Is it a good time to invest in an income property?

income property

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.

Key Ingredients to a Successful House Flip

House FlippingI often get asked if there is money to be made in flipping houses as  is witnessed and somewhat glamourized on several tv shows.   The answer is yes IF your project includes 5 key ingredients.

  1. You must select the RIGHT property and pay the RIGHT amount for the property.  The right property is one that is a diamond in the rough –  is selling for much less that other properties in the area, because it is not up to the standards of the neighborhood.   The purchase price must reflect the costs required for renovations, and the profit that you are expecting to realize for your hard work, and efforts.  The renovations should get it up to the neighborhood averages  not create the most expensive house in the neighborhood.
  2. A house flip must be treated as a full time business as it must be done right and quickly.  Time is money.
  3. Do the right renovation for the area.  If you neighbourhood commands 4 bedrooms and you build 3, you may have an issue selling for top dollar.
  4. Do quality renovations.  Potential buyers love to purchase renovated homes with all the bells and whistles however they will want to make sure that you did not cut corners just because you were flipping.
  5. If you can answer yes to the above, you are well positioned to make a nice profit from your flip!

If you would like more information on how to flip a house, please contact me My Website