Thinking Investment Property - It's a Great Idea!
May 24, 2022 | Posted by: Sharon Patton
Investment Property – It’s a Great Idea!!!
Have you been thinking of purchasing an investment property?
In our current economic environment, we have seen a rise in the market values of homes. Combining this with moderate rates could be the perfect time to use the equity in your home to invest in another property.
Let's look at WHY this could be a great idea for your financial future.
Return on investment.
Residential real estate is a solid estate investment, typically appreciating faster than inflation.
A better alternative to student residence.
Many Canadians are sending their kids to university and college away from home. Housing them in an investment property purchased specifically for that purpose is a good option.
Pension Plan for the future.
Over the long term, an investment property or multiple real estate holdings can be a great source of retirement funds.
For first-time homebuyers, a duplex or triplex can be a terrific way to get into homeownership.
Rental income from the extra units can offset the cost of the mortgage.
What You Need to Know About Investment Properties
A minimum of 20% down payment is required for a rental property.
Less than 20% down payment is only possible with an owner-occupied multi-unit property. This will require high ratio insurance.
Once you have more than 4 properties, you will need to spread your mortgages across several lenders to avoid reaching the maximum number of mortgages per investor that a lender will approve.
If this is something, you are considering let’s look at what your next steps will be. Having a plan and a pre-approval in place is a great way to start!
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