Real estate investors in Toronto have found some smart – and low risk – strategies to get a good return on their investment. Investing in Toronto real estate property is not for those seeking to "get rich quick.” But with a little patience and some good advice, an investor can make serious money.
First, an investor has to decide how much involvement he/she wants. Investing in real estate can be a full-time occupation for some; others want only one or two properties as a hedge against inflation. You may want to start small, and build as you go.
Next, learn the tricks of the trade. A good real estate broker can be invaluable to an investor. A broker knows the market, and the specific Toronto neighbourhoods where property values are high, or are likely to rise due to ongoing gentrification. Look for a broker or real estate agent who understands your requirements, and who can work with you on a continuing basis. He or she can help you develop a plan for getting involved in the market.
One strategy might be to seek out property that is being sold quickly because of divorce or foreclosure by a lending institution. Often these homes will be auctioned off publicly at a lower price than other similar properties. (Be sure to have a good home appraiser check out the property first, to make certain there are no big repairs necessary.) Once you own the property, it's likely you'll be able to resell it fairly soon at a higher price than what you paid for it.
Another way to maximize profits is to look for houses that need cosmetic repairs. Often these are slow to sell, and owners may be happy to let you have the property at a reduced price. Sometimes a coat of paint or a new floor -- and some professional staging -- is all that's necessary to turn a run-down eyesore into an attractive home.
Some investors find a lawyer who specializes in selling houses for clients under special circumstances, such as the death of an owner. Often these homes are less expensive, as the family simply wants to wrap up the estate details. With a little sprucing up, such properties can fetch a good resale price.
Over time, you should be able to build up a team of professionals that will help your investments grow. These might include a broker, who will have inside information about markets and neighbourhoods. You'll also need at least one attorney, for legal documents and title searches, and possibly another lawyer or legal firm to let you know about estate sales. Another important member of the team should be a good home appraisal expert, who can help you make sure the property is sound and worth what you're considering paying. You will likely need to know a few tradespersons, such as cleaners, painters and plumbers, who can help to repair and fix up homes that need a facelift. A professional home stager can make your property look beautiful, adding thousands of dollars to the asking price. And of course, good relationships with personnel at lending institutions are crucial.
With a little research and a bit of capital, real estate investment in Toronto can be your key to success!