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Grow Your Wealth The Way You Want
Are you interested in investing in Ottawa Real Estate? As you may know, Ottawa is one of the leading regions to invest in real estate in Canada. From the government backing the housing market to the development of several neighbourhoods, there are many reasons why people choose Ottawa as their go-to location for real estate investment. For the full list, check out my blog post on the top 10 reasons to invest in Ottawa real estate
Real estate investments can be extremely profitable but require careful planning and proper knowledge to be successful. I have outlined a few helpful tips below to prepare you for investing in Ottawa real estate.
If you have any questions about the following tips, contact me at email@example.com or 613-818-2409, and I will be happy to guide you through your real estate investment process.
#1 Find A Real Estate Broker
Choosing a realtor who is trustworthy and fun to work with will make your search for investment properties enjoyable. Without a Real Estate Broker who genuinely understands your needs, finding an investment property that works perfectly for you will be challenging.
Before selecting a Real Estate Broker for your investment property, take some time to ask yourself the following questions:
- Does the Real Estate Broker have experience in dealing with investment properties and investors?
- Have they sold homes in the neighbourhood you’re interested in investing in?
- Have past clients enjoyed their experience with the Real Estate Broker?
- Does the realtor invest in properties themselves?
As a realtor myself, I encourage investors to look for a licensed Real Estate Broker who’s knowledgeable about the neighbourhoods they’re considering. When the realtor understands the area, they will know how much investment property is valued. Your realtor will also know if there is an excellent chance to resell the home in the future for a higher price.
If your goal is to rent out your investment property, your Real Estate Broker will be aware of the type of tenant interested in the property. They will also know how easy it will be to keep the property occupied by tenants.
Finding the perfect Real Estate Broker is the first step to making your investment in Ottawa real estate a pleasant experience. Take time in finding the right realtor, so they can seamlessly guide you throughout the entire investment process, from searching for a property to closing the deal.
#2 Get A Mortgage Pre-Approval
Once you have a Real Estate Broker to work with, get a mortgage pre-approval. Your pre-approval will give you an idea of the price range you will be shopping in so you can start looking for a home that fits your criteria.
If you are paying in cash, getting a pre-approval is unnecessary, as you will be paying for the entire cost of the home right away. However, if this is not the case, your Real Estate Broker will refer you to a trustworthy mortgage broker who will determine how much you will be pre-approved based on your income, down payment and credit history. Your mortgage broker will have access to various lenders who can provide different mortgage products for your investment property.
According to the Government of Canada
, a pre-approval will let you how high of a mortgage you can qualify for, estimate how much your mortgage payments will be, and the interest rates that you will have on your payments. Since your mortgage will not be the only cost you will encounter while you invest in Ottawa real estate, you must keep in mind additional costs that you may come across. These costs include moving expenses, furniture costs, maintenance costs and more.
Note: Investment properties require a minimum downpayment
of 20% in Ontario.
#3 Determine Your Involvement & Risk Levels
Do you like to take risks or keep it safe?
Do you have a lot of time to invest in your real estate property, or are you a busy bee?
Answering these questions will help your Real Estate Broker understand what type of investment property will suit your lifestyle, personality and needs.
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Suppose you’re someone who currently has another job or commitment. In that case, you should be looking for a low maintenance property such as a condo or apartment, preferably with a concierge and a maintenance team. With this type of property, you won’t have to worry about tending to your tenants’ needs at any time of the day, as there is a team at the condo to help you out.
Hiring a property management team can be another way to hand off the work of maintaining an investment property. A property manager will be the point of contact for your tenants so you can invest your time in other commitments.
On the other hand, if you’re a high-risk taker and enjoy being involved in your investments, flipping a house may be the most profitable option. Finding a gem in a good location can be a very successful investment. If you know how to fix up a house, or people that you can work with, this may be the perfect kind of risk you need to take.
Staying true to your risk tolerance and availability will help you and your Real Estate Broker find the perfect investment property. It will give you a place to start and guide your property search in the most efficient way possible.
#4 Choose The Location For Your Real Estate Investment
Selecting the right location for your investment property is one of the most important decisions you can make.
If your property is not in a prime location, you won’t be able to charge enough to make a substantial profit. But if your property is in the right area, you will have a constant influx of potential tenants who will pay a high price for your property.
When considering different neighbourhoods in Ottawa, make sure the area is developing at a steady rate. An expanding community should have constant growth in amenities, jobs, stores, restaurants, grocery stores, schools and more!
Buying an investment property close to several job opportunities will be a promising investment as tenants will not have to travel a far distance to get to their workplace. The same thinking goes for schools nearby. With parents being so busy with work and their children, they are more likely to buy a home closer to a school for the shorter commute.
If you are open to renting to students, buying near one of Ottawa’s many universities and colleges will ensure a constant flow of students in need of a place to live. The University of Ottawa has over 40,000 students, and Carleton University has over 29,000 students. With all of these students, you are bound to find a tenant if you buy an investment property close by!
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I recommend several locations to my clients when it comes to investing in Ottawa real estate. One of them being Centretown, as it is one of the tried and true Ottawa locations to invest in Ottawa. I even wrote a blog post about why people should live in Centretown, Ottawa
. With all of the reasons mentioned in the blog, investing in Centretown will amount to a successful real estate purchase.
Generally speaking, look for the areas that have started developing, such as construction companies building more homes, or more stores and restaurants coming up at a new location. Finding a place in Ottawa like this, at the beginning of the growth phase can land a cheap investment that will grow substantially over time.
Tenants are more likely to move to a low-crime area to keep themselves and their families safe. Keeping this in mind, you should check the local crime statistics to make sure you are purchasing in a secure neighbourhood.
After considering the attractiveness of a neighbourhood, it’s security, risk and tolerance levels, and your pre-approval rate; you can begin property shopping with your chosen realtor!
Your Real Estate Broker will arrange showings to visit homes that fit your price range and specific needs and wants. This is your time to explore the Ottawa neighbourhoods and see what truly fits your lifestyle. Have fun with your investment property search, and ask your realtor about any questions that you may have.
#5 Make An Offer On Your Investment Property
Now that you’ve seen multiple places, your Real Estate Broker can help you make an offer on your desired property. Some sellers will include a set of conditions that the buyer or seller has to follow. Conditions may include secured financing for the buyer, a home inspection of the home to be sold and more.
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Your realtor will also help you negotiate the price of the investment property. Negotiating a price on a property is possible if the market conditions favour your bid. For example, if the current market is a buyer’s market, or if the property has been on the market for an extended period, it is possible to lowball your offer on an investment property in Ottawa.
In contrast, if the real estate market is a seller’s market or there is a high demand on your dream property, you may be able to place an offer above asking price to secure the homeownership.
Whether you are wondering how to make an offer on the house, or want more detail on the process, you can look at Remax’s blog post
. Your realtor will help you fill out all required paperwork and understand the legal documents involved in purchasing an investment property.
#6 Close Your Ottawa Real Estate Deal
After meeting the conditions, you will officially own the home! Before getting tenants to move into your investment property or beginning renovations to flip the house, make sure you arrange any necessary house cleaning, internet installation and more. It is also essential to set up your house insurance to protect you from any unfortunate events.
The closing date is when the lawyer transfers the funds to the seller’s lawyer. Once this is completed, the keys to your new investment property will be released.
The closing date is when the lawyer transfers the funds to the seller’s lawyer, in which case, they will release the keys to your new investment property.
Now that you know what to consider before purchasing an investment property in Ottawa, you can start growing your wealth with real estate! If you need a Real Estate Broker to support your search or answer questions, please reach out to me at firstname.lastname@example.org
or by phone at (613) 818-2409