Lethbridge real estate - Buying revenue property can be very intimidating and nerve racking unless you've done it many times and have confidence in the process.

Here are some of the major points to consider:

1. Know the vacancy rates in the area you are looking to purchase in.

The Canada Mortgage and Housing Corporation publishes semi-annual statistics that can be a useful tool for renters, property managers, appraisers, developers, lending institutions, real estate professionals and public administrators. As a revenue property owner, you will want to own property in an area where vacancy rates are low (and ideally, average rents are high). The CMHC report on Lethbridge for April 2008 put vacancy rates for Rental Apartment Structures of 3 units and over at 0.8%.

2. Know your costs.

In addition to the mortgage payment, some of the costs you will want to factor in will include property taxes, maintenance, property management fees, vacancy allowance and insurance. Ideally, the rent you charge your tenants will cover these costs giving your property a positive cash flow.


Lethbridge real estate


3. Know your tolerance.

Are you cut out to be a landlord? Do you know the residential tenancy laws in your province? Can you handle the responsibilities of dealing with tenants, collecting payments, and maintaining a property? Do you have the time and are you willing to be "on call" if there is a problem with the property?

Purchasing a revenue property can be a lucrative way to diversify your real estate portfolio. But do your homework before you purchase and stick to the numbers....buying on emotion can be a recipe for failure.


Lethbridge real estate