If you’ve decided you want to learn how to invest in real estate rentals in Ontario, congratulations! You’ve made the first big step. Even if you’re not sure if real estate is the right investment for you, taking the time to educate yourself is huge.

 

Every investment should be taken seriously, but real estate tends to be a larger commitment than most and often seems the most daunting. There are many types of properties, it’s difficult to know what’s right for you. There are also horror stories - no one wants to be a landlord dealing with nightmare tenants. But how do you avoid getting yourself into one of these situations?

 

The first thing to know when looking at investing in real estate is that there are no certainties. No one can say for certain if there will be a massive drop in house prices, or if they’ll start to skyrocket for years to come. Likewise, no one can guarantee that nothing bad will happen to your property, or that you won’t have difficulties with your tenant. However, there are ways to set yourself up to help maximize your chances for success.

 Where to Invest in Ontario

One of the first factors for success is picking the right location. Ontario is a great place to invest in real estate. There are plenty of opportunities, and there’s no “one” right place, but there are a few main criteria to use when determining if a city/neighbourhood is a good investment opportunity.

1. A Community that has Growing Demand. 

Why try to create demand when you can just go to an area with growing demand? Take a look at the numbers on the Stats Canada website. It will take minimal investigating, and it’ll go a long way to telling you if a neighbourhood is worth looking at.

 

Another aspect of demand comes from the type of property you’re looking to invest in. If you’re looking to own student rentals, proximity to campus and transit are key features which will increase the number of potential tenants.

 

Starter homes are another property type that is in consistent demand. While a starter home may look different in different communities, there’s a higher need for these types of properties.

2. A Community that has Higher than Average Income.

Income is a big indicator of the prosperity of a neighbourhood. Generally, higher household incomes mean strong job diversity in the area, a solid local economy, and a greater “staying power.” 

 

You want to make your investments as simple as possible, and an area with multiple sources of employment creates a healthy and active real estate market. It provides a good base of tenants, first-time buyers, and “move-up” buyers.

 

This is another thing you can figure out by looking at Stats Canada. Many real estate apps also offer quick demographic insights into the local region.

3. A Community with New Transportation or Infrastructure Projects.

Is the city investing money in the neighbourhood? If so, that’s a great sign. Infrastructure improvements are good indicators of increasing demand and value. Small projects like cleaning up streets and parks, and repairing roads, to large investments like adding transit, sewage work, hospitals, etc. are all things to look out for when searching for an area to invest in.

 

There are many “target areas” for you to choose from. And as long as you remember to focus on growing demand (population), higher-than-average income (diverse employment), and new transportation and infrastructure projects you are setting yourself up for success.

How to Invest In Ontario

There’s risk with every investment, but generally, the shorter the investment period, the greater the risk. There can be large payoffs with short-term investments like flipping properties, but there’s also a higher chance of losing.

 

There are many investment strategies investors use, depending on the investment that makes sense for them. That being said, regardless of the strategy, it’s important to have a long-term plan in place. What if you need to hold onto a property for longer than planned? How can you survive and still profit from a longer-than-expected investment? If you’re prepared for the long term, you’ll be able to weather a lot of potential bumps along the road.

 

There are many other things you can do to set yourself up for success. You’re already starting one of the most important steps, educating yourself. Continuing your investment education will help you devise better strategies, prepare for the future, and maximize your profitability.

 

Another way to better prepare yourself is to build a team of experts who can assist you. Having an agent who specializes in investment properties, a good lawyer who deals with real estate, contractors, and property managers are all contacts you’ll want to have handy.

Real Estate Investing is a real business, and you must treat it as such.  From finding the right mortgage broker/lender, to making sure you have a good home inspector, lawyer, contractor or property manager, to finally, working with a real estate agent who knows the ins and outs of investing in real estate, it’s important to treat it like a business.



 

If you are thinking about becoming a real estate investor yourself, or you are already an investor and would like to leverage your current investments into more properties, or you are looking to sell one or more of your investment properties, give me a call at 905-683-7800.  You can also email me at brian@briankondo.com.
 




I’ll be your personal guide and walk you through every step of the investment property buying, maintaining and/or selling process.  

My team and I are here to help you with all your real estate investment needs.




 

Thanks For Reading Today’s BLOG!

If you would like to see any of my previous blog posts, please click here.

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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