I’m asked this questions almost daily it seams, most of my clients that own a home never thought about investing in Toronto’s vast income property marketplace. They’re happy with the fact that the market has continued to appreciate at a fast pace and that their home is building equity, but here’s the thing, most home owners don’t know that they can leverage the equity in their home and buy an income property in Toronto that will yield them a high return on investment. That’s the power of real estate.
Having said that, is buying an income property really for you? well, I’m not going to lie and tell that you won’t have some bruises along the way with tenants and maybe constantly having to improve the buildings state of repair, but having issues no matter what you do is part of living. No business opportunity doesn’t come with challenges. Just imagine how many people go to work everyday and hate their job. Freedom 55 or even earlier is possible if you’re smart with your approach. Having a sound plan before you jump in and having an exit strategy is also just as important.
Believe it or not, it’s really easy to build a second, third and even fourth stream of household income by just simply taking the plunge and investing in multi unit homes. The biggest issue is with most consumers that have the ‘Will” to invest is that they’re just not confident enough to take the risk or should I say “they only see risk” and that’s a shame cause historically real estate has always yielded the best return when assuming a risk factor.
Home owners who bought their first home a decade ago when Toronto real estate prices were more inline with consumer affordability have a huge advantage in todays market because of all the equity they have built.
Maybe one might argue that they don’t want to deal with tenants for the next 25 years or so, but if you’re organized and run a properly set up property management plan you won’t have the issues that you’ve created in your own mind. Property Management is like no different then executing a time table for tasks to be completed, being organized is the secret to success with tenants, the other trick is being transparent, listen and respond to whatever complaint, big or small. I guess you need to ask yourself if you want to build wealth- real wealth can you become more organized and more patient? if you can then real estate might be just for you!
The first and only major piece of advice I can share with you is learn everything you can by people or organizations that own investment properties, speak to an accountant or a real estate lawyer and even commercial Realtors will be able to guide you through the decision process. One way of gathering all you need is to attend real estate workshops or seminars from those who actually provide value, not those that wanna sell you something. Also take your time, there is no rush, breathe and absorb all you can!
After all, we’re talking about money, your money