Investing in Real Estate Toronto
If you are like many prospective home owners, you may look at owning a home or property as not only a dream come true, but as an investment. Like any investor, you are also going to want to see a return on this investment.
Investing in real estate can be a tricky business, which is why many people turn to Realtors to help them make those important decisions they are unsure of. In an “easy come easy go” market like real estate, having someone in your court who knows what they are doing can help you make the right decisions. You do not want to be making a large sum investment in real estate only to have low returns.
Leading analysts and investors will tell you that a portion of your portfolio should be in housing assets. However, when investing in real estate you need to understand that it is a long term commitment and will not make you rich over nigh. Instead, patience pays off in investments such as real estate.
Many investors have most of their net tied up in their homes for which they are currently paying off the mortgage. This translates into a bulk of your net worth localized into your home. However, there is more than one way to invest in real estate.
Secondary Properties as investment
In Toronto, there has been a reported 18% fall in condo sales year over year, meaning that last year around the same time, condo sales were 18% greater. This indicates a move to home ownership or other property investment.
As the city continues to expand, so do condo buildings. You will notice them popping up all over the city as they fill the skyline, but who is buying all these condos? There are a shocking large amount of them unsold, which doesn’t seem to worry developers as they continue to build them. It begs the question, with all these unsold condos; will that not affect their value? The answer is yes.
Supply and demand, simple economics would indicate that with an overabundance of condos readily available, they lose their commodity value and therefore will decrease in value. Perhaps buying a semi-detached, townhouse or detached property as investment would make more sense over condo. If you have the cash maybe commercial property? Each client is unique, therefore the situation needs to be analyzed per client bases to make a better judgment about investment property.
That is not to say you should not invest in condos, it just means that you should not expect an immediate return on purchasing such a property. You should always work within a budget, and perhaps for you, owning a condo is not only what you want to do but what you can do at the moment. If this is your case, consider the fact that you may need to reside there for a longer period of time before you see a return on your investment.
Having a Realtor at your side will make all the difference. They can help you not only locate the real estate you are looking for but even suggest other options that perhaps had not even crossed your mind.
Sean Azim has been in the real estate business for years and as a wealth of experience assisting his clients make the right decisions. Whether you are buying or renting, looking for the long haul or to make a quick buck, Sean Azim knows how to achieve your goals.Continue Reading