How To Invest In Etobicoke Real Estate The Smart Way

Investing in real estate can earn the average investor thousands of dollars in passive income every year. Regardless of inflation, this is a fairly standard rule as it applies to the best of the best in the real estate investment game.

If rents keep pace with inflation or outpace it, it produces a near inflation-resistant investment.

From multi-family apartment buildings to condos, single-family detached homes, and similar property types, the Greater Toronto Area is an opportune place to invest.

How you invest in real estate matters. Just like any type of investing, there are assets that won’t produce the same growth or have the same long-term value as others and it is still very possible to lose money investing in real estate.

Here is how to invest in Etobicoke real estate the smart way and to strengthen your return.

Invest In Neighborhoods With Long-Term Growth Patterns

Trendy neighborhoods come and go based on who is living there or who is investing in the property.

Look for neighborhoods that have long-term growth patterns and where there are fundamentals in place suggesting property values will continue to increase for the foreseeable future. Ideally, you also want to ensure you’ve got a strong demand for rentals in the area where you know you are likely to find high-quality tenants.

Adjust The Rent Every Year When You Think It’s A Fair Increase

If your property is under rent control, every year you skip a rent increase, it can set you back in terms of profitability.

You can’t predict when property taxes may rise or what repairs may need to be done. When you can and you believe it to be fair, take advantage of legal rent increases to ensure you aren’t losing money.

Get more investing resources with these posts next:

• A Guide to Flipping Houses in South Etobicoke
• Is Being a Landlord in South Etobicoke Hard?
• Property Management in South Etobicoke

Have Additional Capital At The Ready If/When Needed

Real estate requires significant upfront capital to invest in. From there, you don’t know what additional expenses may come up so do have a portion of capital remaining at all times in case you are legally required to handle a property issue.

This is where a lot of investors falter, especially when they own multiple properties.

Consider Assigning Landlord Duties To Someone Else

Just because you’re the investor does not mean you have to look after landlord duties.

Especially if you’re investing in a multi-unit dwelling, consider having a property manager handle all repairs and upkeep. This way, you’re not over-investing your time or effort.

Be Ready To Wait Long-Term With No Liquidity

Investing in any kind of real estate is an illiquid investment. To access your money and the return, it’s going to take time to accumulate the return and then time to sell. A considerable amount of time. If you require your money returned quickly, it will be near-impossible to do without potentially a loss.

That said, if you can wait for when the market provides opportunity, there’s a chance to make a sizeable return.

Etobicoke has proven to be a great place to invest, offering a lower buy-in than other parts of Toronto. While also demonstrating long-term growth and similar growth rates to other parts of the GTA, an investor can purchase properties in South Etobicoke and the surrounding area, and generate a lucrative return with the right strategy. This sort of undertaking, however, requires a careful eye and expert guidance.