Investment properties are an amazing way to build wealth and invest in your future. And one of the best real estate investments to get into is a rental property. But owning a renter means that you have to actually rent it out and become a landlord. That’s a lot of responsibility since you are the one in charge of someone else’s living quarters. But are you really ready to become a landlord?

For a rental to be a good investment, the finances have to be right. Because rentals come with changeable elements (renters), being financially prepared is critical. Because your rental will be an investment, your mortgage and down payment will be different from the standard primary residence. Mortgages for investment properties usually have stricter requirements, so you’ll want to make sure you’re prepared.

You’ll also need a larger down payment—at least 20% is the standard. You’ll probably also need to do some updates to the property before you rent it out, so make sure you have funds for that as well. And keep in mind that insurance and taxes will be different for your rental since it’s an income property. Other monthly expenses can include maintenance and fixes needed to keep the rental in good shape.

When it comes down to it, you need to make sure that your rental is profitable and will more than cover its expenses.

The other part of the landlord puzzle is that of time. While a rental is an amazing way to make passive income, it does require a bit of time. And if you’re thinking of becoming a landlord, you need to make sure you can afford that time. It takes time to find good renters and keep them happy. If you want to save money, you can do it yourself.

But if you’re tight on time, you can always consider a property management company to take care of the day to day and tenants. However, property management is another expense, so you need to make sure that the rental property is a good investment.

If you own a home, I’m guessing that you’re always looking for ways to build your equity, right? Equity is one of the biggest benefits of homeownership, so maximizing it is always a good idea because it means more money in your pocket when you sell.

And that’s why I’m super excited to share 5 ways you can boost your equity all while improving your home’s energy efficiency. Buyers love energy efficient homes because it means they will save big on utility bills and feel environmentally savvy. So when you’re doing renovations or getting your home ready for sale, make energy efficiency a priority using these tips:

1. Use Energy Star appliances. Whether you’re redoing your kitchen or just replacing an appliance, make sure your new appliances are Energy Star approved. The more efficient they are, the happier potential buyers will be down the line. And they’ll save on your utility bills!
2. Get a tankless water heater. Many buyers are looking for homes with tankless water heaters since they provide unlimited hot water and save energy. Though they’re an investment, they have a high ROI.
3. Replace single pane windows. Single-pane windows have just a sheet of glass separating your home from the temperature outside. That means that outside temperatures transfer inside very easily. But double-pane windows insulate your home better, decreasing your cooling and heating costs. So if your windows need replacing, definitely upgrade. It’s worth the upfront cost!
4. Install solar panels. Solar panels make your home more eco-friendly and will help you save on that monthly energy bill. They’re also a huge draw to buyers!
5. Plant a shady landscape. Not only will buyers fall in love with a beautiful yard around your home, but the shade will also decrease your cooling costs in the summer.

These updates are easy to do and are a smart investment that will boost your home’s value when you sell.

Want more tips on boosting your home’s equity? Contact me anytime.

Can I let you in on a real estate secret? Winter is kind of the best time to list your home.

I know that’s probably the opposite of what you’ve heard about the best time to list, but it’s true! There’s a real estate myth out there that says winter is a bad time to sell because of the weather and the holidays and that instead you should wait and sell in the spring.

This myth is actually what makes selling in the winter such a good real estate secret.

Because a lot of people wait to sell until the spring, the home inventory goes down. And low home inventory is very good news for you as a seller! With fewer homes on the market and the same demand, you might be able to sell your home for more than you would think and right now, buyers can still take advantage of super low interest rates. These might start to increase in the spring because the market has bounced back from the recession, so many buyers are jumping into the market right now to lock in those low rates.

Another amazing thing about selling in the winter is that buyers are super motivated. People often switch jobs or schools around the new year, and that means that there’s a lot of moving going on. And because people obviously need a home to move into, these buyers are serious about buying and motivated to close a sale quickly.

If you decide to wait to list your home until the spring, when conventional wisdom would say is a good time to sell, you’ll face tons of competition. Since many sellers will have waited until the spring to sell their homes, buyers will have more options. And that means your home could take a while to sell. But if you enter the market now when there’s less competition, your home will stand out from the crowd.

You don’t have to avoid selling in the winter. In fact, there are some major benefits that make it one of the best times of year to sell.

If you’re ready to sell your home Let’s Connect and I’ll help you sell your home quickly and for as much as possible.

This past year has been one for the books! I just want to say how thankful I am for my team, my clients, my family and friends. I wish you all the best as we enter a brand new year. Here’s to a spectacular 2022! CHEERS!

#happynewyear #2022 #cheers #newyear #remaxagents #remaxoflloydminster