4 Strategic Steps Before Buying Your First Mississauga Investment Property!!

Buying an investment property in the Mississauga Area Housing Market requires careful planning. Here are four strategic steps we recommend before buying your first Mississauga investment property.

1. Find a Real Estate Agent:

A realtor that Mississauga investors trust is your best resource to help you make an informed decision based on the current market conditions. We’ll review recent sales for the various investment options whether it is single-family homes, condos, townhouses, or multi-unit homes such as a duplex or triplex. Understanding the cost of homes for sale in Mississauga, as well as current rental rates, helps you decide if investing now makes sense or not. Housing costs also determine if you have the minimum 20 to 25% down payment required for an investment property.

2. Consult a Mortgage Specialist:

Speak to a mortgage specialist or your bank to find out what is the amount you qualify for an investment property mortgage. You’ll need to have good credit history and enough income and a down payment. Remember, if you have a single rental unit, and the unit is vacant for a couple of months, you have to make sure that you can cover those mortgage payments until you find a new tenant. When your credit isn’t that great, and/or your current income isn’t enough to pay your mortgage, it may not be the right time to buy an investment property based on your circumstances.

3. Consider Equity:

Although you only require between 20&25% down payment, you can see better returns from your rental property if you increase your down payment. Even 5% will reduce your monthly mortgage payments. There is a possibility that you may break even and even see your equity build up in the first year itself.

4. Set a Budget:

As a landlord you’ll need to set a budget and be sure you can afford the following costs:

·         Property insurance

·         Legal fees and administrative costs for rental agreements, background checks for tenants, end-of-lease inspections, general maintenance etc.

·         Income taxes fewer landlord expenses such as mortgage interest, repairs, tenant ads, etc.

·         Tenant advertising

·         Savings account with 5% to 15% of the property cost to cover repairs and maintenance

·         Savings account with 10% of the property cost to cover possible vacancies

Keep in mind you can offset some of your costs by including utilities and/or common expense fees in the rent.

If you’re looking for the best realtor in Mississauga to help build your wealth with a solid investment property strategy, Kenneth D’souza and his team got you covered. Give us a call at 647-628-3434 or email us. We’d love to work with you!