One of the common questions I receive as a Realtor is, “How do I get started in purchasing income properties?
This week, I asked local mortgage professionals for their input on what options are available for home owners who have seen gains in their property and would like to diversify their real estate portfolio.
Shanna Gottfried, Senior Mortgage Consultant with Verico Complete Mortgages:
“Homeowners in South Delta have seen incredible property value increases in the past year, with single family detached home values in Tsawwassen, for example, showing a 48.2% increase from May 2015 to May 2016. On average, this means a tax free gain of $408,600. Many homeowners are now equity rich!
How can you make this increased equity work for you? Many homeowners are refinancing their homes or adding a home equity line of credit and tapping into their increased equity so they can purchase investment properties and continue to grow their wealth. Interest rates are at all-time lows and 5 yr fixed rates are available as low as 2.44% with top lenders. When you consider the 48.2% increase in value that some homeowners realized in the past year, it is easy to understand why many homeowners are jumping at the chance to leverage their existing homes to invest in real estate.
An experienced mortgage broker can assist you with refinancing your home, prequalifying you at best rates for your investment property purchases, and can share powerful financial strategies with you such as the Smith Manoeuvre. This is a financial strategy that enables homeowners to further grow their wealth when mortgaging their home for investment purposes, and allows you to write-off the interest on the money that was borrowed to invest.”
Look for more expert advice on financing an income property and stay connected for information on the factors to consider in making a decision on what and where to buy.
Joanne Hoekstra is a Realtor and Sales Advisor with rennie & Associates Realty. Joanne is experienced in helping buyers upsize their real estate portfolio and is always on the look out for great investment opportunities. Joanne can be reached at 604-722-6645 or jhoekstra@rennie.com.
Shanna Gottfried is a Senior Mortgage Consultant, Verico Complete Mortgages. Contact Shanna for a free consultation and more information on strategies that will enable you to further increase your wealth by making your increased home equity work for you. shanna@telus.net / 604.948.5252 / www.facebook.com/GottfriedMortgages
