Contrary to popular opinion, a recession is actually the BEST time to invest in revenue properties.
Why? Regardless of market conditions people always need a place to live, and with today’s lower interest rates, you’ve got an excellent opportunity to find the investment property that is right for you!
The first thing to keep in mind is that in today’s market real estate should be viewed as a long-term investment as opposed to the short-term “flipping” of boom times. Plan on keeping the property for a minimum 2-5 years and watching its value grow steadily. Be sure it’s in an area where people want to live and accessible to amenities like schools, shops and transit. Don’t buy the most expensive building on a modest street; instead buy a modest building on an expensive street. This will make your property more desirable to a greater number of tenants, thus, they’ll be willing pay higher rents and you’re more likely to have positive cash flow after expenses.
As far as financing your investment property, MonsterMortgage.ca can help you access the equity in your current home and/or arrange affordable financing through specialized lenders.
You should look to keep your interest costs and payments low, so that you can help ensure that your rents will cover the mortgage. Then as your property appreciates, you have the flexibility to extract further equity if you so choose make a second investment!