Purchasing your dream home and purchasing an investment property are completely different. They require looking at the property in different ways because the long term goals are not the same. For a buyer who doesn’t plan to live in the home, making the right investment property decision can be very lucrative. Here are six tips for preparing for purchasing an investment property.
1) Do Your Research – Do research to find out what the rental income will be for the investment property. Check out the past rental history of the apartment block or unit. For an accurate report, you may want to invest in a strata search.
2) Keep a Detailed List – Keep a detailed list of all of the investment real estate you’ve seen. Jot down important information such as the address, agent’s contact information, local area amenities and the number of bathrooms and bedrooms.
3) Find the Best Loan for You – If you’re planning to get financing through a direct lender, you will need to do your homework to find the best mortgage product for your investment property purchase. However, if you make the choice of working with a mortgage broker, you will eliminate the need for all of this research. Your mortgage broker will help you choose between a line of credit, offset, fixed rate mortgage or adjustable rate mortgage loan.
4) Choose the Right Advocates – Buyer’s Advocates work directly for real estate agents. They help potential buyers by giving advice on which investment property will be a lucrative choice. A mortgage broker works as a borrower’s advocate. They will help you find the right mortgage loan package for purchasing an investment property.
5) Get Inspections Done – Make sure that you don’t skip any of the important property inspections such as pest and building inspections. They will cost you upfront fees. But, in the end, they will save you money by letting you know ahead of time what problems may exist.
6) Get Your Financials Together – Your mortgage broker will need copies of all of your financials in order to put together a mortgage product that meets your needs. A mortgage broker can help you decide exactly what’s best for you based on certain criteria. Contact AgLend now so you can prepare for purchasing an investment property today.