Real estate is one of the best investment opportunities that anyone can make.
Under normal circumstances, a home’s value will always increase, and you can generate recurring income if you rent out the property. The process is similar to buying a home, but with a few more considerations.
If you’re considering investing in real estate there are a few things you should know.
What are your investment goals?
The decision to purchase a home as an investment property is a little different than if you were going to live there. There are expectations and goals with every investment; some are financial while others are more personal. So before you dive into a long-term investment like real estate, consider what your goals are and how much time you want to invest.
Are your finances in order?
It’s no secret that homeownership is an expensive investment. In addition to the total cost of the home, there are taxes and maintenances costs, and those costs double if you choose to invest in more than one property. Speak with your bank or consult with a mortgage broker to see if you are prepared financially.
What’s the condition of your investment?
A property that has little to no maintenance required is worth the investment compared to a fixer-upper that may be available at a lower cost. Homes that have signs of wear and tear are at risk of additional expenses that you may not be prepared for. If you have any questions or concerns I can recommend a few qualified home inspectors.
Where are you investing?
Choosing a home in the right neighbourhood will boost the value of your investment, and attract more tenants. By familiarizing yourself with neighbourhoods in the area you can get an idea of the average cost of homes and the value of the property.