When you buy a brand-new investment property, you’re naturally going to want to get your tenants moved in as soon as possible so you can start paying off the mortgage, building equity and seeing some of that income.
But how long does it take to build a new investment property?
Let’s take a look at the process of how TriUrban works with you to build a brand-new investment property so you can better plan the timeline for your financial future.
Understand Your Goals
Before you start, one of the most important things to determine is what your overall investment goals are. For example: do you just want to make some extra income to help pay down your mortgage, or is your eventual goal to generate enough passive income as part of a retirement plan?
The answers to these questions will make a big difference in the type of property (or how many properties) you should buy, which will in turn have a big effect on your timeline. When you book a consultation with us, we can discuss these goals with you and help you come up with a solid plan.
Determine Your Budget
Once you know your goals, the next step is your budget. This will also have a big impact on your timeline - if your goal involves owning multiple properties but you only have the free capital to purchase one at the moment, it could take some extra time to build up the equity or attract a JV partner to purchase a second property.
We have properties available to fit any price range, so we’ll help you find the perfect one to get you started.
Build Your Team
To make the investment-buying process as smooth and quick as possible, you’ll need a team of people to help you. These would be professionals such as a mortgage broker, lawyer, insurance agent, property manager (depending on how hands-on you want to be with the property) and someone to handle repairs when they arise.
While you can source all these people yourself independently, when you work with TriUrban you’ll also get the benefit of our extensive experience and professional contacts. This means we can take care of this important step for you and save you a lot of time.
Arrange The Mortgage
This can be one of the most important steps of the process, especially if it is your intent to purchase multiple residential properties. There are a lot of rules and regulations to comply with and you might need the participation of several lenders to allow for continued mortgage approval.
This is another area where having a plan in place is crucial, as the rules to qualify for a mortgage as an investor can be quite different depending on what you intend to do with the property; such as whether you’ll be living in the home alongside your tenants or not.
Find Your Property
The next stage of the construction process is to find your perfect property. There are a few things to consider here - aside from determining what style of home you want to build and deciding on the floor plan, you’ll also need to decide where you want to build.
The timeline on this depends on what you want to achieve and what’s available, but this is another area where working with TriUrban will greatly speed up the process - we’ve been doing this for almost two decades, and we know exactly where to look and in which areas people want to live based on real-life economic fundamentals! We also work with many different home builders and know exactly what types of models and floor plans work best for investment properties.
This is a stage that has a bit more of a concrete timeline. The average build time for a new construction home is around 6-8 months, although once again there are ways to speed this up. Naturally, if you purchase an investment property that’s already under construction (for example in the foundation or framing phase), this will save you some time.
Those who want to get started even sooner can opt for a quick possession home, which of course gives you the ability to start screening and moving in your tenants almost immediately. All this means is you need to ensure you’re looking at possibilities that are already set up for tenants’ needs, and TriUrban has the expert eye you need for this.
Find Your Tenants
Depending on if you chose a new build or a quick possession it’s a good idea to start attracting tenants as soon as possible. With new builds, we typically coordinate with your property management team to begin advertising the property about two months prior to completion so you can move your tenants in and start collecting cash flow as soon as your new construction property is ready.
Because you’ve planned properly and done your homework, you’ll have a brand-new home in the perfect area that’s attractive to the tenants you want.
As you can see, there are a lot of moving parts to the process of buying an investment property, and there’s no single timeline that will fit every investor or their lifestyle. However, there are a lot of things you can do to make sure the process goes as quickly as possible, and that’s what we’re here to help you with. To make sure you get off on the right foot, let's have a quick chat so we can begin to get to know you and help you get on the fast track to property investment.