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17 Apr

Thinking of Buying Rental Property? Read This First

General

Posted by: Patricia Kirkham

With interest rates remaining on the low side – and expected to gradually rise over the next few years – now’s an ideal time to think about becoming a real estate investor or building upon your existing portfolio of properties.

The key to success rests in taking a long-term approach to this investment. The cyclical nature of real estate will bring you out on top when you’re dedicated for the long haul. And even when real estate markets slow, rental income continues to rise.

It’s important to work with a mortgage broker who’s an expert in this niche and can provide you with ongoing information to help you make informed investment decisions and feel at ease – whether you’re purchasing your first property or your tenth.

After all, if the mortgages on your investment properties aren’t set up properly from the onset of each venture, you won’t be able to get future financing – a necessity for continuing to build your portfolio of revenue properties, if you so choose.

Financing investment property purchases
If you’ve accumulated equity in your primary residence, you may be able to access the required down payment funds to purchase your rental property – through either a refinance or a home equity line of credit (HELOC). I can help you decide what works best for your particular needs.

It’s important to crunch all of the numbers to make sure that becoming an investment property owner makes sense for both your financial situation and the location where you’d like to purchase. And be sure to plan for added expenses, such as maintenance and insurance costs.

As a landlord, you can claim many of your expenses, including mortgage interest, which will help you recover some costs involved in purchasing an investment property and earning/claiming additional income.

Planning on more than one purchase?
If your goal is to build a portfolio of investment properties, I can introduce you to other investment property experts, including real estate agents, lawyers, accountants, insurance agents and contractors, so you’re surrounded by a professional network.

I can also help direct you to other organizations that will offer you further insight into your real estate investment needs. If you join groups such as the Real Estate Investment Network (REIN), for instance, you can receive a wealth of added knowledge catered to your market-specific needs.

Have questions about purchasing investment property or your mortgage in general? Answers are just a call or email away!

*The postings on this site contain my own views and don’t necessarily represent the company’s positions, strategies or opinions.