property investment tips

Five tips for investing in rental property

Rental property has been proven and even recommended since it is a long-term wealthy generator. Below are five tips that will enable one ensure that his/her rental property investment venture is a profitable one.

Know the reason why you are buying

real estate propertyUsually, there are three key factors that most people consider when venturing into this industry: the first reason is; being the owner of the property, to be an income generating venture: last but not least is to purchase for speculative purposes.

For a speculator, time is essential here. You only need to catch up with it when it is on an upswing where you will make good money. According to Precondo, the current lister of the upcoming Playground Condos, if you stretch financially to buy a condo or any other property when the market prices are at the peak, you are most likely going to make a loss when selling. Therefore, you need to be careful in timing.

Being an investor sometimes is a smarter way of benefiting as a real estate owner. This is all because you are in the deal for a long-term period which will enable you to do more research. This will not only make you familiar with the plan but also, will enable you to settle on good properties, which will go a long way in ensuring that your property appreciates over time.

Have financial preparedness

When you are making a rental property purchase: always know that a property aimed at being rented out is very different from a principal residence. For instance, if you are interested in up to four units, it will be upon you to raise payment of 20% for you to get insured for mortgage approval. In most cases, rental homes investors are subjected to borrowing rates that are high and very strict rules for qualification since lenders perceive them as riskier.

One should be well papered financially for him or her to stay in the market and withstand all the unexpected expenses like; repair bills, interest rate increases, and stratal levies. You need to have other set aside resources that will enable you to solve such issues for you not to out-compete.

Recommended reading: Projected real estate trends in Canada

Ensure you have positive cash flow

You need to know the returns that you will get from your investment. The local market and the conditions within are determined what you are likely to charge for rent. If your rental houses are in desirable areas, the potential for rent increases and will enable you to keep up with the inflation. Always look for profits plus sufficient return on your investment.

positive cash flow

Determine your level of involvement

Ensure that you are ready and able to take the landlord tasks. If not you can hire a property manager which will force you to cut your profits for their fees. Therefore, before venturing into this, you should think of how worth it will be for you.

Research

You need to look at the economic factors. The community you are considering is it adding people any jobs? Ensure that the infrastructure within the area attracts more tenants. It should be accessible to transit, schools and shopping centers.…

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Projected real estate trends in Canada

The Canadian Real estate market is quite dynamic. Canada, like most countries, has a robust real estate market. Moreover, things are never constant here considering that dynamics in both local markets have a direct impact on property process. This article sheds some light on some Canadian real estate trends.

Most people prefer renting over buying

home units

Initially, most real estate investors and property owners preferred condos over other homes. Things have since changed, and this is may not be the case in most cities. It is has been established that most Canadians prefer renting a house over buying. This could be attributed to the fact that, they are trying to evade maintenance costs associated with Condos, which can be significant. This will certainly create a low demand and some instability in the condo market.

Trump effect

The election of Donald Trump as the United States president could have had an indirect impact on Canadian real estate. His victory is projected to reduce the dominance of Americans in Canada. This will lead to a growth of Canadian construction and engineering firms. Besides this, his win could result in immigration in Canada. Apparently, this means that apartments will be on demand. The effect of this trend is an increase in the value of residential premises.

No more construction

This is another trend expected in Canada real estate market. Construction activities a have reduced significantly in recent years. This could be because of market saturation. Inventors now prefer setting up residential premises in less developed cities. Besides this, real estate investors can consider putting up apartments targeting a given class of people.

Stable interest rates

One common feature of the real estate markets is fluctuating interest rates. Market factors such as demand mainly influence the rates. According to surveyors, it is projected that cities in Canada will have stable interest market rates. On the other hand, the southern countries may appreciate an increase in interest rates.

A drastic change in Montreal real estate market

property

Montreal real estate market is not popular among many investors. This has been the case for several years. However, this trend may end anytime soon as the Montreal market takes a positive turn. Difficulties in real estate market in other parts of Canada will serve as a business opportunity in this area. Real estate investors will take this opportunity. This will change the real estate story in this city.

These are a few projections expected to hit the Canadian real estate. At the moment, investors are expected to feel the heat considering that most people prefer renting. However, the good thing about real estate is that things happen too fast.…

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