Buying a Property

Look through the paper and find a property that you would like to buy. You can buy an apartment building or a commercial property. For this property, you will need to determine the total monthly payment and approximate what income you will be making. The main objective is to create a budget and ensure that your expenditures do not exceed your income.

First, you need to determine the property taxes you will be paying. You can determine this by accessing your municipal government's Internet address (i.e. Edmonton's is http://www.gov.edmonton.ab.ca). Municipal Governments also have a department for Property Assessments that you can call (Edmonton's department is the "Market Value Assessment Information Centre" at (780) 496-6633). Find out what the current mill rate has been set at for your type of property and determine your property taxes accordingly.

You need to next determine what type of loan you will get to buy this property. Research how to buy a property such as the one you want to buy and what would be the cheapest way to buy it. Determine your monthly payment on this loan given that you will be putting $20 000 as a down payment (this down payment must be considered an expense to gain a profit!).

You also need insurance for your property. Find an insurance agency that specializes in your type of property and find out what type of premium you will be paying.

Now determine what type of income you will be receiving. Will you sell your property (condos), will you rent your property (apartments), or will you lease out your property (commercial property)? What type of income you will receive from this property? Recall that your income must exceed your expenses as to make a profit.

Project Ideas