If you’re ready to grow your real estate portfolio, buying your first investment property is the next natural step. Gaining the most from this – both financially and experientially – requires the right preparation and guidance
Before you embark on your next investment venture, ask yourself these questions:
Are You Financially Prepared?
Getting pre-approved is only the first step to financial preparation. Have 5% of your budgeted purchase price available in a certified cheque or as a deposit on your new property, and consider the additional costs of buying an investment property, such as:
- Lawyer fees (range from $500 to $1,500.00 plus disbursements, as per the lawyer)
- Provincial Land Transfer Tax (approximately 0.5% to 2.0%)
- Toronto City Land Transfer Tax (approximately 0.5% to 2.0%)
- Application fees (ranges from $75 to $235)
- Mortgage insurance (ranges from 0.5% to 3.57% of your mortgage)
Also consider the cost of adjustments, home inspections, moving, and renovations to the property once purchased.
Are You Ready to be a Landlord?
If you are planning on renting out your investment property, your about to undertake a large amount of responsibility (especially if you are not hiring a property manager). Familiarize yourself with both a tenant’s rights and responsibilities in Toronto and the Ontario Residential Tenancies Act.
Where and What Should You Invest In?
The neighbourhood you buy your first investment property in will impact your purchase and resale price, the type of tenant you attract, and your cash flow. Depending on whether you plan to rent or renovate will determine the best place to buy. Learn more about the neighbourhoods we specialize in or ask us about the latest listings in the area(s) you are interested in.
Who Should You Invest With?
When you are looking for your first investment property, there is no better team to work with than one with years of first-hand investment experience. Whether you are looking to buy and rent out a condo, buy and renovate a home, or purchase a commercial property, our specialized team members will guide you the process and help you plan for long-term success.