Are you thinking of investing in Toronto Real Estate? It has long been known that real estate can provide a healthy return on investment for both beginners and for seasoned investors. It can be a bit overwhelming when faced with the avenues in which you can invest your hard-earned money.
If you are seriously considering investing in Real Estate, see the 3 buying strategies below to help determine which strategy is best for you.
Before thinking about what strategy is best for you, consider…
- Are you being upfront and honest about your real estate goals?
- How involved do you want to be with this venture?
- It this a one-off or do you have more of an entrepreneurial mindset?
- Do you have a team of professionals to provide a more comprehensive analysis (i.e., financial/real estate professionals)?
- Answering these questions will help to align your mindset so you can reach your real estate goals more effectively.
Buying and Holding: Invest in Rental Properties and Become a Landlord
Owning a rental property (or properties) can be a wonderful opportunity for individuals who are looking for a long-term investment with a consistent return. This strategy requires a strong capital investment upfront for maintenance, vacancies and to assist in managing tenants. Buying and holding is a lucrative investment you can leverage to your advantage. There are also associated expenses that are tax-deductible.
House/Condominium Flipping (Wholesale Real Estate Investing)
If you are a more seasoned Real Estate Investor, house/condominium flipping could be for you! This is a very hands-on approach and requires a substantial capital investment and deep market knowledge.
Hot tip: A novice investor can sometimes underestimate the time and money each project requires. Be sure to have a contingency plan, overestimate your costs and timeline and be conservative with your skillset and knowledge.
Pre-Construction Condominiums
Like buying and holding (becoming a landlord), buying pre-construction condominiums is a tangible asset that provides you with leverage. These projects typically start their sales 3-5 years prior to their completion date and your initial investment will often appreciate once the building is complete.
Hot tip: Research the builders/developers prior to buying, consult a Realtor who specializes in pre-construction to better understand the costs and timeline.
Buying real estate as an investment can be a prudent financial decision if you are looking to invest in your future. I hope this article has equipped you with some tools and tips to get the most value for your money in your endeavours!
To get the ball rolling, please check which condos I currently have for sale or reach out here.
