Thinking of investing in the Edmonton Real Estate Market?

We recommend starting small! Focus on the properties that can give you the biggest bang for your buck – like multi-family investing (four-plexes). Have questions about how to become a great real estate investor? Ask us here, by leaving your comments below.

Guess what Edmontonians - Edmonton made the cut as one of 22 Canadian cities earning the spot on the Monopoly: Canada Edition. Valued at 3 million, Edmonton shares the green section of the boardwalk with Calgary and Sarnia. From the viewpoint of Stephen Mandel, the chosen location  was very appropriate – “given the city’s environmental leadership and our beautiful river valley.”

According the official Monopoly website “The votes are in!  Now you can play the new MONOPOLY Canada Edition featuring Canadian cities voted by you! Wheel and deal your way to a fortune even faster using debit cards instead of cash. All it takes is a card swipe for money to change hands. Now you can collect rent, buy properties and pay fines – all with the touch of a button! It’s a new way to play the family classic that’s been brought up-to-date with higher property values and locations based on your favourite Canadian cities!”

The Edmonton Sun reported that “after a whirlwind of online voting to determine which Canadian cities would earn a property spot on the special edition Monopoly: Canada, Edmonton came out on top as the fourth most expensive real estate in the game.” – with Calgary beating us at a value of 3.2 million.

Monopoly has had a long history in both American and Canadian culture, first coming into its own in 1934 during the Great Depression. Since that time, various versions of Monopoly have been played by over 500 million users. The unique aspect of Monopoly though, is that it really can teach everyone key components of the Real Estate process – particularly when looking for investments.

The Real Estate Game – Lessons From Monopoly (and tips to apply them in real life):

Tip #1 – It is all about the Location

In monopoly – it isn’t always about owning the most expensive property, but rather the ones that will most likely be landed on more frequently. This holds true, when investing in real life as well. Typically as an investor (especially if your planning to rent the property) – the most expensive property and chicest neighbourhood would not be the most desirable investment option. As an investor, you will want to consider all factors – Location of property to local amenities, vacancy rates, and average rental rates in comparison to the costs of ownership. Remember that you are responsible for the bills even if the home is sitting vacant…

Tip # 2 – When Investing Start Slow and Go From There

In monopoly, each player starts with a set income in terms of what they can spend on investment property. This holds true in life too. When investing, keep in mind your budget – if it is small, start small and build your rental portfolio up from there. I always recommend looking for real estate with double the rent potential – like duplexes. As you grow your rental share, you can begin to think about diversifying your properties.

Tip # 3 – Seek Out Deals

Real Estate Deals are out there – and you never know who is ready to sell. Obviously finding out this info in monopoly is easier as there is always one player in need of money – this holds true in real life too. The obstacle in real life – is simply finding a seller that is motivated to give a deal.

Tip # 4 – Renovate Moderately

Remember that when renovating that you are NOT renovating a home for your needs – but rather for potential renters. Renovations can only add so much value to home which is why you never want to go overboard. I see this time and time again, especially with new investors – buying into a “moderate income” property and renovating to the nines. Reserve the luxury items for a truly luxury home.

Tip # 5 – Strategize – Have a Plan

Every year I have plan as to how I am going to grow my rental portfolio (where and at what price), how I am going to promote renters to rent from me and an expected maintenance budget. Working with a Real Estate professional that understands investing (who does it themselves) and who understands the in’s and out’s of investing successfully is key.

So know that I have given you valuable insight into how Monopoly can teach young and old a like that Monopoly is both fun and provides a valuable learning opportunity, I would like to ask you this:

If the city of Edmonton really was on the world-wide real estate market – what would be it’s true value? Whatever it’s true value would be – who would be the lucky buyer ultimately?

Until next time – Have fun playing the new Canadian Edition of Monopoly!

–> Share your Monopoly stories today via normal comments or try our new “Video” commenting (all you need is a webcam)

Over the course of the last six months, there have been heated discussions over the new potential downtown arena proposed primarily by the Katz Group of Companies. The debates have ranged from how it will effect downtown, to what it will cost taxpayers and what will even happen to the existing Rexall Building.

Personally, I know that if we do not move forward with progressively driving the revitalization of our downtown  with this arena, we the people of Edmonton will miss out. This is especially true for the real estate investment potential of downtown and the urban movement that will come with it.

When I talk to younger potential Edmonton home buyers – they share stories and desires of how they want to see Edmonton become a major metropolitan centre -  proud and more successful than ever. A city that they can live local in (with all the amenities and entertainment nearby) and a place that  drives them to be motivated and to succeed .

In respects to the Edmonton Real Estate Market, I know that if the arena does go through, there would be no better time to buy a prime piece of downtown Edmonton real estate like the present. Whether you are a young professional with a desire to live central, or an investor who knows purchasing a condo in this area would be beneficial – I recommend starting your search for the perfect property today.

Young Professionals – Prior to purchasing your new property, remember to keep in mind:

• Your lifestyle – What size of condo would work for you? How close would you want to be from specific amenities? What is the property age demographic?
• Make sure that you can afford both the mortgage as well as the condo fees.
• What amenities or services would you like in your condo development or nearby?

Condo Investors:

• Remember to take a long term view of your potential investment – Does it have a positive cash flow?
• Research – which neighborhoods have better potential – which areas have less properties on the rental market and have a greater demand for them?
• Review Economic Factors – Population, job growth, average incomes and so on.

Whether you choose to invest in the downtown Real Estate market or not, is completely up to you. Regardless, the downtown is in need of a  major revitalization. 104 Street and Jasper Avenue are already making head way in creating a more urban environment. The Edmonton downtown arena and its proposed additional facilities will promote downtown Edmonton as an urban, forward thinking destination to live.  As an Entertainment Centre, the city of Edmonton will be filled with more energy and excitement, connecting more to the world than ever before.

For more information on the proposed Arena, please visit Revitalize Edmonton. Alternatively, if you are interested in buying an Edmonton Condo, start your search. Want to learn about new Edmonton developments – contact the Terry Paranych Team today.

Photo Provided By Daryl Katz Group – visit their website – Revitalize Edmonton