What is real estate investing? Real estate investing is investment in which you actively own a property. There are different ways to invest in real estate, but to name a few: owning your principal residence, owning a rentalproperty, and/or house flipping to increase value of your home. There are many more ways, but in this article I will discuss those three as I feel they are the most popular among Canadians.
The classic approach in investing real estate would be to own your principal residence. When you buy your primary home, not only are you buying a place to live, but are also thinking long-term. Instead of paying your landlord’s mortgage when renting, you’re now paying your own mortgage. You are the landlord! In order to buy your own property, there are a few things to keep in mind. A big one, you’ll need to save up for a down payment. First-time homebuyers can withdraw up to $25,000 from an RRSP toward that purpose. For those who aren’t first-time homebuyers, the TFSA is the next best place to save for a down payment.
House flipping can bring a major profit, if it is done correctly and professionally. With a house flip, you buy a “fixer upper” with a lot of potential, renovate it quickly, and then sell it for a big profit. To improve your chances of a successful house flip, you’ll want to look for a property that requires some TLC cosmetically (painting, upgrading fixtures, flooring, etc.), but doesn’t have any major faults, such as structural issues or a leaky basement. Although, it looks fun on HGTV shows, it is important to remember, house flipping can be a daunting task and you need to absolutely be sure you are up for the challenge. Not only is it best to sit down with a realtor after you are done with your fixer upper, it is highly recommended that before you buy the property you get it prescreened to make sure it can be resold. More details!
If you are worried about house flipping or risks associatedinvesting in rental properties is the way to go. While a rental property is an active investment, you can choose to be as involved as you like or not. You can manage it yourself as the landlord or hire a property manager to deal with the tenants.
Investing in Condominiums
Are condos a good investment? Simply, Yes! It is by far one of the more popular real estate investments in cities. Vancouver cityhas over 700,000 people and condos are being built more often than house.
Condos such as the West End Condos or the Coal Harbor condominiums are just a few examples that can give you the city luxury that you or your tenants would desire. Buying in areas that people want to live in will guarantee real estate investment success. Location is everything! The areas that are not well serviced by the public transit, restaurants, cafes and businesses are not going to perform nearly as well. Buying high-end quality and a unique condo can also bring in great resell value and a bang for your buck. Learn more details at: https://www.pwc.com/ca/en/industries/real-estate/emerging-trends-in-real-estate-2020.html