How to Create Wealth Investing in Canadian Real Estate

With costly interest rates keeping many Canadian buyers out of the real estate market, rental housing in Ontario is in increasingly high demand. 

In today’s competitive rental climate, many real estate investors are enjoying some seriously impressive returns. And, as the need for housing in the Greater Toronto Area continues to escalate in the future, these investors are set to see incredible resale values for their properties too. 

If you’re looking to grow your wealth, investing in Canadian real estate is a wise decision. That being said, there are a few important tips you should know before you head to the market.  

As a hot topic in recent years, there are a lot of myths out there about owning income property in the GTA. Click here to read our post on the 5 biggest misconceptions about investing in real estate. 

Why Now is a Great Time to Invest in Real Estate

Over the past 12 months, elevated interest rates have made mortgages more expensive for Canadians. As a result, a greater number of people are no longer able to afford home financing. This has created a record-high demand for rental housing in Ontario. 

With demand skyrocketing, market averages for rental rates are climbing too – leading to property owners earning higher volumes of passive income than ever. 

So why is now an excellent time to invest? Although interest rates are high, if you have the savings or capital to make an investment in real estate today you can take advantage of the competitive rental conditions in order to earn some remarkable passive income. This income can then be used towards your mortgage on the property, keeping out-of-pocket expenses low. 

In the future, after you’ve paid off the loan for your investment property, you’ll have an extremely valuable asset which you can then sell on the market, or use to build generational wealth within your family. 

Thinking about making your first real estate investment? Check out these helpful blog posts. 

• How Our VIP Buyer’s Program Can Help You Make a Wise Investment
• Should You Invest in a House or Condo?
• How to Buy an Investment Property in the GTA

Get Priority Access to the Best Deals

As an investor, you’ll want to think and act strategically when you purchase an income property. One of the most effective ways to get a leg up on your investment is to seek out unique property deals that won’t be found on the public market. 

Examples of these opportunities include power of sale, distressed sales, bank-owned properties, pocket listings, and off-market listings. Having access to these properties involves working with a well-connected buying agent. As part of our VIP Buying System, the Lino Arci Team offers investors priority access to a wide range of high-potential properties. On top of these deals, our experienced team provides sound guidance, proven buying strategies, and everything else you need to make a profitable real estate investment. 

Choosing an Income Property That Suits You

As an income property owner, managing your investment will require a little bit of work from time to time. Finding tenants, collecting payments, and managing repairs or maintenance, of some examples of your duties as a landlord. 

To ensure you’re equipped to handle these responsibilities you will want to invest in an income property that suits your lifestyle, as well as your overall financial goals. 

For many real estate investors in Vaughan or the Greater Toronto Area, pre-construction condo developments make the best fit. Pre-construction condo units are often located in high-demand neighbourhoods, require very little in the way of maintenance or repairs, and provide opportunities for reducing overhead costs through early access transactions. 

Pre-construction condos in Vaughan make a unique (and highly profitable) investment opportunity. Check out these blog posts to learn more. 

• An Investor’s Guide to Pre-Construction Condos
• Working With an Agent When Buying a New Development Condo
• The Ultimate Property Maintenance Checklist

Getting Your Finances in Order

Like any investment, purchasing an income property requires a well-thought-out budget. As a real estate transaction, there will be a number of additional expenses to prepare for beyond the cost of the property. 

As you plan for your investment, you’ll want to consider the down payment, closing costs like lawyer fees, land transfer taxes, mortgage costs, mortgage insurance (if required), home insurance, annual property taxes, and condo fees (if applicable). You should also keep space in your budget for certain surprise costs that may arise like repairs.

Ready to begin your investment journey? The Lino Arci Team can help you build and maintain wealth through real estate. Call our team at 416-571-2724 or email info@arciteam.com to get started.