While not for everyone, there are ways to make income through property investments and speculation in Ontario. Making money in real estate is a time-honoured pursuit, but it’s not a sure thing. One should never leap blindly into any real estate transaction, but there are those who have had success in one or more of the following categories that some potential investors may have overlooked.
A small, or individual commercial property can be an attractive investment for some, perhaps more so for someone who intends to use a portion of the space for his or her own enterprise. Attracting renters to any residential space that may exist in the building, or leasing to other businesses, can generate income from the property itself. Upgrading and/or renovating the building can add value for a future sale. Potential buyers are warned, however, to be wary of biting off more than they can chew financially.
For those with a bit more money to invest, strip malls and apartment complexes offer great potential dividends. A good investment will require research to assess the neighbourhood and how it’s trending, but a well-tenanted building will continue to generate income long after it is paid off. Of course a long-term investment requires long-term commitment; a rundown building will not attract or keep tenants.
There is always an element of risk in any real estate investment, but for many, the potential profits make the risk worthwhile. Some of the keys to success include patience, research and of course hard work. Before taking the plunge, however, it may also be smart to seek the assistance of a lawyer who understands real estate law in Ontario. That kind of help might help a buyer avoid possible pitfalls on the path to real estate income.
Source: The Globe and Mail, “Five ways the wealthy become wealthier with real estate“, Dianne Maley, Feb. 2, 2017