Making the move to invest in real estate is something you should be very proud of! Investing in property in Toronto, or at any capacity, can be a great way to build your investment portfolio and your long-term wealth as well as create a passive income source for yourself.

Before jumping both feet into this journey, you should ask yourself a few important questions. How much money do you have to invest? How much time do you have to manage an investment property? How involved would you like to be in maintaining the property and working with tenants? Have a look at these 3 popular real estate investing opportunities to see which route may be the best for you starting out. 

 

PURCHASING A RENTAL PROPERTY 

With the right tenants and a well-maintained property, you can reap the rewards as a landlord for many years to come. Budget and net cashflow are hands down the most important item to focus on when searching for the perfect rental property. Before offering on a property, you need to know the true financial data; from property tax costs and recent utility bills to other ownership obligations, it’s so important that you carefully determine if a property will cashflow or become an investment burden – before you purchase it.

 

PURCHASE, RENOVATE, SELL

Taking on a full property renovation is not something that we recommend if you don’t have the experience or the passion to do so. Whether you decide to self-renovate or hire the pros to execute your vision, there are plenty of cosmetic renovations that can greatly increase the value of a property. Before you set out on a renovation adventure it’s important to talk to your professionals, like your mortgage professional, REALTOR® and accountant about any potential regulations or tax and gain implications you may fall subject to from selling too quickly.

 

ADD A RENTAL UNIT TO YOUR EXISTING HOME 

Have an unfinished basement that’s just waiting for the perfect project? Adding a rentable space to your existing home is a great way to leverage what you’ve already got to create a new source of income. Not only is a rental suite a great way to generate revenue and offset your monthly expenses, but this element can be a bonus for potential buyers if you decide to sell. 

Before you start renovating your home for a renter, consult with a trusted local home renovation specialist to make sure you understand the project extent and total costs associated. You may be able to reduce your upgrade costs, and keep more money in your pocket by completing some tasks on your own such as demolition, prep and painting.
If you have questions about investing in real estate and want to review your unique situation with a mortgage broker, reach out to our team and we can create a plan to grow your real estate portfolio – sooner than you think!