Given the recent fluctuations in the real estate market, is buying an income property still a good investment in Toronto? It’s a question with no easy answer, and everyone is different. Real estate has long been considered one of the safest and most profitable ventures. In many cases, it still is. Even if housing prices fall after your purchase, history shows us that they inevitably rise again, presenting you with an unparalleled opportunity to grow your equity. Best of all, you’ll enjoy a stream of monthly income that is almost effortless, requiring very little extra work or time commitment.
However, your decision on whether or not to invest right now will depend on your resources and risk tolerance. What might be a terrifying, harrowing experience to one person could be the opportunity of a lifetime to another.
Are You in a Position to Invest?
Here are some factors to consider when deciding on your next step:
- What financial resources do you have? If you’re taking out a second mortgage to buy an income property, you will need a 20% down payment.
- Can you cover the monthly costs of holding a property for as long as it takes to find the right tenant?
- Are you ready and willing to take on the responsibilities and obligations of being a landlord?
If you have the resources and the aptitude, real estate investing might just be the ticket to your financial future! Toronto’s growing population and high housing prices mean that many people are looking to rent. Once your unit is ready, you can count on a vast pool of prospective tenants. What’s the next step?
Understanding the Current Market
Securing an income property is different than buying your family home. It’s all business, and you can’t afford to let any emotions cloud your decisions. You may find and fall in love with the appearance of one property, only to find that the numbers don’t justify the purchase. Understanding the current market, being patient, and weighing your options carefully are essential to your success.
And whether this is your first acquisition or your twentieth, you will always want fast access to expert advice. In short, you want a good real estate agent who understands the investment market in Toronto.
Do you want to know more about breaking into the Toronto real estate market as an investor? Here are some other resources that can help!
- How to Succeed as a Toronto Real Estate Investor
- What Successful Toronto Real Estate Investors Have in Common
- What You Never Knew About Secondary Suites
What Sets Olea Real Estate Group Apart?
When investing in real estate, finding the right property at the lowest price is imperative. Toronto has one of the most expensive housing markets in Canada, second only to Vancouver. Still, your success depends on finding an opportunity where the projected income is enough to allow you to hold the property. The ability to negotiate can mean the difference between a unit that loses money, breaks even, or generates positive cash flow. Getting the best price is critical when you don’t have unlimited funds to play with.
Certified Negotiation Experts®
At Olea Real Estate Group, each team member must become a Certified Negotiation Expert®. This designation shows that a real estate agent has obtained the highest level of negotiation skill, enabling them to help clients at a high level in any market. Before earning the certificate, an agent must demonstrate proficiency in hard bargaining and win-win negotiating no matter the circumstance.
When negotiations get intense and the stakes are high, one of our experienced experts will be by your side to help you achieve the best possible outcome.
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Vetting Potential Properties Through Financial Analysis
What makes for a suitable investment property? It’s not necessarily the prettiest house in the best neighbourhood. Instead, it may be one that needs a little work but is in a prime location near the university. Your decision comes down to financial analysis to ensure the property will be profitable in the long run. Whether you’re buying a single-family home, a duplex or a condo, the numbers must add up. And remember that there may be hidden costs. For example, a condo may be less expensive upfront, but the monthly fees could be too high to recoup.
How can you find what you’re looking for? We have vast connections with many other real estate agents in the city. We will scour our lists to help you find structurally sound homes at lower-than-market prices.
Unlike buying a home for your family, it isn’t about the appearance or layout.
You never want to overlook a fantastic opportunity due to surface neglect or minor cosmetic flaws. Perhaps the previous owner let the lawn grow out of control, or the paint is peeling and grungy. This less-than-stellar visual appearance can be a turn-off for a layperson.
On the flip side, a house may be gorgeous inside and out, with every imaginable update. However, all of this comes at a price, and the numbers may simply not make sense from an investment perspective.
Our seasoned agents are experts at vetting properties and have a track record for spotting undervalued opportunities. We are here to help you perform the due diligence and complex financial analysis required to ensure your success.
Buying an investment property is different than a residential home, but there are some similarities. Here are some great informative posts for buyers of all types!
- Upsizing in Toronto? Here’s What You Need to Know so You Don’t Overpay
- Our Top 10 First-Time Buyer FAQs
- Top 6 Misconceptions When Buying Your First Home
Finding the Right Tenant
Once you’ve identified and secured the right property, finding a high-quality tenant is critical. Everything else can fall into place. But nothing hurts your chances of success more than a tenant who doesn’t pay rent or damages the property.
At Olea Real Estate Group, we don’t just help clients buy and sell houses. We also work with property managers to find tenants for their units.
As seasoned real estate agents familiar with all aspects of the Toronto market, we know precisely what questions to ask when screening potential tenants. This expertise can help you find the right person who will live peacefully in your unit for the long term and provide you with a stream of passive income for years to come.
Are you ready to start searching for your next investment property? We are happy to answer your questions and help you decide how to proceed. Reach out to us today for a free consultation with no obligation.
