Property investing is tricky if you don't understand the market or have a strategic plan in place.
Homeowners should be well versed in the investment aspect of real estate and in keeping their emotions intact, because it's a different ball game altogether.
Buying a primary residence in drive by emotion.
It's your home and emotion needs to be part of this purchase.
However, property investors are advised to eliminate emotion, treating the purchase as a business transaction.
Focus on the local, provincial, federal and global economic fundamentally, which drive the investment in a positive direction.
The financial considerations involved in buying a personal property and an investment property vary.
A primary residence requires the purchaser to put a down payment on the property and secure a mortgage.
The latter involves a thorough evaluation of the unit and the lender needs proof it will financially stand on its own before granting approval.
Disclose everything to the lender - good, bad, or otherwise in regards to your financial, position.
Working with a mortgage broker who understands real estate investing and your long term goals will be of huge benefit to you moving forward.
Also, if you put less than 20% down on a residential investment property there is mortgage insurance similar to a primary residence.
However, the rates for insurance on investment properties are typically much higher.
The insurance rate depends on the down payment and the amortization period.
It can range anywhere from as low as 10% to as much as 70% higher.
Rates are constantly changing as banks and insurers adjust their mortgage product offerings.
Be aware of these fees when factoring in carrying costs.
In order to succeed in property investing, the key is to research the market, property and area, look at the numbers, surround yourself with an experienced team and learn from certified experts.