When it comes to income properties Scott is fond of saying, you have to fall in love with the numbers, not the house. This is sage advice for the investor and the soon-to-be new homeowner alike, but the number you are looking for isn’t always the lowest. Consider these four factors before breaking the bank account.
Upgrades. A neutral subway tile is inexpensive and can also be quite impactful. Skimping on insulation, on the other hand, is a costly oversight. Consider any potential updates and where it makes sense to save a few dollars and where those upfront savings could cost you dearly in the long run.
Location. A bargain buy in a great neighborhood? A sound investment. An inexpensive property in a not-so-great neighborhood? Could be trouble. It’s okay to spend a little more for a desired or up-and-coming neighborhood. Remember, real estate is location, location, location.
Professional help. It can be tempting to do-it-yourself, especially when the contractor estimates are higher than you budgeted but it’s better, and cheaper in the long run, to get it done right the first time. Concerned about overall costs, offer to handle elements of the project, like demo or painting, yourself and see if it brings the quote down.
The bottom line. Make sure you calculate everything, from the mortgage payment and taxes to potential maintenance and renovation costs. Crunch all of the numbers and if at the end things don’t add up it isn’t the right investment for you and your family.
For more tips follow Scott on Facebook and Instagram and keep an eye out for his latest series, “Moving the McGillvrays” coming this fall on HGTV Canada.