Follow these steps to ensure your portfolio grows instead of withers.

2018 was interesting with some ups and downs; inventory is at a four-year peak, sales are decreasing, and prices are starting to fall back as well. 2019 will still be a good time to increase your real estate portfolio—well, as good as the last few years, at least. 

If you haven’t been involved in the mortgage industry recently, be aware that a few things have changed from years prior. With that in mind, let’s refresh ourselves on some steps to follow when building a portfolio: 

1. Find out how we can help. We can help you look for promising opportunities, and we have firsthand experience with what you can and can not do in regard to investing in certain areas. For example, some municipalities will not allow you to rent out an entire property and require you to live in a home you’re renting out. If you’re looking to rent out a home, make sure you can. If not, you may be surprised by a cease and desist notice.

“2019 will still be a good time to increase your real estate portfolio.”

2. Check in with a mortgage broker. Mortgage brokers are working for you, not shareholders. Their job is to assist you and make sure you’re satisfied. Find out what changes have happened. When you get a mortgage now, you must apply and get the approval on your qualification rate. The qualification rate is a bank-accounted rate and not the mortgage rate that you’ll be paying. The mortgage rate is around 3.5% currently and the qualification rate is around 5.5%. You need to qualify for the 5.5%, which ensures the government that you’ll still be able to pay if the economy goes downhill.

There are more questions you’ll want to ask your mortgage broker, which involve topics like prepayment terms, penalties, presales, mortgages, and more. If you’re thinking about investing next year, feel free to reach out to us and we can talk about what to do. We look forward to hearing from you.