Alia McMullen

Sep 25th 2010 at 11:00AM

There are some great money-making opportunities in Canadian real estate at the moment, particularly with low interest rates and affordable house prices. However, you have to know what you're looking for. Serious property investors always do their homework before buying a property, and there are a number of signs they look for in order to maximize their profits through property appreciation and rental income. Right now, those signs point to Calgary as being the best place in Canada to invest. In fact, three other areas in Alberta also make the list, making it the hottest property investment province in Canada.

Before choosing an investment, look at factors that could increase a property's value. For instance, are there any large development projects slated for the area? Is the property near an area that will benefit from planned transport infrastructure? Is there potential for jobs growth in the area? Is the population of the area increasing faster than average? Does the area have easy access to services and schools?

Finding this information by yourself can take a lot of time. Thankfully, the Real Estate Investment Network of Canada puts out a list of the top 10 hot spots in Canada based on these factors, making the research process much quicker and easier for you.

REIN says these top 10 Canadian cities are expected to outperform the national average over the next five years:

1. Calgary, AB

2. Kitchener-Waterloo-Cambridge, ON

3. Edmonton, AB

4. Surrey, BC

5. Maple Ridge & Pitt Meadows, BC

6. Hamilton, ON

7. St. Albert, AB.

8. Barrie & Orillia, ON

9. Red Deer, AB.

10. Winnipeg, MB

Don Campbell, the president at REIN, says Calgary looks like it will outperform other property markets by a "wide margin" over the next few years. He says the house price correction that occurred in Calgary during the recession has made prices more affordable. Now that the recession is over, property prices in Calgary are expected to rise again, supported by the city's strengths in producing food, fuel and fertilizer. With strong potential for jobs growth, Mr. Campbell says Calgary is a good option for long-term property investment.

Once you've found your investment property, get it checked out by an inspector to make sure it is structurally sound. Also, spend some time in the neighborhood to get a feeling for whether it is safe and quiet.

Low interest rates and softer housing prices also make 2010 a great time to jump into real estate investment. For more on finding an affordable mortgage, check out Walletpop's Fixed-Rate Mortgages Starting to Look Attractive, How The HST Affects Buying A Home, and Is The Bank of Canada Done Hiking Interest Rates?.