Rental

5 Common Myths Among Renters

Debunking 5 Common Myths Among Renters

Fallacies about the buying process keep many renters from exploring the possibility of buying a home, but savvy real estate agents know a little education can go a long way in turning many of these would-be renters into lifelong homeowners. Many renters consider home ownership out of reach, have concerns about economic uncertainty and fear of a housing downturn as reasons to sit on the sidelines, with many preferring to watch the market before making a move to buy.

1. “Renting makes more sense because I may move in 5 years.”

Sure, while it may make more sense to rent than to buy over a short term of a few months, the equation can easily flip with buying being the best value for a homeowner planning to stay for at least five years and, in some cases, as few as two years!

2. “I don’t make enough money to buy.”

Income is important but not as limiting as people may think. Just as there are high income earners who are “house poor” (spending more than 30% of their income on their mortgage), there are people with modest incomes who are able to live comfortably in their own home.

Also, renters must bear in mind that rent is almost always guaranteed to go up, while the payments on a fixed-rate mortgage will not, making ownership the more budget-friendly approach over the long term.

3. “I can’t save enough for a down payment.”

Many are not aware of the many programs such as Home Buyers’ Amount ($5,000), Home Buyer’s Plan (withdraw from RRSP), GST Rebate, and Government Equity Program that allows first-time buyers to close on a house with almost nothing down!

4. “There’s nothing in my price range.”

Once a renter has been pre-approved for a mortgage, they have a good idea of their target price range. Then, when they start looking at the entry-level inventory, they find themselves up against a competitive market.

Here’s where I can help you out! I will guide you as a first-time buyer into looking at different areas where homes are in your price range, but also help you find those rarer listings where a home that’s not necessarily move-in ready yet in a nicer neighbourhood is selling for less.

I have been working alongside Kris Crawford at Innovative Mortgage for a long time and I highly recommend contacting him for mortgage related information!

5. “The perfect house is waiting for me.”

Renters who have watched many real estate TV episodes may have unrealistic expectations about buying a property.

First, they may not be aware that every property has pros and cons. It’s important to remind them that finding an affordable home is going to involve some trade-offs, but ultimately, will offer the security and accomplishment of ownership.

Second, good houses go fast, so first-time buyers must be financially, mentally and emotionally ready to act.

Check out my current listings or if you see a house you like – let’s make something work!

Be sure to check out our new Renter-to-Homeowner program launching soon!

March 2024
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Interested in Owning an Investment House with Basement Suite?

Be a super investor and start making real equity and monthly cash flow!

What a great way to generate very positive cash flow! I have lots of rental properties and know the struggle to ensure your rental is generating enough revenue to cover the costs associated with owning the property. Mortgage, taxes, insurance, management, maintenance, utilities, condo fees… the list goes on and on.

Owning one property with one mortgage and combining costs associated with one property while generating two incomes is simply smart. Do not be fooled, this property costs more money, insurance costs go up, maintenance costs go up, management fees are higher, utilities come into question. Overall, investors and landlord win! I see a lot of portfolio financial statements every year. On a yearly basis property owners with the basement suite make higher net revenues.

2 Simple Examples of Rental Properties with Suites

(1) New 2 Story House with Basement Suite 1500 – 1800 sq ft top floor and approx 600 – 900 sq ft basement suite. 3 Bedrooms up 1 – 2 Bedrooms down. Separate laundry

  • Purchase Price Average: $425,000
  • Top Floor Rental Revenue: $1500 + Utilities
  • Bottom Floor Rental Revenue $1000 + Utilities
  • Newer Areas have higher density.
  • Newer properties have lower maintenance costs

AVERAGE NET INCOME PER MONTH: $750.00 per month
AVERAGE NET INCOME PER YEAR: $9000 per year

(2) Older Bungalow Style House with Basement Suite in Mature Location 1000 – 1300 sq ft top floor and approx 900 – 1100 sq ft basement suite. 3 Bedrooms up 2 Bedrooms down. Separate laundry. Separate Entrance

  • Purchase Price Average: $400,000
  • Top Floor Rental Revenue: $1500 + Utilities
  • Bottom Floor Rental Revenue $1200 + Utilities
  • Lower density area and on average higher rental prices as the units/suites are more comfortable and more space for living.
  • Higher maintenance costs
  • Basement Suite is much more comfortable and can get more money per month!

AVERAGE NET INCOME PER MONTH: $850.00 per month
AVERAGE NET INCOME PER YEAR: $10,200 per year

IMPORTANT!

Make sure you achieve favourable mortgage terms. You want low payments, no CMHC, and flexible term. Quality interest rates. All effect bottom line!

Higher a property manager! You want to limit your vacancy to 1 month per unit per year. Quality tenants and properly set up lease agreements to navigate tenants sharing a house is extremely important. Click here for property management details.

Location Location Location. The fun part of having these properties is that worse case scenario you break even or make a little. Which is great. The real money is made with equity and riding changing markets. Get a proper investment in the right location at the right time. The potential for a major win is very very real.

For more information contact me anytime! There are many options in Edmonton, Fort Saskatchewan, Sherwood Park, and Surrounding Area.

Bruderheim Real Estate

Affordable Duplex in Bruderheim! WOW!

Affordable Duplex in Bruderheim! WOW!

Looking for something move in ready, corner lot, build equity with affordable living in private setting. Problem Solved! Move or Invest in Bruderheim. Wonderful 3 + 1 Bedroom Home. 10 Minutes North of Fort Saskatchewan. 20 Minutes from Edmonton city Limits. Bang on close to Industrial Heartland and just what the doctor ordered! Treed private corner lot. Renovated and comfortable. Literally come pick up the keys and move on in. Great property for first timers or someone looking for an ideal rental property with affordable price tag.

bruderheim real estate

4702 56 Ave, Bruderheim  – CLICK HERE
$169,900

Call 780-777-9703!