November 2020 Real Estate Newsletter
Monday Nov 09th, 2020Share
The cold weather is here! As we head into the snowy season remember to winterize your home. Here are some helpful tips:
- Turn off your garden hose lines and remove garden hoses
- Make sure your gutters are clean and allow for water to flow freely
- Remember to replace your furnace filter approximately every 2 months
- Your indoor humidity level should be between 33-35% for the winter season
Investing in Real Estate
Owning real estate is one of the best ways to make money both long and short term. A small investment today can help create a comfortable nest egg for the future. Start building your real estate investment portfolio today and spend more time enjoying your life!
There are many different paths you can take when looking at investment properties. What types should you buy? What is the best location? Should I plan to own it long term vs short term? These are some common questions I am often asked. If you are just starting out and want something easier to manage, I would recommend looking at condos. They are less maintenance and most affordable. The goal would be to buy in a good location close to transit, with nearby amenities, and within the city limits. If you own a parking spot with the unit, you can rent it out separately to generate some additional revenue or include it with the unit. The focus in this scenario would be long-term growth. You will have a tenant in place and the rent covers your mortgage, taxes, and condo fees. In this current market, condo values have been appreciating yearly. As you own it, the mortgaged amount goes down and over the long term you will have equity in the property to use to either buy another property or refinance.
Let’s look at an example: You buy a condo for $350,000 with 20% down. Your condo fees are $300 a month, property taxes $200 a month and your mortgage payments are $1250 a month. You have a total monthly obligation of $1750 a month. You rent the unit out for that exact amount. Assuming that the property goes up in value every year, let’s say approximately 4% on average. Over the course of 5 years, your property will be worth approximately $425,000 and your tenant will have paid down your mortgage over those 5 years to roughly $236,000. You now have $189,000 of equity in the property. Next, you can either take some equity out, buy another property, sell the condo, or keep going.
Exciting right? Find out how to get started today by contacting me for a free consultation!
This Month’s Neighbourhood Feature: Half Moon Bay
Located in the southwestern part of Barrhaven, Half Moon Bay is growing at a rapid pace. Some new home developers in the area include Mattamy, Minto, Caivan, Tamarack and more. A beautiful recreational facility is centrally located at the corner of Cambrian and Greenbank. It offers a basketball court, hockey rink, fitness facility, outdoor soccer turf and several programs. The Riocan Shopping Plaza is minutes away and features a Loblaws, Home Sense, Cineplex, Walmart, Kelsey’s and several other retail shops and restaurants. Several elementary schools are all within walking distance as well, Half Moon Bay Public School, St Cecilia Elementary, Sainte-Kateri Elementary and St.Joseph High School to name a few.
If you are planning a move, I would highly recommend checking out Half Moon Bay!