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Real Estate Investments – What You Need to Know Before Making a Purchase (#004)

Posted by 118
Created: 20 February 2014


Do you currently have real estate investments? Could the purchase of an additional property help you meet your financial goals? Are you aware of everything you need to consider before signing on the dotted line? If you haven’t considered how buying a second home to rent or use as an investment could boost your finances, then you could be missing out.

The real estate industry has improved dramatically for both those who are looking for Vancouver homes to rent and buyers who wish to purchase real estate investments. Have you considered real estate investing as a way to secure your financial future?

If you’re interested in learning about using real estate as an investment, then you’ll want to invest a few minutes to listen to this edition of the The Mortgage NewsCast podcast where your host Erik Reynolds interviews Jared Dreyer, accredited mortgage professional and President of Dreyer Group Mortgage Brokers about purchasing rental or other investment properties, including things to consider when purchasing and getting mortgage financing.

The conditions for buying a rental property have never been better. CMHC reported* that there is a particular increase in demand for condominium rentals, and although there was a slight increase in vacant properties, the increased amount of 15-24 year olds who have full time employment only further supports the demand for rental units across Canada.

Growing Your Investments with Rental Properties

The episode kicks off with Jared sharing whether it is still a good investment to purchase rental property. He says it is a good time for those who are willing to take on a long-term point of view. Jared shares the saying that, “As long as you are willing to hold onto it, real estate always seems to go up.” If you find the right property for your budget, then it is always a good time.

Next Jared explains some of the advantages of purchasing a rental property investment. He states that there are some key things you want to look at while you consider buying an investment or rental property, including what your ultimate goal should be and how returns on real estate investments stack up against the stock market.

If you could use a good source of monthly income that also provides lucrative tax incentives, then it’s time to consider rental properties and other real estate investments.

What to Consider Before Buying a Rental Property

Jared goes on to discuss things to consider when purchasing a rental - property, such as market conditions and what kind of long-term returns - buyers can expect from their real estate investments. During the - podcast he also addresses these questions:

Are there things I should discuss with my accountant?
What tax incentives can I expect from my rental property?
Can I own an unlimited number of rental properties?
Will the purchase of a rental property affect future borrowing?

Now stop to consider the state of your current affairs. Are your finances at a point that you could pursue real estate investments? Would your family enjoy the added income that comes from maintaining a rental property? If your answer is “yes” then it’s time to use the tools in this podcast to secure your family’s financial future.

What You Need to Invest in Rental Property in Today’s Market

Next Jared reviews what a buyer needs to purchase rental property in today’s real estate market. While having stable, consistent employment and good credit are a must, they are not the only two requirements. He then goes on to discuss plans a buyer has to have in place for other financial aspects of investing in rental properties.

Then he tells what buyers would need to know regarding securing mortgage financing for rental properties. He describes what factors could make qualifying less flexible in the current environment, how to add up the total amount of rent to charge on the property, and details about the amount and source of the funds needed for the down payment.

Before going forward with real estate investments, buyers need to know what’s required. Missing just one element of the buying process can hold up the process of purchasing a rental property.

Jared wraps up the episode explaining how changes in the Canadian mortgage guidelines affect the ability to qualify, and why an independent mortgage professional is an invaluable resource who can guide you through the process.

Are You Ready to Invest in a Rental Property?

Do you want to learn more about real estate investments, like rental properties? Could your present financial situation support this type of investment? Listen now to the entire podcast. If you have questions or comments, then we invite you to share them in the area below.

After you finish listening to this informative podcast, please contact Dreyer Group Mortgage Brokers at 1.800.687.9020 or apply with us using our 30-Second Application. We look forward to hearing from you!

Dreyer Group Mortgage Brokers
#308 – 15252 32nd Avenue
Surrey, BC
V3S 0R7

Phone #: (604) 536-3802

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Twitter: @JaredDreyer


After you finish listening to this informative podcast, please contact us at 1.800.687.9020 or apply with us using our 30 Second Application We look forward to hearing from you!