Have you been keeping a pulse on the very active Okanagan real estate market wondering how you too can get involved in an investment capacity? While you’re preparing for investment success, your route will depend on some important factors; for starters, how much money do you have to invest, how hands-on would you like to be and what is your personal risk tolerance? Have a look at these 3 popular real estate investing opportunities to see which route may be the best for you.
RENTAL PROPERTY PURCHASE
Rental properties are a great way to create a steady stream of income; with the right tenants and a well-maintained property you could reap the rewards as a landlord for many years. Before you set out on your rental property hunt, ensure you’ve met with your trusted mortgage professional to establish your budget, financing terms and investment goals. You’ll want to collect as much data on potential rental properties as you can to project monthly and annual net revenues. Prior to making an offer on a property you should gather property tax costs, establish mortgage payment details, utility consumption figures and other ownership obligations to determine if the property will cashflow or become an investment burden.
ADD A RENTAL SUITE TO YOUR EXISTING PROPERTY
With the rising cost of rent in the Okanagan Valley, it’s not a surprise that homeowners are looking to capture or create rental opportunity within their principal residence. Investing in your existing property to capture rental income is a great way to leverage what you’ve already got; it serves as an asset both while you own and generate income as well as a feature to potential buyers if the time comes that you sell. If you’re planning a big renovation, be sure to set your budget and needs list for the project, allotting some time and funds in the projection for any surprises. Determine whether you’ll hire a residential contractor to complete the work and if you’ll tackle any renovation components on your own to save money.
RENOVATE & FLIP
It’s safe to say that we are definitely in a DIY day and age with more people giving home renovation a whirl. Helpful platforms such as Pinterest and Houzz make creating a renovation dream board a breeze and often include step-by-step tutorials to take your design vision to fruition. Flipping a property comes with its own pros and cons; before you set out on a buy-and-flip adventure, talk to your professionals like your REALTOR® and Accountant about potential regulations or tax and gain implications you may fall subject to from selling.
One thing is for sure; whether you’re purchasing real estate for personal or investment use the process will require key steps;
- establish your investment property criteria and target market area
- build your team of real estate professionals
- qualify for a pre-approval with your trusted mortgage professional
For additional questions and analysis of your unique buying situation call on me, your Okanagan real estate professional,and let your real estate investing adventure begin.