Buying an Investment Property
Buying an investment property can be a financially rewarding experience, as real estate has proven to be a strong long term investment over time. The general guideline as a rental property investor is to purchase in a housing market where you can own a rental property that is self sufficient, meaning that your rent covers most of your mortgage payment. Essentially you are leveraging your down payment on the property, and earning gains on the value of your home over time...
| Year 1 | Year 5 | Year 10 | Year 15 | Year 20 | Year 30 | |
| Home Value | $300,000 | $347,000 | $403,000 | $467,000 | $542,000 | $728,000 |
| Mortgage Value | $240,000 | $225,000 | $206,000 | $183,000 | $152,000 | $64,000 |
| Equity Hold | $60,000 | $122,000 | $197,000 | $284,000 | $390,000 | $664,000 |
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Based on a 3% increase per year in property value and a 5% interest rate on your mortgage. For example purposes only. | ||||||
As you can see while your mortgage payment expenses are paid by the tenant, your $60,000 investment has earned you $604,000 over 30 years.
So how do you obtain an investment property? Well there are investment property products offered by many different lenders and the great news is that I can access a lot of them. Giving you the ability to do all of your shopping in one place. Call me today to discuss your situation and we'll find you the right product that is specific to your needs.