Investing In Multi – Property Ownership – MCAP
You already have one home and you’re contemplating buying a second property. Given today’s low mortgage rates and the ofteninconsistent performance of hard-earned funds in the stock or money markets, real estate presents an alluring investment option.
How long will your total commute be today? Ever wonder about buying a secondary home close to your place of business where you can stay during the workweek while renting out part of it to cover the mortgage and overheads?
Many people go that route, hoping to claw back some quality of life from commute times while diversifying their capital through bricks-and-mortar investments.
Or, perhaps it’s the purchase of off-campus living quarters for your university-bound child with space for rent-paying roommates? Maybe your sights are set on a vacation home or cottage to lease when you’re not in “rest and relaxation” residence?
Over the last few years, property values have been on an upward trajectory while interest rates remain at record lows. Not to say that trend is forever ingrained, but real estate has been a historically safe investment bet as long as you buy with eyes wide open and don’t overstretch your financial limits.
Here are a couple of things to consider:
IT’S A BUSINESS:Investigate the pros and cons of being a landlord. A plus: Certain income-lowering tax deductions are yours including maintenance and upgrades. A minus: The mortgage is due even if a tenant’s rent cheque fails to appear.
PARTNER WITH AN EXPERT: A mortgage broker is an excellent point of contact, not just for negotiating great rates and terms on your behalf, but also as a knowledgeable source for assessing the financial feasibility of the investment.
MCAP, one of Canada’s largest independent mortgage companies, offers a Secondary Home Program with up to 95% loan-to-value financing on the purchase.
To find a Mortgage Broker, visit www.mcap.com/findabroker