Frequently Asked Questions

Buying Real Estate

Toronto Real Estate Buying Myths Busted

We pride ourselves in always being open and transparent with all of our clients. Here are some of the most asked questions, along with their answers. If you have a question that you do not see here, please do not hesitate to use the form below to ask us.

What is real estate investing?

Real Estate Investing involves purchasing properties which appreciate in value over time. For Example, if you purchased a home in July 2016 for $ 500,000 , by July 2017 your home would be valued at $525,000. You can check the latest real estate market statistics for more recent figures. Additionally, you can rent the property out, which would cover most of your mortgage and taxes, making one of the most profitable and stable types of investments.

How can real estate investing be profitable?

There are 3 key components that will affect your real estate investment profitability:

  1. Your credit score – A better credit will yield a lower interest rate, which means you get to keep more of your gains.
  2. A high down payment – We recommend a downpayment of at least 20%. This will ensure you do not need mortgage insurance and that your monthly mortgage payments will be lower. The more money you can put down, the better your monthly cash flow will be.
  3. A good property – This is where knowing the market comes in. Different properties appreciate at different rates, and yield different rental incomes. You can study the market yourself, or you can speak with a qualified real estate agent to determine the best real estate investment strategy for you.

Should I sell or rent?

This depends on your long and short term goals. Renting your property for longer periods will allow yield a higher total return. You can then leverage one property against new investments. You can repeat this process as often as you can afford to.
If you are looking for a quick payout, you can rent your property out for one year, then sell it at the end of the year and keep the difference.

How can I acquire financing?

You can acquire financing through your bank, or through our network of specialized mortgage brokers.

How can real estate investing be profitable?

The profitability of your investment is directly related to the amount you can put towards your downpayment, the location of the property, the type of property and the real estate market.

What are the risks with real estate investing?

As with anything real estate investment does not come risk free. The risks include market crashes, damages from tenants, poorly paying tenants. A real estate agent will be able to help you minimizing these risks, by pinpointing the best times to buy and sell, helping you find solid tenants and providing you with answers to questions.

How can a real estate agent help me with real estate investments?

A real estate agent could be the difference between a successful investment and a loss. Real estate agents advise you on the best properties that you can purchase, the best time to invest, and they can help you find a reliable tenant.

How long do I have to keep a property for it to turn a profit?

The longer you keep the property, the more profit it will yield, given a steady market growth. You can check our market stats for market trends or you can talk to us and we can advise you on the best strategy, given current market trends.

Are new construction condos profitable or risky?

They are both. New construction condos typically sell at discounted or VIP prices. The risk with pre-construction condos is that the Developer will not be able to raise the capital to begin or finish construction of the project. In order to minimize the risk, make sure you choose a developer with a portfolio of successful projects. We can grant you early access to pre-construction condos, giving you access to exclusive VIP pricing. This will give you an edge over the regular year over year growth in your property’s value.

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