You would love to make some extra money, so you’re considering investing in real estate in Canada. You’re just a little worried about making mistakes with your first investment. Follow some tips for investing in real estate in 2019, and you’ll be ready to take a bite at the investment apple.
Invest in the Right Markets
While you can roll the dice and invest anywhere, it’s a good idea to invest in one of the top real estate markets in Canada. Just like in recent years, Vancouver and Toronto lead when it comes to investment prospects, but Montreal is heating up and might become the go-to city for investing in real estate in Canada in 2019 and beyond. Study the challenges and opportunities for each spot before you pick your investment property.
What Are You Going to Do with the Property?
You have to decide what you’re going to do with the property after you purchase it. You can rent it, flip it, or offer it rent-to-own. Real estate in Canada seems to be getting hotter and hotter, so the best option is to rent it out for the long term. Let your tenants pay off your mortgage; then, you can sell it for a tidy profit.
Think About Financing
If possible, you should make a sizable down payment on your investment property. Most lenders offer reduced interest rates for those who put down at least 25 percent.
Once you gather your down payment, it will be time to secure the mortgage. If you think you’ll have some trouble getting approved by a big bank, go to a local credit union. Credit unions usually have some flexibility when it comes to lending money. That will make it easier for you to buy real estate in Canada.
Think About How Much Time You Want to Put into the Process
If you’re going to rent out your condo or home, you need to consider how much time you want to invest in the process. Managing the property on your own is a huge time commitment. You have to be available for maintenance and repairs, and your tenants might call day and night. Many people prefer using a management company. That way, they can earn some money from the investment without putting in a lot of time.
Don’t Overdo the Rehab
Even if you’re going to rent the property out, you will likely do a little remodelling beforehand. For instance, you might need new appliances or new carpet in the unit or home. Don’t overdo it, though. If it’s a budget home, stick with budget appliances and fixtures. There is no reason to provide more than the home is worth.
Are You Ready to Invest in Real Estate in Canada?
Investing in real estate is an exciting venture. You will feel a rush the first time you buy real estate in Canada for investment purposes. Just make sure you follow these tips, so you are successful.