By Eleni Akrivos –mtltimes.ca
At some point in your life, you probably considered investing in real estate either as a long term or short term project. With all the “reality real estate” on television, showing you how easy it is to “flip” a house and make a profit, no wonder everyone wants to get in on the deals! Are there really deals to be had right now? And are these deals the right thing for you? Deciding to invest in real estate means many different things to different people – it all depends on your experience, comfort zone and your goals.
Is “flipping” a home still possible?
If you dream of buying a property at a rock bottom price, renovating it and selling it at a profit, then you have the “flipping” bug. Many contractors and “do-it-yourselfers” fall into this category. In the Greater Montreal area as well as surrounding North and South Shore, these opportunities are scarcer since the real estate market has stabilized overall. There will always be opportunities however for those who are motivated and know where to look. A distressed property in a neglected condition, or a bank repossession could be an option. These properties do come with certain legal implications such as being sold without a legal warranty for example. Work with a real estate broker who will help you spot a potential profit, with the right property, neighborhood and price, you may still be able to turn a profit on a flip!
Is rental income worth it?
On the flip side, those of you who are thinking more long term and perhaps receiving a rental income, may be wondering what is a better investment, a plex, an apartment building or perhaps a condo unit. Taking on the role of a landlord is a big one – it is a job which entails various skills. Of course your budget and desired goal along with your personality type, will dictate which investment property is right for you. If you are starting out, I recommend sticking to a multiplex preferably under 8 units. There are different views on how to manage your multi-plex. You can choose to make improvements every year to the building, updating rents accordingly, or you can choose to maintain everything as is, and let the market value work for you.
Although real estate values do fluctuate, it has shown to provide a positive return for investors. As long as the investment type matches your financial and personal goals. Always look at this investment over a period of at least five years or more.
For more information on investing in real estate contact Eleni Akrivos, Chartered Real Estate Broker at 5146804674 and check out our properties for sale at www.northeastrealties.ca