Have you been thinking about having your first investment property? An investment property is a great opportunity to generate income, but it’s a process that you need to understand to ensure you’re making the right choice for your financial future.
Here’s what you need to know about your first investment property, in six easy steps…
1. Goals
First, the best thing you can do is establish a thorough understanding of your goals. What are you looking for? Retirement cash flow, a “do-it-yourself” pension, or a way to invest in other avenues? How much money do you want, and over what period? All of these factors will play a role. Numbers, timeframes, and expectations are key. Know what you want, and you can get started.
2. Finances
The same way that you might need to get pre-approved before you can buy a home, you need to do the same when it comes to your first investment property. Don’t just bank on your assets or your credit history, especially with your first property. You need to know that a lender will give you the money you need to invest. This all comes back to your goals, and what you want from your property.
3. Expertise
Once you have your goals and your finances in order, you need to seek out the experts. Do you know where you want to invest, the types of tenants you want to attract, and the best bang-for-your-buck properties on the market? Working with an expert agent can help get you the advice that you need, and the expertise to guide you throughout the entire process.
4. Renovations
Before you buy, you need to know that your potential investment is in good condition. Read the inspection report thoroughly, and identify any problems that might need to be fixed. You need to know the amount of money you need to put into your property, to get the most money out of it. If you need a new roof, you might need to move on.
5. Plan
When it comes to renovations or construction, time is of the essence. If you need to make changes to your property, try to do it as soon as you take possession of the property. The sooner you can rent, the sooner you can generate income. So, have people close at hand to contact when you need work done to make minor corrections to your property.
6. Understand
What about tenants? You need to be well-versed in tenant’s rights, and your role as a landlord, with your first investment property. The type of property you invest in, and where it’s located, will play a key role in determining the types of tenants that you will have. Make sure that you’re making the right choice and work with an expert.
Ready to start investing?
When it comes to investing, trust us to be your expert team. For 30 years, our clients have trusted us to minimize risk, offer unbiased opinions and ensure their best interests are served. We can do the same for you. Contact us today to talk about your needs. Contact us at niels@christensengroup.ca or call at 416-441-2888.
