Simply put, investing in real estate is smart and there are many advantages and benefits, depending on the location, how long you keep your properties and the value at which you buy in. It can be one of the most lucrative and safest investments you make. Here in Canada, and more specifically, in the Greater Toronto Area, the real estate market is robust and there are ample opportunities to invest in a primary residence, a vacation property, or to generate rental income.
Here are five key advantages of investing in real estate:
Real estate values increase over time.
You’ve heard the old adage: location, location, location. As the most important consideration when investing in real estate, it is certainly one of the top reasons real estate values increase and one of the most important points to research if you are looking for swift appreciation in value.
The GTA is one of Canada’s most active housing markets and year-over-year, the average selling price of real estate increases. In November 2021, the Toronto Real Estate Board reported that the average selling price for all home types combined was $1.1 million – up by 21.7% compared to November 2020. The condominium and townhome segments had a lower average price point, but still experienced acceleration in price growth, according to the report. https://trreb.ca/index.php/market-news/market-watch ]
Real estate offers a lucrative, predictable and safe place to invest your money.
In Canada, investing in real estate is one of the safest options for those looking to increase their net worth. Investments can range from land to residential to commercial properties and there are plenty of options that result in lucrative, predictable and safe outcomes. The real estate market is robust across Canada and in places like the GTA, homes are seeing appreciation in value on a month-to-month basis.
According to an article in Canadian Real Estate Wealth magazine, even if you plan on living in your investment and making it your principal residence, your property will increase in value over time and you’ll get a decent return on your investment – especially if you undertake projects that help increase value like finishing a basement or renovating and updating your kitchen. These updates can be helpful if you’re looking for an investment that will expand your portfolio and net worth, while also helping others by providing options in Canada’s competitive rental market. With a selection of real estate options here, these opportunities present a safe, predictable and lucrative places to invest.
You can take control of your investment.
There are many ways you can control a real estate investment. Finding the right location, where property is undervalued and has potential to appreciate is one lever you can pull. Another one is finding a property with low taxes and you can also engage financial experts to help you access a lower interest rate to keep your costs low and your return-on-investment high.
With real estate, you can sell and realize your returns. The best way to gauge what your property could be worth is to watch what else sells in the neighbourhood. Keeping track of comparable real estate will help you keep control of your investment and help you make an informed decision about buying and selling.
It thrives with a booming economy.
Real estate in a booming economy like Canada’s is a sure bet. A smart investment begins with research and when deciding to buy a residential property, it’s important to decide what type of home you are looking for and where you want to invest. Some questions to consider are: who will be living here; what do you want in a community; will someone else live here and what would attract them to the area.
Across the GTA, there are many choices. From condominium suites to townhomes to semis, to single family homes and luxury estates, you can find it all. If you are interested in new construction homes, your investment will begin to appreciate right away. In most communities, the lowest price you will find for real estate is in the pre-construction segment.
Your investment supports the community.
Canada is growing and the major metropolitan areas, like Toronto, are challenged to keep up with the demand. While the market is thriving and abundant with options, you can purchase property at a good price. Consider buying a property in areas that are undervalued as their prices will be lower and the rate of growth will be higher.
Investing in areas where there may be fewer amenities is an investment in the community. As more people come to the area, more amenities like shops, restaurants, recreation centres and parks will follow. Buying in these areas also boost the economy and help smaller neighbourhoods grow into vibrant centres.
In the case of new construction and investing in a new community, your investment supports the growth goals set out by local government. They plan for people and homes. Investing in a new construction home will get that community built faster, along with a variety of planned amenities nearby. This also helps the surrounding communities and brings more businesses, services and amenities to serve the larger population.
Investing in the Future
Investing in the real estate market can be an exciting decision and it’s one to do with a team of experts who can advise you and provide the most up-to-date information to help you make the best decision for your situation.
Seeking help from a professional in the real estate market and a financial expert can set you up for success. Doing your research on the type of property that would make for a smart investment and the right location for your goals is also important.
There are many advantages and benefits to investing in real estate in Canada, and in the GTA, there is an abundance of choice. Understanding the market and investing in your future supports the community’s growth while generating returns for years to come.