{"id":8007,"date":"2018-01-23T11:11:46","date_gmt":"2018-01-23T19:11:46","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=8007"},"modified":"2018-01-17T16:09:52","modified_gmt":"2018-01-18T00:09:52","slug":"tips-for-purchasing-an-investment-property","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/01\/tips-for-purchasing-an-investment-property\/","title":{"rendered":"Tips for Purchasing an Investment Property"},"content":{"rendered":"<p style=\"text-align: justify;\">As far as investments in the U.S. go, real estate is one of the best. Aside from the general trend of increasing home prices, the fact that the President is a real estate mogul makes it highly likely that economic conditions will be favorable to property investors.<\/p>\n<p style=\"text-align: justify;\">Regardless, investing in property isn\u2019t something you should take lightly. There are a lot of variables you need to take into account, most of which will be beyond your control. With the right knowledge and preparation, however, you can make the most of your investment property.<\/p>\n<p style=\"text-align: justify;\">Below are the tips to keep in mind when purchasing an investment property.<\/p>\n<p style=\"text-align: justify;\"><strong>Think about the long-term costs and benefits.<\/strong><\/p>\n<p style=\"text-align: justify;\">Warren Buffett once said : \u201cIf you aren\u2019t willing to own a stock for 10 years, don\u2019t even think about owning it for 10 minutes.\u201d The same can be said of real estate : If you can\u2019t imagine holding on to a piece of property for at least a decade, you\u2019re better off looking at other investments.<\/p>\n<p style=\"text-align: justify;\">Unless you have a considerable amount (read : thousands of dollars) of cash on hand, you\u2019ll want to shop around for low-cost financing options first. Assuming you have a solid credit history, you should have no problem securing low-interest loans. Otherwise, you\u2019ll have to work on either improving your credit score or looking at other ways to finance an investment property.<\/p>\n<p style=\"text-align: justify;\">You should also consider whether you want to live on the property or rent it out to tenants. As a landlord, you can earn a stable monthly income thanks to rent. On the other hand, if you\u2019re not careful when qualifying tenants, you could end up with more trouble on your hands than you\u2019re willing to put up with.<\/p>\n<p style=\"text-align: justify;\">Lastly, don\u2019t forget to account for taxes related to property investing. These taxes include land tax, capital gains tax and stamp duty. If you\u2019re not sure about these, get a tax lawyer or accountant to help you.<\/p>\n<p style=\"text-align: justify;\"><strong>Shop around.<\/strong><\/p>\n<p style=\"text-align: justify;\">When choosing property, you may find yourself overwhelmed with choices. Should you purchase a rental in a high-traffic area like a university, even if your potential tenants (i.e. students) don\u2019t have the biggest budgets? Or should you get one in a high-end neighborhood, even if the costs of maintenance aren\u2019t cheap?<\/p>\n<p style=\"text-align: justify;\">To make things easier, start with the type of property you\u2019re already familiar with. For example, if you already have a few years of experience living in a condo unit, chances are you\u2019re well-aware of what condo dwellers want and don\u2019t want.<\/p>\n<p>Of course, you\u2019re free to invest in a type of property you\u2019re unfamiliar with. But if you want to spend as little time as possible filling in the gaps in your knowledge, it\u2019s a good idea to stick with what you know.<\/p>\n<p style=\"text-align: justify;\"><strong>Understand the market.<\/strong><\/p>\n<p style=\"text-align: justify;\">The last thing you want is to end up overpaying for property. By arming yourself with knowledge about local real estate conditions, you\u2019ll be better equipped to find property at or below market value.<\/p>\n<p style=\"text-align: justify;\">Contact as many real estate agents and locals as you can. Ask them about average rental rates, demographics, property values, suburb reports and other related data. You can also corroborate their information using reliable third-party sources. Don\u2019t forget to check prevailing mortgage rates as well.<\/p>\n<p style=\"text-align: justify;\"><strong>Check the age and condition of the property.<\/strong><\/p>\n<p style=\"text-align: justify;\">If you\u2019re planning to rent out your property, make sure it\u2019s in the best shape possible. It\u2019s easier to justify a higher rental rate when your property looks like a million dollars (even if it isn\u2019t). Have a professional help you in determining whether a property needs repairs, and how much.<br \/>\nOn the other hand, a property that\u2019s somewhat rundown can fetch a purchase price well below market value. In that case, consider whether you\u2019re willing to conduct DIY repairs of the place if cost is an issue.<\/p>\n<p style=\"text-align: justify;\"><strong>Plan for the care of the property.<\/strong><\/p>\n<p style=\"text-align: justify;\">Property management isn\u2019t easy. As a landlord, for example, you\u2019re responsible for screening tenants, filing taxes, keeping the books, collecting rent, handling maintenance and repairs, writing contracts, working out insurance plans and more.<\/p>\n<p>If that sounds too great a responsibility to handle, it\u2019s best to get help from a property management company. Generally, property management companies charge anywhere between 8 to 12 percent of the monthly rent.<\/p>\n<p style=\"text-align: justify;\"><strong>Spruce up the property.<\/strong><\/p>\n<p style=\"text-align: justify;\">Whether you\u2019re planning to rent out your property or not, renovating it will work wonders for its market value. For example, you can :<br \/>\n\u2022 Make sure your kitchens and bathrooms are modern and well-equipped.<br \/>\n\u2022 Stick to neutral paint colors such as cream, grey and beige.<br \/>\n\u2022 Use paint to highlight your property\u2019s architectural features, brighten dim hallways and revive tired walls.<br \/>\n\u2022 Improve your property\u2019s overall curb appeal.<\/p>\n<p style=\"text-align: justify;\">Buying the right property takes time and effort. It\u2019s definitely not the sort of venture for someone looking to make a quick buck. But if you\u2019re willing to stick with it for the long haul, your profits will keep coming in for the long haul too.<\/p>\n<p><a href=\"http:\/\/realtybiznews.com\/tips-for-purchasing-an-investment-property\/98746301\/\" target=\"_blank\" rel=\"noopener\">Tips for Purchasing an Investment Property<\/a> by Jamie Richardson | Realty Biz News<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As far as investments in the U.S. go, real estate is one of the best. Aside from the general trend of increasing home prices, the fact that the President is &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/01\/tips-for-purchasing-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-8007","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tips for Purchasing 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\/2018\/01\/tips-for-purchasing-an-investment-property\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Tips for Purchasing an Investment Property &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"As far as investments in the U.S. go, real estate is one of the best. Aside from the general trend of increasing home prices, the fact that the President is &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=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Tips for Purchasing an Investment Property\",\"datePublished\":\"2018-01-23T19:11:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/\"},\"wordCount\":879,\"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\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/01\\\/tips-for-purchasing-an-investment-property\\\/\",\"name\":\"Tips for Purchasing an Investment Property &#8226; 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