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Don't wait to buy real estate, buy real estate and wait. 

– T. Harv Eker

When it comes to sound investments, there’s still no better place to secure and grow your money than real estate. 

If the last few years have proven anything in the investment realm, it’s been that real estate, even in the midst of unprecedented times, remains a machine in constant motion, with no signs of slowing down. 

Many of the greatest stories of wealth in history have shown us that, while the variables and “players” may shift and change, the core theme remains: land and property continue to be the most secure forms of financial investment. 

Let’s explore a few key questions you may have when looking into real estate investment in Ontario:

What are my options as far as real estate investment?

In short: limitless! But let’s narrow this down to spotlight a few different and popular investment routes you might consider:

1. Buying a “fixer-upper” property

Are you the DIY-type by nature? Do you enjoy - and have the time for - a large-scale project? Are you patient, creative and handy? If so, than a property project like a “fixer-upper” may be the investment route for you!

Not every investment property needs to be shiny and new! In fact, many investors choose to live in their existing fixer-upper properties through any renovations to save on the cost of carrying a second property or shelling out rent for an interim place to stay. Properties of this nature are typically older and in need of updates and varying degrees of TLC - but this also means that the property will be priced in a way that reflects those added factors and considerations. This generally translates into a more affordable investment price point, making it an especially attractive option for first-time property investors. 

For all the pros of this investment option, there are considerations like Capital Gains (a tax owing if you fail to live in the property as your primary residence for the required period of time prior to selling). This article from MoneySense does a great job at detailing everything you need to know about Capital Gains tax in Canada. 

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2. Leveraging your current property in order to buy a second

If you’re already living in a property you own, it’s possible to leverage your existing property as an asset in order to secure the necessary financing for a second property. Using this property as a rental will allow you to cover the costs of your mortgage, property maintenance, etc. As property values continue to rise, your investment will grow. 

However, rental income properties come with their own unique risks and considerations. Not to mention, the importance in having the financial cushion for any unexpected issues with the property itself or renters. When planning an investment of this nature, it’s especially important to save and prepare for the unexpected, in order to equip yourself with the “rainy day” insurance you may need through the process. 

3. Commercial properties

Commercial properties require a significant initial financial investment, but to that end, are able to offer returns in the form of steady income streams. This is owing to the fact that rental contracts for commercial properties are longer-term, with higher rental fees, resulting in higher returns for investors. 

Also, given that the properties are being used for commercial purposes, your tenants are more likely to take better care of the property and keep it in good condition, as it’s in their best interest for their duration of use. 

Where can I buy income property in Ontario?

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It’s up to you! This is entirely dependent on your needs, budget, and personal areas of interest. 

Once you have your specifics narrowed down, your real estate agent can help you in locating properties that best align with your investment aspirations, as well as strategizing next steps. Inventory is always a variable that lies outside of your control, but if you are clear on what you’re looking for, represented by an experienced realtor, and ready to jump on the right opportunity once it becomes available - you’re already ahead of the game! 

Remember, real estate investment should be approached with long-term goals in mind. Your initial investment may seem steep, but the benefits over time will be worth the wait. Building your equity, profiting from rental income and tax benefits for investors are just a few of the reasons why real estate investment continues to be such a solid and lucrative avenue for financial security and growth. 

So what makes the difference between those who find success in real estate investment, and those who struggle to find their groove? Patience, for one. Timing is everything is the real estate market - and while you may not be able to pinpoint the “sweet spot” for every purchase and sale, you should enter into every investment with the knowledge that “return” doesn’t happen overnight. 

Having the ability to strike while the iron is hot on prime real estate opportunities is only half the battle. The other major component is time. Do you have the bandwidth and financial flexibility to let your investment sit and grow in value? Are you able to shoulder any unexpected market turbulance without having to unload your investment? If so, then you’ve already positioned yourself optimally as a real estate investor. 

Not quite there yet? Not to worry! With some careful planning and research, and the knowledge of an expert in the real estate realm, you’ll soon be ready to make the greatest investment of your life. 

Royal LePage Connect Realty is an independently-owned Royal LePage franchise, servicing Durham, Toronto, York and Peel regions.

Contact us today to connect with a member of our team, who can provide you with everything you need to know about becoming part of Your Community Realty!

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