If you’re hoping to invest in the real estate market for the first time, congratulations! It’s a terrific choice! Real estate is one of the most lucrative places to put your money. However, it can easily turn into an investment disaster if you’re unsure about the process, the market, or the type of real estate in Toronto that you’d like to purchase. Many newcomers to the real estate market can face a few challenges when looking to invest. Thankfully, the experts at Merenda Real Estate Group have a few tips and best practices for those who are hoping to put their money into the real estate market for the first time. Here are the investing dos and don’ts you need to know before you move forward.
Do Consider a Long-Term Investment Strategy
It’s important to remember that real estate isn’t a get-rich-quick scheme. If you’re hoping for your investment to be a primary source of income with a return on your investment in a short amount of time, it’s time to rethink your strategy. The best way to approach real estate in Toronto is through a long-term lens. When you find the right property, your best bet is to hold onto it for as long as possible. Sit back and watch the value of your property grow while your renters pay off your mortgage. While you won’t be able to live off your investment right away, it will have the potential to grow into a great source of soft income with retirement perks.
Don’t Fall for High-Priced Luxury Properties
A big mistake that a lot of investors will make is falling for high-priced luxury properties with the hopes of big returns. High-rise condos or luxury townhomes can be priced so high that you’ll find yourself working against the flow of the market. In addition, these luxury developments will normally have a lot of extra fees due to lavish amenities. Even if you had the opportunity to pay it off, you’ll still be faced with high monthly costs to just maintain the property. You want to aim for more realistic investment opportunities, especially if it’s your first time investing in the real estate market.
Don’t Invest with Unknown Developers
When you’re jumping into the real estate game for the first time, it’s a good idea to stick with reputable builders, contractors, and developers. It can be easy to be persuaded by a new company that’s buying up half the neighbourhood and promising to fill new properties with tenants. Keep in mind that it can be a bit risky to take a chance with inexperienced developers.
Do Consult with a Trusted Real Estate Agent
The most important thing to remember is that you shouldn’t make your first investment alone. Work with a real estate agent in Toronto that’s well-known, trustworthy, and experienced. If you think you’re ready to make your first real estate investment, contact the Toronto property professionals at Merenda Real Estate Group. We can give you all the information you need to make a smart investment. Give us a call today at 416-240-7653 to learn more!