11 Apr Conventional methods of real estate investment
Many people have this in top of their head ‘I want to invest in real estate’. There are so many different ways one can participate and invest in real estate. Here are some of the conventional and well known methods of investing in real estate.
These approaches have paid well when used wisely and smartly. These conventional methods have given good or rather awesome return on investment in recent times in Greater Toronto Area as well as Greater Vancouver in Canada.
The very first one of the conventional investment method is buy real estate in upward trending real estate market, hold it for some time (rent it someone or live in it). When the condition is right and put it back on market and get benefits of price appreciation.
Second one is best suited for those who wants to get their hands dirty, love playing with tools and fix things. This does not leave out everyone else, only caveat is one should have better access to funds. How to gain access to more funds is altogether another ball game. So, the second one in the line is buy a property where there is room for improvement. Do proper market research and analyze the numbers. If numbers do add-up to show net gain in entire process of buying, fixing and selling; it is a good investment.
The third one in the line is ‘Make my money works for me’ category. Here you put smallest possible down payment to buy a rental property. What are the qualities of a rental property is the another important consideration. So, once a small down payment has bought you property, you keep collecting rental checks (cheques). The rental income takes care of the mortgage, maintenance and even provide you positive cash flow, thereby building equity in the property.
The fourth one in the line which is one of the recent and popular method for investors has been to book a residential unit with builder when they announce a new project. Book a unit, pay as per scheduled payments and wait for occupancy/closing. Some of the projects do provide Assignment Clause, whereby one can assign their own right of buying the using to other individual(s). The rising price trend benefits you by assigning someone else, or buy it and then sell it in open market. See new condos projects available in Greater Toronto Area.