By: Vincent Macri

Toronto Real Estate Investment Tips

Tags: Toronto,Investments

 

Would you like to make money in Toronto and the GTA’s real estate market? Investors have richly profited from buying, renting, flipping and selling properties in Toronto. With this guide I will highlight options to make real money in Toronto’s exploding real estate market.


The Basics

Why are Investors buying all the new condos in Toronto and the GTA?

Pros

* A good investment condo will break even with a 20% down payment

* Opportunity for both cash flow and appreciation in value over time

* The rental market is at an all-time low for vacancies, so its easy to find a tenant

* less maintenance/repair work than being the landlord of a house

Cons

* Lots of obligations and little flexibility due to the Residential Tenancies Act.

* Works best as a long-term strategy

Income Properties

Income properties (houses that have self contained apartments that are rented out)

Pros

* Having a basement apartment that you can rent out just might make the difference between affording the home of your dreams and not. At current interest rates, $1,000 in rent can cover over $200,000 in mortgage!

* Through the years, houses have appreciated faster than condos, so if you’re looking to make good money when you sell, then an income property may be your best bet.

* With a 20% down payment on a multi-residential house, you should be able to break even.

Cons

* If you’re living in the other apartment yourself, you’ll need to cope with the tenant

* Landlord headaches

* Having tenants in leases may make it harder to sell the home




Flipping

Flipping houses ( buying a rundown house and renovating it for profit within a year) happens all the time in Toronto. It isn’t for everybody but it can be very profitable.

Pros

* A good quality flip in a popular neighbourhood will be in high demand

* There are lots of examples of houses bought for $500,000, renovated for $125,000 and sold for close to $1,000,000

Cons

* Renovations usually take longer and cost more than you think. With a flip, every dollar spent and every month that you have to pay a mortgage counts.

* It takes time and can be very risky for someone who isn’t a contractor

If you are considering buying a home to flip it, make sure you’re working with a goor TORONTO REALTOR, like Vince Macri who knows the ins and outs and can make sure you buy the right property




New Construction

This used to be the most popular way investors made money in Toronto’s real estate market, buying condominiums during the pre-construction phase and selling them when they were built later.

Pros

* Best choice of units and location, as you don’t have to rely on what happens to be on the market at the time.

Cons

* It’s less expensive to buy a resale condominium at this time

* Uncertainties in condo market mean that your new construction condo might be worth less than you’ve paid for it by the time you take possession

As a smart investor in Toronto and the GTA’s real estate market, there’s much to consider. If you want to partner with a trustworthy Toronto/North York real estate agent that knows how to evaluate investment options and maximize your Profit, please call Vince Macri at 416-845-3074