Real Estate Quotes

Lenders have done a terrific job when it comes to marketing of mortgage refinances, especially through the home equity line of credit (HELOC). One worthwhile purpose to a refinance is if you are using it to produce an income stream. Investors refinance their property to invest in the market, buy a business, or buy another investment property with an income stream. Investors understand that if they take out a loan on a home, they should use the proceeds to invest in something that can generate a higher return now and in the long run. If they cannot find such an investment, then they simply leave the equity in the home. [2022] - Brighton Gbarazia

What has been happening in the Toronto and Vancouver housing markets literally cannot go on forever. Home prices in these cities might remain high, but future increase in those prices will eventually moderate. [2021] - Frederick Vettese

In big cities like Ottawa and Toronto, multi-unit income properties are very hard to come by for under $1 million. However, in many small towns, you can find some for a fraction of the price with actual rents that are not that far off the big-city numbers. Many small towns in Canada are contracting in size and very little money is put into infrastructure. On the other hand, some small towns are still growing, long after their main economic industry changed (e.g. a growing retired population). You have to find a property that's in distress and far from its potential. And then work hard... That's the simple formula. [2021] - Rejean Venne

The best way to buy your first investment is to see exactly how much you can afford, and if possible, pick a great location from there. Location is key so if you are able to get into the best location you can afford and sacrifice a little space I would encourage you to do so. I always suggest starting with a 20% down payment. This way you don't pay the Canada Mortgage and Housing Corporation (CMHC) fees and it's a substantial amount you're putting down which will reduce your mortgage payments. [2021] - Shazia Virani

If you want about $200,000 per year (depending on the income and your lifestyle) - let's say approximately $16,666 per month - this could potentially be achievable through approximately 10 properties or so. You'll need to pay expenses to net this amount, so if you double it to be safe, you've covered all expenses, then this may mean you need close to 20 properties. You can put all your eggs in one basket or your could spread the funds around. I tend to spend around $300,000 to $400,000 as this is my comfort level. They appreciate less than something around the $600,000 mark could, however I prefer the lower risk and the ability to spread out my dollars to more areas. [2021] - Shazia Virani

Once you own a property, the bank will give you funds on a line of credit secured to your property. In some markets, you can find properties listed between $300,000 and $400,000, give or take. If you put down 20%, you're looking at $60,000 to $80,000 (you'll also have to budget for closing costs). if this property is cash-flow positive - meaning perhaps that you'll be able to rent it out and make money - it's a great find. if it carries itself with the taxes, maintenance fees, and the mortgage, then you're also in good shape. If you need to buy a cheaper property, then do so, just get in the game. [2021] - Shazia Virani

Here is a potential structure of buying a new build: 1) $5,000 on singing the contract; 2) In the first 30 days, you'll give 5% of the purchase price; 3) Within 90 days, you give a second 5% deposit; 4) Within 120 or 180 days, your third deposit is due which is another 5%. 5) On occupancy, your final 5% deposit is due for a total of 20% down. Many builders take two to four years to close, so you really have quite a bit of time to save for the final 5% deposit and closing costs. This is the route I chose with my first few properties. [2021] - Shazia Virani

In order to separate things in life and make sure I'm saving money for my next investment, I have many different bank accounts. I have an account for each of my properties which allow me to see expenses on each separately, pay bills separately, and pay maintenance fees and collect rent on each. My accounts include house savings account (for my next property), current home mortgage account, tax account, spending account, retirement savings account, property accounts (they are all separated to watch the income and expenses) and Chanel purse account (which is what I call my fun reward account - this account gets the least amount of money and only if there is a residue in income). [2021] - Shazia Virani

The cap rate is the ratio between the net income and original price. You get this by dividing the net income by the property's purchase price and it's expressed as a percentage. I look for 10% and higher (if possible), which is difficult to find in Toronto. In the US, where I own additional properties, it's not as difficult to find; it's much more common and that's why I also like purchasing homes there, for the cash flow. [2021] - Shazia Virani

There are good associations out there for landlords (tip: join one!). There are also great books out there for landlords such as "Landlording in Canada", but here are a few points to consider: 1) Good credit; 2) Job security (steady jobs); 3) References (from employers and past landlords); 4) Long-term timeline (less wear and tear). You'll want to find a tenant who takes care of your investment and keeps it in good condition for you (hopefully very clean as well). Follow your gut instincts when picking tenants. If you have any doubts at all, it's not worth the risk. Once you secure the right tenant you'll want to increase the rent yearly where allowed.  [2021] - Shazia Virani

Once you or your tenant move into the property, have the property reappraised and have the bank give you a line of credit against the home. Get the maximum line possible and decide where you want to invest it, when you're ready. Once you have your next property, you can put the potential positive cash flow into a savings account where you save another down payment for your next property, or you can pay down your line of credit to reuse it. If you can naturally save money and don't need to tap into this line, then do not, as you are still paying interest on it when you do, but it does allow you growth options. Repeat, perhaps once a year or every two years, whatever your plan may be. [2021] - Shazia Virani

The important thing is that we keep moving when we know it's the right move. Not many that I know of provide the appreciation that real estate does. And you don't have to pay taxes on it if it's your primary residence. When you take a line of credit, if you position if properly, there is an option to pay only the interest portion. If you are looking at a property in a high demand area and feel the prices will go up, you could buy now on your line of credit and pay the line of credit off as you are able. The appreciation on the property will likely increase more than your monthly interest payments. [2021] - Shazia Virani

Before purchasing a condo, you should check the status certificate in areas where this is a package given by the condominium corporation showing the current year's "health" both legal and financial - of the condo. This outlines the reserve fund, checks whether there are any legal issues, and looks at the budget. This is something that a lawyer can assist with and is usually a condition in an offer, as before buying a condo you want to make sure the entire building is healthy as a whole and major changes aren't currently predicted which could impact the current buyer. [2021] - Shazia Virani

A great location for investment will generally be a central location close to many amenities with a high walk score. Some buyers will only buy in neighborhoods with high walk scores, and will pay more for this convenience. (Check out WalkScore.com.) I'm someone who is willing to take a risk and who is open to taking chances on forecasted upcoming locations, so I'm open to bet more on real estate location. If you're thinking about putting money in on a growing location, do it as soon as possible, then you can watch it grow for longer. [2021] - Shazia Virani

The best way to determine market value is by looking at similar homes with similar attributes in the same location. We usually use the last 90 days in our market to determine market value. You can take a look at the price per square foot, a technique often used by investors to determine value, along with the cap rate. As a standard benchmark (and only to give you an idea - this is not firm and also varies depending on what market you're in), having a 10% return on your investment is considered good. You must also look at things such as location, current cash flow, potential cash flow, potential appreciation, and how much needs to be invested into the property. [2021] - Shazia Virani

There are places in Canada that still offer affordable investment options and that are currently growing. Places in Ontario such as Hamilton, Niagara/St. Catharines, Barrie, Kitchener, Brantford, Durham, Peterborough, and London to name a few, have options which are currently more affordable and where growth will come. [2021] - Shazia Virani

Reducing your amortization and paying off your mortgage quicker is an amazing way to eliminate interest which not many people practice. Without mortgage payments, you see more disposable income you can use towards purchasing your next investment, or whatever you want really. [2021] - Shazia Virani

Be aware that there are usually extra costs associated with new builds (such as putting in window coverings and light fixtures for example). Always have your real estate agent and a lawyer review the Agreement of Purchase and Sale and tell you the exact costs you're looking at and add them up so you're aware of closing costs. You also want to make sure you work with a reputable builder and have your representation when purchasing a new home. Remember using a representative is important. Buyers don't pay commission but if they do not use representation, this could cost big bucks. [2021] - Shazia Virani

For rentals, any upgrades need to be durable and timely so that this can last from one tenant to the next. Painting and changing floors and light fixtures is an easy way to spruce up a property quickly and without spending too much money. [2021] - Shazia Virani

Vacation homes are a great investment for the right investor. In some areas, with fantastic weather year-round, you could potentially expect to have many people interested in renting the property throughout the year. The return on these types of properties can be higher, however the risks may also be higher. With vacation properties, there will be increased cleaning and property management costs, the need to purchase furniture, advertising, and you'll most likely see more wear and tear. It's also more difficult to run with vacancies as the purpose of this type of property is to have it rented for a large portion of the year, which will not be as easy as singing someone to a one-year lease term. [2021] - Shazia Virani