Are you constantly wondering whether real estate investment is for you? The real estate market has lots of promise in store for everyone. But to get there, you have to play your cards right. What if you are a first-time investor? What if you’re not ready to risk too much? Well, the good news is that whether you are only looking to test the waters by investing a small portion of your money or you are looking to go all in, there’s an opportunity for everyone.
Here are top 4 Toronto real estate opportunities for that savvy homeowner.
1. Become A Landlord
Are you good with DIY home renovations? Do you have the patience to deal with different types of people? If you answered yes to both questions, then you should consider investing to become a landlord.
You only need substantial amount of capital, which will be used to fund maintenance costs and cover other smaller expenses during vacant months. The advantage here is that you have a regular income, plus the property continues to appreciate in value over time.
To be on the safe side, seek help from a credible property management company. This will help you avoid constant headaches and confrontations with tenants whenever issues arise.
2. Join Real Estate Investment Groups
Are you afraid of bearing all the risk alone? Why don’t you join a real estate investment group? With access to adequate financing, you can end up owning one or more apartments, which you can rent out. All you have to do is sit back and wait for your returns monthly, half-yearly or annually.
This type of real estate investment is suited for those investors who are looking for a hands-off approach in the day-to-day running of their property while simultaneously enjoying income and appreciation of their rental properties. Often, the company in charge of the investment group helps manage, maintain, advertise vacancies, and interview tenants on your behalf. Of course, this is done in exchange of a small portion of your rental income.
3. Flipping Or Real Estate Trading
This type of investment is reserved for people who’ve had significant prior experience with Toronto real estate arena. If you know how to value and market properties, you could make a fortune flipping houses.
You get to sell undervalued properties at a profit. Then wait for the new owners to improve and renovate the property and then buy it back at a slightly higher price than you sold it for initially. The whole process takes anywhere between three months to six months. If you want huge returns in a small window of time, then this is it for you.
4. REITs-Real Estate Investment Trusts
This is another excellent real estate opportunity for people who don’t want to be involved in the hassles of owning a property. By joining a Real Estate Investment Trust, your money is used to invest in stocks, mortgage instruments, and bonds in the Toronto real estate arena.
REITs are categorized into three: Mortgage REITs where your money is used to invest in mortgages, Equity REITs where your money is used to invest in properties, and Hybrid REITs where your money is used to invest in both mortgages and properties. With REITs, you earn money from the interests drawn from monthly mortgage payments from other people.
If you have been thinking about investing in Toronto real estate, above-highlighted are great opportunities you can try. Gauge yourself, know how much risk you are comfortable with and go for it.
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