Buying an Investment Property in Greater Moncton: 9 Questions to Ask Before You Buy

Investment property can look attractive for many reasons.

Maybe you are interested in:

• Rental income

• Long-term ownership

• Portfolio growth

• Future resale

But a good-looking property is not automatically a good investment.

Before purchasing, ask these questions.

1. What Is the Investment Goal?

Are you looking for:

• Long-term rental

• Future personal use

• Appreciation potential

• Portfolio diversification

The strategy should match the goal.

2. What Is the Total Purchase Cost?

Consider more than the listing price.

Potential upfront costs may include:

• Closing

• Legal

• Inspection

• Repairs

• Improvements

3. What Are the Ongoing Expenses?

Potential expenses may include:

• Mortgage

• Property tax

• Insurance

• Maintenance

• Utilities

• Property management

depending on the property and arrangement.

4. What Is the Property Condition?

Deferred maintenance can materially change your real investment cost.

Use qualified inspectors and specialists.

5. What Could the Property Realistically Rent For?

Do not rely only on optimistic projections.

Research:

• Comparable rental properties

• Condition

• Location

• Property type

and use qualified property-management professionals where appropriate.

6. What Are the Rules?

Understand applicable:

• Rental laws

• Municipal requirements

• Property standards

• Lease obligations

Legal questions should be reviewed with a qualified New Brunswick lawyer or other appropriate professional.

7. Who Will Manage the Property?

Decide whether you will:

• Self-manage

• Hire professional management

Both approaches involve different costs and responsibilities.

8. What Happens If the Property Is Vacant?

A realistic investment plan should account for periods when income may be lower than expected.

9. What Is the Exit Strategy?

Eventually you may:

• Sell

• Hold

• Refinance

• Change use where legally permitted

Think about future marketability before buying.

A Strong Investment Starts with Understanding the Property

Investment real estate should not begin with:

“How much money can I make?”

It should begin with:

“Do I understand what I am buying?”

Dalal can help clients evaluate the real estate side of potential investment opportunities throughout Greater Moncton.

Tax, legal, accounting, lending, and investment decisions should always be reviewed with qualified professionals.

Trust in Every Move.