Many dream of owning a second property or several properties as an investment. Renting spaces out as commercial or residential areas can generate a substantial income over time. Among the many options, individuals can invest in second homes, townhouses, condos, duplexes, rooming houses or multi-unit residential buildings. Investing in Real Estate can change your retirement plan!
As a top performing Milton Realtor I have obtained a strong network of investors. With that I am proud to say over time these clients of mine have benefited, and it has expanded their retirement portfolios.
There are many things to consider when buying income-producing properties, so it’s important to do your homework:
Check Your Finances
Before you invest in a property, as a buyer you will need to meet with a mortgage specialist. Buyers are required to put 20% down payment to purchase an income property. Financing your down payment you may utilize your current home equity or a line of credit is an option for those who qualify.
What does the property have to offer? Knowing what the nearby amenities really helps sell your property to potential tenants. Most potential tenants want to be within walking distance of schools, public transportation and local services.
Do Your Due Diligence
Find a Real Estate agent like myself, a well-known income property expert. Once your budget is sorted out I will work to find you a property to invest in based on your search criteria. For properties of interest, we will want to visit it in person and view the property. If you like what you see, we can make an offer conditional on an inspection, obtaining financing for mortgage, reviewing the leases (if currently tenanted), income statements, expenses, and any other items recommended.
As You Realtor, with my network I can also help get estimates regarding the costs of repairs and improvements needed after the property inspection and present these to the owner. Sometimes the sellers will make an adjustment in the purchase price, unless these items were already reflected in the price presented.
Is It a Good Investment?
Call me today with your questions and I will be able to help with giving the correct information specific to your return on investment.
Understand the Residential Tenancies Act of Ontario (RTA)
When buying a second property, you become a landlord. Its best to know your responsibilities and you should understand the rules and regulations of the Residential Tenancies Act of Ontario (RTA).