Build the ownership picture

A purchase price is visible. The ongoing demands of ownership can be less obvious. Maintenance, taxes, utilities and financing affect the resources tied to a property. For an income property, a review also needs to question occupancy and revenue assumptions rather than treat projected income as assured.

Understand the purpose

A property intended for personal use, rental income or development calls for a different evaluation. Clarifying that purpose helps determine which information and professional reviews are relevant. A lifestyle preference and an investment thesis can coexist, but they should not be mistaken for the same thing.

Consider flexibility

Real estate can be difficult to sell quickly, and the outcome of a sale is uncertain. Consider how the asset fits with other commitments and what a period of lower income or unexpected expenditure would mean. This does not establish an appropriate level of borrowing for an individual.

Use the right expertise

Title, permitted use, condition, tenancy, financing and tax considerations require the appropriate local professionals. A clear diligence list helps coordinate those questions. No property, region or return is recommended by this introductory framework.

POINTS TO CONSIDER

  • Assess ongoing ownership responsibilities.
  • Distinguish personal use from investment objectives.
  • Obtain property-specific professional diligence.

Further reading: OSC investor education: your home as an investment ↗

Information contained on this website is provided for general informational purposes only and should not be considered investment, legal, tax, accounting, insurance or other regulated professional advice.

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