While becoming a millionaire is not guaranteed in the real estate industry, we can give you a few pointers that will get the wheels turning on how investment in real estate and first access can get you there.
Many people will buy single family homes and raise their children in them, in hopes of one day being debt free from “paying off the house”. This is all well and good, but when it comes to risk versus long-term rewards, we say take the risk!
There are three options when taking the risk to invest in real estate:
Option 1: Buy a property, or properties, at the best deal possible that are fixer-uppers, work your revitalization magic on them, and rent them out to worthy tenants. This will generate a monthly cash flow, which is the money left over once all expenses on the properties have been paid. For example, if rent paid from your tenant is $3000, and expenses are $2000, your monthly cash flow from that property will be $1000. If you own multiple properties, let’s say 5, you’ve made about $5000 for the month.
Option 2: Buy a property, or properties, hold on to it letting it appreciate in value and selling when the market is thriving. Held properties, most of the time, double in net worth due to inflation and appreciation. If you were to invest in multiple properties, gave them time to appreciate, and sold them when the market was hot, you could then possibly use that profit to pay off the family home early.
Option 3: Buy a pre-construction condo: Condo investments in Toronto are ever increasing due to the boom of business in high metropolis areas. The upside that waiting could render, if you have the resources to wait, is that during that time the condo and the surrounding area will appreciate in value, and you could be sitting on a potential goldmine.
One of the most useful bits of information that we can give you in real estate investment is to hire a property management team. This will take the work load off of you, the investor, to allow you to save the time and energy to concentrate on finding more lucrative investment properties for upcoming pockets.
So, if you are looking to buy a real estate for your personal living or looking for a condo as an investment then feel free to contact Arshad Hussain, a trusted name in Toronto’s real estate market.
