Buying an investment property is one of the wisest money moves you can make. From making a passive income to enjoying tax deductions, the benefits of owning a rental property are many.
However, getting started in real estate investing can appear overwhelming for anyone with zero experience in the housing market. Choosing the right property for you is very confusing.
If you don’t have any experience buying real estate, you have come to the right place. Here are the best properties to consider as a beginner real estate investor:
Single-Family Homes to rent
Ordinarily, we would say that a single-family home is the best place to invest your money. The ease of renting without condo associations and the ability to upgrade or add on to your property provides freedom that means you can improve your property with relative ease and rent it out short term or long term quite easily as well. The return on investment at sale is where you really see the benefit of owning a single-family home. As opposed to other properties, it’s rare to not make more money than you spent.
The downfall of a single-family home is that today’s market is considered a seller’s market. Prices are higher than anticipated. It’s hard to find properties for sale and prices are – in our opinion – inflated.
Condominiums
Condos are often easier to maintain than a single-family home and come with the added security of neighbours and maintenance to watch over your unit if you choose to rent it out.
The downfall of a condo is the lack of freedom you have on a property you own. You may be able to rent it out short-term or long-term at the time of your purchase, but there’s no guarantee that the rules won’t change. In addition, your tenants or guests are expected to live by your rules and the rules of the building, including noise ordinances and pet policies. There are few, if any, abilities to change your unit, and if you are renting, you are competing with any other rentals within the building.
Mobile homes
Buying a mobile home is much cheaper than purchasing a traditional house built on a foundation.
A standard mobile home will cost you somewhere between $50 and $75 per square foot. That’s 1/3 the cost of a traditional style of home which we priced at $150-$200 per square foot. The trendier container homes are currently running at around $200-$250 per square foot. (https://prefabhousing.ca)
Prior to COVD-19, the number of people living in mobile homes in Canada was growing steadily (https://www.statista.com) We anticipate a sharp increase in this growth over the next few months due to the
Mobile homes or container homes are becoming a popular form of vacation rental property and are reasonably cheap to fix up when compared to a single-family home. In our opinion, a mobile home is a good option for the first-time investor as long as your goals are clear and you don’t run over budget. To make sure your budget is manageable and you stick to it, lean on an expert!
Conclusion
Today’s real estate market is unusual, but if you can find the right investment that will work for your goals, you’ve hit a goldmine. Understanding your goals and what the right investment is – that’s the hard part! To avoid making costly mistakes, you need a professional to help navigate the real estate investment market. Get in touch with us: https://www.regalwayhomes.com/book-online
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