The real estate investment market is robust and competitive!
Investment properties - particularly smaller, residential real estate - are now accessible to many average Canadians. And as any homeowner will confirm, real estate has been one of the most attractive investment categories in Canada for the past decade. If you're considering an investment in real estate, start by having a conversation with an experienced Mortgage Broker, we'll discuss the down payment and credit/income requirements to qualify, plus explore some of the innovative new options and great rates available today.
Here is some advice from 'other' investors on what you need to think about first!
Buy the best location you can afford -- location sells! If the area turns around, you may be able to make more money in a lesser location, however, it's a lot more work and you can increase your risks that the area may deteriorate even more.
Pay for good talent. Your property is no place for your relatives or friends to practice their carpentry skills.
Buy small and stay small. Stick with smaller units and don't go overboard with upgrades, etc., as tenants may not be able to afford your rental property. Make sure the property will rent in line with overall rentals in the area.
Inspect the propery for 'what it can be'. Take a different view of possible renters and you can sometimes locate a bargain that no one else recognies.
Run the numbers. The money coming in / the money going out, and consider the depreciation costs that will come up.
Have a plan when your tenants move. Create a list of repair people to clean up and repair the property when a tenant moves. Every day the property is vacant, it costs you money.
Avoid buying a unique property. Choose properties that will appeal to the average family so it will be easier to sell when you are ready to do so.
Before you invest, learn all you can about the rental market, tax benefits and renovation costs. It is easier than you might think to create a real estate investment plan and get started!