Investing in property within the Greater Toronto Area is a great idea, and a wonderful way to build wealth. While the GTA is one of the premium real estate areas in the country, owning property and becoming a landlord has its own unique challenges. Here are some of the ups and downs of owning property and a look into the things you need to consider before becoming a landlord.
Investing in GTA property helps you build wealth
The main advantage of having a property in Greater Toronto Area is that it actually builds you wealth. Property prices historically tend to go up, so you’re almost guaranteed to get a good return, which is exactly what makes this a standout opportunity thing to begin with. However, be sure to speak with a real estate agent before committing, there are often many factors to consider that could affect the future pricing when you do decide to sell or rent.
There is always appreciation
Yes, since property prices always go up, appreciation makes a huge difference. Be wary of the market however, and do you research to ensure you’re not buying into a bubble or being swindled into a property that may end up losing money in the long run. When you’re buying to rent, also ensure that you can get quality tenants and save you headache down the line.
You only lose money if you’re going under what you sell
When the time comes to stop being a landlord, you do need to stick to your guns and maintain the right price point. Unless you’ve put significant money into the property throughout its duration, you’re only really going to lose money if you sell below what you’ve bought. While in today’s market this is unlikely, always ensure you’ve consulted your real estate agent before making any big commitments either way.
Finding good tenants can be a challenge
Unfortunately, being a landlord, and not only in the Greater Toronto Area, comes with its own set of challenges. Yes, you will find tenants, but not all of them will be good tenants. Many of them could end up being problematic, from unpaid rent, to constant noise complaints and more. As the landlord, you’re also responsible for the property upkeep – so tenants that don’t respect your property could induce more spending on your side when it comes to renovations or general upkeep. It takes time and effort to find the right tenants, even if it seems simple. But at the end of the day, that’s where you get the right results and value.
Are you in a rush?
Sometimes, getting bad tenants can result in huge headaches. In the worst cases, this could come in the form of evictions or vandalism. Neither scenario is pretty, and its your job as a landlord to vet tenants before you sign any long-term contracts or agreements.
Being a landlord comes with its own set of challenges and benefits, however the experience can also be a great one. Investing in property to rent is a great way to build wealth, especially in a housing market like the one in the GTA. Remember to always consult your real estate agent before making any big decisions.