Investing In Hamilton Real Estate

So, you live in Hamilton or the surrounding area and you see what has happened to the prices of homes. They have skyrocketed and you want a piece of it. Thus, you may be thinking about your retirement or you may be thinking about your kids and student housing. Whatever the reason, Investing In Hamilton Real Estate seems tempting.

Is It Too Late?

No. Everyone is always talking about real estate bubbles when discussing Investing In Hamilton Real Estate. They say that it can’t continue on this trend and that you’ve missed the boat, so to speak. This logic seems ridiculous. Just look at the Toronto real estate market. I believe that model will continue to be replicated in Hamilton as the population moves in this direction.

Where Do I Start?

You start by speaking with a mortgage broker that you trust. Why not go to the bank first to discuss Investing In Hamilton Real Estate? You could. However, the bank has one product to sell you – theirs. You may not qualify for their product, in which case they will probably send you to a Hamilton Mortgage Broker anyway. Conversely, you may have qualified if you had presented the information in the right way. It’s always better to get unbiased advice first.

Investing In Hamilton Real Estate – Methods:

1. Primary residence:

This is the simplest and most obvious method of Investing In Hamilton Real Estate. You move to (or within) Hamilton and you live in the home; probably the best and most important investment any individual or family could ever make. When you pay rent, you are paying off somebody else’s mortgage. Get into your own home as soon as humanly possible. Getting a mortgage for a primary residence is probably the easiest mortgage to get.

2. Primary residence with a rental suite:

A primary residence with a rental component is also common but you need to be careful about zoning in this case. There are a lot of illegal rentals in Hamilton. When Investing In Hamilton Real Estate and getting a mortgage for a primary residence with a rental, it is not difficult but it can be a little trickier than a sole primary residence. In this case, it is important how you present it to the lender. Speak with a mortgage broker you trust. Renting out a portion of your home is actually an even better investment than #1. Why? Not only do your save on rent but your renter pays (a portion of) your mortgage for you. This is a win-win. The catch? You need to deal with a renter in your home. Be selective. Check references. Check their credit. We can help.

3. Rental property:

This is an excellent way of Investing In Hamilton Real Estate, especially if you have multiple units. However, banks start to get strict when it comes to rental properties, especially as of late. They consider them higher risk. That home is their collateral and they have concerns that it will not be treated as well as the homeowner might treat it. In other words, they are worried that it will get trashed.

As a result, lenders will often add a premium to the interest rate to offset this risk. They will also limit the number of rentals that an individual can own. They will income qualify a rental, asking for leases or getting appraisals with a market rents addendum. Once you say it is a rental, it opens up a whole new can of worms. The other downside of a rental? You have to deal with renters. Be selective. Check references. Check their credit. We can help!!!!

4. Student rental:

I know this is a type of rental but it deserves its own category. Why? Because lenders hate them.  The reason why lenders hate them is because, you guessed it, they get trashed regularly. In the case of Investing in Hamilton Real Estate student rentals, speaking with an experienced mortgage broker that you trust is an absolute must. Most lenders won’t even consider giving you a mortgage on a student rental anymore. And just try to convince them that it is not a student rental. It doesn’t work. They all require appraisals and when they see 10 rooms with locks on the doors and one kitchen, usually that gives it away. 😉

5. Becoming the lender:

Tired of playing the stock market? Investing in mutual funds and watching your money fluctuate completely out of your control? Paying financial advisers fees? Can’t qualify for a mortgage to purchase an investment property? Not interested in fighting with renters and watching your property get trashed? Not interest in trying to evict squatters?

If you have money in RRSPs or otherwise, you can actually invest in real estate without “owning” the real estate. You can do this by becoming the bank and lending your private money. Why would anyone need private money? Sometimes it’s because they don’t declare enough income to the government (like a lot of self employed people). Sometimes it’s because they have a bankruptcy in their history. Other times, it’s simply because they need a bridge loan because the sale of their existing home is happening after the purchase of their new home. Whatever the reason, there are ways of Investing In Hamilton Real Estate without lifting a finger. We can help!!

In conclusion, there are many ways of Investing In Hamilton Real Estate. Speaking with a Hamilton Mortgage Broker you trust is imperative in helping you make the decision and in what capacity. Call us today for a free consultation!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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