More Canadians are purchasing investment properties, and here’s why.
Return on investment
Residential real estate is a solid estate investment, typically appreciating faster than inflation.
Pension plan for the future
Over the long term, an investment property or multiple real estate holdings can be a great source of retirement funds.
Better alternative to student residence
Many Canadians are sending their children to university and college away from home. Housing them in an investment property purchased specifically for that purpose is a good option.
Earlier access to a first home
For first-time homebuyers, a duplex or triplex can be a terrific way to get into home ownership. Rental income from the extra units can offset the cost of the mortgage.
Important notes about investment properties
• A minimum of 20 per cent down payment is required for a true investment property. If you are planning on living on the property as well, it is considered owner occupied, and it can be done with a lower down payment.
• Once you have more than four properties, you will need to spread your mortgages across several lenders to avoid reaching maximum number of mortgages per investor that a lender will approve.
Cait Holmes is a mortgage broker in the qathet region.
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