Ads Google

Is this the best short-term real estate investment option?

by Justin da Rosa on 14 Mar 2016
Some investors may feel priced out of this hot market, but one investor has found a creative way to earn high rents.

“I think right now in Kitchener the best opportunity is single-detached, single-family homes,” Lee Strauss, a full-time firefighter and real estate investor, told CREW. “Prices have gotten so high and rents have stagnated but rent-to-own is a good option for investors.”

With an average price increase of 8.9% year-over-year in January, Kitchener-Waterloo is a great option for buying and holding. Its population has also exploded and is expected to continue to do so.

However, those looking to go the landlord route benefit from the increased rents required for rent-to-own properties, according to Strauss.

“When you go rent-to-own, the investor is able to charge a premium rent; it’s one of the few ways an investor can invest in short-term property,” he said.

Tenants pay an increased rent, some of which goes toward an eventual down payment. The rest is just extra rent that goes directly into the investor’s pocket.

“It’s safer in the sense that investors are getting higher than average rent but the tenant also has skin in the game,” Strauss said.

As a result, tenants are less likely to miss rent payments or walk away from the property.

“Renters have some responsibility,” Strauss said. “They become more willing to take care of the property and handle their own maintenance” because there is pride of eventual ownership.



Post a Comment



Most Trending News

Canadian buyers returning to major cities, expecting to spend more: BMO survey
News

The survey shows that buying a home in a major city centre has risen 5% since last year.

Read More
Hiking development charges will only make homes more unaffordable
News

The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.

Read More
Upcoming Multifamily Conference offers investors unmatched opportunities to learn, network and grow
News

Coming to Toronto May 14-15 is an in-person event discussing multifamily investing and the benefits it can have for new and experienced investors.

Read More