If you’ve bought your own home, you have already realized the financial advantages of real estate ownership. The following gives a brief overview of the many ways you can profit from owning rental real estate today.
The old adage 'house rich and cash poor' is an economic reality for many buyers in the Lower Mainland. Many purchasers are looking for creative ways of making ends meet. One such option available to purchasers is to create a 'secondary suite' or 'basement apartment' in their home. For most buyers, the advantages clearly outweigh the disadvantages. The inconvenience of becoming a landlord is offset by the substantial dent the incoming rent will make on the monthly mortgage payment.
If you are looking for an investment property, you’ll want to look for what’s good—a good property in a good neighborhood with a good price and good financing. Your Local Real Estate Expert has the hands-on experience to help you find what you need.
As an investor, you may start looking in or near your own neighborhood so you can “keep an eye” on the property. That doesn’t mean, however, investors should look for the best home in the best neighborhood. You’ll find rents often don’t cover the higher mortgage payments. Look for a home in a neighborhood where renters want to rent, not particularly where you want to live. Be on the lookout for:
- a well-maintained neighborhood
- ready access to public transportation, highways
- a style of home that appeals to the most renters in that price range
- a property that fits comfortably into the neighborhood—the “typical” rather than the unusual
- a property that doesn’t require a lot of maintenance or repairs, unless you’re looking for a “fixer-upper”
- a property where you can afford the carrying costs in the event of a temporary vacancy—preferably an under-valued home listed by motivated sellers.
Consider the desirability of your location both now and in the coming year and the supply of property in the area.
There are nearly as many investment-hunting strategies as there are investors, but experience provides some universal truths that pay off. Your Local Real Estate Expert will help you by providing comparables, finding out applicable tax laws, and check tax assessments.
You may want to specialize in a market you know - fixer-uppers, foreclosures, starter homes, low down payment properties, condominiums, and/or apartment buildings. Your Local Real Estate Expert will be able to provide you with a current list of all available, take you to view the properties, deal with the current management companies if necessary, and of course, negotiate all of your deals.