A Beginners Guide to Buying Investment Properties

A Beginners Guide to Buying Investment Properties.

“It was the best of times, it was the worst of times.” We have all heard this famous opening line from Tales of Two Cities by Charles Dickens. It can also be applied to investing in real estate.

With interest rates so low, a good inventory on the market and reduced prices it could be the best of times. However if you don’t know what you are doing it can the worst of times. When it was time to purchase the home you currently live in, you planned, you thought about your financial goals and your lifestyle, (you did, right?). Well it is the same when purchasing investment properties you need to think about the same things again.

Before making the plunge, you need to go back to school. The internet is a great source of information, after all you’re reading this on the internet aren’t you? There are also many books on investing in Real Estate as well. A word of caution, not all information will apply to your location or situation. Canadians have to be especially wary of American books as there are very little similarities between our investment rules and regulations and theirs. Sort thought the information and find what is relevant to your area.

A general rule of thumb also says you should own your own home before owning investment properties. You can use this property to leverage the purchase of others or turn it into a rental as your investment portfolio grows. Now if you are in a situation where you live below market cost, (still live at home or have very low rent) than it would make sense to move forward with an investment plan before owning your own home.

One final point. Know your local market. Just because one area is booming or going bust doesn’t mean your area is experiencing the same thing. Each market place can be unique so you must know yours.

Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell