Finding the Best Investment Property
Investing in the Toronto real estate market is one of the wisest financial decisions you can make – but it all starts with finding the right investment property for your budget and your goals. If you dive in too quickly without doing your research, you could end up owning an unprofitable property that drains your money and energy. The right investment property, on the other hand, can be a road to financial bliss – especially with the help of a Toronto property management company like Simplified Rentals. Let’s explore the key components of a quality investment property:
The Right Neighbourhood
An investment property’s location determines many things: the purchase price, the property taxes, the rental income, and even the ease of finding new tenants. For example York University Heights will always be a hot bed for student renters. An investment condo in downtown Toronto will attract high-earning young professionals, while a single family home in Etobicoke will appeal to a young family. If you choose a neighbourhood that attracts student renters, you may have to deal with more routine vacancies and maintenance compared with a single family home with stable tenants. Of course, with a Toronto property management company all of the legwork is taken care of, so the choice is yours.
The Right Property Taxes
Beyond the price, you need to be aware of property taxes. Property taxes will vary based on how popular the neighbourhood is, the quality of schools, and access to city services like police, fire, and waste management. Be alert when hunting for the right investment property – you may get lucky and find the perfect house just a few blocks away from your target with significantly lower property taxes.
The Right Schools
As you might expect, if you want to rent to university and college students you should be located close to a school, or at least within a quick bus/subway/Go-Train ride away. If you are targeting young families, then the closer you can be to a strong elementary school, the better. Additionally, if you decide to sell the home in the future, this proximity to transit and schools will be a positive for buyers.
The Right Profitability
With an investment property, you want to turn an overall profit (ie: sell the home for more than you bought it). Ideally, you also want to turn a monthly profit (ie: bring in more in monthly rental income than you spend in mortgage, taxes, maintenance, and assorted expenses). It doesn’t matter how nice the property is or how awesome the location – if it doesn’t make you money, it’s not the right investment.
Additional factors you’ll want to think about include low crime rates, proximity to major employer hubs, and amenities in the neighbourhood. Once you find the right investment property, Simplified Rentals can handle every aspect of management and help increase your ROI to ensure you have made a wise investment.