Even if you’re not in the market for a new home, it doesn’t mean that you can’t participate in Clarington’s exciting real estate market. An investment property can be a safe and secure investment, as well as a steady source of income. From rental properties and flipping homes, to developing land and obtaining severances, there are many different types of income and investment properties. Here are a few things to consider as you delve into the world of investment properties:
Do the math
Depending on the type of investment property you are interested in, it may be many years before you can expect a return on your investment. Therefore, it’s important to sit down and crunch the numbers to ensure that you can afford the mortgage and maintenance payments in the years to come, and what your potential return may be. If your investment property is going to cause you financial stress, it may not be the right time for you to buy. However, some investment properties can immediately start generating you income, which can help offset some of the expenses of owning a new property. You may want to seek the help of a financial advisor, who can help you determine if it’s the right time for you to invest in the real estate market.
Consult the local Township
Visiting the municipal planning department at your local Township, as well as reviewing the Township and County’s Official Plans, can help give you insight into the projected growth and development of the area. This can be extremely valuable information when you are considering purchasing an investment property. You will be able to learn what parcels of land may not be eligible for development, which ones are, as well as learn about any new development projects in the area that could help or hurt your potential real estate investment.
Do you research
Before delving into the real estate market, it is very important to do your research. This means examining how the real estate market in your particular area has been performing, as well as how it is expected to perform in the future. You don’t want to purchase an investment property in an area that is overvalued or that is expected to struggle in the coming years. It’s also a good idea to speak to a knowledgeable real estate agent in the area who not only has access to this type of information, but who can also educate you on the average rental rates and home sale prices in the region.
Work with you strengths
When looking for an investment property it’s a good idea to keep your own strengths and skills in mind. If you are looking for a fixer-upper to resell, then it would be helpful if you are handy and enjoy spending your time doing home improvements. Or if you are looking to develop a vacant lot (such as obtaining severances and rezoning) then organization and administrative skills will come in handy. Also, keep in mind that owning an investment property sometimes requires outside help, such as a landlord to manage tenants or an accountant to help you with your new property taxes and expenses.
Work with the right agent
Looking for an investment property is different than looking for a new home. Therefore, it’s important to make sure that you are working with the right agent, one who understands your wants and needs. A knowledgeable real estate agent can give you valuable advice on potential investment properties, as well as insight into the market. Ideally, they will be able to help you locate and negotiate the perfect income property. If you are looking for an investment property in an area that you are not familiar with, a local real estate agent in the region can be particularly helpful in giving you guidance and inside information.
Unlike investing in the stock market, investing in real estate often does not result in quick returns or immediate gains. Most people expect real estate investments to be medium to long-term holds, so it’s important to keep this in mind. However, investing in real estate can be one of the safest and smartest financial decisions you can make. If you would like more information or are interested in real estate opportunities in the Durham region please feel free to contact me. I look forward to hearing from you!