Investing in real estate in Etobicoke, Toronto, and the GTA is seen as a reliable way to build wealth, derive steady income, and accumulate equity that can be withdrawn at a later date for profit.

While we specialize in real estate buying and selling, a lot of our clients are investors looking to buy investment properties in Etobicoke and the surrounding area. The pros and cons of becoming a real estate investor in Toronto is an important list of factors to weigh.

As much as it can be very profitable, investing in real estate has to come with very careful considerations and strategy.

Did you know? Etobicoke is one of the best spots in the GTA to buy real estate! Click here to learn why.

Pro: Long-Term Appreciation

Buy real estate in the right neighbourhood and at the right time, and owning this property can lead to appreciation and significant gains when it comes time to sell.

To make this work, however, it relies on selling at the correct time and having the freedom to wait for the opportunity.

Con: High Upfront Costs

The initial costs to buy a property are high and the capital required to buy in can put you at risk if you’re not prepared.

When you start to manage two or more properties, you run further risk of high costs if unexpected repairs and/or emergencies present that require you having to produce a fix.

Pro: Derive Rental Income Monthly

As a real estate investor buying properties to use as rentals, you can receive a steady stream of income monthly.

This is regular cash flow you can use to cover expenses in your portfolio as well as reinvest in future properties.

Con: Property Management Takes Time

To get that rental income, you have to become a landlord. This is time-consuming. It can be stressful dealing with tenants and following up with maintenance.

As an alternative, consider hiring a property manager to oversee these aspects.

 Considering a real estate investment? Check out these other blogs for helpful tips.

Pro: More Control Over Your Investment

Unlike stocks, bonds, and mutual funds, you can add more value to your investment at your leisure. It’s under your control.

This includes making improvements, conducting renovations and repairs, and increasing property value through strategic updates.

Con: There Is No Liquidity

If you need to withdraw your investment fast, such as in the case of an emergency, you can’t.

You have to contend with what the market conditions are at the time, economic volatility and downturns, and a wide array of factors. Sell at the wrong time and you may barely break even on your real estate investment or worse.

Selling a property also takes time which means you have to be ready to sink your funds in and let them appreciate in value without the expectation of needing to withdraw them any time in the near future.

Pro: There Are Many Resources To Learn

As a new real estate investor, the best advice we can give is to study.

There are lots of resources to get educated on Toronto real estate, investment strategies, how to carefully manage financial planning, property types, and locations, and community information.

If you’re looking to invest in a Toronto property or Etobicoke real estate, reach out to the experts in buying and selling at Adrian + Andrea. Call us at (416) 319-6893 or email info@adrianandrea.com today!