Buying Your First Investment Property in Nanaimo

More and more first-time real estate investors are looking to buy houses for rental income. There are a few things to consider when buying your first investment property in Nanaimo. Buy a house near where you live so you can keep an eye on the property. It’s not necessary to fall in love with a property you choose because buying an income property is a lot different from buying a house to live in. Stay focused on the bottom line and be sure to know your numbers.  Several factors that will affect the financial performance of your rental property are, the cost of any needed repairs, the length of time to find a qualified tenant, the realistic market rent, and an accurate forecast of any reoccurring expenses such as routine maintenance, management fees and property tax.

            Be sure to factor in the purchase price, closing costs and renovations. Mortgage options differ from personal purchases because investment properties tend to be riskier. Income, plus potential for vacancy, loss of rental income and maintenance expenses for rental property make it harder to get financing. Do your homework, scout rental homes, calculate rents and estimate maintenance costs before investing. Expenses don't end with the home price and closing costs. A rental home must meet the landlord-tenant laws that govern residential rentals in your area and the unit must be up to building code and habitable before you rent it out. A home in poor condition is hazardous to tenant health and safety and a liability. Repairs, remodeling or major property rehabilitation add thousands of dollars to your start-up costs.

Things to Do Before You List Your Nanaimo Home

Do your own competitive research. Attend some open houses, make calls from the signs that you see, and talk to neighbors who currently have their home on the market.  This will give you an idea of the current market conditions and who your competition really is. You may want to do a pre-listing home inspection because there may be things in your house that you’ve learned to live with that need to be repaired. It’s better to discover these before you list your home for sale as it could save you the grief of having a deal collapse. Make sure you know where you’re going to move to when your home sells. A well-priced, nicely maintained home will often sell faster than you realize. You don’t want to be caught having to scramble to find a place to live. 

You may wish to consider some updates before listing your home . Give the house a fresh coat of paint if needed, tidy up the the landscape and replant as necessary for good curb appeal.  First impressions count, and qualified buyers may not come back for a second look if they’re not impressed the first time around. Have your real estate agent put together a CMA (comparative market analysis) of homes similar to yours that have recently sold and the ones that are also on the market – these are the ones that you will be competing against for qualified buyers.

Yes…things Can go Wrong in a Real Estate Transaction

Here are some areas of concern and what you can do to avoid them.

Financing - Find an experienced and trusted lender who is not too busy to handle your loan because this is the most important aspect in having your real estate transaction go smoothly.

Disclosure – If you are wondering whether or not you should disclose something, pretend you are the buyer and if the disclosure item in question is something that you would want to know about if you were buying your house in Nanaimo, then disclose the fact.  It’s always better to disclose too much than too little, and the last thing you want to have happen is to have a buyer accuse you of not telling the truth – especially after the real estate transaction has completed.

Inspections - Most buyers are going to want to do an inspection so it is a good idea for you to do a pre-listing home inspection, so that you know if there are repair items that need to be addressed.  That way, you can take care of them before you put your home in Nanaimo on the market for sale. When a buyer does an inspection during your real estate transaction and finds a lot of things wrong, or even a couple of big things, even though they might be easy to fix, this could still put doubt in the buyer’s mind and give them an excuse to not go through with the deal.

Useful Tips for an Organized Move

It seems like the only thing more stressful than packing for a move is unpacking. It doesn’t have to be, if you follow some simple but effective steps on how to unpack and organize your house after moving. Before your move, make a list of all the items you can’t do without during your first week in your new home.  Clearly label everything on your moving essentials checklist and make sure you unload those items first. Always get more boxes than you think you’ll need. Many first-time movers are surprised to discover that their work is only beginning after the moving truck is unloaded. Make unpacking more fun and much faster by putting each box in the room it was labeled for.  Unpack one room at a time. Decide where you want your big items to go first and you will find it much easier to place the smaller items.

Put your bedroom sets together first so that you have a comfortable place to sleep the first night in your new home. Unpack your bathrooms before any other room so your family can grab a shower, then move on to the kitchen. This way you’ll really be able to start living in your new house. Next, unpack the rooms you use most often first, then unpack remaining rooms in order of importance. Make hanging things on the walls your last step and if you place them on the floor for perspective, you probably won’t end up having to rehang if you decide to move a large piece of furniture. Break down each box as you empty it, to reduce the inevitable clutter of packing material and so that you can get a better perspective of each room that you have unpacked. Inviting friends over to help you unpack after your move can also be a fun way to get your unpacking done quickly.