What usually happens when you make a mistake?
You adjust what you’re doing and you move on.
Afterall, failure precedes success.
While this is a rather straightforward approach, we don’t always have the luxury to make an error – sometimes we simply can’t afford to take that risk.
This rings especially true when it comes to investment properties, as there’s often a hefty price tag that comes with righting your wrongs.
To help you make the best decision possible, we’ve outlined some do’s and don’ts to consider on your journey for the perfect investment property in the ever popular Muskoka and Haliburton County region.
What Is An Investment Property
First, let’s start off by defining what an investment property is.
Essentially, it refers to real estate that has been purchased to generate income, whether that be through appreciation or rental income. And, the beautiful waterfront cottages in Muskoka or Haliburton County are a great place to start!
The timeline for investment properties can vary, from a short-term endeavour to a long-term investment. The prior usually involves remodelling a space and then selling it for profit, whereas the latter refers to renting a property out to tenants.
Now that we know what an investment property is, let’s get into the do’s and don’ts.
The Do’s and Don’ts of Investment Properties
DO consider the different types of real estate investment properties
You wouldn’t walk into a dealership to buy a new car without having any idea of what you want!
If you work in the construction industry, a truck might appeal to you, whereas a family with children might be better suited with a van.
Either way, you want something that is going to best suit your needs.
The same applies to investment properties, in knowing the different kinds of properties available, you can make a selection to guarantee a good match.
Here are the different types of cottages you might find in Muskoka & Haliburton County:
Single-family homes: as the name suggests, this style of home often houses a single family and is most popular in suburban areas over urban ones. As this style of home is usually in high demand, they tend to be more favourable among investors, in turn providing easier financing options.
Townhomes: this residential style of home can be found in urban areas and is often characterized by having multiple floors.
Multi-family homes: as you may have guessed, this style of home includes separate housing units and often houses more than one family. As such, they can bring in a steady cash flow but can be harder to finance as they come with a higher price tag than single-family homes, in comparison.
Condos: this style of home houses many people on account of the multiple units available within the building. It offers a more convenient residence compared to the others as maintenance is typically covered by the building.
DON’T rush into your decision
The decision to purchase an investment property is a massive decision, so it’s undoubtedly not one you want to rush into.
Instead, remain well informed throughout the process and conduct research.
You might discover that a residential investment property is better suited for you, for example, where you prefer collecting a monthly rent from other cottage country fanatics, over flipping a home and selling it.
DO consider the current real estate market
Prior to making an offer, ensure that you have considered the real estate market as it can have a huge impact on your investment.
If you discover that houses in the area are in high demand, you can expect competition with other buyers and should act fast.
This is definitely the case for water-front properties in Ontario's premier cottage country county, underscoring the importance of connecting with professionals you can trust – just like the pros at RE/MAX Professionals North!
Conversely, if there’s a surplus of houses available you should consider what factors could be influencing this. For example, you might discover the neighbourhood is adjacent to an airport, which is a deterrent for many buyers and renters alike.
DON’T buy in an area you know nothing about
You might come across a property that seems too good to be true: updated appliances, high ceilings, and a spacious backyard all available below market value.
While you might be eager to put an offer in, consider the neighbourhood first.
Let’s say you’re hoping to rent the place out to a young family. You might discover the area doesn’t have many schools, it’s rather isolated with few amenities, and the majority of residents are seniors. If this is the case, this property surely isn’t right for you!
That’s why it’s crucial you research the neighbourhood, each place has something different to offer and depending on your goals, you want to make sure you find somewhere that aligns with them.
It really is location, location, location!
DO seek expert advice.
Perhaps the most notable piece of advice to facilitate your investment property search is making sure you’re in good hands.
It starts with choosing a real estate agent you can trust and when you choose RE/MAX Professionals North, you’re doing exactly that.
For help finding a fantastic investment property in Muskoka or Haliburton County, connect with RE/MAX Professionals North today!Posted by Leah Ambler on