Have you been watching the active Comox Valley Real Estate market wondering how you can invest in the current market? While you’re setting yourself up for investment success, your route will depend on some important factors; for starters, how much money do you have to invest, how hands-on would you like to be, and what is your personal risk tolerance? Have a look at 4 popular real estate investing opportunities to see which route may be the best for you.
Buy a Rental Property
Sounds straight-forward enough, right? Rental properties are a great way to create a steady stream of income; with the right tenants and a well-maintained property you could reap the rewards as a landlord for many years. Before you set out on your rental property hunt, ensure you’ve met with your trusted mortgage professional to establish your budget, financing terms and investment goals. You’ll want to collect as much data on potential rental properties as you can to project monthly and annual net revenues. Prior to making an offer on a property gather property tax costs, mortgage payment details, utility consumption figures and other ownership obligations to determine if the property will cashflow or become an investment burden.
Convert Space in Your Home into a Rental Suite
With the most recent VIREB Monthly Report showing that the benchmark price of a single-family home in the Comox Valley was $531,400, it’s not a surprise that homebuyers are looking to capture or create rental opportunity within their principal residence.Investing in your existing property to capture rental income is a great way to leverage what you’ve already got; it serves as an asset both while you own and generate income as well as a feature to potential buyers if the time comes that you sell the dwelling. Set your budget and needs list for the renovation, allotting some time and funds in the projection for any surprises. Determine whether you’ll hire a residential contractor to complete the work and if you’ll tackle any renovation components on your own to save money.
Renovate and Flip
We are definitely in the DIY day and age with more people giving home renovation a try. Helpful platforms such as Pinterest and Houzz make creating a renovation dream board a breeze and often include step-by-step tutorials to take your design vision to fruition. Flipping a property comes with its own pros and cons; before you set out on a buy-and-flip adventure, talk to your Professional Real Estate Team about potential regulations or tax and gain implications you may fall subject to from selling.
Real Estate Investment Trusts (REITs)
If the thought of being a landlord or a do-it-yourself superstar makes you start to sweat, consider taking your real estate investment dreams to the stock market. This less hands-on approach has the potential to produce strong yields and removes tenancy and upkeep concerns. Like other stock market options, an REIT is a fund that is set up to invest in stocks, bonds and other financial instruments in the real estate industry.
One thing is for sure; whether you’re purchasing real estate for personal or investment use the process will require key steps;
- Establish your investment property criteria and target market area
- Build your team of real estate professionals
- Qualify for a pre-approval with your trusted mortgage professional
For additional questions and analysis of your unique buying situation call on Courtenay Real Estate professional Bryce Hansen, and let your real estate investing adventure begin.
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