First-time buyers should stop chasing the high-priced properties in the big markets and focus on getting their hands on cash-flowing rental properties, according to one real estate guru.
Live where you want to live but buy where you want to get a foot on the property ladder. That is the advice that one real estate advisor is offering to first-time buyers.
“A lot of first time buyers are naturally frustrated of not being able to get the property they want in certain markets. We also see many giving up, and resigning themselves to the fact that they may be renting forever,” says Mel Machado from Platinum Properties Group in Vancouver.
“They (first-time buyers) get so focused on the market they want to live in that they don’t see the markets they can actually buy in,” he says. “We have a whole pool of rental income properties ranging in price from $80,000 to $250,000 in good markets, like London in Ontario for example.”
He says the fear of managing a unit outside of their jurisdiction and taking on the role of a landlord remains of the primary obstacle for buyers.
“Many don’t want the hassle of managing a property, or are worried that the property management fees would eat into their rental income,” he tells CREW. “They need to look at all options open to them. For example, we only charge around $40 per month in management and have a rental pool program so they don’t have to worry about losing income if tenant leaves.”
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