Before buying an investment property in Greater Vancouver and beautiful British Columbia, it’s important to consider several factors to ensure a successful investment. Here are some tips to consider before purchasing an investment property:
Think about financing early: Canadian banks are conservative when it comes to issuing mortgages for rental property investments. It’s important to think about financing early on and consider the likelihood of getting approved.
Avoid a fixer-upper for your first investment property: Buying a property that’s in good condition can save you from the hassle of renovations and unexpected costs if your are not a DIYer.
Account for operating expenses: Generally, a rental property’s operating expenses comprise 50% of its income. This includes maintenance, taxes, and insurance unique to owning a rental property.
Expect the unexpected: Prepare financially for unexpected circumstances such as tenant job loss or vacancies.
Establish management processes: Handling tenants, leases, security deposits, and escrow accounts requires specialized knowledge to ensure you stay within the law and manage your property professionally.
Identify necessary repairs: Consider the current condition of the property and calculate potential renovation costs.
Market to the right tenants: Finding good tenants who take care of your property is crucial for a successful rental property.
Vet potential tenants: Establish an interview and referral process to choose tenants who will take care of your property and pay rent on time.
Establish a process to collect rent and enforce late fees: Having a clear process for rent collection and late fees helps ensure timely payments.
Consider hiring a property manager: If you don’t have the time or local knowledge to manage the property yourself, hiring a property manager can be beneficial.
Research local rental market: Understanding the local rental market trends and demand can help you make informed decisions about pricing and potential returns.
Consult with professionals: Seek advice from real estate professionals, accountants, and lawyers who specialize in investment properties to ensure you have a comprehensive understanding of the legal and financial aspects.
Remember, investing in real estate requires careful planning and research. It’s important to evaluate your financial situation, goals, and risk tolerance before making any investment decisions.
WANT TO LEARN MORE? GET STARTED TODAY BY CALLING GREATER VANCOUVER REAL ESTATE EXPERT & REALTOR LORI HAGGARTY AT 604-807-5711 OR EMAIL LORI@BETTERLIVINGSPACES.CA!