Get A Mortgage Pre-approval
Are you ready before your Real Estate Investment? It is imperative that you have these in place:
Current Value Assessment
Every licensed Realtor would have access to statistics that can calculate where the market value would be at. Most of the time the accepted offer would be very close to the calculated number. This would set out as a guideline when making your offer.
Discuss With Us
We monitor the market on a daily basis, which is crucial to your success. This experience allows us to advise on sub-segments of each market to align with your goals. You may find a property which is of great value, but how is the growth of that property going to look in the foreseeable future? How is the rental market around that unit? All these things are to be considered.
Risk Taking
Just like most things in life – the bigger the risk, the bigger the reward. How much down payment are you putting down? What would be your mortgage payments?
Investment Period
Have you spoken to your mortgage broker or bank about the structure of the mortgage to best benefit your timeline?
Choosing the Investing Area
You need to know the pros and cons of the area you are looking in to be better prepared for the ups and downs that will come.
Market Fluctuations
Nothing is 100% guaranteed when it comes to investments. You need to be prepared for both the ups and downs of the market flow. Perhaps you were looking at a 2-year investment. What if in 2 years, the market turns south? Are you prepared to hold on to it longer to continue paying the mortgage, property taxes, strata fees, insurance, etc.?
Age of Peoperty
This would usually indicate the work that may be coming due, whether in special assessments in strata properties or out of pocket for non-strata properties like single-family houses. Do you know the complications and potential costs and have you budgeted for it?
Current Rental Market
What are similar units renting for? This is something you can find out by spending a few minutes a day on online classifieds to get a better idea of the average so you know what to expect.
Budget
This is arguably one of the key factors to consider before proceeding. You need to really figure out what your budget is, and look for an area that your budget would fall within the average of ideal investments. If your budget is too low for the area, you would be looking at older imperfect units that require a lot of upkeep and maintenance. If your budget is too high you may be risking your exit strategy when the time comes. Knowing your market is of extreme importance when entering into the investment world.
If you have any questions or would like someone to guide you through the process, please give us a call. Nandha Ramasamy Realtor in Calgary truly desire to fully understand your needs and goals and would be privileged to assist.