Lethbridge Real Estate: Articles and Market Trends

For Sellers

For Buyers

06.10.2008
For Rent - Is Becoming a Landlord for You?
Purchasing real estate to be used as a rental property can be a source of passive income as well as an asset to your portfolio. Here are some things to consider when preparing to purchase a rental property: 1. Familiarize yourself with all the costs involved. Consider expenses such as property taxes, insurance, property management, repairs and maintenance. You should also know what the vacancy rates are in the area and have a sufficient vacancy allowance set aside to cover any long periods of vacancy. 2. Know the law. Both landlords and tenants have different rights and responsibilities and these may vary from province to province. Get a copy of the Residential Tenancies Act (Alberta) from the Queen's Printer and get to know this information well in advance of posting the "For Rent" sign. Also, be aware of any municipal bylaws that may affect your role as a landlord, for example, changes to secondary suites . 3. Select your tenants. Do some research into the best places to advertise for tenants. Be aware of what questions you can ask potential tenants without being discriminatory. When you find a good candidate, prepare and sign an appropriate lease, do a thorough inspection of the property together, secure a deposit and commence the agreement. Click here for more information for landlords and tenants in Alberta. More info for Landlords and Tenants

05.11.2008

Renovate vs. Move

Renovate vs. Move: What is the best choice for you

When deciding whether to remodel your home vs. move, you will want to consider the return on renovation investments. Here are some projects for which the Appraisal Institute of Canada's members projected average payback value ranges.

Top four greatest payback potentials:

Bathroom renovation (75-100%)
Kitchen renovation (75-100%)
Interior painting (50-100%)
Exterior painting (50-100%)

Ten average payback potentials:

Roof shingle replacement (50-80%)
Furnace / heating system (50-80%)
Basement renovation (50-75%)
Recreation room addition (50-75%)
Installing a fireplace (50-75%)
Flooring (50-75%)
Constructing a garage (50-75%)
Window / door replacement (50-75%)
Building a deck (50-75%)
Central air conditioning (25-75%)

Six lowest payback potentials:

Landscaping (25-50%)
Interlocking paving (25-50%)
Building a fence (25-50%)
Asphalt paving (20-50%)
Adding a swimming pool (10-40%)
Installing a skylight (0-25%)*

For an unbiased, impartial home renovation cost-benefit valuation, consult an accredited member of the Appraisal Institute of Canada. You can find the names of appraisers in your area at www.aicanada.ca under the heading "Find an Appraiser".

*Information from the Appraisal Institute of Canada's 2004 Home Renovation Survey. Consumers should be aware that home values and returns on renovation investments are dependent on many factors such as the location of the property, the neighbourhood and notably, the quality of workmanship and materials. For more information go to www.aicanada.ca/renova.