Are you thinking of adding real estate to your investment portfolio? There are many things to consider when deciding where, what and when to purchase.
Here is a list of ten things to consider as you look for the ideal investment purchase.
- Rent: You absolutely need to know what comparable rental properties in the area are going for. This ensures you will make enough money every month to make this property, in fact, a good investment rather than a bad one. You will want to be able to cover your mortgage payment, your property taxes and other expenses like insurance.
- Location: As always, location is of the utmost importance when shopping for real estate…to live in yourself OR for an investment property. Both the type of renters you will attract and the resale value will be affected by the location.
- Employment Opportunities: A growing job market is the ideal spot to be located with an investment property. THINK OTTAWA WEST=NEW DND CAMPUS. Statistics Canada can provide you with stats on demographics, migration etc.
- Safety: Inquire about crime rates with the local police station as well as with Statistics Canada. We can research this for you as well and provide you with the information.
- Amenities: While Walk Score is a good place to start it is better to research the area in more depth. Locations with amenities such as shops, restaurants, fitness centres, public transport and more nearby are definitely more desirable than remote locations. Evans Team are experts at this…let us help!
- Schools: This could be a large factor for some renters with children so it’ a good idea to have an idea of what schools are in the area and which Boards they are with.
- Future Development: What stage is the neighbourhood at? Is it in a growth phase? Are there any developments such as industrial that could hinder a residential renter? Let us get these questions answered for you!
- Inventory: We can have a look at market trends so we can let you know how the houses are valuating in a certain neighbourhood. We are here to help you make a sound investment both for the period you want to own and rent the property but also for future resale reasons. Having a good understanding of vacancy rates, rental rates in the area and growth will give you a better understanding of how the market is working.
- Property Taxes: This is a no brainer…you need to know what you will be paying in property taxes annually or monthly along with your mortgage payment to ensure the monthly rent covers this.
- Insurance: Another initial cost to consider when valuing your monthly rent amount. We can help you know that you are buying in a highly insurable area as well.
If you are thinking of investing in real estate please give us a call to discuss further at 613-592-6400. There are so many things to consider when purchasing an investment property and the above are just a few general areas. We can help you all along the way from brainstorming to research to purchase to closing to renting to selling.