- Is owning an investment property in Uxbridge, Ontario profitable?
- Uxbridge, Ontario is one of those places where people are moving due to job transfer opportunities. But you know what else happens in Toronto — people who move from city apartments to country homes and vice versa because they like the environment better than staying in town. Some people will just rent out properties while others actually buy them. If you fall under the latter group, this article offers information about buying property in Canada:
What is a Condo?
A Condominium refers to real estate ownership which includes buildings that house multiple units. Most of these buildings fall under residential use however some are commercial establishments. While living in condominiums does come with certain benefits like community pools, gym memberships, landscaping, common areas and more; it is always advisable to get professional legal help whenever owning a building is concerned. As condos offer individual floorplans, residents often pay less tax since they own only part of the entire structure. However, taxes are still applicable depending upon whether the unit is rented out or used completely by the owner. For example, owners in apartment complexes pay lower taxes but renters usually end up paying double the amount of homeowners.
Buying Pre-Construction Homes
While many believe preconstruction homes are not worth investing in, I personally disagree with my stance. A majority of the times, buyers can take advantage of a substantial discount by being early birds. These houses tend to sell fast especially during high market periods such as spring season or summer months. Many builders offer discounted prices to attract interested clients thus, making homes affordable for everyone. On top of that, buyers can avail discounts and incentives offered by banks and mortgage companies on first time purchases.
If you live in Montreal and feel confident enough to go preconstruction, there are several things you should keep in mind before signing anything. First of all, check the quality of construction work on the project website beforehand. Also, ensure you see samples of the finished product online and read reviews left behind by satisfied customers. Lastly, consider hiring experts on the field to assist in choosing a builder who delivers good service without compromising safety standards.
Finding Your Dream Property
Even though you already found a perfect place, it is wise to consult other realtor contacts and friends and family before putting down an earnest money deposit. There are numerous ways in which you could be scammed but fortunately most people are aware of scams nowadays. Do not hesitate to call a lawyer to represent yourself instead of relying solely on the seller or agent. Always ask your attorney what type of contract to enter into whether purchase or lease and get it reviewed professionally. Once you signed everything, make sure you read through it thoroughly and understand every word clearly to avoid potential problems. Finally, remember no matter how amazing the deal seems, it is always best to seek independent confirmation regarding financing options or appraisal values.
To sum up, a great way to invest in Uxbridge is either getting ready to buy a new construction home and/or renting it until you find exactly what you want, then buying the same for your personal needs if you decide to stay in Toronto. Just remember that buying a new construction home carries risks. Be careful, diligent and thorough. And finally, don't forget lawyers, appraisers and...
- New Home Uxbridge Buying 101
- Before reading this article, I suggest that you read my 2019 edition first. After finishing the content below you will be able to find answers most questions regarding buying a new house in 2020/2021.
But before talking about home purchases, lets talk about taxes. Taxes. They are one of the main reason why people buy houses in Canada instead living elsewhere. There is no tax deduction available for homeownership expenses like mortgage interest, property transfer fees, or repairs on existing dwellings other than primary residences. And while they are less significant for single family homes, condominiums still offer some benefits to owners who own multiple units, including lower personal income tax rates. So keep in mind when deciding whether to purchase a condominium unit versus owning a detached home; the tax implications could come back to haunt us. However, I highly recommend the purchase of condos since it helps reduce commute times which makes life overall easier.
In terms of mortgages, they remain relatively cheaper in Greater Sudbury given today's market conditions but prices tend to rise every day. Most buyers prefer fixed rate mortgages which provide higher long term value. As a general rule, banks offer fixed rates until mid 2020 but after that lenders are shifting towards variable rates. While many are willing to pay the difference because the payments go down during the initial years of ownership, eventually, buyers must realize that the monthly payment does fluctuates according to financial markets making them vulnerable to fluctuations in interest rates thus losing some equity over time. Some lenders charge very high upfront origination costs therefore borrowers should research thoroughly beforehand.
Buying a place without seeing it could lead to disappointment and regret. Here are some tips to help ensure you get the perfect fit home for you: 1. Visit Open Houses Before Buying 2. Contact Your Agent 3. Do A Walkthrough 4. Use An Online App 5. Ask For A Referral 6. Don't Be Afraid Of Negative Information 7. Talk About Finances 8. Research Property Type 9. Start Saving 10. Find Out Who Is Responsible 11. Think Big 12. Keep Calm 13. Make Sure Everything Works 15. Consider All Costs 16. Avoid Falling Into Traps 17. Decide Early On 18. Stay Patient 19. Take Advantage Of Opportunities 20. Have Fun 21. Focus 22. Buy Where You Want To Live 23. Remember Life Isn't Perfect 24. Learn From Mistakes 25. Always Expect Changes 26. Understand Why You're Doing This 27. Enjoy Being Unprepared 28. Enjoy The Challenges 29. Love Yourself 30. Accept Change 31. Have Patience 32. Be Grateful 33. Never Stop Learning 34. Accept Help 35. Embrace Diversity 36. Believe In Yourself 37. Give Thanks 38. Laugh More 39. Find People Like You 40. Be Nice 41. Don't Overthink 42. Don't Stress Too Much 43. Be Positive 44. Follow Up 45. Listen 46. Have Faith 47. Smile 48. Relax 49. Remember This Will Be Good 50. Treat Others 51. Trust God 52. Try Hard 53. Work HARD 54. Write Down Thoughts 55. Wear Clothes (Not Sweatpants.) 56. Watch Movies 57. Eat Healthy 58. Read Books 59. Exercise 60. Travel 61. Be...
- When buying a new home in Ontario follow these steps
- Finding the perfect house/condominium isn't always easy; whether buying or selling a property. Finding the perfect location for living while keeping in line with your finances, however, should be no different than other aspects of life. There are many variables to consider like price, square footage and layout which can impact the final outcome of searching for the most suitable home for you. However, with the help of experts who understand this world of real estate, you’ll soon realize that finding the ideal place will lead to happy times ahead! If so, then why not read below and discover everything you could ever wish to know about choosing the ideal residence for yourself in 2022.
Before making any big decisions regarding housing investments, a few things must first come into consideration, including but certainly not exclusive to:- Price, Location & Size. These 3 factors are essential parts of planning for your next move. When selecting a residence you want to ensure you are getting exactly what you pay for, especially since these purchases tend to be more expensive than ones made elsewhere. Therefore, before signing anything, make certain that you check each area thoroughly, paying close attention to the neighbourhoods surrounding the homes of interest. Make note of specific areas, the types of residences available, and the general prices listed on websites, since they often offer greater detail than listing agents themselves would otherwise disclose. Also remember to look carefully around the exterior properties to see if any damage needs fixing that might affect resale value. For instance, water leaks or holes on the roof can cause serious problems if left unaddressed. Lastly, size matters. Most buyers prefer large houses due to higher ceilings and spacious rooms. Smaller homes typically feature lower ceiling heights and narrow hallways, and they are less convenient and comfortable spaces to live in long term.
[IMAGE: House Image 1 & 2]
What's Next: Once you've decided upon the ideal type of structure for your family, you'll need to begin thinking about which community will work well for all members involved in your everyday lives. While the choice varies depending on your personal preferences, some communities include nearby parks for outdoor enjoyment and sports facilities for exercise and recreation. Depending on where you currently reside, your proximity to local amenities, schools, shopping centres, restaurants, transit options and even hospitals will influence your decision significantly. Some people enjoy the idea of being only minutes away from places they frequent every day. Others want nothing near them except their own backyard pool. Regardless of your preference, it's critical to keep safety in mind, considering crime rates in your locale and ensuring adequate security measures to protect against potential threats. Finally, take advantage of online tools to look up listings in various neighborhoods and communities that fall within the parameters of location, size and type you're seeking. As you continue browsing through prospective real estate deals, keep asking yourself questions like “Is this a good fit? Does this match my lifestyle? Is it safe enough? And will I feel satisfied living here once purchased?" After weighing all of the above points, you'll surely arrive at just the ideal match for you-one worth taking note of and working towards achieving.
- How to find Your New Uxbridge Home or Condo
- Ontario real estate market statistics is booming since 2016.
New homes sales increased 4% while existing condos prices rose 5%. Buyer demand was strong because first time buyers started investing in residential property which resulted in record breaking numbers across Canada. However, due to rising interest rates, mortgage rates surged making homeownership seem less affordable than ever before. Investors who took advantage of rental markets saw record highs in rents as well. So, many investors opted for alternative properties like townhouses, apartments & condominiums instead of single family detached houses. As result a shortage developed and supply kept increasing along with demand. Due to this imbalance we had some price increases but overall average house prices remain stable according to CREBA figures.
Another reason behind these changes is that Millennials entered the housing market after 2012 and they tend to buy smaller homes near employment centres rather than traditional suburbs. They prefer urban areas close to downtown Toronto and other vibrant cities, including Kitchener/Waterloo. Because of their preference towards living life closer to work places and entertainment venues; millennials preferred to downsize their current homes and move to larger space in order to save costs on transportation expenses.
To keep pace with changing buyer demands, builders responded by offering different floorplans and designs to suit every client's needs, preferences, budgets and lifestyles. Developers added options ranging from semi-detached units to luxury mansions in order to meet demand. We will see continued trends towards higher density developments around transit hubs such as GO Train stations, universities, shopping centers and business districts to accommodate young professionals.
We've already seen several large projects come online in 2017. Here’s a selection below: [LIST OF BUILDINGS BELOW WITH LINKS TO THEIR DEVELOPERS AND WEBPAGES]:
(Developer / Developer website ) Crescent Quays offers contemporary residences built atop the old Eaton Centre parking garage in Downtown Waterloo. Designed by architect Ian Wilson and inspired by his own childhood memories, Crescent Quays combines historic architecture with modern amenities and lifestyle offerings. Located just steps away from Lake Ontario and surrounded by retail shops and restaurants, residents enjoy the convenience of being able to live, work, play and shop without having to travel far.
The Residences @ North Bay Village
(Developed By D&R Group Inc.) This development comprises four high rise buildings designed by award-winning Canadian Architect David Gage, located at the northwest corner of Dundas St W and King St E, north of Spadina Ave in Toronto. Each building contains 8 floors and over 1,700 homes. These are among the largest homes ever delivered in Toronto and feature cutting edge energy efficient technology, luxurious finishes, unique spaces and state-of-the art services. Residents benefit from an exclusive pool lounge featuring day beds, private cabanas and an infinity swimming pool overlooking the lake, plus an outdoor terrace, gym facility with personal trainers and a fully equipped chef kitchen complete with stainless steel appliances. Residents receive concierge service, priority reservations at fine dining establishments and can avail themselves of 24 hour valet laundry service.
(Developer / Parc Developments Ltd.) This project consists of 10 towers designed by international renowned architects, Richard...
- Why is Ontario's Real Estate Market Booming?
- Buying a new house might be something many Canadians dream about but few actually accomplish. However, if you live in Canada, buying a used home could be better than renting. If you are thinking of building a new home in the near foreseeable future, this article will provide you with some facts, figures and stats on why getting involved should become part of your long term financial planning. After all, owning rather than rentng real estate will help you save lots of money down the road.
[IMAGE: Real Estate Agent's Website Logo]
Why Owning Rather Than Renting Is Better Long Term: [READ MORE...]
One thing’s for certain, homeownership comes with several benefits which renters simply cannot match. For starters, homes often come already furnished and landscaped, making buyers less inclined to spend thousands on expensive renovations while they own their property. As well, most houses offer ample storage space, unlike those cramped apartments found in rental listings; homes also tend to depreciate more slowly since owners receive tax breaks for improvements made over the years. Finally, landlords typically charge monthly fees ranging anywhere from $150-$400 per month depending on location whereas homeowners only pay maintenance costs like taxes and utilities.
While housing markets differ across cities, experts agree the cost of ownership is always lower than rentals. And because Canadian mortgages are federally insured against default, rates vary significantly depending on credit score, down payment requirements, lender type and geography. So while you have plenty of options to consider when choosing a mortgage product, understanding these specifics beforehand will allow you to get the lowest total interest rate possible once financing has been approved.
What Do I Need To Be Able To Buy House/Condominium?: [READ MORE...]
In order to buy a residential home (also known as ‘real estate’), you usually need to secure funds to cover both the initial deposit plus closing costs. While some builders accept cash deposits, most lenders prefer to see proof of funds prior to funding approval, especially in times of tight market conditions when competition is high. Therefore, securing preapprovals can take weeks or months until final bank approval is obtained allowing borrowers to search around for a suitable buyer willing to purchase under their agreement. Once finalized, banks typically ask for 30%-50% down payments in addition to the amount required to complete repairs and upgrades to bring properties up to standard lending regulations. These funds are then held back while the remainder of the purchase price is covered through seller financing. A typical transaction involves 5–7 steps including loan origination, appraisal, title insurance, inspections, approval & disbursement. Even after closing, the sale does not close unless the home passes inspection and other contingencies have finally cleared. During this entire period, you will need to factor in maintenance expenses for upkeep during the time frame leading up to completion.
If you decide instead to obtain a traditional home equity line of credit (HELOC), you would borrow a sum equal to 80 percent or 100 percent of the appraised value of your primary residence. Interest on HELOC loans begins accruing immediately upon signing of contract, and must be paid back regardless of whether or not property remains owner occupied. Your bank account, however, continues earning interest...
- New Construction Investment Opportunities in Uxbridge Ontario
- We've recently released updates to this page regarding the 2020 real estate market conditions with some great news for buyers & sellers alike. We're pleased to announce that sales activity continues to pick up across Greater Toronto which bodes well for our community's housing needs going forward!
Home prices continue to rise along with interest rates which makes us confident that we'll be seeing a lot of growth & development across the area this year.
We’ve made a few additions below but feel encouraged to read through this article first because there could potentially be other changes coming soon depending upon the current state of affairs and/or local developments happening in the surrounding areas.
Here's Why You Should Buy Your First House Right Now
(And Why There Could Be More Growth Coming!)
1. Interest Rates Have Been Dropping Over 2% Since March 2019
2. Sales Activity Continues To Pick Up Across Greater Toronto Area
3. Prices Continue To Rise Alongside Rising Interest Rates As Demand Increases For Housing Needs Going Forward
4. Local Government Has Announced Measures Towards Supporting A Stronger Economy And Helping Those Who Want To Invest Their Money Into Property
5. Our Latest Data Shows That Sales Volume Is Increasing Throughout All Of GTA Region
The Bottom Line - If You Wait Until Things Cool Down Or Start Looking At Buying Houses Later On, You May Miss Out
[IMAGES OF HOMES IN THE AREAS WE SELL] [IMG_20190730_105432](https://www.expertrealestateagentsnj.ca/wp-content/uploads/2020/03/Uxbridge-Ontario-Realty-Associates-Images.jpg)
This property is located within 1 minute walking distance to both St Lawrence Blvd & St Clair Ave W.
If you're looking to buy a house near Downtown Brampton, then this is definitely the place for you!!
[IMAGES OF HOMES IN THE AREAS WE SELL] [Image 1 of 10 ] https://www.expertrealestateagentsnj.ca/wp-content/uploads/2020/05/Brampton-Homes.png
For those interested for buying a single family home, these homes are available for purchase in Brampton as they offer spacious living spaces. They include large rooms like master bedroom suites & walk in closets while offering modern finishes. Some of the properties come complete with garage parking options & are only minutes away from shopping malls, schools & transit routes making them ideal places to settle down in.
[IMGs OF ST CLAIR AVENUE AND LAKE SHORE DRIVE NEARBY] [ IMG_20190705_085553 ] https://www.expertrealestateagentsnj.ca/wp-content/uploads/2020/06/StClairaveN-e155918354489734.jpg
These houses provide residents with good amount of space while being surrounded by green surroundings, parks as well as close proximity to shops, restaurants and cafes. Many of the homes are built around 2000 sqft so you won't feel cramped inside no matter where you live.
- Examining Real Estate Market History in Ontario
- If you’re thinking about investing in real estate in Canada or in Uxbridge, Ontario then this article will help you understand why you should be considering buying a newly constructed property instead of an existing one.
We will show you exactly why buying a new house makes sense and is often better than waiting around until a resale market becomes available.
In fact, if you invest wisely, you could get a bigger return on your investment.
And you won’t find many people willing to sell you their existing homes at today’s prices!
So why buy a new house rather than wait? Here is why!
1.) You Can Be Guaranteed A Good Buyer At Today's Prices
When investing in property today, you can guarantee that you will always have a good buyer.
This can be extremely challenging during a slow down period like the current situation.
However, in the event that a seller does decide they would like to move quickly after listing their house, you can rest assured knowing you have a strong negotiating position because no matter how desperate sellers may become, they still have to compete against other buyers with offers that are higher than theirs.
2.) Less Risk Of Loss And More Returns On Your Investments
Buying an established house is risky business, especially if you're buying a foreclosures.
Foreclosure properties can take years to complete, which means you'll be sitting on the sidelines while someone else finishes renovating, making repairs, and cleaning them up.
Meanwhile, you could lose thousands of dollars, plus interest charges and fees.
On the other hand, when buying a brand new house, you are guaranteed that everything will be ready and finished before you arrive.
3.) You Have Access To Better Financing Options
Many investors prefer to purchase property through mortgages instead of taking on personal financing because it gives them greater flexibility and control of their investments.
For example, buying property with private mortgage insurance (PMI), requires that you pay additional amounts every single month on top of your monthly payments to an insurer who protects the lender's interests.
4.) Buys A Property From Someone Else Will Pay For Themselves Over Time
The most common reason people sell their houses is that their family needs more space.
But in order to affordably expand their living quarters, homeowners must either raise money through refinancing their home loan or selling it outright.
But if you buy a house from a person who has already sold his/her old place, you are essentially buying a property without having to put anything extra upfront.
5.) You Can Make Money While Waiting Until The Next House Cycle Begins.
It takes anywhere from 3 months to 2 years depending on location, type, size, and age of the property you're trying to flip.
During these times, however, you still earn money on the equity built up in your current residence.
6.) There Is Always Demand For Real Estate
People love to live near work and entertainment centers, but unfortunately, these places tend to increase in value faster than average housing markets.
Because demand continues to exceed supply in these areas, the price per square foot tends to keep rising.
7.) You Don't Need Experience...
- Getting approved for your New Home Purchase in Uxbridge, Ontario
- Owning investment properties in Uxbridge, Ontario is becoming increasingly popular among people who want extra income streams. A lot of investors see buying rental homes as a great alternative to investing in stocks because unlike real estate, investments like stock portfolios go through volatile periods making them less stable than regular assets i.e. houses. But while they provide financial security for many, investing in rentals raises certain tax obligations especially since Canada introduced the Rental Housing Deduction Tax Credit which helps reduce rental costs and improve renters ability to pay for mortgages. If you wish to invest in your own house but still get a monthly return, this article will show you why renting rather than buying is better for your finances. [BASIC INFO]: So, what exactly does being an owner mean? As defined in Investopedia; Owning is “the legal titleholder of something or someone else”. Essentially, if you buy a piece of land (also known as real estate), then you become the ultimate homeowner, meaning you could sell and transfer your rights to anybody. On the other hand, ownership implies that you can only live on the premises, thus preventing you from selling it without consent from the owners.[INITIAL PROFILE REVIEW] According to Urbanation, Toronto ranks 4th and Ottawa 8th in terms of housing prices across North America. If you haven’t checked out those cities yet, I would advise against purchasing expensive housing unless you really intend to stay put. Buying your first place outside your city area isn’t ideal either simply because it increases commuting expenses which usually adds stress to family life. Plus, once you move into a bigger town you might be priced out of real estate altogether. Moving from smaller suburban areas to larger centres often makes sense if you are planning to raise children though some parents find themselves having difficulty leaving behind loved ones.[REAL ESTATE INVESTMENT IN TAXES]: Taxes play a big role in whether you should purchase or rent a particular realty. For example, if you’re living in Ontario, then there is no federal tax deduction related to residential rentals whereas landlords enjoy this benefit. However, depending upon your situation, even if you aren't eligible for these benefits, you can still save big in taxes by paying cash instead of leasing. While leasing could cost you hundreds per month, you won't receive this amount back after deducting mortgage payments and operating costs. Besides, most leases offer a lease term which limits you to staying at the dwelling unit for just 5 years before considering yourself "free" hence giving rise to another problem called 'lease creep'.[MORTGAGES FOR HOMES VS STOCKS]: Mortgage loans are far easier to obtain than equity lines. They are required in case you're getting ready to become a buyer although for self financing purposes, it's possible to secure a loan for 100% of the value of the proposed purchase or renovation. Equity lines however, must be secured for amounts ranging from 30%-90% in order for homeowners to avoid paying capital gains taxes. Since interest rates dropped significantly during 2019, it's a good idea to borrow enough funds to cover potential risks such as mortgage prepayment penalties and rising utility bills. Lastly,...
- What makes Xondo Ontario's Most Convenient New Condo/Home Buying Platform?
- When buying a property, most people tend to rely on real estate agents to provide them information regarding properties available for sale in their area. However, this isn't always accurate because some people have trouble finding good quality listings in a timely manner while other agents simply aren't interested in helping buyers find homes.
We understand why many people prefer realty agencies; they're paid commissions, which allows them to keep more than 80% of each transaction. But that leaves 20% for us, which gives us enough profit to pay ourselves well without having to charge clients fees. We believe you shouldn't be required to hand over money just to get access to great deals. So, instead of taking advantage of the commission, we offer a better deal.
[IMAGE: Real Estate Agent in Toronto]
In order to help you buy or sell a house faster, we've developed technology and tools like the XonDoc App.
The XonDoc mobile app allows you to easily view realtor listings in your neighborhood, search for houses online or offline, request viewing times, save favorite listings, receive notifications via text message, email or phone call, compare prices across multiple listing services, and much more.
It's a powerful tool that helps you stay organized, informed, and ahead of the competition during every step of the purchase or sale process.
So whether you're searching for your first home, looking for a place to raise kids with family members, moving back in after years living away, or selling your existing residence to move closer to work...we can help. Our team will walk you through everything involved in purchasing or selling your next home.
XonDoc was built by homebuyers, for homebuyers. And that's exactly who we serve. So, no matter what stage of life you live in, Xondoc is the perfect fit for you.
- How Xondo makes Home Buying & New Construction Investing in Uxbridge Easy?
- XONDO makes buying real estate and investing in real estate easier than ever because when you use us; We connect you to thousands of people who will help get you the most amazing experience possible.
We provide the tools necessary to find property that meets your needs and preferences. Our team of professionals will walk through each step with you until everything is finalized.
When you contact XONDO, you’ll be given a personalized agent for every part of making your transaction work smoothly. As long as this person knows you well enough they will go above and beyond to make things happen.
From choosing which lender offers the lowest costs to setting up your mortgage payment, we take care of everything for you.
And since you’re getting prequalified instantly and saving hundreds of dollars, why would you trust anything else to save you that kind of money? [img_assist_none align="left" src="https://d1v5qjy0f8hn9r7.cloudfront.net/wp-content/uploads/2018/10/realestateimage2.png"]
So whether you’re selling a house yourself or letting a pro handle everything, with only one point of failure, your transaction will close fast. And once the paperwork is signed you’ll get back that amount of cash.
[IMG_ASSISTMENT: Buyer image]
This is just the first step. Once the sale closes on the title deed then we send you on your way and the rest happens automatically. From paying down your mortgages to having your utility bills taken care of, your bills come straight to you.
[IMG_CUSTOMIZATION: Customize Your Image]
If you’re interested in knowing more about our services please visit www.xondo.ca. Or feel free to call me personally at 905 532 0555. I’m excited to meet you and discuss ways that we can both benefit from working together.[END CONTENT]
- How To Make Money On a New Home or Condo Purchases in Uxbridge, Ontario
- In this edition of “How To Make Money On A New Homes Or Condos Purchase In Canada” we will be focusing on buying real estate properties in Uxbridge, ON.
Uxbridge Real Estate market has seen some amazing growth since 2016. Many people have become aware of how lucrative this real estate sector really is, but most still struggle to find the ideal property they wish to invest in. If you have found yourself struggling to decide whether buying or renting makes sense then I would highly suggest checking out my latest article titled ‘Why Renting Is Better Than Buying For Everyone” which was published just recently.
If you haven't checked it yet please take a moment to read through my latest article because it's going to help you immensely.
Now onto today’s subject...
Uxbridge Real Estate Investing Tips & Strategies
When deciding on whether to buy or rent we must consider several factors including location, price point, quality of life, rental yield, and potential appreciation.
Location plays an integral role in determining the overall profitability of investing in Uxbridge real estate. We must always keep in mind that a house located close to schools, shopping malls, restaurants, parks, and other amenities will fetch higher prices than those further away from these things due to demand.
Price Point - As mentioned earlier, location determines value. When considering a purchase or sale you should always aim to pay no more than 2% less per square foot compared to similar homes nearby. This helps us avoid getting priced out of a desirable area.
Quality Of Life/Value - Quality of life refers to how well you feel living in the place you're interested in, while Value represents how much you'll actually be able to get for your dollar invested.
Rental Yield - Rental yields represent the amount of money you receive each month by owning a piece of real estate instead of paying for monthly rents. You will typically receive around 4% to 5% annually depending on the type of property you own. This percentage is determined by the size of your mortgage payment.
Appreciation Potential - Appreciate means increase in value of the asset over a period of years. It is usually measured against inflation rates.
We also must consider rental returns and appreciation when making decisions regarding a new home or condo purchase.
When choosing to purchase a real estate investment you will need to factor both short term costs associated with ownership as well as long term financial benefits of having a solid real estate investment versus simply renting a home.
Short Term Costs Associated With Ownership
Property Management Fees - Property management fees range anywhere from $400-$600 dollars a month and include utilities like internet service, cable TV, gas heating bill and water bills. These fees can quickly eat up your profits especially if you live in a larger property and have tenants who have a habit of being late with payments.
Mortgage Payments - Your mortgage payment will vary depending on how big or small your property is, what loan program you select, and if you are taking advantage of mortgage incentives offered by different lenders (for example interest rate discounts). Mortgage rates fluctuates frequently so be mindful of changes in the market and adjust accordingly.