Are you contemplating buying a rental property?
Many of my clients are now looking to take on one or more rental properties. The idea is very intoxicating! There are some pros and cons to the idea of owning a rental property, but some feel that this is a very secure investment for your future.
What are the benefits of owning a rental property?
Pro’s:
Tenant is paying all or part of your mortgage.
As you pay down your mortgage, you are increasing the percentage of the value that you own
Passive income is possible
Property tends to increase in value over the long term which you will profit from if you ever sell
Possible increase in value over time can be used to purchase other properties.
Con’s
Tenant issues
Cost of repairs
Cost of Vacancy
In many cases, a rental property will provide long term income to the investor. It is important to carefully review all of your possible costs involved as well as the income to make sure you have the best chance of success. Keep in mind that all investments have risk, choose carefully and speak to me about your mortgage options!
“Aging in Place”
Reverse Mortgage for those 55 and older and own their own home:
This can be for you, a parent or a neighbour that:
- Would like to help a child or children with a down payment on their first home
- Is struggling to make mortgage payments, or have a need to reduce debt payments or increase your monthly income?
- Wants to purchase a home and cannot qualify or don’t want to make payments of a Mortgage
- A reverse mortgage typically has no payments
- You can pay up to the total interest on a reverse mortgage without ever having the mortgage increase its balance
- A reverse mortgage is one of the least expensive ways to borrow money if you cannot qualify and the only way to borrow money and not make any payments
Many of my clients are not yet of the age of concern for “Aging in Place”. Your parents may be. Call or email me to discuss your or your parent’s options.
