Investments are an important part of long-term financial success, and one that can take many forms. Some choose to invest in stocks or bonds, while others choose a more tangible option in the form of buying one or more investment properties. Centum Mortgage Store, Ltd., we work with people who are looking to finance or refinance these sorts of investment properties, and we want to help you make informed decisions about them. In this article, weI’ll be going over three key questions to ask before buying an investment property.
- When were the roof and other key components last replaced? Before closing on any investment property, you should make sure you know when the roof, AC unit, furnace, and water heater were last replaced. It’s not obvious how old these components are just by looking at them, and you’ll want to know whether they’re nearing the end of their lifespans before you commit to the purchase. If the seller doesn’t know, ask the home inspector to provide their educated estimate.
- Who is going to maintain the property? Another thing you should know before buying an investment property is who is going to maintain the premises and interface with the tenants. There’s no wrong answer here– we’ve had clients who personally managed their properties and those who hired management companies to do it for them who both saw satisfying returns on the investment. However, you’ll want to have a game plan in mind before you close on the property in order to be prepared for the necessary upkeep.
- How often do people move into/out of the neighbourhood? Something else you should consider before buying an investment property is how transitory the neighbourhood is, meaning how often people move in or out. If your goal is to offer the property for long-term rental, then you’ll want to buy in an area where people put down roots and raise families, rather than somewhere they’ll only stay for a few years before moving on.
We hope that these questions help prepare you to take your first steps towards buying your first investment property. When you’re ready to take the next step, simply call us at Centum Mortgage Store, Ltd.