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Can You Get 400% ROI From Investing In Toronto Condos?

Originally posted on: March 28, 2015
Last updated on: June 15, 2016
Filed under: condo investment investment financials toronto condos new condos real estate investment roi condo deals pre-construction condos

ART SHOPPE CONDOS RELEASED - BREATHTAKING RENDERINGS

Originally posted on: February 18, 2015
Last updated on: February 18, 2015
Filed under: art shoppe condos midtown condos midtown yonge and eglinton yonge and eglinton condos new condos toronto condos art shoppe art shoppe condo

Hold your breath Yonge and Eglinton buyers. Art Shoppe Condos is coming to midtown

Originally posted on: February 6, 2015
Last updated on: February 18, 2015
Filed under: art shoppe condos midtown condos midtown yonge and eglinton yonge and eglinton condos new condos toronto condos art shoppe art shoppe condo

Our 5 Favourite New Toronto Condo Developments Of 2014

Originally posted on: January 29, 2015
Last updated on: January 29, 2015
Filed under: monde condos new condos toronto condos condos toronto condo yc condos 50 wellesley alter condos code condos forest hill yonge college yonge wellesley east bayfront waterfront condos toronto waterfront

Seasons Greetings | Merry Christmas & Happy New Year

Originally posted on: December 25, 2014
Last updated on: December 31, 2014
Filed under: 2015 new year 2015 year christmas merry christmas love joy gift giving seasons greetings thank you holiday holiday season grateful best wishes

Investing vs Flipping? Best strategies for investing & building your Real Estate portfolio.

October 8, 2012 - Updated: May 28, 2013

Building your Real Estate Portfolio
 
In the current market condition, people now more than ever want to take control to ensure that they have a secure future.
 
I believe that one of the best ways to guarantee your financial independence is by developing a real estate portfolio.
 
Although there will always be price fluctuations in the marketplace, investing in real estate has proven to be one of the safest long-term investment strategies.
 
As a full time and experienced Remax Realtor, I can help you navigate these waters to create your real estate portfolio and find the best investment opportunities.
 
What is an investment property? 
 
Real estate market is dramatically changing and one has to adapt to the changing market to get the best results. In the late 1990s, investors started buying property and only held on to them for a few years. They were capitalizing on rapid appreciations in the housing market.
 
This investment style is known as flipping.
 
While this was - and to a degree still is - a popular strategy. I don't think it fits with today's current market conditions.
 
Flipping is extremely risky and is basically gambling in the real estate market. I would never recommend gambling with your hard earned investment capital.
 
I believe the key to building long-term wealth is by looking for value investments and creating a diverse real estate portfolio.
 
For people who did it right, flipping created good short-term gains. However, I don't think these types of risks are worth it, especially when there are better options.
 
Think long-term
 
My next door neighbour bought rows of townhouses in the 1980's. Those units are now paid off and the monthly rental income now is generating a significant income for my neighbour. He is in his late 50's and is retired. I have seen similar example in my own family. 
 
Starting early and consistently building your portfolio with new properties is the best way to build long-term wealth. As your mortgage decreases you will start to earn on your investments.
 
Not only does rental income provide a stable return on your investment but property values consistently increase so you will always have a secure asset. I believe that this option is a much better alternative to gambling in the real estate market. 
 
Finding value in pre-construction units
 
The reason why I specialize in the pre-construction market is because of the opportunities for developing long-term profitable investments.
 
These units are sold at discounted prices during the VIP launches, which mean you have the opportunity to see a better return on your investment. Being one of the first investors in a condo unit allows an investor to have their pick of units instead of having to conform to the marketplace.
 
The following are some features to look for when developing your portfolio:
  • Convenience – Properties close to shopping centers, parks and restaurants are major selling feature for renters.
  • Atmosphere of the neighbourhood – The more vibrant the area the easier it will be to find potential renters. Universities are always great areas to look for investment properties.
  • Access to public transit – This is a major selling point for renters who probably don’t have access to a vehicle.
  • Building Facilities – A Modern and stylish building with top-of-the-line amenities could allow you to charge a higher rent, which would increase your return on investment.
  • Best Value – Purchasing a unit at a best possible price, lower than the comparable projects in the area is a key. It could be achieved either by buying at a VIP Agent launch or at a project where the VIP Agent has a special deal with the builder known as "bulk deal" in the marketplace.

Tagged with: investment flipping gambling real estate building portfolio new condos toronto real estate
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Comments (5)

Posted by: Aaryan - Cibc Manager
October 9, 2012 @ 11:20 pm
It's about time , people understand the term Building their RE portfolio . Very sound advice Sunny. Good point made @ Ameera. Sunny, I may give you a call on Thursday or Friday .
Posted by: Rahul D
October 9, 2012 @ 11:12 pm
Great Advice ! I've been an investor for several years and has done the "Flipping" recently I've started building my assets and not flip. I see more value and my networth has increased more than expected.
Posted by: Ameera Ameerullah - Mortgage Broker
October 9, 2012 @ 11:08 pm
P.S. To add to Sunny's logic - RENT increases annually so your annual return would increase as your mortgage decrease. Always put the utility bills in the tenants name so if they do not pay, you are not liable ! Keep building assets and leverage !
Posted by: Sunny Batra of sunnybatra.com
October 9, 2012 @ 10:34 pm
Thanks Ameera!
Posted by: Ameera Ameerullah - Mortgage Broker
October 9, 2012 @ 10:13 pm
AGREE with your logic. I would certainly continue to admire the way you work and refer clients since you are trustworthy and personable. Your vision is realistic and make logical sense!

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