The 4 Best Areas To Invest In Real Estate In Maple Ridge

Is a rental property right for you?

When considering whether or not to purchase an investment property, one of the first things you’ll need to decide is whether you’ll be living in the property yourself, or renting it out. For most investors, buying an investment property means renting it out in order to maximize your profits while keeping the unit occupied.

This comes with its own challenges though, since managing a rental property requires both time and knowledge of the rental process. For those looking for a passive income stream, be aware that being a landlord requires more work than many think. Finding the right tenants, performing property inspections and maintenance, collecting rent, and more can all take tons of time out of your already busy schedule.

How to choose where to invest in real estate

Investing in real estate is a huge financial commitment, and it’s always recommended that investors do their due diligence before settling on a neighbourhood to purchase property in. Forecasting which areas will hold their value over the long-term, and predicting up-and-coming neighbourhoods is no easy task, but looking to the future is always a good idea for real estate investors.

In breaking down the various areas of Maple Ridge that offer the best value for landlords looking to invest in real estate, we’ve attempted to pinpoint neighbourhoods projected to increase in value while also attracting plenty of rental attention in the present. For each neighbourhood we’ll look at in this article, we’ll cover the following factors:

• Renter demographics
• Job opportunities
• Crime rate
• Nearby schools & amenities
• Public transit options

Ultimately, the best neighbourhoods to invest in real estate balance all of these factors – though it’s up to individual investors what they’ll prioritize when deciding where to buy. We strongly recommend working with a licensed real estate agent who can help you narrow down where to look.

Best areas to invest in real estate in Maple Ridge

1. East Central
   • • East central is in the heart of Maple Ridge. Close to transit, restaurant, grocery stores and all the amenities. This area is also ideal because it is home to most of the condo market in Maple Ridge. The demand for rentals in this area is always needed. You are walking distance to everything one would need in Maple Ridge.
2. Cottonwood
   • • Cottonwood is a growing family oriented community. This area is close to trails and close to the city center but just far enough away that the crime rates are lower. The desirable school distract is one of the many reasons people are drawn to this area of Maple Ridge.The growing demand in this area makes it ideal for rentals but its also for good return on investment when you sell in the future.
3.  Silver Valley
   • • Silver Valley has been popular for a few years now. The community is still growing and being developed. You are minutes away from nature and have easy access in and out of Maple Ridge which is ideal for commuters. With Silver Valley being only 5 -10 minutes away from the heart of Maple Ridge you are close to everything. With the growing demand in this area not only is it great for rentals but its also great for re-sale value in the future.
4. Southwest Maple Ridge
   1. • Southwest Maple Ridge isn’t talked about very much but it has some great potential. The homes in this area are getting older which is drawing more developers to purchase. This is great for an investment as the new development will add value to the already growing area. The location is great, you are close to the Golden Ears bridge and close to transit, restaurant, grocery stores and a bunch of amenities just like East Central.

How to calculate profitability on your rental property

One of the key things investors need to look at before investing in a rental property is the capitalization rate, or cap rate, of their potential investment. To put it simply, capitalization rate denotes the expected rate of return on an investment property. In other words, your property’s capitalization rate measures the ratio between your annual rental income and the property’s current market value.

We won’t get into the precise formula here since there’s a good deal that goes into calculating this number, but there are plenty of calculators online to help you get a sense of how much you can make from your rental property, such as this one from calculator.net. Or just talk to your realtor, they can walk you through all the expenses and figure out what would be best for your situation before purchasing the investment.

Interest rates & what they mean for investors

Rising interest rates have sent many Canadian investors into a frenzy, but what do they actually mean for real estate investors? For those who already own a home, this rise could be cause for concern as mortgage rates rise accordingly. According to a recent CBC article, as many as 1 in 4 Canadians will be forced to sell their home if rates continue to rise, a grim statistic that has caused panic across the country. Particularly for those with a fixed-rate mortgage, be prepared to see your monthly mortgage payments rise in the coming months.

However, a likely side effect of these rising rates is a significantly larger inventory of rentals and decreased demand, which likewise means lower sale prices — which could be good news for investors. It’s also probable that rent prices continue to rise alongside mortgage rates as homeowners recoup their more costly payments, which signals that Canadian investors still have plenty of opportunities to turn a profit by renting out their units. If you’re planning on investing in real estate in the coming months, it’s a good idea to educate yourself on what these higher interest rates mean for you as an investor, and prepare accordingly for stress tests and other realities brought on by higher interest rates.

Tips for renting out your property

There’s more to being a successful landlord than this though, particularly if you’re trying to maximize the potential profit you can earn from your unit.

The most successful landlords are experts at both marketing and tenant screening — the two most important factors in ensuring your unit remains occupied with quality tenants. Many investors, especially those with larger portfolios, tend to use property managers to operate their rental units, but managing your own property can be easier than you’d think.

Here are a few tips for maximizing your property’s capitalization rate while saving time and minimizing effort:

1. Share your listings to multiple platforms — In order to reach as many renters as possible, it’s important for landlords to share their listings far and wide. Popular listing sites like Craigslist, Kijiji, and Facebook Marketplace help you expand your audience and rent out your listing faster.
2. Have a rental ‘hub’ — Once you have plenty of interested leads, it might be a good idea to choose one rental platform to handle all of your communications, leases, and rent payments. One option is liv.rent, a Canadian all-in-one rental platform that allows landlords to conduct the entire rental process in one place.
3. Use technology to your advantage — The rental industry has evolved rapidly in recent years, with advances like 3D Video Tours and Bitcoin rent payments changing the way landlords do business. To stay ahead of the curve and accommodate more renters, choose a digital rental platform that supports these cutting-edge technologies.

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It is so important to us that you feel empowered and educated throughout the buying and selling process – if you have questions, give us a call, text, or email with any questions you have! We can answer all of your questions, and give you specific tips related to the rentals, real estate investments, and more. We’re here to help.