Think owning an investment property is just for the fabulously rich? You might be surprised to learn that it’s not such an intangible dream as you might think. In fact, for the past decade, property has been one of the most popular and attractive investment categories.
But does that mean it’s right for you? It definitely pays to know a bit more about what you’re getting into.
What is an Investment Property?
An investment property is simply a property that you purchase but don’t intend to be your primary residence. Most people buy them with the intent of making money by renting, flipping or just gaining profit from appreciation.
Investment Properties – What You Need to Know
When looking for an investment property, keep these general tips in mind:
- Be prepared to ride it out. While investing in property is generally always a sound decision, it’s not a get-rich-quick scheme. You’ll need to make sure you can support the property for the long-term.
- Scope out the space. How does the roof look? Is the structure stable? Are leaks common? All these factors and many more will either need to be addressed or could affect the resale of the property.
- Spruce things up. If you’re looking for tenants, you’ll need to put in some labour to make sure your property is attractive. Fresh paint, light landscaping and modern fixtures are just a few improvements you can make to help land the right tenants.
- Find the right manager. A property manager can help take the worry out of understanding property law, finding the right tenants and so much more. While it may seem like an unnecessary cost, the amount paid is usually tax deductible and is often deducted right from the rental fee.
All the tips above will seem like you’re getting ahead of yourself until you find the right mortgage that will help you land the investment property of your dreams. So let’s take a quick step back…
Your Investment Property Mortgage
When it comes to getting the most out of an investment property, there are many new and innovative options that can help you get great rates on your mortgage. It can be a little more complex than the home mortgage process, however, with factors like tax deductions and borrowing costs coming into the picture.
Our best advice when considering investing in property is to come and talk to an experienced mortgage professional. At Mortgage Guys, our door is always open to discuss your options and help you navigate the waters to find a mortgage that will maximize the return on the big step you’re about to take.
Investment properties are an exciting adventure. We’d love to help you get started.