You may be wondering is it a good time to invest in an income property? This is a question that I get asked all the time. Prices have been on the rise in Toronto and surrounding area and may potential investors question whether they have been priced out of the market.
The answer to this question is …. it depends. It is more about investing in the RIGHT property than it is timing the market. This is not dissimilar to the stock market. If you buy good stocks in good companies it has proven to be a good long investment
The same goes for income properties. Buying the right income property is and has always been an excellent long term investment.
The right income property is one that generates positive cash flow. This means that when you take the revenue in generate in rent and subtract all your expenses (mortgage utilities, and taxes) you are generating monthly income. The monthly income is your cash flow.
There may be more opportunity in smaller communities such as Guelph, Barrie, Cambridge and St Catherine’s to generate positive cash flow. In these smaller communities prices have not increased at the same pace as Toronto, however rents are not too dissimilar to Toronto. Therefore generating a positive cash flow may be easier.
I look forward to previewing a few of these communities and the opportunity for attractive income properties’ with you. In fact, one that I find the most attractive is Guelph where properties are more affordable and rents relatively high.