Wednesday, July 8, 2020
The real estate market offers more than just a roof over your head. It remains a lucrative investment option for many and for good reasons. Real estate market is stable unlike volatile stock markets. If done the right way, real estate investment can generate a huge sum of money in a short time. In addition, it allows you to enjoy tax breaks and most importantly helps you build equity. Whether you are a first time home buyer or about to head into retirement, you can prod into real estate investment anytime – the most important thing before dipping your feet into real estate investment is make sure you are well-informed. If you are thinking of investing in Toronto properties, here are 5 sure strategies to help you make a smart move.
Since you are reading this article, obviously real estate investment is something you have considered. If you are a first time real estate investor in Toronto, make sure you familiarize yourself with real estate jargons, real estate laws, current real estate market, prices of different types of housing in Toronto, average selling price of house in Toronto, tax breaks you are entitled to, what are the hottest neighborhoods in Toronto and so on.
Consult with a real estate agent or professional
If you are novice trying to invest in Toronto properties, all the research can be overwhelming. Two heads are always better than one. Consult with real estate expert in Toronto area who can give you helpful tips and insight on real estate investment in Toronto, current Toronto real estate market and much more. While you might be tempted to go to someone you know, it is best to find someone professional and with years of experience in the area. You can find many real estate agents in Toronto, make sure you choose the best one with your due research and findings. You also need to know a good real estate lawyer to help you navigate the legal aspects of property ownership.
Set a vision
No plan starts without a vision. Set yourself a target goal, an achievable outcome you desire out of the real estate investment. It could be a ROI, a year by which you want to make this much profit and so on. However, don’t remain rigid in terms of the vision. When looking for real estate investment or any kind of investment it is important you keep an open mind to make the best out of a situation. Your vision should be realistic and accommodating.
Consider the different types of real estate investment
When looking to invest in Toronto properties, there are many kids of investments you could make. Some of the common real estate investments that anyone can start are rental real estate investment where you rent an entire property or a portion of it. Then there is flipping where you buy a real estate property, hold onto it and then sell it to make a profit. While having a rental real estate investment gives you a steady cash flow monthly, flipping houses gives you a large sum of money in a short time. Consider which investment is best for you. If you are a first time property owner, you can start with renting out, make some money, build your equity, then sell it after a few years to buy another one.
Or if you have multiple properties, you can use the ones where you don’t live in as rental properties. However, make sure there has to be someone to manage those properties which can be a hassle and costly endeavour.
Consider types of real estate properties to invest in Toronto
Toronto a large city in Ontario offers a plethora of real estate properties – high rise condos, detached houses, semi-detached houses, condo townhouses, stacked townhouses, bungalows, preconstruction condos in Toronto and so on. The type of real estate property you choose will depend on your real estate goals. For example, investing in condos in Toronto is a popular choice for many investors as they are affordable compared to houses, easy to rent out and maintain. On the other hand, if you are first time home buyer, you can also start with purchasing a condo in Toronto, live in it for some years and then move up to a house after selling it. Pre-construction condos in Toronto are popular not among just buyers but also smart real estate investors because they offer brand new condos with many special incentives in the beginning phases, thus making you save your money.
Taking too long to decide
Financial markets are constantly evolving, and so are mortgage rates. So it is best that you do not take too long before making a decision and miss out on a great mortage rate. The best tip to follow is that if the number makes sense to you, lock the rate. Waiting for the rates to go down can back fire heavily and is not worth the risk. However, during these times, the mortgage application processing can take some time, so be mentally prepared to be patient. Your lender will appreciate it.
You can use our huge repository of real estate properties in Toronto to find a suitable investment property for you.
At the end of the day, purchasing your first investment property in Toronto can be daunting. But rest assured that the Toronto real estate market has been growing exponentially and house prices are forecasted only to increase with time. If you have a good real estate team to work with and a solid plan of what you want to do with the property, you will be able to get over the anxiety that stops many from taking the leap into real estate investing.
For any real estate investment queries or concerns, feel free to contact Lucky Arul Homes at 4165189782 or email [email protected] or simply use the contact form on arulhome.ca