Sep 26, 2017 / Buying
Buying Real Estate As Investment Property
Owning your first home is a great way to learn all the ins-and-outs of buying real estate. Building your real estate portfolio is a beneficial way to diversify and save for the future.
Increasingly, people are opting to purchase an investment property to help save for their children’s education or for retirement.
There are many benefits to owning a second or third property and if this is something you are considering, the following points should help you make you decision!
OTHER PEOPLE ARE PAYING YOUR MORTGAGE
Acquiring an asset without having to pay the monthly retainer is a smart business move. Having a property full of renters who pay more than your monthly mortgage means you’re gaining the equity on your home, without paying the bills and you’re earning some cash flow! While you are still responsible for the general maintenance on the home, there are cases when it makes sense to have the tenant pay the most regular of home costs such as hydro.
YOU ARE PROVIDING A PLACE FOR SOMEONE ELSE TO CALL HOME
Landlords who make their rentals into desirable places to live often get better, long-term tenants. A good rule to follow is ask yourself: “would I live here”? If your answer is no, it’s time to upgrade the place to attract the type of tenant you want.
IF YOU OWN ENOUGH PROPERTIES, YOU COULD EARN A FULL TIME SALARY
Most people would probably opt-out of a regular 9-5 job if given the chance. It’s possible to generate a full-time income from managing multiple rental properties and enjoy the flexibility of being self-employed.
LEARN LIFE LESSONS
When you take on tenants and multiple dwellings, you are dealing with real life situations. Being organized, firm but charitable are traits that will ensure that you and your tenant maintain a long term and satisfying relationship. There is an unlimited amount of learning when you engage in rental properties from: financial management; multiple mortgages, renovations; complaints; understanding by-laws, legal issues, city regulations and more.
But all of these perceived annoyances eventually will transition you into a better property owner.
Karen Paul & Associates | Real Estate
Ontario Is Our Game ~ Come Play With Us
905-333-6234 | karenpaul.com | [email protected]
Burlington • Oakville • Hamilton • Milton • Niagara
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