Welcome to the series where we ask 10 real estate agents for their take on the current market challenges and opportunities
Home Buyers and Sellers, Market Strategy, Ottawa Real Estate, Investment Properties, Rentals, Advice
October 4, 2022 11:59am EDT
EXP Realty, REMAX Hallmark Realty, First Choice Realty, Royal LePage Team Realty, Marilyn Wilson Dream Properties, Avenue North Realty, REMAX Affiliates Realty, Engel & Völkers Ottawa Central, Century 21 Synergy Realty
What advice would you give an investor looking to purchase their first rental property in the next 3-6 months?
Agent #1 – Nic Ciatto-Bégin – Marilyn Wilson Dream Properties
“I’ll be there to guide you through every step to ensure a smooth transaction and build a lasting relationship along the way.”
“Location, location, location! A good deal in the right location is more likely to be a good investment. It is also important to look at what else is coming up in the neighbourhood. Whether it’s future housing projects, new restaurants, shops, venues, etc. The more appealing a neighbourhood is, the higher the potential return could be. And again, the current market is giving buyers a chance to wait for the right opportunity.”
“The current market is giving buyers a chance to wait for the right opportunity.”
Agent #2 – Melissa Nguyen – Avenue North Realty
“I have a passion for people, a dedication to my clients, and strive for a lifetime client relationship.”
“Look for a well-priced property in a neighbourhood that has a strong rental percentage. I’ve been working with new investors and they’re concerned with a couple of things such as finding a great deal or the size compared to the price of the property. Some are spending more on upgrades in new builds. Buying a rental property is not the same as buying a property that you will live in. Location is the most important factor to consider for a rental. Is the property close to transit, amenities, and universities? The next factor to consider is the space in terms of the number of rooms available, the amount of parking available, etc. Tenants’ values tend to differ from those of buyers. It’s important to keep that perspective when looking for a rental property and put less importance on things such as quartz countertops, hardwood, and other upgrades. The rental market is booming, but if you’re going to buy and list a property for rent, best to avoid closing in the winter months as most leases expire in the fall or spring and it will be difficult to secure a tenant in the winter.”
Agent #3 – Jason Spartalis – REMAX Affiliates Realty
“Owing to his success is his drive to exceed his clients’ expectations and determination to always get the very best value.”
“This is the time to buy an investment property. Instead of signing a 5-year mortgage and locking the rate in, I would do a shorter term or go with a variable mortgage, as rates will retract. As long as the property is generating cash over a 3-5 year hold and it will shift to a positive cash flow, then it is the right investment. Keep in mind the property value will grow and then you can refinance and pull equity to buy another. You don’t need to have thick skin, but in any investment, you need to have the right guidance and ability to take risks, otherwise, you’re better off putting your cash in a low-risk, high-interest savings account and letting the bank invest your money to make them more money.”
“As long as the property is generating cash over a 3-5 year hold and it will shift to a positive cash flow, then it is the right investment.“
Agent #4 – Candice Trzmiel – Royal Lepage Team Realty
“She listens to her clients’ wants and needs to achieve the best outcome in every transaction.”
“If you are an investor looking for a rental property you have hit the sweet spot in the real estate market. Prices have stabilized and there is less competition. There is also a large portion of Ottawa looking for rental units. We now have the ability to negotiate as well as include conditions in offers. If you have been waiting to purchase your investment property, I do believe now is the time to do it.”
Agent #5 – Melanie Mctigue – Century 21 Synergy Realty
“Melanie brings extraordinary energy to her real estate business, resulting in an unequaled level of customer service.”
“Currently, the rental market demand is very strong and the supply is low. So, while it’s a good investment, your choice of location is still key. You want a location where renters want to be. Are they students? Are they professionals? Are they young families? Take the time and background check your tenants. Get a real estate professional to do all the homework; employment verification, credit score, references, etc… Remember you are linked to this person through a lease, you do not want to be stuck with a miserable tenant.”
“Take the time and background check your tenants. Get a real estate professional to do all the homework; employment verification, credit score, references, etc…“
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Agent #6 – Brady Tran – Engel & Völkers Ottawa Central
“Staying mindful and consistently maintaining a strong commitment to service, I acknowledge what my clients and partners need and want.”
“Take your time and study the market. Knowing what properties are selling/leasing for is important. Get familiar with net operating income, cap rates, and property values. Know the cost of materials, bylaws, LTB…etc. Have money handy in case of unexpected issues such as permits, renovations, etc.”
“Get familiar with net operating income, cap rates, and property values.“
Agent #7 – Toju Temile – EXP Realty
“I am a young, family-oriented, self-driven, and passionate woman who loves helping people find comfort in their homes, hence my love for real estate.”
“Now is the time! What makes a good investor, is the ability to look beyond. I make this statement because the rental market is getting hotter these days and if you want to be an investor then you have to make good use of the opportunity.
We have things going back to “normal” meaning students going back to in-person classes, people going back to in-person work, etc., so this simply means those who had left the city are beginning to come back. This is causing rental prices to skyrocket! If you have not heard recently, it is actually easier to buy a property than to rent in lots of cities across Ontario today!
Take advantage of the opportunity!”
Agent #8 – Stefanie Winstan – REMAX Hallmark Realty
“Thrives on being a part of others success and wishes nothing but happiness, health and wealth for those around her.”
“Buying any property and calling it a rental is not a recipe for success. It is important that you take the time to come up with a plan in terms of how to proceed. Are you looking for a single or multifamily property? What type of area are you looking to be in? Etc, etc. Prepare to be a landlord. Becoming a landlord means different things to different people. To some, becoming a landlord may mean learning how to become handy around the house; to others, it means hiring a third-party property manager.
There is no reason investors can’t have debt when they buy their first rental property. In fact, most people will go into debt buying their first investment property. That being said, owning a rental can coincide with a lot of added expenditures. Landlords should have money set aside to cover any unexpected costs that arise. Choose the right location and the appropriate financing. Find a successful investor and pick their brain! “
“Find a successful investor and pick their brain! “
Agent #9 – Paul Mclaughlin – First Choice Realty
“Making the process of buying and/or selling your home a pleasant and successful experience.”
“When investing in real estate for the first time, I strongly suggest seeking the advice of an agent experienced in this type of purchase, such as myself. There are many factors that must be considered when assessing an investment property.
Some of these factors to consider to ensure an accurate assessment of the true net income include the following: location as it pertains to a rental destination, the physical condition of the property itself, the legality of the rental units, the conformity of the property with the existing fire retrofit code, the availability and cost of insurance, the type and size of units, the sustainability of the rent i.e., the current rent charged versus the market rent, the quality of the tenants and the accuracy of the leases, the status of the tenancies, and very importantly, the accuracy and inclusiveness of the expenses stated. Proper analysis of the above will provide an accurate assessment of what the true net income is. Lastly, the cost of available financing options.
An experienced agent who has sold, owned, and managed investment properties will be best able to guide a first-time investor in the acquisition of their first investment property. I am happy to do so, having sold, owned, and managed many investment properties over the years.”
Agent #10 – Nish Kapoor – Royal LePage Team Realty
“Always prepared to offer his clients a truly complete package to enhance their real estate experience.”
“When someone is investing in real estate they should keep in mind that real estate is a long-term investment. My best advice to the investors would be to first look for good cash flow-generating properties. Check out the average annual income of the neighbourhood and do a comparison with the city and community. Also, look into the crime rate of that particular neighbourhood. Do thorough research to determine if the city has any future plans for new projects in the immediate neighbourhood. All of these factors help hold the value of the property and give a better chance for it to appreciate.”