Tips when looking for an Investment Property

There is a major difference in mindset when considering purchasing an investment property versus one in which you are planning to occupy – the former is business and the latter involves emotions. Typically, when you are looking to purchase a property that will become your new home, you look at the suite or home with an eye to your personal lifestyle, furniture and generally what works for your flow of life. When looking at a property that you are presenting to the rental market, other considerations must be made. For example: What type of property is in demand? (one bedroom, two bedroom … larger?); what is the expected rental return on that property? (can the rental return cover your mortgage, strata fees – if applicable – and maintenance/upkeep); are you comfortable being a Landlord?; is the property one in which you are looking to just cover expenses as a ‘holding’ investment to reap your financial reward when you sell and write off any monetary losses in the interim?; are you needing to make an income from the property?; is your investment property one in which you envision yourself occupying upon retirement?

Purchasing property is a wonderful way to diversify your investment portfolio but serious considerations should be made before you start your search. Ensure that you know what works for you, your current financial situation and your life goals. Consult a Professional in the Industry and take the time to write down your requirements before you look – as with any other investment, knowledge is key.