Buying an Investment Property

An investment property is an effective way to build wealth and create a future income stream.

What to consider when purchasing investment property

Before making an investment, be sure to do your research. Here are a few guidelines to get you started.

1. Determine your budget

Are you financially prepared to purchase an investment property? When investing in real estate, remember to consider the many costs associated with being a landlord. For example, a larger downpayment is required than with your primary residence, and your insurance may be higher than residential insurance.

2. Determine the type of property

Knowing what you’re looking for in a rental property will help you narrow your search. There are several things to consider such as: What monthly rental income will you require? Does the property need renovation or repairs? Is the property close to amenities?

3. Get a mortgage pre-approval

A pre-approved mortgage will expedite the purchase process when you are ready to buy your investment property. You’ll be able to search for a property with the confidence of knowing your price range, and we’ll guarantee your mortgage interest rate for up to 90 days.

4. Work with a Realtor

Work with a professional real estate agent for valuable insight into the housing market and real estate investing, including property values, neighbourhood information, and zoning regulations. A realtor also ensures you have all the information you’ll need to make your decision, and helps you write and negotiate your offer to purchase.

5. Understand BC Landlord-Tenant laws

As a landlord, it’s vital to know your rights and responsibilities. British Columbia has tenancy rules that landlords must be aware of before owning and operating a rental property. Be sure to conduct your research on BC tenancy rules.

6. Finalize your purchase

You’ve found an investment property and made an offer. Once your offer is accepted, your real estate agent prepares the documents for you to share with KCU and your lawyer in order to finalize your mortgage and complete the purchase of your new investment property.