With a decrease in Fort McMurray home sale prices compared to 2018*, it is not only a great time to buy a home but also to invest in our local real estate market.
Barb Pinsent from Mortgage By Barb explains some of the reasons why more Canadians are purchasing investment properties:
RETURN ON INVESTMENT
Residential real estate is a solid estate investment, typically appreciating faster than inflation.
PENSION PLAN FOR THE FUTURE
“Over the long term, an investment property or multiple real estate holdings can be a great source of retirement funds,” suggests Barb.
BETTER ALTERNATIVE TO STUDENT RESIDENCE
Many Canadians are sending their kids to university and college away from home. Housing them in an investment property purchased specifically for that purpose is a good option.
EARLIER ACCESS TO A 1st HOME
For first time home buyers, a duplex or triplex can be a terrific way to get into home-ownership.
“Rental income from the extra units can offset the cost of the mortgage’” says Barb.
If you are a first time home buyer and considering this option, check out what you need to get pre-approval
WHAT YOU NEED TO KNOW ABOUT INVESTMENT PROPERTIES
1. A minimum of 20% down payment is required since default insurance is not available for investment properties. Here are my tips on how you could save for the downpayment faster.
2. That the investment has the potential to provide a better return when compared with other investments.
3. The investment should be considered a long-term investment that helps build capital.
If you are thinking about an investment property or want to understand how investing could fit in your current financial position, contact Barb Pinsent from Mortgage by Barb on 780-370-1490. Barb will assist you with all your mortgage questions when making your investment decision.
*Read the report from the Fort McMurray Real Estate Board HERE