7 Tips When Buying an Investment Property
7 Tips When Buying an Investment Property
If you’ve decided to take the plunge into the investment property market, consider these tips first.
- Get Pre-Approved. The very first step is to determine what you can afford to buy. One of our 911 Mortgage Brokers will take care of your Mortgage Prequalification. Canada’s mortgage rules dictate that you must come up with a minimum down payment of 20% for a small rental property (i.e., one to four units). This minimum does not apply if you occupy part of the property.
- Assemble a team. Buying a rental property takes a team of professionals, so besides your 911 Mortgage Broker, line up an experienced real estate agent, home inspector, appraiser, lawyer and insurance agent.
- Research average rents and ideal locations. Do some research on the area you’re considering. Your best bet is to buy where there are good jobs and population growth. Find out what the going rents are, what they have been historically, and what occupancy rates are like.
- Choose an appropriate mortgage. One of our 911 Mortgage Brokers will help you find the right mortgage solution to fit your financial needs.
- Don’t forget about insurance. Like your home, a rental property is a valuable asset. Choosing the proper insurance can protect your property from the financial impact of an unforeseen event.
- Consider hiring a property manager. Not everyone has the time to respond to tenants and deal with repairs — especially emergency situations. While the cost of hiring a property manager — usually 8%-10% of your rent revenue — will cut into your monthly income, it will also reduce your stress level.
- Educate yourself on landlord-tenant laws. Good tenants are hard to find. A property manager will market your property and screen potential tenants, but if you’re going it alone, you’ll need to get up to speed on what your rights and responsibilities are.
Enjoy the Gained Equity! Like everything, you will need to go through a little bit of a learning curve on your first investment property. However, once you have some experience, you will certainly reap the benefits and enjoy the rewards of being a property investor, so you can continue to grow your investment portfolio.
How 911 Mortgage Brokers can help
Let our 911 Mortgage Brokers guide you through your mortgage options in your next investment property. Whether it is a rental condo in the city, a detached rental home or a multi-residential building, we will explore your mortgage options.
Our 911 Mortgage Brokers and Agents will match you with the right lender to fund your investment property. We will negotiate the lowest interest rates available in the market and find the most cost-effective financing solution to maximize your ROI. Because an investment property is not the same as a primary residence, it requires careful planning and detailed consideration to all the financial aspects of your mortgage transaction, we will guide you step-by-step from approval to funding, so you can enjoy your journey as an investor and start reaping the benefits.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation. We will be happy to explore your mortgage options to fund your next investment property.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
