08 Jun Buying an Investment Property? These are the Top 3 Areas to Research.
Are you wondering if it’s the right time to purchase an Investment Property? In our opinion it is always the right time to get into real estate investing.
How do you choose the right property for your needs? We are here to help you navigate through the market to find the perfect property that meets your financial goals.
Let’s get started.
To help narrow down the most profitable investment neighbourhoods in the GTA there are three criteria to evaluate for growth potential – transportation access, job growth and positive cash flow. Purchasing according to these 3 criteria will ensure that vacancy levels remain low and the rents stay competitive.
The first factor to evaluate is the transportation accessibility in the neighbourhood. Why? Many renters in 2017 have no desire to own a car, making public transportation a crucial component in ease of mobility. Being in an area that is highly accessible to public transit will garner 10-15% premiums on property values and rents. The golden rule is to be within 800 metres of accessible transportation to be considered a premium property for renters.
The next area to monitor closely is job growth. Purchasing a rental property in an area that is deemed a hot spot for jobs and job growth is a smart decision. Keeping an eye out for new companies moving into an area or seeking locations deemed a technology hub are two great places to start. Follow the local and provincial news for approved projects that will produce jobs to stay on top of the best investment areas.
Lastly, positive cash flow is imperative in ensuring your property will take care of itself. Calculate the taxes, mortgage, insurance, condo fees along with any additional expenses that will occur and then ensure the average rents in the neighbourhood will meet or exceed that magic number. If you have a parking space it can be rented separately for an average of $150 month in high traffic urban areas.
Figuring out these details on your own can be a daunting task, and that is why the Shirriff Wells team is more than happy to walk you through the process.
Be sure to ask about our complementary Financial Real Estate Calculator – it’s a terrific way to evaluate the return on investment of any given property. We would love to get you started on your investment journey. Contact us at www.ShirriffWells.com with your questions – helping you is what we do!