Are you ready for an Investment Portfolio
There is a big difference between buying and selling a house, and buying and selling an investment property. While people tend to be emotionally connected to issues related to their place of residence, their involvement in a house that is intended to simply make them money is pretty cut and dried. Are you ready for an Investment Portfolio?
Residential Investment Properties
Here in Mississauga, as elsewhere, investment properties are all about cash flow and how much money they will make, and, if you have some money to put towards this kind of project, the returns can be substantial. The decision should be without emotion, purely on the return on investment also known as ROI.
Taking the First Step: If you’re thinking of taking your first investment property step, it’s important to start by getting clear on your objectives:
- Why do you want to invest in real estate?
- What are your investment goals?
- How much money do you want to make within what kind of time frame?
- How much time are you willing or able to devote to your real estate investment project?
- What’s your exit strategy – buy, renovate and flip, or sit tight for 20 years?
- If you are a business owner and you`re looking for a place for your business, how much space do you need?
- What would the cost of leasing business space be, compared to purchasing it?
- What type of investment? Commercial buildings, Detached homes, Townhouses or Condominiums
Are you Ready for an Investment Portfolio – Investment opportunities range from a vacant lot that lets you start from scratch to a 50-year-old duplex that has been rented out for years. And there are benefits and drawbacks to every situation. An existing property can often be renovated to yield better income, either by splitting it into a duplex or triplex, building an addition onto the back of the building to add extra space, or renovating to make use of space that isn`t being used.
Obviously a property that is already leased out and ready to go is a lot less work than a vacant lot that has no building on it yet. And this has a bearing on how much time my clients have to devote to their investment, as well as how soon they are likely to realize a profit.
Cash flow tends to be a long term investment with investment properties but if you’ve done your math right, you should be covering your costs and tucking a nice extra bonus into your bank account at the end of every year. And aside from the cash flow implications of investing, you’re probably going to see the value of your property increase every year as well. A good average is about 3-4 % a year, depending on where you`re located.
If a real estate investment transaction is on your horizon this year, give me a call or email me (link to email@example.com). I can help you:
- Determine what kind of investment property makes sense for you
- Get an accurate picture of the current market and
- Help you determine where your real estate investment dollars are best spent
- Pinpoint the investment location, Mississauga Real Estate or elsewhere in the GTA
Are you Ready for an Investment Portfolio?
Scott Brubacher Real Estate Broker
Royal LePage Meadowtowne Realty Brokerage
6948 Financial Drive Mississauga Ontario