Real Talk!

Comparatively, the real estate market is not as risky as other investments- & the current, unpredictable state of the stock market has brought real estate back to the forefront as one of the best investments.

Property values in this province have risen continuously since the low in 1996- & Analysts predict continued growth- regardless of the bad news emanating from the United States.

Last spring, the average price of a resale home in Canada went over the $300K level for the first time. In Ontario, it was just a smidgen below $300K.

The average investor spends a great deal of time analyzing the possible return when investing in stocks, bonds, mutual funds, etc. and yet, they spend money improving their homes, investing money in this tax-free opportunity, without a thought about the potential return on the expenditure. Losses are not tax-deductible.

While the ordinary Canadian can profit (and build substantial wealth) through real estate, the improvements we make may increase our enjoyment of our home but will not automatically increase the value of it.

Whether you are a seasonal real estate investor, or a first time buyer, it pays to do some research before you make changes and improvements to your property- and a Realtor ® can provide you with important information about your area, such as:

· the maximum sale price range for the neighbourhood
· a current comparative market assessment from MLS® statistics
· suggestions for cost-effective details that may make the property more desirable
· maintenance and modernizing strategies

Right now, multi-family investments are a hot commodity in the commercial sector. Investors need to consider the fact that financing for this type of property is quite different than the usual personal/residential mortgage process. Typically, lenders will advance only 65%of the appraised value of the property when it is for investment purposes. There are, however, other borrowing options that your Realtor®, accountant and lenders may advise you about.

& what’s the number one real estate must? All together now: “Location, location, location.” Always choose a good location. You want to make sure that the property provides amenities that will appeal to prospective tenants. Remember, you can ask higher rent for a desirable location.

Do a business plan. Calculate income and approximate expenses. Obvious expenses include principal mortgage payments, interest costs and property taxes. Heating and other utilities may be the responsibility of the tenant or the landlord.

A pre-purchase inspection will alert you to the various systems associated with the property and it is important to include their regular maintenance as part of your investment. Once rented, the tenants will often assume responsibility for much of the maintenance, while you may prefer to keep control yourself.

It is really important to ensure that you have good tenants- people who are prepared to care for the property and capable of paying their rent. If there are already tenants, you will want to have a list of their names and lease information and you should reserve the right to investigate their credit history.

Assessing the risks as well as the rewards of investing will result in a well-made decision. An investor should remain as free of hype and emotion as possible, optimizing earning potential, while allowing their personal preference to determine the type of property most suited for their consideration.