GROW YOUR WEALTH THROUGH REAL ESTATE
NATALIE MOODLEY Natalie Moodley Sales Representative natalie@letNMmoveyou.com O 905.427.6522 C 289.923. SOLD(7653)
Natalie Moodley is a successful realtor in Durham region who specillizes in helping first time investors purchase their 1st rental property.
OSHAWA IS HOT Based on an article published in Canadian Business , March 11, 2015, Durham/Oshawa was ranked #10 out of 35 of the best cities to buy Real Estate based on housing value, price momentum, economic strength and rental income potential. Oshawa has some of the most affordable communities to Invest in. You can still purchase a Property in 1 of the following 5 communities for under $300,000; Vani-
COMMUNITY HIGHLIGHT OSHAWA The Average Price of a: January 2016 crease Detached House Semi Detached Condo Town House Condo Apartment Link House Town House
January 2011
5yr % In-
$407,513 $267,962 $214,706 $198,833 $340,867 $347,167
$274,032 $206,794 $155,977 $189,667 $260,000 $196,300
48.7% 29.6% 37.7% 4.8% 31.1% 76.9%
RENTAL MARKET SUMMARY
er, O’Neill, Central, Lakeview, Farewell.
Average MLS Rent for a Townhouse
1 Bedroom
2 Bedroom
3 Bedroom
Choosing the right type of Investment property depends on many factors that
Q4 Sept - Dec 2011 Q4 Sept - Dec 2015
$1341.00 $1459.00
$1759.00 $1919.00
$1945.00 $2062.00
suit your needs, knowledge and lifestyle. Things to consider include whether you want to work with a single or multi family dwelling; condo vs freehold house; price
Total MLS TREB Apartment Rentals Q4 2015 - 6073 Q4 2014 - 5032 = 20.7% increase
and location. These all depend on whether you’ll be managing the property or hiring a company to do it for you.
Q4 2015 - 6073 Q4 2010 - 4563
=33.1% increase
Source: Toronto Real Estate Board Stats
TOP TIPS FOR LANDLORDS 5 3
Treat your Business Like a Business This is not a Hobby. Treat your Landlording with respect, implement systems and organization.
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Screening Potential Renters Follow simple due diligence on the people who will be renting your properties. Make sure the potential tenant makes 3x the monthly rent in stable income. That they have no recent felonies, and they have no recent evictions. Get good previous landlord references. Ask yourself, what would a bank say?
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Get it in Writing Be sure to use a written lease or month-to-month rental agreement to document the important facts of your relationship with your tenants. This will include when and how you handle tenant complaints and repair problems, notice you must give to enter a tenant’s apartment, notice the tenant must give if they want to exit the contract etc.
Disclose environmental Hazards If there’s a hazard such as lead or mold on the property, tell your tenants. Landlords are increasingly being held liable for tenant health problems resulting from exposure to environmental toxins in the rental premises.
Make Repairs Stay on top of maintenance and re pair needs and make repairs when requested. Tenants may have the right to withhold rent, repair the problem and deduct the cost from the rent, sue for injuries caused due to defective products and/or move without needing to give notice.
Obtain Insurance Purchase enough liability and other property insurance. A well designed insurance program can protect you from lawsuits by tenants for injuries or discrimination and from losses to your rental property caused by everything from fire and storms to burglary and vandalism.
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CALL NATALIE TO VIEW LOCAL INVESTMENT OPPORTUNITIES! Natalie Moodley - Sales Representative O 905.427.6522 we sell neighbourhoods
C 289.923.SOLD
natalie@letNMmoveYou.com 335 Bayly St. W, Ajax ON L1S 6M2
SHERRY
CORBITT Sherry Corbitt Mortgage Agent
www.MortgagesInDurham.com O 905.995.3143 F 905.425.2322
Sherry Corbitt is a leading Mortgage Agent in Durham who specializes in alternative lending, and helping people finance investment properties. Call her to see what’s possible for you today!
IS YOUR IDEAL INVESTMENT HOME A VACATION HOME? A great program offered by Genworth allows homeowners to purchase a vacation home with as little as 5% down. Find out more information at the following link.
http://genworth.ca/en/products/vacation-secondary-homes-program.aspx
HAVE A SIZABLE DOWN PAYMENT
BE A ‘STRONG BORROWER’
Mortgage insurance won’t cover investment properties, so you need at least 20% down to secure traditional financing for them. If you can put down 25%, you may qualify for an even better interest rate. If you don’t have the down payment, you can try to obtain a second mortgage on the property, but it’s likely to be an uphill battle with a higher interest. It is doable and you need a knowledgeable Mortgage Agent on your side to secure you the best product, rate and term for your needs.
Although many factors -- among them the loan-to-value ratio and the policies of the lender you’re dealing with -can influence the terms of a loan on an investment property, investors should check their credit score before attempting a deal. It will have the greatest impact on a loan’s terms. Working with a Mortgage Agent means that when we access your credit bureau it is good at all lenders for up to 60 days. This will protect your credit score from too many inquiries if you start shopping at lenders yourself.
ORDINARY CANADIANS
CAN BUILD WEALTH WITH INVESTMENT PROPERTY
Across the country, ordinary Canadians are building personal wealth with investment property. An investment property is being increasingly viewed as a pension plan for the future, particularly since so many Canadians are not covered by workplace plans. Over the long term, an investment property can be a great source of retirement funds. Rental income typically pays for most or all expenses and property appreciation has often outperformed stocks and bonds over the long term. This is not just an investment for well-established business people and experienced homebuyers. Savvy first-time buyers are often jumping in with both feet: purchasing a duplex or triplex, and then managing the additional units to pay down the mortgage while they make a start on home ownership. And parents who add up the cost of accommodations for their college-bound children are often deciding to be landlords themselves, seeing an opportunity to offset the cost of housing with a sound investment.
There are many reasons to consider investing in property. If you are thinking about building wealth with an investment property, talk to us. We can help you determine your downpayment options and run the financial calculations that you’ll want to see for cashflow and capital appreciation. Things to know about Mortgages For Investment Properties: Canadian’s are required to have at least a 20% down payment on a rental property purchase. You can still do up to a 30 year amortization and get today’s. Fixed or variable rates available along with best rates and no application fees. Traditional - 20% Down Payment Investment Property Mortgages With a minimum 20% down payment, purchasers have many options available to them when buying investment/rental property. What is the cost for Mortgage Insurance? With 20% down, the mortgage is conventional and no mortgage insurance is required.
Debt Coverage Ratio The requirement for debt coverage ratio varies from one lending institution to another. Some lenders will use rental off set for qualifying purposes, while other lending institutions will use 1.10% debt coverage ratio. 1.10% debt coverage ratio is arrived at by dividing the Net Operating Income by the Debt Service. Rental off set is when a lending institution uses 50%~70% of the rental income and off sets it against the P.I.T. Only the shortfall will be included in the Debt Ratio. If there is a rental surplus this will be added to the client’s income. Here is a sample: Assume a rental property with P.I.T (Mortgage, interest and taxes) of $1432 and rental income of $2000. We will take 70% of the $2000 income ($1400) and deduct that from P.I.T. ($1432). We will only add the $32 shortfall to the Debt Ratio to help qualify the purchaser for the home.
See How An Investment Property Can Change Your Future. CALL TODAY
Sherry Corbitt
Natalie Moodley
Mortgage Agent
Sales Representative
PHONE: 905.995.3143
PHONE: 289.923.7653
sherry.corbitt@migroup.ca
natalie@letNMmoveYou.com
www.MortgagesInDurham.com
www.letNMmoveYou.com