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Depending on a renter’s needs, a house is moresuitable if you want more freedom in terms of design and extra space either for other family members or just as a matter of preference. In terms of costs though, you have to consider maintenance, repair, and even household bills.
Units, on the other hand, are easier to maintain and less costly because there’s less space to manage. But there are a bit more items on the list of restrictions in terms of renovations and space.
Convenience is one of the biggest factors in properties that people look for. So, consider searching for a property that’s located near establishments like banking centers, restaurants, convenience stores, public transport, schools, and markets.
It helps to also do your research on different factors such as market predictions, recent market activity, occupancy rates, predictions, and surrounding infrastructure. If you’re able to visit the property, make a visit and get some first-hand perspective.
The head was placed above the heart for a reason. And that’s because with any important decision you make, especially ones involving huge amounts of money, you should always think things through. While a property’s interior and exterior might initially look appealing, but if the property is prone to calamity or the neighborhood is not appealing, then you lose in the end.
Think about the necessities first before you evaluate if you can afford your wants. Initially, you can look at the build quality, the condition it’s in, door and window placements, outlets, parking, and other important property details. After that, you can move on to things like the view, amenities such as a pool, and a garden.
Besides loan repayments, properties bought for investment need sufficient funding for maintenance and repairs, under the rental agreement. You also have to consider the association fees for shared amenities with properties like condominiums.
Make sure you take out an insurance that provides sufficient coverage for standard risks like fires, flooding, and other natural calamities. Also think about an appropriate advanced payment plan for your property’s security just in case a tenant suddenly decides to skip town.
Landlords who are a registered taxpayer can “gross up” and claim the withholding tax credit against their profit tax. Grossing up happens when you charge the renter more than the original asking price. This is also beneficial for renters because they’re getting the full benefit of the rental. There’s 20% less profit tax.
If you don’t have enough time to manage all these and the property, you can always hire the services of a management firm to assist you in collecting rent, coordinating with vendors for maintenance and repairs, and managing any disputes.
If you decide to manage the property yourself, you will need to commit to study the different laws concerning tenancy.
We recognize that each borrower has a different circumstance, and some may have a more complex need than others. We are connected with various experienced lenders who have handled clients with complicated needs. Send us a request and we’ll make sure to connect you to them quickly.
