Property Investing Requires a Cool Head, Cash and Good Advice.
Watching TV shows that make buying investment properties glamorous and easy can be very misleading. Many first time investors who have been lured into this trap have ended up losing their whole investment and the whole experience has been painful and stressful to say the least.
If you have money saved up and are determined to invest, then take heed of these useful tips
Pick a Niche: When you’re new to real estate investing, it’s a great idea to start small and pick a niche where you can develop your investment property owner skills. Get your feet wet on one or more smaller properties before tackling a bigger and more complicated investment.
Don’t just entertain the idea of building a rental apartment or a home, developing the basement of your existing home could be a good way of starting.
If you’re in a position to acquire a two-family unit or mixed-use property (with a business on the ground floor and living quarters above), you can live in one unit and rent the other. The tenant may pay a portion or all of your mortgage and maintenance costs.
Do Your Homework: This is very important. Once you’ve decided on your niche and found the right property in the right location, make sure you do your due diligence before buying, to ensure your investment is sound.
It is crucial to work with a good real estate agent who has experience in investment properties, knows the neighbourhoods you’re considering, and is familiar with applicable bylaws. This can save you a lot of grief later on.
Do the math: Before you buy, crunch the numbers to be sure you can afford the investment. Factor in the cost of repairs. Always overestimate the total cost, and underestimate the payback. Remember, your rental could be vacant for some time between tenants, so plan ahead for the reduced income.
If you can get started on the right foot, property investing can be a very rewarding and satisfying income generator. If you need help when considering what to do, call us on 604 913 1000 or contact us , and don’t forget to like us on Facebook!