How To Invest in Real Estate in Ontario
There are many pros to investing in real estate. Property tends to appreciate in value over time, and you'll be reaping the rewards of passive income and tax breaks. It's a great place to store your wealth. But it can be daunting if you don't know how to invest in real estate in Ontario. Whether you're a homeowner or landlord, you'll eventually want to see a return. Jennifer Gale Real Estate Team has all the tips for investing wisely in real estate. With over 15 years of experience, she can help you sell, buy, and get a return on investment.
Rental Properties
In Ontario, being a landlord is a popular choice for those looking to make a little extra money. Whether you're investing in condos or buying an entire house with the intention of renting out rooms, there are two things you should do before buying property:
Investment Property Analysis
When you're doing an investment property analysis, you're looking at qualitative and quantitative performance measures. You are putting money into the property, including investment costs for things like inspections and monthly expenses for property taxes. You want to determine what the monthly income is going to be - basically, how much you're going to make from every month by renting the property. If you aren't making a profit off the property every month, walk away.
Real Estate Market Analysis
This is also commonly called a comparative market analysis, and it aims to compare the value of the property you're looking at to the other properties on the market. It's subjective, but it gives the buyer an idea of what other properties in the area are worth. With a real estate market analysis, you'll be able to tell if the price being asked for the property is reasonable. Every property will be different, of course, and things to be taken into consideration about the real estate include lot size, number of floors, amenities and features, construction age, and recent or notable improvements.
Buyer's and Seller's Markets
When there's a lot of supply but little demand for property, the buyer is at an advantage and can negotiate the price on real estate. Conversely, when there's more demand than supply, sellers can ask for more money for their houses. If you buy at the right time, you can hold on to the property for several years until there's a seller's market and then put your house up. Over time, houses tend to appreciate in value, and it will be worth even more in a seller's market. This is commonly known as a buy-and-hold strategy.
Fix and Flip
Homeowners who know how to invest in real estate are often "fixer-uppers", live in them for several years while they complete renovations, and then sell at a much higher price. Putting money into a house through repairs is one of the most tried and true ways of generating a profit on a house. However, it has advantages and disadvantages. While it's a great way to make a quick profit, since you're flipping houses immediately after fixing them instead of waiting for them to appreciate in value, there's always a chance that you'll lose money. You also have to be resourceful when finding cost-effective ways to fix the property.
If you're ready to invest in real estate in Oxford County, Ontario, try enlisting the help of a professional. We can guide you, offer expert advice, and help you locate the perfect investment property. Contact the Jennifer Gale Team for more information, or view our listings online.
