Like stocks, investing in real estate can be very rewarding, if done right of course. The Niagara real estate market along with the rest of Canada has continued to trend upward and without any guarantees that it’ll slow down anytime soon, if you can get your hands on an investment property it could be worth it in the long term.
Considering the down payment and income generation
The down payment for an investment property is larger than that of an owner-occupied property, so be sure to consider this when making the decision to purchase an investment property. Researching the property prior to committing to it is also important, as you don’t want to buy Niagara realty that doesn’t give you the income return that you want.
Having an idea of the neighbourhood, typical rent costs along with the vacancy rates are important to know prior to your purchase. Buying a house that could potentially reap a high vacancy rate may not be the best idea!
Taking on the responsibilities of a Landlord
Owning an investment property can be key in making profit and financial freedom, but being a Landlord isn’t as simple a task as it may seem. Finding the tenant is one challenge, just be sure to screen potential ones carefully and always be aware of your properties state. Saving funds for repairs you know about is important, along with potential repairs that could come about.
Buying a house with low operating expenses
Operating expenses on your property will be between 35% and 80% of gross operating income, so you’ll want to get a good idea of which end of these percentages you’ll be paying. If you’re planning to use some of the revenue generated from this property to pay off your mortgage, you’ll want to make sure you’re on the lower end.
Scouting the Niagara housing market for an investment property could be a good idea if you have the funds and know how to best maneuver the market. Investment properties are a great way to diversify your investment portfolio and generate a revenue external to your regular cash flow. Connect with Team Davids if you’re looking for a real estate property to ensure you get the best out of your investment.