• Is Now A Good Time To Buy A Rental?

    Depending on where you are located, housing prices peaked earlier this year when mortgage rates were still low. The tables have turned since then with mortgage rates higher (maybe still not peaked) and housing prices on the
    decline (probably not bottomed out yet). Some of our clients may be having buyer’s remorse for buying at the peak but should they? Let’s look at an example below to illustrate the difference: 

    Back in January 2022, before the rate hikes, a duplex may have cost you $900K. 

    Duplex Purchase Price: $900K
    Minimum Down Payment: $180K
    Mortgage Payments: $3000/mth

    Fast forward to today, and the same duplex may cost you $750K. 

    Duplex Purchase Price: $750K
    Down Payment: $180K
    Mortgage Payments: $3193/mth

    As you can see, the mortgage payments are not that different and you have the same amount of equity in the home but arguably, you have a greater potential for the home to appreciate. This is not to mention the potential to charge higher rents but the ability to do so varies a lot depending on if you can get vacant possession. 

    So keep your head up and try to look at it as an opportunity! 

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