09 Nov 6 Guelph Real Estate Investing Tips
Investing in real estate is one of the oldest and most successful forms of investing (when done right).
The ability for it to appreciate while providing a significant amount of cash flow every year makes it extremely desirable. Here are some basic (but important) real estate investing tips for beginners;
- Visiting with a mortgage broker or the bank will help determine what kind of price range you should be looking at in regards to investment properties. Having this number will allow you to narrow down your search significantly.
- It’s always a good idea to look for properties that generate positive cash flow. This means that the rent from a tenant exceeds the cost of paying for the mortgage payment, property taxes, utilities, and insurance bills and any other expenses.
- Using an experienced and proven Guelph realtor who has an understanding of the real estate investing world personally will be an amazing asset. Working with people like us here at the DiLoreto team will allow you to avoid making critical mistakes by utilizing our first-hand experience.
- We always recommend new investors to consult with your accountant and lawyer to gain an understanding of the tax and legal aspect of investing in real estate. There are many options and advantages available that you should be aware of before investing.
- The type of investment property matters. Purchasing a higher priced property will likely not generate positive cash flow. Purchasing a condo or dwelling with multiple bedrooms/lower level apartment is usually your best option due to the safety net it provides. It doesn’t matter if the market goes up or down there will always be a higher demand for such housing especially in Guelph. With the University located in Guelph’s core there are always plenty of students looking for a rental, investing in this city is definitely ideal for a first time investor.
- Hiring an experienced property manager is always a plus because it removes a lot of the headaches from you in terms of monthly operations. They can assist you with any ongoing maintenance, repairs, and also many other things that involve dealing with tenants.