Hey, you can be an investor too!
2011 has been a very interesting and busy year for investments of all kinds. I've been busy helping investors purchase properties to add value to their financial portfolio. Real estate in Ontario, Canada has always been one of the best investments a person can make. There are several reasons why a growing number of Canadians are using their home equity to purchase investment properties:
-
No RRSPs? No problem. Real estate makes a great pension plan. A few years from now, you'll have a monthly income from tenants paying off YOUR mortgage.
-
Save rent or res money. Many Canadian parents are choosing to buy an investment house where their kids are attending school. Rent out the remaining rooms to some friends of theirs and you have the house paid off by the time they graduate.
-
Investment return rate. We all know it. Residential real estate is a secure long-term investment. The markets rise and fall. They always follow the same patterns.
-
First time homebuyers. Renting out the other half of a duplex or triplex can be a terrific way to attain home ownership. Mortgage lending will also be easier because you'll have another income to claim.
A minimum downpayment of 20% is required for an investment property. You can put down less than 20%, but you'll need to use an uninsured lender, which can mean higher interest rates. Once you have more than four properties you need to start spreading out your business among several lenders so as to not reach the maximum number of mortgages a lender will approve per investor.
Sound confusing? It absolutely is. That’s why you need to speak with an experienced mortgage specialist like Chris Little with RBC Finiancial who can help you better understand what's involved in financing investment properties.
Give him a call or email at 1.416.451.8359 | christopher.r.little@rbc.com
I sell investment property of all kinds. Legal non conforming duplexs, old victorian triplexs, high end commercial real estate, industrial units for sale, country farm property, city townhouses - you name it. If you have some questions for me or a property you would like to sell, contact me and we'll discuss your options.
519-942-8700 or email me kari@kariclarkhomes.com
Talk to you soon!
