What To Look For In An Investment Property
You probably know by now that location is key when it comes to real estate. The location of your rental property can seriously affect your profitability. For example, when you consider a rental property in Barrie the current average rental rate for a 1 bedroom is around $1350. However, if you were to look at a 1 bedroom in Windsor as an example, the average rental rate for a 1 bedroom is $750. So an investment property in Barrie will make you approximately $600 more than compared to Windsor. This is very important to consider when looking for an investment property, be sure to look for a location where the rental prices are favourable.
2. Future Developments
Another key factor to consider is future developments and growth. If the area you are considering has no plans for future development this could be a sign there is not much growth. However, if the area has many new developments surrounding the property that could cause competition. Make sure to research and know any and all developments coming so you are aware and it doesn’t affect your profitability down the road.
3. Job Market
Look for a area where the job market is growing and there are growing employment opportunities. This means that people will be more attracted to the area and more potential renters for you!
When you are buying an investment property, look for one where you can gain some appreciation. There may be a few cosmetic updates you can do that can increase the homes value and in turn your appreciation. Also, you may be able to charge more rent if you do some small changes such as painting as this can increase the value to a renter.
5. Numbers that work
Lastly, but most importantly you need to find an investment that makes sense financially. If it is your first investment, you may choose to purchase something based on personal preference or emotion but this is something you really don’t want to do as it could cost you.
There are many different cash flow calculators that can help you calculator your per month cash floor and annual cash flow as well as how much of a down payment you need. Be sure run through the numbers first as there may be hidden costs or cost you didn’t think of, that could cost you long term. If you are unsure about this, you can call our team at 705-739-3432 we have a cash flow calculator that is easy to use and we can walk you through it.
If you are looking for an investment property, contact our team today! We help our clients find investment properties that work for them call us today Matthew 705-739-3432 or Domenic 249-877-7785.