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Single-Family Homes Advantages Over Other Investments

Rental homes can be a natural alternative investment choice for homeowners because they are already familiar with houses. Maintenance on a rental is not that much different than on your home. The same plumbers, painters and other workmen can be used to make repairs.

rental income London Ontario

Single-family homes offer an investor high loan-to-value mortgages at fixed interest rates for long terms on appreciating assets with defined tax advantages and more control than other investments.

  1. High loan-to-value mortgages – most investments require that you pay cash, but rental properties can be purchased with a minimum 20% down payment.
  2. Fixed interest rates – most commercial loans are based on a floating rate, such as prime interest plus one or two percent, compared to real estate loans as fixed rates for the term.
  3. Longer terms – commercial loans are generally short-term, such as six months or a year, with the possibility of being renewed for another six months or a year, unlike real estate, where a 20-25-year mortgage is commonplace.
  4. Appreciating assets – real estate historically increases in value, especially single-family homes.
  5. Control – rental homes don’t require partners and afford the investor more options than investing in mutual funds and other traditional investments.
  6. Some people choose not to buy or cannot buy a home and would prefer to live in a single-family home rather than an apartment. The demand for good rentals is strong, and the rents continue to increase in most markets.

Note: There is risk in any investment, so beware and be on your toes!

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and are designed and constantly upgraded with the latest real estate trends, how-tos, and what is for sale on MLS. Our primary focus is guiding home buyers and sellers to make good decisions. We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and boring, but we are dealing with hundreds of thousands of your hard-earned money. Would you rather be happy, excited and bored or unhappy, excited and make a poor choice? About Ty I am a Broker with Sutton Group Preferred Realty Inc., Brokerage and the team leader for The Envelope Real Estate Group, that's enough about me! You see, this is about you, you do not want to hear blah blah stuff about awards, designations, or that we walk older adults across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; success leaves clues!

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