Getting started with Greater Toronto Real Estate Investing: Where to buy
I often talk to people who want to start Greater Toronto Real Estate Investing but have no idea where to begin. Some begin with a Google search, some have read books, and others attend get rich quick type courses full of empty promises.
As a matter of fact, my brother has been thinking about investing for the past 5+ years as I have been continuously encouraging him to make a move!
Most recently, he got scammed into attending a get rich quick flipping course taught by an American – which might I add has very little value as I have attended at least a handful of them in the past.
Most people have no clue where to start or have no idea what is involved in the business of real estate investing. You can only get theoretical knowledge from reading; what most people lack is someone to guide them through the process.
They need someone who is experienced and who owns a few properties for a few years to give them confidence to take the next step.
Assuming they have gone through their goals and determining why real estate investing would be a good idea and also figured out they are in a financial position to buy, the next step is where to buy an investment property.
Where to buy an Investment Property – Beginning Real Estate Investing Toronto
Greater Toronto Real Estate Investing can be confusing as there are so many choices of different cities and areas with differing price ranges, types of properties and demographics to consider.
Personally, when I first started, I looked for cash flowing properties, affordability and a market which was up and coming with strong economic fundamentals.
By strong economic fundamentals, I mean good GDP growth, job growth, and access to transportation. This will eventually lead to an increased demand in rent, population increase and in turn property value increase.
The reason I picked Greater Toronto Real Estate Investing is so I could ensure my properties were a maximum of a 1 hour drive from my home.
I targeted two cities which fit my profile: City of Hamilton and City of Oshawa (see the stats in this article on why these suburban areas are so attractive!). Both have a starting price range at the time of writing this article of around $275,000 to $300,000 for a single family home in a decent area. There are some bad pockets where you must stay away from; consult with an expert Realtor to help you out.
There is no perfect place out there to invest, the key is to get in there and start. The longer you are in the market (buy and hold), the more money you will make.
Every single city has positive and negative aspects about it. I am sure there are better markets out there for capital appreciation, however, I look at the overall picture. For me, the number one MUST is that my properties cash flow positive every month.
I have been investing in Hamilton and Oshawa since 2010, and they have continued to perform beautifully. They have steadily grown every year and I can keep an eye on them with just an hour drive.
I speak from experience when I say that it is less hassle and easier to control what is happening when your investments are close by. This is why I choose these Greater Toronto Real Estate investing hot spots!
When you are in control of your investment, you make more money with less effort.