I often talk to people who want to start Real Estate Investing Toronto but have no idea where to begin. Some begin with a Google search, some have read books, and others attend get rich quick type courses full of empty promises.
As a matter of fact, my brother for the last 5+ years have been thinking about investing as I always used to mention to him to get into it. He got scammed into attending a get rich quick flipping course taught by an American which I know has very little value as I have attended at least a handful of them in the past.
Most people have no clue where to start or have no idea what is involved in the business of real estate investing Toronto. You can only get theoretical knowledge from reading; what most people lack is someone to guide them through the process. They need someone who is experienced and who owns a few properties for a few years to give them confidence to take the next step.
Assuming they have gone through their goals and determining why real estate investing would be a good idea and also figured out they are in a financial position to buy, the next step is where to buy an investment property.
Real Estate Investing Toronto can be confusing as there are so many choices of different cities and areas with differing price ranges, types of properties and demographics to consider. Personally, when I first started, I looked for cash flowing properties, affordability and a market which was up and coming with strong economic fundamentals. By strong economic fundamentals, I mean, good GDP growth, job growth, and access to transportation. This will eventually lead to increase demand in rent, population increase, and property value increase. I also wanted Greater Toronto Real Estate Investing to be a maximum within 1 hour drive from GTA.
I targeted two cities which fit my profile. City of Hamilton and City of Oshawa. Both have a starting price range at the time of this writing of around $275,000 to $300,000 for a single family home in a decent area. There are some bad pockets where you must stay away from; consult with an expert Realtor to help you out.
There is no perfect place out there to invest, the key is to get in on the market and start. The longer you are in the market, the more money you will make. Every single city has positive and negative aspects about it. I am sure there are better markets out there for capital appreciation however I look at the overall picture and especially need the properties to cash flow positive every month for me otherwise it is not a good sustainable investment for me. Hamilton and Oshawa for me since 2010 have performed beautifully. They have steadily grown every year and I can keep an eye on them with just an hour drive.
Trust me, speaking from experience, its less hassle and easier to control what is happening. When you are in control of your investment, you make more money with less effort.
So until next time, happy Canadian Real Estate Investing.
Jose Jafferji, REIA