When the time comes to move on from your home, your first instinct may be to head to the market and sell it. However, for homeowners in the GTA, the continually rising demand for rental housing provides a unique opportunity for investment.
Rather than selling your home, converting it into a dedicated income property can help you earn remarkable rates of passive income while allowing the property value to continue appreciating over time.
Intro to Real Estate Investing
Holding on to your first home as an investment offers several benefits over selling it.
- You can continue growing your wealth and equity as your property appreciates in value.
- You’ll earn passive income each month by renting out units in your home.
- Later on, you’ll have the option to reclaim your home or sell it at a significant profit.
In the Greater Toronto Area, real estate is one of the best investments you can make. Despite temporary fluctuations in property values, they consistently appreciate over the long term.
As Canada’s hub of culture, business, and economics, the city is always growing – creating an endless demand for rental units. As a landlord, you’ll have a vast pool of prospective tenants to choose from, and the risk of your property sitting vacant for any length of time is low.
Whether you’re looking to upgrade your lifestyle or invest, real estate in the GTA makes an exceptional asset. Explore these blog posts to learn more.
- Leveraging Your First Home to Buy Your Next One
- Why Toronto Real Estate is a Wise Investment
- Why You Shouldn’t Wait To Move Up
Your Equity’s Purchasing Power
When you bought your home, you acquired a strategic investment asset that would grow in value and help you solidify your financial future. What can you do with this equity you’ve built over time? If you want to keep your first home as an income property, you can take out a home equity loan to fund the down payment on your next house.
Owning two properties doubles your equity potential, which can lead to even more financial stability a few years from now. Once you begin receiving rental income, you can carry the property at little to no cost – or, if planned strategically, at a profit.
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Risk Management
Compared to other investment vehicles, real estate is relatively safe. Even if market prices stall or drop temporarily, as they have in the past year, it’s extremely unlikely that a property will lose its value long-term. While every investment path with carry some level of risk, it is possible to minimize and mitigate some of the uncertainties.
By working with an experienced real estate team who understands the nuances of investing in Toronto, you can maximize your investment at every stage. Among other advice, an agent can assist you in converting or modifying your home, tenant sourcing, financial planning, and offering long-term guidance around landlord duties and property management.
Looking to sell your home rather than convert it? These resources will help you maximize your results in any market conditions.
- How to Get 100% of The List Price on Your Toronto Home Sale
- 7 Important Steps To Prepare For Selling Your Toronto Property
Building & Optimizing Your Investment
How complicated will it be to convert your existing home into an income-generating property? The answer depends on the goals you wish to achieve. If you plan to rent to a single family, a few minor renovations can make your rental unit appeal to potential tenants.
To optimize your home’s income potential, you may decide to convert it into multiple units. With a few larger-scale modifications, you can create separate suites within your home. To further maximize your use of the property, a finished basement can also be converted into a legal secondary suite. Additionally, under Toronto’s new guidelines, you may also be eligible to construct a laneway or garden suite if you wish.
If you’re looking to create a dedicated income property, Bahia Realty Group can guide you through the process of converting your existing home. Or, if it better fits your goals, we’ll assist you in acquiring a strategic investment property from the market.
By leveraging our decades of experience and expertise, you receive an immense competitive advantage as an investor.
Bahia Realty Group can help you make the most of the incredible opportunities the Toronto real estate market offers. Send us an email or call 416-498-3444.
