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Bruno Caldarelli
124 Anne St
PO Box 1781
Niagara-on-the-Lake, ON L0S1J0 Cell: 416-618-1220
Work Phone:
Email Bruno



Duplex, Triplex, & Multiplex               Return on Investment                 

INVESTMENT PROPERTIES: (Duplex, Triplex, Multiplex, Stores with apartments, and Plazas)
***If you are interested in purchasing an investment property (duplex, triplex, multiplex or
power of sale) and would like a complete list of investment properties available in your
neighbourhood, please give us a call or e-mail us at bcaldarelli@gmail.com and we will send you a list that we update regularly of all investments that are available; based on your requirements.

We offer a program that will give you priority access to listings before they reach the public Multiple Listing Service (MLS®).

Ensure that your Realtor is experienced with investment properties and has knowledge of
landlord-tenant legislation, municipal by-laws, can advise you on closing costs, and offer advise of market value/conditions for different properties in different market areas.


New federal government regulations for investment properties
Buying an Income Property

Minister of Finance, Jim Flaherty  announced on February 16, 2010, that the Department of Finance will be making changes to the standards of government backed insured mortgages. These changes will take effect on April 19, 2010. The changes are is to protect Canadians from overextending themselves financially.



Qualifying for a mortgage

All mortgage insurers are now required to ensure that borrowers qualify for a mortgage using the 5 year fixed rate mortgage. (Currently the 3 year fixed rate is being used). The rates are posted and controlled by the Federal Government.


The intention is to protect purchasers, so that they can support their mortgage in the event that mortgage rates increase in the future.


CMHC insurance on a non-owner-occupied residential rental property, now requires a minimum down payment of 20% (increased from 15%) The aim is to restrain would-be speculators who own multiple investment properties.


Refinancing options

Currently, borrowers can refinance up to a maximum of 95% of value of their home/property. The new rules will lower the maximum refinancing amount for a government-backed high ratio mortgage loan to 90% of the value of the property.


Purchasing real estate has always been an effective long-term strategy for investment.


There are various types of investment properties, offering different levels of income potential and varying degrees of risk.


The types of investment properties available are:

• Duplex (two apartments)

• Triplex (three apartments)

• Multiplex (multiple apartments)
• Power of sale properties or homes that require renovations before they can be sold

• Mixed-use commercial and residential

We have the information you need to help you determine whether you are an investor  who
is looking to purchase an income producing property or someone looking to purchase a home
and subsidize the cost of home ownership.

Before you purchase

Before you begin your search to purchase an income property; you will need to determine:

• What type of investment you are looking to purchase and where it will be located.
How much to you have as a deposit/down payment? Some financial institutions may require
20-35% of personal investment money. If you are purchasing an investment property with less
than 20% down, the CMHC (Canada Mortgage and Housing Corporation) premiums are higher
than conventional home purchases.• How much you can afford each month for carrying costs
(Mortgage payments, utility costs, property taxes, insurance, etc).

Why purchase an income property and NOT live in it?
Cash Flow: More rental income is generated when you are not living there; creating a greater
 positive cash flow.
Tax Benefits: Potential for tax benefits by writing off mortgage interest against income. Also,
capital gains on reversion may be taxed at a lower rate than other forms of income.
Return on Investment: Expressed as a percentage; the dollar amount returned to the investor
on an initial cash investment.
Capital gains: When you sell, capital gains may be taxed at a lower tax rate than other forms
of income.

Why purchase an income property and LIVE in it?
Cash flow: Collecting rental income will generate cash flow and this income can lower or
eliminate your personal contribution towards property expenses and carrying costs.
Location: An income property may allow you to live in a neighbourhood that you may not have
been able to afford to live in.

Qualifying for a mortgage: Financial institutions may take into consideration all or a portion
of the rental income when qualifying you for a mortgage.

Financial Institutions
Always ensure that the financial institution has experience with financing income properties.
Determine what types of mortgage products they offer (open, closed, fixed rate, variable rate).
• Enquire about
the penalties that you may encounter, if you sell the investment property.
• Visit a few financial institutions to ensure that they are offering you a competitive rate.

Selling an investment property
Determine why you are considering selling your investment property.

Reasons can vary from:

• Job transfer
• C
hanging market/economic conditions
• I
nvestment goals have been realized and you are ready to invest elsewhere
•Deteriorating neighbourhood

Factors to consider:

Advise your tenants that you are planning to sell to avoid any misunderstandings/inconvenience.
•Consider the financial obligations if tenants leave before the property is sold.

• Review your Realtors marketing plan.
• Know your target market. Ensure that the feature sheet includes number of units, financials including
rent, taxes, and utility costs.
• Ensure that your property is clean and prepared for potential buyers.


If you would like us to help you Purchase/Sell an investment property, please give us a call or e-mail us at bcaldarelli@gmail.com