Published February 1, 2021
One of the Hottest Trends in Investment Properties
Here’s how homeowners are using their equity to build wealth by investing.
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One of the hottest trends we’re seeing in the current GTA real estate market is homeowners choosing to refinance their homes so they can take the money out to buy another home or their next investment property. How do you make that happen? With a few easy steps.
The first step is getting a home appraisal or evaluation done to find out what the value of your home is today. If you’re anywhere in the GTA and have owned your home for the last two to six years, you’ve seen appreciation, and in many cases, that appreciation may just surprise you.
"Finding the right property is much easier when you work with the right Realtor."
Once the home evaluation is complete, then you can speak to one of our lenders who can tell you based on your income and credit how much you can requalify for a refinance and take some equity out of the home for a down payment. What’s great is today’s interest rates are historically low. A “B” lender rate is starting at 2.9%, while we’ve seen an “A” lender rate as low as 1.2%.
The last thing you need to do is find the ideal rental or investment property. That’s where a great Realtor comes in to help you find the best possible investment for your pocketbook. All of this can be done by just using the equity in your current home or one of your investment properties, refinancing to qualify for that down payment, and using the funds for the down payment on your next investment property. That's it in a nutshell.
If you have additional questions on this topic or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
