1. Four Ways to Get
the Most Out of
a Property Portfolio
2. With the uncertainty of global financial markets,
investing for the future has never been more
important. Developing a portfolio of income
properties can ensure residual income for your
future and that of your children. Following are
tips to maximize your investment dollar and
ensure sound retirement income with minimal
effort:
3. Make Sure the Tenants Pay the Mortgage:
The rental income should
be high enough to cover
the monthly costs but low
enough to be competitive.
Closely inspect the income
and weigh that against the
potential expenses. Taxes, mortgage, hydro,
maintenance and heating costs all take away from
potential profits, so it is important to balance any
potential profits against the expenses.
4. Take Surplus Income and Pay Down the
Mortgage: This investment strategy offers a plan
for residual income. By paying
down the mortgage you can
reduce the time it takes to
pay the mortgage and speed
up your retirement date.
Surplus income can come
from a variety of sources.
5. Create a Reserve Fund for Unexpected
Expenses: Part of your monthly
income should be set aside
to deal with large or
unexpected expenses.
Planning ahead for
big-ticket items will
save money down the road.
6. Know Your Comfort Level: Because this is part of
your retirement consideration, your level of
commitment needs to be measured. If you are
planning to travel extensively or want a leisurely
retirement existence, then a property
management company may need to be part of
your monthly expenses. Such companies can offer
piece of mind with your retirement investment
income.
