Plenty of ideas might cross your mind when building a retirement nest egg but you will always want the safest investment for future. Property is still regarded as a sound investment when it comes to putting your saved money in the right place. There would be many possible courses of action regarding property investment. You can either buy a property and rent it out or live in the home during the renovation. Whatever you choose, you need to keep some things in mind before you dive in.
Things to Remember While Putting Your Money on A Rental Property!
This article would be of great assistance to get acquainted with property investment:
Make sure the place you are buying is for you:
If you have picked for the renovation, you should either have spare cash or knowledge about repairs. Having someone to do even a minor repair would eat into your returns. To save money, you ought to do your own repairs. The place is for you if you are a handy type. Being a landlord might not be a success if neither have spare cash nor does repairing capabilities.
Clear your debts first:
Make sure you do not carry any debt as part of your investment portfolio. You should avoid debt to get maximum return on your property investment. If you have some unpaid bills or loan to pay, pay down that first. Without clearing your debts, this type of investment is not a good idea.
Take heed of the higher interest rates:
Do a brief analysis of interest rate in the coming days. The borrowing cost might be affordable right now but the interest rate on the investment property might rise and this would be higher as compared to traditional mortgage interest rate. You need to go for a mortgage payment that is quite low.
Do not Purchase a Fixer-Upper:
If you are buying for the very first time, it is not a good idea to turn a low budget property into a rental property. In order to such deals, you should contact a property dealer who works wonder on the inexpensive property or you should have those skills in-house improvement.
Determine Your Return:
You should have a clear idea about the return on that dollar you have invested. If we talk about stock or bonds, the return you can expect is nearly 7% and 4% respectively. 6% return on property investment is considered healthy. This may rise over time.
Determine your return so that you get to own a place like a place there in social condos by Pemberton Group. This project is coming soon to Toronto’s Garden District. This vibrant tower would stand tall at 52 stories. There are a plethora of perks you would enjoy for being a resident in the garden district as there are many Toronto’s institutions like Massey Hall, St. and Michael’s Cathedral Basilica. Also, the superlative Ryerson University is just a few steps away and this is a great privilege for students and faculty members.
The distribution of amenities is in the way where 2nd-4th floors are solely for residential use. On the 5th floor, you would be able to enjoy the creature comfort that includes terrace surrounding breath-taking landscapes with outdoor lounge, a Fitness Centre fully equipped including cardio equipment, strength machines, and free weights, change rooms with showers for men and women, a steam room, sauna yoga studio, and locker room. As an investor, you can take advantage of buying pre-construction condos. Prices may go up after its opening day. Register now to get all the advantages.
