Should I Buy an Investment Property? 6 Things to Consider

Published on 14 January 2016 in Blog Ottawa Ottawa Real Estate Ottawa Real Estate Market Report Ottawa Realtor by
Last updated on April 13th, 2023 at 03:38 pm
Buying a home is a lifelong dream and accomplishment for many Canadians. In addition to buying a home to live in, many are choosing to buy an investment property to provide a steady flow of rental income, then proceeding to cash in as the property appreciates over time. Whether you would like to buy a single-family home, duplex, triplex, or apartment building, rental properties can be a smart investment. For example, buying a triplex near Carleton University or the University of Ottawa could bring in enough money each month to pay for expenses in that building and your home. Or you could purchase a single-family home in Westboro or the Civic Hospital area, then rent it out to an executive or diplomatic family for a steady income. However, buying an investment property isn’t for everyone, as you have to deal with tenants, maintenance duties, and unexpected expenses.The Basics

Let’s Get One Thing Out of the Way First: What is an Investment Property, Precisely?
An investment property is a home, complex, or other piece of property that is acquired with the intention of using it to gain a return on one’s own investment. Put another way, when you buy or put money into an investment property, you’re not necessarily concerned with living in or otherwise using the property yourself. Instead, it’s treated almost like a business as an investment should act as a source of income in order to be viable. This can involve leasing, selling, renting, or otherwise using the property as a vehicle to drive up a profit for yourself. Investment properties are sometimes conflated with quick property sales or “house flipping,” which is the custom of quickly buying, renovating, and selling a home with the goal to turn the quickest, biggest profit possible. However, in this context, we’re talking about buying a home in order to benefit from the monthly rental income.So, Should You Buy an Investment Property?
That probably depends upon your interests and expectations. House flipping is a very controversial subject among those in the know economically and otherwise, and so while the “quick investment, quick reward” aspect may seem alluring, it probably behooves you to do an extensive amount of research before deciding. Talk to the Geoff & Bobbie team and we’ll help you make the right decision for your current and future needs. For example, it may make sense for you to dip your toes in the market by buying a single apartment or condo as an investment property. On the “flip” side, investing in properties that can be rented on a more long-term, sustainable basis may be the more solid choice. As stated, it’s harder for many to buy homes now than it has been in the past few decades. Also consider that there are plenty of university students looking for good, affordable apartments tor rent and diplomats seeking reliable short-term housing options in Ottawa. The market for properly managed investment properties becomes apparent.Tips on Property Investments and Management
