February 27, 2018 | Buying
Investing and building wealth is important, but how do you know when to bolster your portfolio? Buying a second investment property can be a great way to build on success and grow your finances in one fell swoop. So, what do you need to know about it?
Ready to start buying a second investment property? Here’s a brief rundown of the essentials to help get you started…
Timelines Are Key
Buying a second investment property, for most, is often determined by the success of the first investment. If your first investment paid off, you might want to rush back into the market to continue your winning streak. If it ended poorly, you might be looking to expand and optimize your financial goals (and recoup money from your previous investment).
Regardless of your reasoning, one of the keys to buying a second investment property is ensuring that you leave enough space in between your first and second sojourns into the market. This way, in the event of unforeseen circumstances, you aren’t left leaving more money on the table. A short amount of time can go a long way in ensuring that your first investment, no matter its state, doesn’t play a defining role in the success of your second.
Know What You Want
What kind of investment property would be best? If you’ve invested in a condo in Toronto’s red-hot market, would you be best served purchasing another in a new building? What about pre-construction opportunities? Have you considered investing in a detached home? There are so many options, it can often be difficult to nail down exactly the right one for you.
That’s why your goals need to be clearly defined, so that your opportunities can be the same. If you have a better picture of what it is you want to see in your next opportunity, you’re one step closer to buying a second investment property.
What’s the next logical next step when it comes to your investment portfolio? Arrange an appointment to meet today, and we’ll give you a clearer picture of what opportunities are out there that serve your needs – as well as your bottom line.
Understand the Commitment
The more properties you own, the more important it becomes to manage them effectively. Whether that means hiring someone to manage it or going it alone, there is a whole other cost associated with buying a second investment property that goes far behind the price of the property itself – the money it costs to keep it running smoothly.
Particularly when dealing with tenants, and multiple ones at that, it becomes imperative that you have a firm grasp on how much time it would take to manage your new investment. After all, the more that your portfolio grows, the less time you’ll have afforded to you.
Our specialty is rooted in helping people gain a better understanding of how they can invest, where they can buy, and uncovering the best opportunities to do exactly that. Call us at 416-487-5131, send an e-mail to max@taycapproperties.com, or book an appointment right here to get started.