Why Single-Family Homes are a Great Investment
The Great Recession of 2008-2009 severely affected the Canadian real estate market. But, over time, it has gradually recovered from the disastrous loss. Now, real estate in Canada has become a safe, more stable investment option again. Meaning; you can easily profit and gain from your investment within a short time.
If you are looking for a long-term investment, buy a single-family home and rent it out. While purchasing a duplex or condo apartment might seem more attractive due to its smaller size, this isn’t necessarily the case. It can mean more work and be more inconvenient; you will have to deal with more people, possibly a higher turnover rate, your tenants will likely be paying lower rent, and you’ll have to consider maintenance fees.
Are you new to investing in real estate? Buying a single-family home is a great, lower-risk option. What is a single-family home? Well, a single-family home is a standalone property fit for an average family. It is considered the best rental property option since you can recover your investment through the monthly rent you’ll charge.
However, like any investment, there are pros and cons associated with it.
Here are a few points that make single-family homes great investment opportunities.
There is no guarantee when it comes to human behavior; anyone can be a good or bad tenant. However, it is a common belief that those renting a house tend to be more responsible. Not only does the renter have to have proof of income, but houses are also generally rented to young professionals or those with dependents in their care. They aren’t looking to bounce around from place to place every few months, they’re looking to settle for years to come.
Also, those looking to rent a house are generally better at maintaining the condition of the house and are more interested in the yard work.
Long-term renters consider the place they’re in, home; they will treat the property as such showing pride of ownership if you will.
You’ll find rent will be paid on time, as your renters will want to maintain a positive relationship.
As a result of the aforementioned; you won’t have to deal with an empty space, people moving in and out and the deep cleaning that goes along with that, or interviewing potential renters over and over. The process can be quite hectic.
Lower Property Taxes
Lower taxes; music to your ears!
Single-family homeowners can save themselves thousands of dollars in taxes each year. In addition, owning these properties and managing them as rentals, offer significant tax benefits. There are potential tax deductions for depreciation, property taxes, house repairs, ordinary and inevitable expenses.
The cost of supplies and materials in order to make repairs to the home is also tax-deductible.
Low Management Cost
Overall size considered, a single-family house is smaller than an apartment building. This means the home will be easier to maintain and will cost less.
For instance, if the furnace breaks in your rental home, it should only cost you a few thousand dollars and should generally be a quick fix. On the other hand, if the furnace breaks down in an apartment building, the cost is significantly higher, you’re likely looking at long wait times for repairs and, you have more than one family to concern yourself with.
Moreover, even for the homeowner, single-family houses should be easier to maintain since the repairs are generally not that expensive or complicated. That said, be sure to keep up with general maintenance as required, ensuring the foundation is sound, the roof is in good shape, the windows installed are energy efficient, etc.
Are you looking for an investment property? A property management service can help. At Emerald Management & Realty we have experts who will guide you along the way, making your property buying decision an easy and seamless one.
To hire our services, call us at 403-237-8600 or visit our website today!
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