Investment Properties in Nanaimo
95% of the properties sold in Nanaimo are the owner’s home first and foremost. An increasing number of these homes include various kinds of suites and carriage houses which make them more affordable and makes the financing easier to get. Often times when people think of investing in real estate they are under the impression that it means buying places and selling for the profit after either cutting up the land, doing a big reno or building something new. These are all good things to do, but I think of them as being for the initiated and for the right market. One could really hurt themselves financially doing these things if they don’t have a good enough grasp of market dynamics among other things. As it it has been a Buyer’s market for a few years now, the majority of the people and companies who I’ve seen focusing on these particular kinds of investing that expect a short term turnaround (within a couple of years) have mostly struggled. With planning and patience, one can use any market to their benefit and not be required to be a millionaire or a real estate guru to do so.
I’ve talked about buying your own home with a suite to make your financial life more flexible and affordable before. (See here, here, here, here, here, and especially here.) I’ve also talked about investment properties as a long term strategy for creating a solid income for yourself. Rather than repeating myself at length about the things I say in the posts linked to above, I’ll suggest that you read them for a more informed picture of what I’ll summarize as The only bad time to buy real estate is when you can’t afford to make the payments plus have a little saved in a ‘just in case’ fund. Real estate takes time and you have to be patient. If you can hold on for 5-10 years and be able to make payments you will be in a better place. This is doubly so if you are renting the place out and not cutting corners on maintenance. This week’s latest news and views about what the market trends are, are basically just background noise if you are thinking in the above terms. The media and the people around you in life can go ahead and get caught up in the drama of all of that while you have done your research that shows that things go up in the long term, faster than inflation.
So once you have done the reading above, and looked at long term stats perhaps it is time for you to develop a plan which starts by talking to your mortgage broker.
Then you choose a property that makes sense. There are many options to choose from and there are always a handful of houses with suites on the market where the rent collected should cover the cost of the mortgage and other regular costs combined.
There are various ways of getting tenants of course. Some people use property management firms which usually charge around 10% of the total rent to handle everything for you, some people just advertise in local classifieds and others connect themselves with organizations or websites that help exchange students find home stays. This last one is quite popular the world over so you are plugging yourself into a very large pool of potential tenants. I’ve even seen far off organizations like urbanest doing student accommodations in Australia and other similar organizations here in Nanaimo and around the world.
So, if your income is stable and you are thinking that maybe you want to start thinking about gradual wealth building, investing in real estate is one of the old time honoured ways to do so for those with foresight and patience.