nd category we need to look at to understand value appreciation is private
investment. These are things like retail stores, commercial developments,
restaurants, shopping entertainment. Basically what we're looking for is --
are these developments going to increase, walk, score, and density and,
desirability for the community. That was a ton of information. I know,
but to recap the things you need to research and consider in order to predict a
home's potential value appreciation are location, accessibility,
property features, amenities --
what is there now and what will be developed later?
And also what public and private money is being invested to improve the
community. That's why choosing the right Realtor to be on your team,
who understands how these factors contribute to appreciation in Calgary Real
Estate home prices is definitely going to serve you as an investor.
If you want to have a chat about how best to reach your real estate investment
goals, you can email us at hello@liveinnercity.com.
Don't miss out on our next episodes by subscribing to our channel where we're
going to go over the remaining 3 key elements for every real estate investment.
And these are mortgage paydown, value add and net cashflow.
If you have a question or found this content valuable,
please let us know by liking and commenting below.
My name is Jasben Lai with the LiveInnerCity Real Estate Team,
helping you keep real estate simple. Happy deal hunting out there.