In the last 30 years, mortgage rates have gone from almost 18 percent to an all time low of below 5 per cent. Today posted rates for a five-year mortgage average out at about 4.5 per cent, with actual rates being almost 2 per cent lower, making buying and owning real estate a smart investment indeed. So should you consider investment properties?
The biggest issue for those considering making an investment in real estate (a rental or investment property) is how to come up with the down payment. It’s nearly impossible for most to even imagine putting 25 per cent down on a building that could be worth several million. A mortgage broker works with a number of different lenders, and is in a very good position to supply a range of mortgage options suitable for just about anyone.
They are programs that can offer you a lower down payment option on well performing multi-family residential rental properties. You may also want to discuss options for using equity from any existing properties you own to access an adequate down payment. A joint venture is another choice you could consider.
It could be a combination of one, two or several options that gets you on the right track towards reliable investment income. With solid rental property purchase strategies, you will not only reap the benefits from a strong local market where real estate values either stay steady or increase, you will also be able to use the revenue coming in from your tenants towards future projects and investments.