Real estate is a tangible asset that cannot fully depreciate under any circumstances. At the same time, periods of both rising and falling prices in the real estate market are common. This means that the investor will not necessarily be able to sell the apartment for more than he bought it. But you can rent it out and get a tangible raise.
Advantages of investing in real estate
- Real estate is a material value. This means that no matter how the price changes in the housing market, it is impossible to completely lose the savings invested in real estate. The property may go down in price, but it will still be in value.
- Real estate can be rented out and make good money on it. Rental prices around the world are quite high, and Belarus is no exception. “Extra” apartment can easily bring its owner another pension or even a salary – depending on the area, location, and other qualities – per month. In this case, the income will be regular and guaranteed. Thanks to the rent with a high degree of probability can be offset and the potential losses associated with the risks of falling prices of apartments.
Features of investment in real estate
- High initial capital. Real estate is expensive, which means that the potential investor must have a significant amount of money. It is not affordable to everyone.
- This is a long-term investment. Buying and selling real estate is a rather time-consuming process, which also may require additional costs. Selecting a decent apartment is not an easy task, and profitable to sell it is not always easy. With real estate it will not work like with currencies or stocks, where today you bought, tomorrow sold, and the day after again invested in something. Deals can take weeks and months, and in addition, to complete them and get all the necessary documents you will have to pay at least a few public duties, and at most – and pay a hefty commission to the agent who can accompany the process of buying or selling.
- The cost of preparing the property for rent. To successfully rent out your apartment, you will most likely have to invest in it: to make some cosmetic repairs, buy some furniture and appliances. Of course, you can find almost any type of accommodation at the rental market – without maintenance, and without the “stuffing”. But the price depends a lot on it. If you intend to rent an apartment for many years, you should probably initially spend some money to equip it with everything you need, and over time – to repay the costs through rent payments. Here you should think it over carefully and calculate how everything will be profitable. Also it is possible that from time to time you will need to continue investing money in the improvement of your accommodation, even if you initially make repairs and equip the apartment with all the necessary equipment.
- Taxation. Another possible additional expense of investing in real estate is taxes. There are several taxes, which may need to be paid. First of all you will have to pay a so called “property tax” once a year for the very fact of owning the property (if you own more than one apartment).
Thus, despite its attractiveness, investment in real estate will not suit everyone because of a number of nuances, which must be understood and taken into account.
Buying real estate in Canada
Buying real estate in Canada., the investor can make repairs and sell the property at a higher price or rent it out. If desired, the investor can live in the purchased home. In any case, U.S. laws provide many versions of the income from real estate. Moreover, the price of real estate in recent years is increasing by about 10 – 15% a year.
Investment Real Estate in Canada
- Residential houses and apartments
- Commercial and industrial buildings
- Plots of land for development
- Different types of real estate income in Canada.
Instant gains from buying a property at an undervalue that can be sold for more.
- An increase in the price of a property due to renovations.
- An increase in the value of the property due to a general increase in prices.
- Dynamics of income growth of citizens, affecting the increase in the demand for real estate.
- You can buy real estate in Canada without leaving your home country. The transaction is conducted by the company or agent representing the investor.
Warrant for the property can be mailed to the owner. Manage real estate, that is, to collect rent, repairs, accounting, tax deductions and provide utility services can be trusted to companies that specialize in this service. The cost of their services is 10 – 15% of the rent.
What to buy?
It is more convenient to invest in an apartment than in a detached house. Apartments are more likely to be sold and rented out. Apart-complex, or at least a share of it, is preferable to a separate apartment because of the cheaper cost.
Even if the share of the investor is only 10% of the total investment of all owners, no decision will be made without his consent.
Than to buy a house in good condition, it is more profitable to buy a property in need of repair (for example, you can have your garage repaired by GTA Garage Door Repair https://garagedoorrepairon.ca/). The more expensive the repairs, the higher the sales value of the building will be. We appreciate quality and are willing to pay big money for it.
