Investing in Real Estate Canada
Many of us think of investing our income and savings in a plan that promises good returns. Mutual Funds, stocks and bonds are some of the options people look upon for investments but real estate is the most lucrative of all. It is attractive for people who want to make extra income through increase in prices over the time. It ensures that your investments will be of good value when you decide to liquidate them in the later years. Like Investing in Condos like 75 Esplanade Condos and Aquabella Condos can give you great returns because builder is best in Canada and locations are unbeatable of Downtown Toronto.
Benefits of real estate investments
Real estate investors can work with mortgage brokers and real estate agents to track down a property that is high in demand on the rental basis and that can be mortgaged on low price plan. The earnings can come from the monthly rent and knowing the yearly appreciation of the property.
This is also beneficial for people who are bad at savings. You can purchase a property at the minimum down payment possible and go for a mortgage plan that’s suitable with your investment/ income plan. This will ensure you are making a monthly payment of a fixed amount of money from your income. At the end of the term, if the market is favourable, you can sell the property and get your forced savings back.
A real estate investor should not forget the risk of investing in a real estate property. Usually the property prices soar with time and the chances of loss are pretty slim. But, odds are everywhere. Like every investment, real estate investments can go wrong too. This may include sudden fall in the demand of your property due to factors leading to its unpopularity. Factors like
- A better project at competitive rates in the same neighbourhood.
- Decreased security in the area
- Unavailability of transit services at walking distance
- Your property being a part of old project
- Property in a congested area that might make driving around a pain
- Unavailability of basic places like hospitals, schools, shopping malls near the property
- Unstable market of that particular area
Affect the property prices to a great extent. It is therefore very necessary to consider each and every factor well before making an investment in the real estate. A good decision benefits you for the life time and a bad decision might make all your earnings and investments go down the drain.
Checkout this Video by Kevin O’Leary