When buying Collingwood real estate as a rental property, it is important to ensure that the features of your home meet your criteria and best serve your goals. An ideal investment home has many important features that will differ from the vital features of an owner-occupied home and therefore it is important when choosing the right investment property to know what you should be looking for. Here is what you need to know if you are investing in Collingwood real estate as a rental property for the very first time.
When looking at purchasing a Collingwood condominium, it is important to first ensure that the building allows for rentals and that rental terms are flexible. Second, one should do research about the building and the community rental market to ensure that the rent will cover the mortgage, or at least the majority of it. Generally, two plus bedroom condominiums in Collingwood are easier to rent out than a one-bedroom unit and will render a higher rental profit -- though a one-bedroom suite in high-traffic areas and close to the Blue Mountains ski resorts can be highly profitable.
Furnishing a condominium and marketing it as fully furnished can render a much higher rental income for renters who are willing to pay a premium, though this may mean shorter rental terms and perhaps a little more work on the part of the owner. Waterfront condominiums in Collingwood with all the nearby amenities and has full access to the waterfront trails tend to net higher rental rates.
When looking to purchase a detached home for your investment property, you can significantly increase the rental income by choosing a property that offers multiple dwellings to rent out. You can achieve this by purchasing a home with a sufficient basement suite that will allow two rental incomes under one roof. Other options include purchasing a duplex and some single-family dwellings have lane homes or coach houses that can be rented out separately.
Location, though perhaps not everything, plays a major factor when looking for a long-term financial gain on your Collingwood real estate investment. Purchasing in areas that have a history of rising property values is a good way to maximize your returns and up-and-coming neighbourhoods with planned future developments can be a promising sign of a growing profitable location. Already-established areas with high property values, though they may not offer an initial "steal" on the property itself, tend to continue growing and may offer a safer bet for future gain.
When searching Collingwood Homes and Condos for sale as well as the neighbourhoods they are located in are important factors in making a wise real estate investment, both for the short term and the long term. The final component to consider is timing, which can significantly affect the overall profitability of your investment. The best thing you can do to help in your decision on when to buy and where to buy, is to speak to with a REALTOR®. To get started, ask us for a Collingwood real estate market report to you shop for the ideal rental investment property -- no matter where you are looking.
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