Been There, Answered That
Clients often ask us questions about the investing process, and we’re happy to help! Here’s what you should know before you invest:
How do I finance my investment?
There are many ways to finance an investment property, and those in the social media stratusphere would boast not to let limited resources or a “belief” in limited resources stop you from investing in real estate.
From our perspective, if you own your own home, the first route to take would be to talk to your Bank or a trusted Mortgage Broker. You likely have built up equity in your home since you first purchased it, and may be able to use that equity to finance an investment property purchase through refinancing.
If you don’t own your own home, speaking with a Mortgage professional is still the best place to start. You may have many options based on your savings and employment income. However, if not, don’t stress yet. You may be able to move forward by either borrowing from or going into joint ventures with family and friends to get you started.
Investing in real estate is the secret of many wealthy individuals. If you have the will, find the way and invest wisely. Whatever hurdles the short term may bring, in the long term, you won’t be sorry.
What type of investment is right for me?
When it comes to how to invest in real estate, there is no singular path to follow. That is the beauty of it all! Real estate investing is really more of a “choose your own adventure” type of process. Are you looking to flip, hold or air bnb? The versatility of property types and accompanying strategies allow for real estate investment to appeal to a diverse group of investors.
For further information about the different types of investments, and which avenues may best suit you, be sure to download our Investors Guide. We are also available for one on one consultations to assist in building you your own wealth building roadmap.
Why is real estate a good investment?
Real estate investing can appear daunting, but the rewards are there for those who want to reap them.
We live in a world where wages struggle to keep up with the cost of goods (don’t get us started on inflation); so no matter how much you work at your 9-5, saving as best you can, the likeliness of creating true wealth is somewhat fleeting.
Insert one of the strongest wealth building tools out there however (Real Estate!), that also happens to be one of the oldest professions (Landlord!), and boy do you turn things upside down (or right side up?).
How do I make money investing in real estate?
Real Estate helps to create multiple revenue streams over time, allowing for financial gains both in the short and long term. It’s a hard asset, so it will also generally see an increase in value that is relative to the price of goods + services. This in turn protects you from economic uncertainty and market volatility, unlike an investment in stocks for comparison.
How do I select an area to invest in?
There are many factors to consider when deciding on an area to invest in! First and foremost you’ll want to ensure the area you’re looking into is growing and not declining. Population growth, job growth and unemployment rates are things to look into when investigating if an area is growing or not.
Once you’ve identified a growing market, you’ll want to focus your attention on neighbourhoods! You’ll ideally want your investment to be attractive to prospective tenants, good school zones, low crime rates and areas with good proximity to amenities and public transportation are all indications of an area people would want to live in.
All of this being said, you’ll also want to ensure that the investment makes financial sense. Many neighbourhoods in and around Toronto fit the above criteria, however the purchase price of a home in these pockets is likely well above what you need to have your investment cash flow. Which may very likely have you paying out of pocket. So, be sure to look beyond your backyard and you’ll find that there are numerous opportunities in cities within a 2.5 hour radius of the GTA!
