Are you considering purchasing real estate as an investment opportunity? Maybe you have the bright idea of renting your new purchase as a way to earn extra money. If either of these sound like something you have been considering, there are a few things you need to keep in mind! Lucky for you, we caught up with Lou Grossi, Broker and Managing Partner at Intercity Realty and asked him for a few tips on buying real estate as an investment.
The Most Important things to consider: There are many factors to keep in mind if you are buying real estate as an investment. According to Lou, the most important thing to keep in mind is the location. If the location is a high demand area, you will have a better chance at renting out your property for a higher rate. This means that your return will be greater, and will therefore make your investment more valuable.
When to Purchase: In the real estate market, winter and summer are generally not very busy market times. This, however, should not affect your decision about buying a property as an investment. Lou suggests that your decision should not be influenced by the time of year, but instead it should be mainly based on the location and the return rates of the property, as mentioned above. He did however suggest that in today’s market, buying sooner rather than later is always a good idea, as prices are constantly on the increase. In his words, “The sooner you buy, the sooner your property will be paid off, so you can enjoy the benefits of a [fully] paid asset, sooner than later in life.”
The Best Type of Property to Purchase: There are different types of real estate that can be purchased as an investment. Lou suggests that any type is ideal for purchasing, as long as it has a great location and a high return rate.
The Financial Benefits of Purchasing as an Investment: You might be wondering just how profitable buying as an investment can be for you. According to Lou, throughout the years, real estate has always proven to be a smart and profitable investment. This is due to the passive income it generates, as well as the capital appreciation it builds over time. In his professional opinion, real estate is one of the best investments someone could ever make.
Where to find more information: If you are looking to invest in a property, and would like to know more about the area, housing prices, demographics and more, Statistics Canada offers information on various topics that may influence your decision. Many real estate websites such as the Canadian Mortgage and Housing Corporation offer information on investing in real estate as well.
Now that you have a few more tips from one of the experts, it is a great time to consider buying a property as an investment. Be sure to check out the homes that Falconcrest offers by visiting our website!Tags: Buying Real Estate, Falconcrest Homes, Investing in Real Estate, new homes, Real Estate Investment, Real Estate investor