To become a successful Toronto or Vaughan real estate investor requires that you find a good real estate property to invest in. Appraising and finding the true value in Toronto and Vaughan properties is essential to your investment success. Information available from your Realtor will help you determine what a property is worth by comparing the property you’re looking at with similar properties that recently sold in the same neighbourhoods.
So what is the perfect investing market?
In short, there’s no such thing as the perfect real estate market for investing, although it certainly is more difficult trying to find a bargain in a hot market where prices are rising. However, with a hot real estate market the investment property you purchase has a great chance of selling quickly and for a significant profit. While on the other hand, when Toronto and Vaughan’s real estate market favours the buyer due to a slowdown in sales, property values fall and more bargains become available.
Deciding what market works best for you will mean knowing how long you intend to hold onto the property for and how much you expect to sell it for at a later date.
You need money to make money…
One of the biggest advantages a Toronto or Vaughan real estate investor has is the availability of mortgages and loans to help them finance their investment acquisition – this is called leverage. Leverage is of key importance for investing in real estate as it allows you to put down less of your own money towards the purchase of your investment property. As the values of properties in Toronto and Vaughan rises, so does your rate of return. However if the investment property you purchased starts losing its value and your debt starts growing, you will quickly find yourself in a negative cash flow situation.
Education! As with most things in life, knowledge is power. Become educated in the Toronto and Vaughan real estate markets first by realising how global, national and provincial trends directly and indirectly affect our neighbourhoods. Speak to other successful real estate investors for further insights and of course have your Realtor give you some suggestions and perhaps even ask them where they invest their own money.
Always have an exit strategy
It is of fundamental importance not to speculate on the future of Toronto or Vaughan’s real estate market. As a successful investor, you must possess a keen eye for every aspect of your purchase including when it’s time to get rid of it. Before buying your Toronto or Vaughan investment property, you must know exactly how you will make an exit from the investment. Things don’t always go according to plan so having a backup in the event “Plan A” doesn’t pan out is a wise idea. To become a successful real estate investor you must know your market and have a clear plan prior to investing in it.
If you have any questions about investing in real estate or on the home-buying process in general, feel free to contact me.
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Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto real estate team. You can find him on Twitter, YouTube and Google+. For over 10 years, Ilan has provided more than 1400 buyers and sellers valued advice and service, enabling them to reach their real estate goals. He’s kind of like the Bruce Willis of real estate.