With the booming real estate market in Canada, the options of making a real estate investment are countless. You need to know your potential and need to know the trend of the market. Also, a little knowledge of the existing market developments is also important and may prove beneficial.
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With so many options in the real estate market, it becomes difficult for a new investor to decide where to invest his capital. Some of the options are explained in detail below:
- Investing in condos: if you study the market trend, you will notice the fast growth of condos taking over the Toronto landscape. This makes us wonder the reason behind such popularity of condos. Investors are the reason. People are investing greatly in condos. A good condo setup promises excellent cash flow and great appreciation after the mortgage has been paid off. People prefer renting condos for themselves therefore getting a tenant is very easy. The real estate rules make the renter less liable for the maintenance and repair costs than the landlord of the property. If you are fortunate enough to get your hands on a good condo in a great location, you are in for huge profit.
- Investing in income properties. This means buying a property where you can give a portion of the property on rent while living there. At current interest rates, you can pay upto a mortgage of $200000 for just the rent of $1000. This makes income properties such a hot commodity. If you plan to sell off your property later, it will definitely give you good profit. Moreover if the property has been brought at 20% down payment, you may be able to break even or even be able to make a positive cash flow through rental income. With so many advantages, the disadvantages of having to live with the tenants cannot be ignored. This means having to bear odd smells and noises all the time. Also, if you have tenants in lease, it might make selling off your property difficult.
- Flipping. This means buying a property, renovating it and then selling it off under a year to earn great profits. This isn’t always the best option to earn money. It is good to see a professional who can guide you well about the existing market trends and can help you in making the right decision.