{"id":2343,"date":"2016-06-16T15:15:14","date_gmt":"2016-06-16T22:15:14","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=2343"},"modified":"2016-06-15T09:09:19","modified_gmt":"2016-06-15T16:09:19","slug":"what-to-consider-before-buying-an-investment-property","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/","title":{"rendered":"What to Consider Before Buying an Investment Property"},"content":{"rendered":"<p style=\"text-align: justify;\">An investment property can be a good way to make money, especially in retirement. However, there are some things you need to think about before taking the plunge. Here are the advantages and disadvantages of buying an investment property.<\/p>\n<p style=\"text-align: justify;\"><strong>Advantages<\/strong><\/p>\n<p style=\"text-align: justify;\">You can use leverage : If you have equity in your home, you can use it to help finance the purchase of another property. In a low-interest rate environment, mortgage rates are lower as are the costs of buying a income property. You\u2019ll build up more equity when you earn rental income to pay down the mortgage. In the future, you could use that additional equity to buy another property or properties but you should ensure you can make larger mortgage payments when rates increase.<\/p>\n<p style=\"text-align: justify;\">You can earn additional income regularly : As long as you have a tenant, you\u2019ll earn monthly income on a regular basis. The more investment properties you have, the more you could potentially earn. You don\u2019t often get regular income from other types of investments.<\/p>\n<p style=\"text-align: justify;\">You get tax deductions : While you\u2019ll earn rental income, you\u2019ll also be able to deduct any expenses. Advertising, insurance, maintenance and repairs, property taxes, and legal fees are just a few of the expenses that are deductible. It\u2019s best to consult with your accountant to find out what costs you can deduct.<\/p>\n<p style=\"text-align: justify;\"><strong>Disadvantages<\/strong><\/p>\n<p style=\"text-align: justify;\">You may need additional financing : If you want to buy a multi-unit property and intend to live in it, you\u2019ll need a down payment of between five and 10 per cent, depending on the total number of units in the property. But when you purchase a property you don\u2019t plan to live in, you need to put down a down payment of at least 20 per cent. Also, some lenders won\u2019t recognize 100 per cent of the potential rental income you might expect to earn; some may consider just 50 per cent, while other lenders might consider 80 per cent. In other words, you could be forced to make a bigger down payment to qualify for a mortgage.<\/p>\n<p style=\"text-align: justify;\">You might not always have a tenant : Ideally, you\u2019ll earn enough rental income to cover your annual costs. However, you\u2019ll still need to make mortgage payments without a tenant. You should be prepared for the worst and have an emergency fund for the times you don\u2019t have someone to rent your place.<\/p>\n<p style=\"text-align: justify;\">Your property isn\u2019t a liquid investment : If you own stocks or bonds, you can buy and sell them quite quickly. However, it can take a long time between listing your property for sale and the closing date. This might be a problem if you need the money right away.<\/p>\n<p style=\"text-align: justify;\">You have additional responsibilities : Being a landlord can be a difficult job. You\u2019re responsible for any maintenance and repairs that need to be done. But there are also some headaches you have to deal with, like a tenant that damages your property or misses a rent payment. The alternative is to hire a property manager. He or she can take care of those problems but at a cost to you.<\/p>\n<p style=\"text-align: justify;\">While an investment property will provide you with additional income, it\u2019s good to be aware of the pros and cons before you ultimately decide to make a purchase.<\/p>\n<p><a href=\"http:\/\/nexthome.yp.ca\/news\/what-to-consider-before-buying-an-investment-property\/1235356\/\" target=\"_blank\">What to Consider Before Buying an Investment Property<\/a> by Alyssa Richard | YP NextHome<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An investment property can be a good way to make money, especially in retirement. However, there are some things you need to think about before taking the plunge. Here are &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-2343","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"An investment property can be a good way to make money, especially in retirement. However, there are some things you need to think about before taking the plunge. Here are &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"What to Consider Before Buying an Investment Property\",\"datePublished\":\"2016-06-16T22:15:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/\"},\"wordCount\":569,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/\",\"name\":\"What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2016-06-16T22:15:14+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2016\\\/06\\\/what-to-consider-before-buying-an-investment-property\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What to Consider Before Buying an Investment Property\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/","twitter_card":"summary_large_image","twitter_title":"What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"An investment property can be a good way to make money, especially in retirement. However, there are some things you need to think about before taking the plunge. Here are &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"What to Consider Before Buying an Investment Property","datePublished":"2016-06-16T22:15:14+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/"},"wordCount":569,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Real Estate"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/","url":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/","name":"What to Consider Before Buying an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2016-06-16T22:15:14+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2016\/06\/what-to-consider-before-buying-an-investment-property\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"What to Consider Before Buying an Investment Property"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=2343"}],"version-history":[{"count":2,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2343\/revisions"}],"predecessor-version":[{"id":2345,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/2343\/revisions\/2345"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=2343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=2343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=2343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}