Guidelines for buying investment real estate

The first factor to consider when buying real estate for investment is your budget. Ensure that you have sufficient funds for the initial fees and the long-term expenses; the only thing worse than having no property at all is being unable to fully pay for your investment.

After checking your budget, the next step is to scan the market so that you can have a good idea of what future buyers might look for, thus establishing a profitable investment. Compare the prices of the properties you are considering with authoritative market projections and current design trends. Take into account the locale of your purchase: the community, the neighborhood, the existing amenities, and the accessibility of core facilities (e.g. hospitals and schools).

Consider fixer upper properties, as well. The initial expenses required to bring up the home to a presentable, salable condition would be small compared to the potential profits down the line; this is especially applicable if the property is already aesthetically pleasing and situated in a good neighborhood to begin with. Also, going for this option would guarantee that any hidden problems would be addressed prior to the sale, as such issues would otherwise be undetectable in a property that looks good only at first glance.

Most importantly, tap the help of a professional such as a real estate agent. Specialist knowledge would be invaluable in assessing the previous factors to ensure that you get the best long-term benefits for your purchase.

Source: Canadian Real Estate Wealth – 11 Dec 2015

To find out more about financing investment real estate, contact the Ray McMillan Mortgage Team at 905-813-4354 or visit www.RayMcMillan.com

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