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Toronto Real Estate Investment Options

If real estate investing in Toronto is where your interests lie, there are many available avenues that you can take. Although there are many risks to consider, real estate investments have consistently been a maker of millionaires around the world. It is one of the industries known for helping investors build massive fortunes quickly. The idea with real estate investment is to diversify your investment portfolio in order to safeguard against the inherent risks within this business.

Commercial real estate in Toronto - Although you may not have thought so, this can be a wonderful place to begin your career as a real estate investor. Commercial real estate happens to be a relatively secure investment when you compare it is compared to other categories within real estate. One of the biggest drawbacks, which prevent many investors for entering into this area, is the huge financial commitment one will have to make. The upside to this type of investment is the ability to have businesses with long-term leases which usually extend longer than a residential lease.

House flipping in Toronto – This is by far the most familiar and popular form of real estate investment options. But even though the potential for profits are vast, but the money that can be spent on flipping can spiral out of control quickly. If things go well, the money you can make could mean financial freedom; if things don’t go well, you could just as easily end up with broke. It will be up to you to decide if the risk of entering the house flipping arena is a gamble you are willing to take.

Residential rental properties – Being someone’s landlord may not be the most glamorous title to hold, but this can be a nice way to set yourself up for retirement. With this option you are not looking for quick pay-off; this method is more like the marathon (flipping would be like a sprint). Long-term, if you’ve got the patience to deal with tenants and their problems, owning rental properties can have tremendous profit potential. It is definitely worth looking into if you as a potential real estate investment option.

Pre-construction real estate – When it comes to pre-construction, there can be a lot of risks – even more than house flipping in some cases. It is, however, a part of the real estate investment market that has gained in popularity over recent years. The most important thing when it comes to investing in pre-construction real estate is to find the right property at a time when the market is right, this can be tricky. One good idea is to find a property in a city that is on the verge of a housing shortage; under these circumstances, odds are that you will have good results – although there are no guarantees.

Lease or rent to own purchases – With a lease or rent to own there are usually opportunities to have a higher level of profitability. There are several reasons why a real estate investor would want to choose this option over just renting out their properties. First, for renters who would one day like to own their own home but can’t afford to do so, this option is a desirable option. With this option the rent you charge is usually a little bit more because a portion is going towards the purchase and the rest is designated as a rent payment to the landlord. This area of real estate investment that can give you a warm feeling just knowing that you can be in a position to help a family without a lot of financial resources be able to achieve the dream of owning their own home.

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