Three avenues you can take to make money with real estate investing.
How much do you know about the power of investing in real estate? The truth is that this avenue can be very lucrative and help you build long-term wealth. Over the years, people have gotten their start in real estate investing in various ways. Some people have rented out part of their homes, lived with their families a little longer, and worked extra hours to save up enough to start investing. However you make it work, know that the initial work is worth it.
There are a thousand different ways you can save money; you just need to get your start. Once you decide to invest, there are three main ways you can take your investment:
1. Buy and hold. This is the most traditional method. Over time, appreciation will mean that your property goes up in value. You can save up this equity; all you have to do is wait for it to grow. The best way to do this in Canada is with your principal residence, then all of your gain is tax-free.
2. Fix-and-flip. This entails buying a distressed property at or below market value and creating forcible appreciation through renovations. This method requires more work, but you can buy a fixer-upper property that has high-return potential, then take the time to fix it up. Once it’s in better condition, you can sell it for much more than what you bought it for. This method is more active and has more risk involved.
3. Short- or long-term rentals. You can buy a property and have a tenant in it for a year or more or focus on short-term rentals on sites like Airbnb or Vrbo. These are mainly for vacation rentals and are best in tourist destinations. They will include higher income per week or month, but they also entail more expenses and less stability. Short-term rentals are difficult from a legal standpoint in Canada. Also, with long-term rentals, you need to make sure you find the right tenant.
Whatever you decide to do, just make sure to be educated and not do it alone. This was just a short crash course, but I would be happy to share my knowledge and help you through the process of building wealth through investing in real estate. Call or email me anytime if you want my help or have any questions. I hope to hear from you soon!