If you’re in the market to buy a home, you’ll want to research the many types of housing on the market including town homes, condominiums, semi-detached houses or single family dwellings to discover which type of property is the best investment choice. And if you’re willing to make some home improvements you can quickly improve the value of your investment both short and long term.
As a developer always on the lookout for the next best investment, here are my top five picks:
Prices are soaring for single-family detached homes. There is never going to be any more land created in cities, and detached single-family homes will only become more sought after. Those closest to the downtown core can expect to see the most appreciation.
The best thing about a detached bungalow is its renovation potential. A simple top-up can put you in a wonderful position as an investor. You’ll want to search and find top qualified professionals and service pros to help you with major renovations. Check out EiEiHome.com for a complete listing and consumer reviews.
Properties with income potential
Not only is a home with a (legal) income suite worth more than a home without one, the income generated can be of a huge help to offset mortgage costs. With lending rates on the rise, more buyers are being pushed out of the market. An income suite can help you pay your mortgage, or help your buyer pay theirs. Mortgage lenders take into account a property’s income potential when making decisions on whether to finance or not.
Homes where the kitchen and bathrooms need to be renovated
These projects in particular bring the greatest return on investment, often more than 100%. Keep your budget in check, and always make comparisons to other properties in the neighbourhood. Consult with EiEiHome’s service pros along with neighbours to get referred to professional contractors, architects, and designers to help you get started on your renovation project.
Homes that look extremely undesirable
Homes being sold “as is” are great options for investors looking to immediately renovate or build new. Just as you will pay a premium for a gorgeous finished home, an undesirable home can come as a bargain. But buyer beware! Sometimes mortgage lenders don’t like these type of homes. You may be in a better position of you are prepared to pay cash before taking away a financing condition on your offer.
Up and coming neighborhoods
Neighbourhoods with abandoned storefronts and slightly undesirable residents may be worth a second look. Just watch…. In ten years, the neighbourhood will have gentrified and you could be living in a very desirable area. The best part? You will have paid much less for your home than what it will eventually be worth. While appreciation is expected for most real estate, the rate of appreciation is accelerated when you buy early in an up and coming neighbourhood.
By Shelley Kanitz