Are you are thinking about buying your first investment property in Brantford?
Know What You’re Getting Into When Buying Your First Investment Property in Brantford
Make sure you’re aware of all the responsibilities that come with being a Landlord. Are you able to do minor house repairs and maintenance? You have the option to hire someone to do these things for you but, most property owners with a few homes do their own to save money.
Make Sure You Have the Down Payment
Investment properties usually need a higher down payment than your average home. You’ll need at least 20% down. You can discuss this with your realtor.
Know Your Numbers
Take the time to run all the numbers. There’s no point in having an investment property that’s losing you money. Interest rates on investment properties are generally higher than on your traditional mortgage. Along with interest rates you’ll want to consider operating costs. Take into consideration: insurance, property taxes, monthly maintenance etc. Once you have all your expenses collected use them to make sure you are coming out with a profit that makes sense for you.
Choose a Low-Cost Investment Property
To help keep the costs down on your first investment property in Brantford it’s wise to start out on the lower end. Typically the more expensive the home the higher your expenses will be.
Unless you’re a skilled contractor or have connections to one that will give you a deal it’s safer to stick with a property that only needs minor repairs. You don’t want to get in over your head and you want to keep your profits as high as possible.
Use the Right Agent
Use an agent that has a clear understanding of what you want. Someone with experience with investment properties is always a plus.