Real Estate Investors Should Up Their Research On Out Performing Markets

Posted by Alan Zunec on Saturday, March 30th, 2013 at 1:16pm.

A big part of successful real estate investing is knowing where and how to buy that profitable property. It does take a bit of research and work to find something in what’s called the “out-performing” market.

Calgary is on the top of that market list, with a robust economy and enough real estate and money to give back high ROI. TD Economics’ deputy chief economist and vice-president Derek Burleton noted that all these factors, along with price gains that are showing to be above average, have given this Alberta city a front row pass.

Then there are others like Tony Zucaro from Right At Home Realty, Inc. who thinks that investors in the know won’t necessarily let price alone be the deciding factor. His definition of an out performing market is a tad different. It includes neighbourhoods that are being renewed or that haven’t quite peaked. Other factors should be the availability of good schools, churches and synagogues, cultural landmarks, shops and entertainment venues. Walkability is becoming a factor. People want to be in walking distance to all, or at least most, of these amenities.

Zucaro agrees that Calgary is a good, key market, but studying these other factors, as well as particular neighbourhoods is also important.  Zucaro noted that just because a city is doing well on the whole, individual micro markets may vary in performance. Investors should get out and look at the neighbourhoods along with the properties and get the lay of the land. Then, go back and crunch the numbers.

A smart move for investors is to treat their portfolio purchases in the same way as buying their own home. Think of the things you thought were important and compare your intended investment with that list. The more items you can check off, the more likely of investment success.

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