Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both. Before considering purchasing an investment property keep in mind your financing options. This is not your principal residence so a higher down payment will be needed in order to secure financing!
Credit Score: Again vital and will need to score in the mid to high 600’s to qualify keep in mind there are a number of advantages and disadvantages to buying an investment property and, you should talk to a lawyer, accountant, or financial expert before proceeding
ADVANTAGES:
You can deduct certain expenses from your income reducing taxes you owe!
- mortgage interest
- property taxes
- insurance
- upgrades
- property management
- utility bills (if included in the rent)
- You can also deduct losses for tax purposes
DISADVANTAGES:
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You take on the responsibilities and challenges of a landlord
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It may be difficult and costly to sell the property later
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It may be difficult to finance the purchase
The Hilson Team is located in Milton, On and is looking forward to working or educating you on investing in our real estate market. Please feel free to contact Norm and Teri Lynn Hilson at anytime for more information.