There may be a lot of you who are gearing up to get into the market and purchase an investment property and there are some factors to take into account when looking to purchase an income property. Here are my 4 things to look for when choosing an income property!
Public Transit Access
More and more people are using public transit. Your modern renter prefers to commute and run errands using public transit so capitalize on this by considering properties with close proximity to transit lines. Also remember, transit lines are here to stay and units on transit lines appreciate substantially more in terms of capital appreciation. Also look into the future, if you haven’t already checked out my past article on the approval of 4 new transit lines in the GTA, you can see that here!
Proximity to Employment Districts
Picking an investment property that is close to employment districts is extremely important. Your renter is likely browsing units that are close to their workplace because no one wants to be stuck in traffic on their way to work. To ensure you have the least amount of vacancy, this is a big factor to take into play when purchasing your next income property. There are so many neighbourhoods that are within walking distance to employment districts, call me for a list of neighbourhoods that prove to be amazing investment opportunities.
Do Research On Rental Rate
Calculate your numbers! This may sound obvious but doing your research on what the going rental rate is in the neighbourhood is essential. Also making sure you know exactly what costs are involved and calculating your monthly cash flows/expenses. You make most of your money in the capital appreciation in the Toronto Real Estate Market and it can provide very healthy returns on your investment; but also making sure you know your monthly revenue and expenses is an essential practise to your success in investing in Toronto Real Estate.
In Depth Understanding Of The Future Of The Neighbourhood
Think of Real Estate as a long term investment. You can make a lot of money in Real Estate but make sure you have an in-depth understanding of the neighbourhood you are investing in. Look at future developments that have been proposed for the area, look at transit lines that have been approved, look at new infrastructure, retail developments, streetscape improvements, and everything else that shapes that neighbourhood. Make sure you know the neighbourhood and the potential for greater capital appreciation so you make a calculated investment. Yonge and Eglinton is a prime example of this. Someone who invested in that neighbourhood many many years back are now seeing tons of value in the appreciation of their units as this neighbourhood recently became one of the most popular uptown destinations.
Real Estate is a big investment and can be tricky to understand the potential of every neighbourhood. Speak to an expert who can break down all these things for you and guide you in the right direction of a unit that will provide exponential capital appreciation as well as be appealing to your tenant. Call me for more information on some of the best neighbourhoods in Toronto!