Investing in property is nothing new. In fact, this is a practice people have been using for decades now as a way to safely invest and enjoy what typically is a safe return on your investment down the road. Where it used to be a practice that was enjoyed by large investors and even investment firms, today, more and more people are dipping their toes into property investment and learning the ways it can benefit their financial portfolio.
If you’ve been hearing about friends and family who have made the investment, been watching all the property investment shows on the television, checked out local listings, and are ready to give it a try yourself, here are some steps you can use that will help you get started.
Use a Real Estate Agent Who Specialises in Property Investment
A great place to start is by finding a local real estate agent who has experience in property investment. Purchasing a property meant for investment purposes is very different than finding that “forever” home. The list of criteria and must-have features will differ quite drastically, so you need an agent that can look for homes that offer a high return on your investment.
Enlist the Services of a Mortgage Broker
Because you want to make the smartest financial investment possible, you will need to look for ways to save money on the purchase. While they may be some wiggle room where the asking price is concerned, another area you can save money is on your mortgage rate. Rather than doing all the comparison rate shopping yourself, this is when a mortgage broker can come in extremely handy.
When you look at a bank vs mortgage broker, the broker provides buyers with more options as they have access to lenders all over the country, which means more mortgage rates to choose from than just your banks’. Take, for example, Mortgage Connection, which has access to lenders all across Canada, and even exclusive rates you may not be able to access on your own.
Do You Want to Put in the Sweat Equity?
Another thing to consider is whether or not you want to put sweat equity into the investment. Some people choose to purchase the ugliest home in the most expensive neighbourhood, as they figure they can put the money into fixing it up and then get a high return on their investment.
This approach has its pros but it also has its cons. You need to be willing to take on the work, get it done in a reasonable amount of time, and stick to a budget, and make sure you’re doing the kind of renovations that will add value to the home.
Resist Making an Emotional Purchase
The final tip is to resist making an emotional purchase. Remember the home isn’t meant for you to live in forever, it’s meant as an investment. This means you need to look at it in a very logical manner and rate everything from its size, style, condition, location, walking score, neighbourhood, nearby schools, shopping, and dining potential.
Becoming an Expert Property Investor
These tips will help you on your quest to become an expert, and more importantly, successful property investor.