Investment Properties

Investment Mortgage Services in Mississauga

Rental properties can make a wonderful investment opportunity if you have the right plan in place. Here at sMp Mortgages, we know how to make sure you capitalize on your investment.

When you decide to take the leap and purchase rental properties as an investment, it’s essential to understand how to determine property income, as well as expenses. When you deduct expenses from a rental mortgage and the income that will result from the property, then a lender will view your debt load as unchanged. As a result, you will avoid the added costs of an additional property, while remaining with the same income. In essence, any person who has a good income will be granted the opportunity to buy various rental properties.

At sMp Mortgages, we want to allow borrowers to get approval for their investment. This is why we help them purchase their properties with at least a 20% downpayment. We also pride ourselves on competitive interest rates so that there will be a lower renewal risk.

What are investment properties?

Investment properties are real estate assets that are bought with the purpose of earning a Return on Investment (ROI). This can be done through a future reselling of the property, rental income, or both. As for who holds the property, it can be one or a group of investors, or a corporation.

How long can you keep an investment property?

An investment property can last for any length of time, whether it is short or long. Short-term investments generally involve “flipping,” where the property is remodelled to be sold at a greater profit.

Investment properties also refer to other assets that an investor has, like art, land, or collectibles.

Other Factors about Investment Properties

Investment properties are not a person’s main residence. Their intention is solely to make income like interest, rent, or dividends. The investor will do the necessary research to maximize a unit’s profit potential.

Second homes are different from investment properties. While second homes may be a retreat for a person or family, investment properties have the sole intention of making income.

What are the different types of investment properties?

For investment properties, three types are the most common. First, there are residential properties, which are an excellent way to supplement an investor’s income — this kind of investment functions by having an investor rent out the unit so they can collect rent. Properties can be homes, condos, townhomes, and many more.

Commercial properties are another kind of investment property. They are generally meant for business and can generate high rent from leasing them out. However, maintenance can be a lot more intensive, but you can expect a larger return. Commercial buildings can be retail locations or even commercially-owned apartments.

There are also Mixed-Use investment properties. That means that they can be used for both commercial and residential endeavours. For example, a building could have retail stores on the lower level and residential units above them.

Now that you know some vital information about investment properties, you can consider whether this is a venture that you want to take on for extra income. As these properties can present opportunities of all time lengths, it’s essential to consider whether they are right for you. Financing can be more challenging to obtain since they are not a primary residence, and there could also be tax implications. However, at sMp Mortgages, we are experts in investment properties and can give you an edge on your potential investment. We can help you track down the most competitive rates with a wide range of terms.

Our solutions can be especially helpful if you are looking to build income and equity through property ownership, or want to turn your present home or another property into a rental suite.

To best set yourself up to qualify for an Investment Mortgage, your credit history should be strong, you should be able to prove that your rental income will be valuable (through documentation) and that you have enough income separate from the rental to make mortgage payments.

Talk to our qualified team about your options for investment today. You can get in touch with us to determine how we can assist you with your rental property. Call us at 1-844-MY-PLAN, email us at mortgages@startmyplan.ca or fill out the contact form on our website.

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Call Us Now 1.888.416.8607
Once you complete the form, we'll call you to discuss your goals. We'll ask a few questions, go over any questions you have, then provide you with a few no-obligation quotes tailored to your scenario.
Call Us Now 1.888.416.8607
Once you complete the form, we'll call you to discuss your goals. We'll ask a few questions, go over any questions you have, then provide you with a few no-obligation quotes tailored to your scenario.