With low interest rates coupled with highly active markets, might have you wondering whether now is the right time to purchase an investment property. Here are some things you’ll need to consider:
Do You Have What It Takes to Be a Landlord?
Do you know your way around a toolbox? How are you at repairing drywall or unclogging a toilet? Sure, you could call somebody to do it for you or you could hire a property manager, but that will eat into your profits. Property owners who have one or two homes often do their own repairs to save money.
Rental owners need to be familiar with the landlord-tenant laws in their state and locale. It’s important to understand, for example, your tenants’ rights and your obligations regarding security deposits, lease requirements, eviction rules, fair housing, and more in order to avoid legal hassles.
Take Care of Your Personal Debt First
If you have student loans, unpaid medical bills, or children who will attend college soon, then you may need to consider if purchasing a rental property will be the right move for you.
Weigh the risks vs. the rewards. In every financial decision, you must determine if the payoff is worth the potential risks involved. Does investing in real estate still make sense for you?
Location, Location, Location!
The age-old adage of real estate, “location, location, location,” is certainly applicable when choosing an investment property.
Some investors exclusively buy pre-construction, while others opt to buy downtown condos or suburban single-family homes on the resale market. You might even find a laneway house, choose to build an addition or buy a property with a basement suite; whatever is best for you. When choosing a location or specific type of real estate investment, the right property is dependent on the individual investor and their goals.
Are you looking to get a place that will appreciate in value? Or you prefer a place that gets you sustainable cash flow?
Your Trusted REALTOR Is Your Best Bet for Valuable Information
If you want to find out more about investment properties, or are actively looking to purchase one, enlist the help of an experienced REALTOR® who can provide you with sound investment advice and up-to-date market information.
Call Troy Irvine 780 380 8769 TODAY for important tips about the best investment properties in the market! As always, consultation is FREE of CHARGE.