Here in Lethbidge Alberta we have become a popular destination for real estate investors looking to purchase rental properties. Due to the fact that we have 2 post secondary educational institutions here, the University of Lethbridge and Lethbridge College, we have a large number of students who take up residence here in the city.
The rental market in Lethbridge has remained solid and stable. Our prices on these investment properties have also remained fairly low and solid. With the mortgage interest rates being at historically record lows, this makes owning rental properties in Lethbridge a great opportunity to make positive cash flow.
Here is a picture of a typical rental property. This is a half duplex property located in the Uplands subdivision in North Lethbridge. This property is about 900 sq ft, has a full basement, and is fully developed. A home like this is currently worth approximatemy $215,000. With the current interest rates that could work out to a mortgage payment of about $1000/month to own this type of property. Our current market rents in Lethbridge for a property of this type would be at least $1200/month.
In short, it is cheaper to own these properties than to pay rent for one. Also, if you are making a mortgage payment instead of a rent payment, then approximately half of your monthly payment is going towards building equity. The difference being that 25 years in the future, you would also own a clear titled home.
If you want to discuss becoming a homeowner in Lethbridge, give me a call and lets go for a coffee.