Over the course of 2011 I have seen many people who want and need to move out of their condo and get more space. This is a common issue that faces many people that bought their first home in the last few years. Selling you condo can be tough to  get out ahead as a new down payment for the new home, real estate and lawyer fees, and the dreaded property transfer tax can eat up that equity pretty quick. So what is you solution is you need to move? Become a landlord.

This is solution is not for the faint of heart, yet it can move you forward, as well as in turn lead you towards a brighter future. Renting out your current home with a form of a lease provides the bank with proof that your mortgage is largely, if not completely covered. Having that done frees you up to buy that new, larger home. The best course of action is to speak to a mortgage professional regarding this and if it will help you to afford what you really want to be in. Once you have your current mortgage covered and know what you can afford on the other side, it is time to find a real estate professional and go shopping for the new home.

Real Estate ownership is a very rewarding process and has shown long term to increase in value year over year. Owning an income property will help you diversify your investments and also allow you to get more space. Owning multiple investment properties have help hundreds of people in our community increase their worth and provide them with a tangible asset ready to give back in the future.

Talk with your real estate professional and mortgage broker for more information on how you can make this work to your benefit.

Until next time,

Darin Germyn

IMPORTANT NOTE: Unless you are planning to move into a vacant home or new development, you may need a place to rest your head in the transition period, as most renters want to move in with 30 days or less. Also, some strata’s limit the amount of rentals in a complex, so be sure to find out before making any promises to would be renters.