Investing in Real Estate
Many fortunes have been made by investing in real estate. There have been many fortunes lost as well. Long-term investment in real estate properties can be an excellent venture for an investor when it is completed properly. Anyone considering real estate as an investment at this time will certainly have opportunities and a stable real estate market working for them. The Brantford rental market was positioned favourably for investors with a reported 1.5% vacancy rate in 2012.
A major factor for successful real estate investing the last few years has been astonishingly low interest rates. Mortgage financing has been less costly long term but many conventional lenders have also tightened the rules for borrowing money. Certain changes work in favour of the experienced real estate investor who will face less competition in their real estate investment market sectors.
Anyone entering the real estate market as an investor would be wise to consult with a mortgage professional – perhaps several from major lending institutions while at the same time seeking out a reputable mortgage broker experienced working in the real estate investment market. You will better understand your financial obligations while creating an association with individuals who can facilitate your purchases with timely financing.
Next Trend in Real Estate Investing
The movement today is toward purchasing single-family homes for investment purposes. Property “flippers” were once the core of this market but many have begun to rehab and hold their properties rather than sell them, building a portfolio of rental homes for future capital gain.
Conditions must be right for real estate investments like this. It is often assumed that a one thousand dollar mortgage means getting one thousand dollars in rent qualifies you for the purchase. Lenders also consider vacancy rates, utilities payable by property owner, taxes and so on, making the property riskier for them so only a percentage of the rent is used for qualifying and the rate could be higher.
Long-Term Real Estate Investing
The most successful real estate investors are those that acquire investment real estate not as a scheme for a fast buck but to build a portfolio of properties they keep well maintained and rented to capacity. More often than not real estate investors on this course will hire a property manager to administer the day-to-day operations of the investment properties and manage tenants. This frees an investor to continue on their real estate investment wealth-building path.
Southwestern Ontario, specifically Brant County is consistently among the top locations to invest in real estate according to Canadian Investment Magazine. The area features a number of higher education institutions including Wilfrid Laurier and Nippising University satellite campuses and Mohawk College. The technology triangle and thriving regional economies also mean higher employment and lower rental vacancies.
When you invest in real estate, your market awareness must be first rate. Being prepared to make an offer quickly can be the difference in winning or losing a potential investment property. Learn your local investment area well and speak to REALTORS® who understand this market segment so they can alert you to possible deals.
Learn what makes a good investment property and follow a formula to identify and quantify potential investment properties. This means having access to the data necessary to make a thoughtful decision. Your REALTOR® will prove their value here and be a true asset in your success. For Focused Real Estate Investment Strategies, Call Andrea Clendening Now!
Andrea Clendening, REALTOR® | Re/Max Twin City Realty Inc., Brokerage | Email or PH: 519-771-0886