I found this excellent article on Money Sense About Buying An Income Property in Toronto or anywhere else in Canada for that matter.
Buying an income property in Toronto is one of the best ways to build your portfolio and the article points out that it is a similar process to evaluating a stock market purchase. The timelinemay just be longer, depending on your stock picking style .
It points out the core difference between an investor and a speculator who simply flips property as quickly as possible often not making much in the process.
I hope you find it valuable.
Buying An Income Property In Toronto
For those adventurous enough to get into real estate investing, Don Campbell, president of the Real Estate Investment Network, says it is possible to get a yield that either equals or exceeds many dividend-paying stocks, not counting the price appreciation on the property. He explains the key to being a successful real estate investor is to approach it the same way as you would a stock. In other words, look at the fundamentals, invest for the long-term and own something that pays decent dividends.
That’s the difference between an investor and a speculator, he says. An investor analyzes markets, looks at economic indicators and doesn’t care that much about whether housing prices rise or fall. A speculator buys a house with the expectation that its price will increase and then sells it to make a quick buck.
As an investor, finding the right property takes work; it’s not a good idea to buy another house on your street just because you like the area. Campbell says that investors have to look at a plethora of economic data, including an area’s job market, GDP growth and infrastructure developments. He adds it’s also important to consider for any new developments in a neighbourhood that could make it more popular, like a hospital or subway.
to read more of this article you can go to How To Buy An Income Property.
The article further points out the value of buying in a high demand area which commands higher rents. If no one wants to live in that city or neighbourhood you may have high vacancy rates.
That’s why Buying an Income Property in Toronto is so valuable. Although prices are higher rents are also much higher and vacancy is almost nil assuring you much greater success with your real estate venture when Buying An Income Property in Toronto.
My Toronto Home Buying An Income Property In Toronto