Investing in real estate is one of the oldest and most successful forms of investing available to the average person. The ability for it to appreciate while providing a significant amount of cash flow every year makes it extremely desirable! In this short guide to real estate investing for beginners, we will go through some basic things that you will need to do!
1. Visiting with a mortgage broker or the bank will help determine what kind of price range you should be looking at in regards to investment properties. Having this number will allow you to narrow down your search significantly.
2. It's always a good idea to look for properties that generate a positive cash flow. This means that the rent from a tenant exceeds the cost of paying for the mortgage payment, property taxes, utilities and insurance bills and any other expenses. This can be very difficult to find in the Toronto area right now, however, Guelph usually has a few options available, which the DiLoreto & Long team of realtors can help you locate.
3. Using an experienced and proven Guelph realtor who has an understanding the real estate investing world themselves will be an amazing asset. Working with people like the DiLoreto & Long team will allow you to avoid making critical mistakes by utilizing their first-hand experience.
4. We always recommend new investors to consult with your accountant and lawyer to gain an understanding of the tax and legal aspect of investing in real estate. There are many options and advantages available that you should be aware of before investing.
5. Hiring an experienced property manager is always a plus because it removes a lot of the headaches from you in terms of monthly operations. They can assist you with any ongoing maintenance, repairs, and also many other things that involve dealing with tenants. Getting woken up at 2am to handle emergency repairs isn't very fun so we recommend avoiding this by hiring Guelphpads.
6. Investing in middle-class housing is usually your best option due to the safety net it provides. It doesn't matter if the market goes up or down there will always be a higher demand for such housing in comparison to the other classes of homes.
If you have any questions about investing in Guelph real estate please feel free to contact us at DiLoreto & Long We'd love to help you out!