London ON Real Estate can vary greatly depending on the neighbourhood you're interested in. As a real estate investor, each market offers different benefits and challenges, from expensive neighbourhoods like North London to affordable markets like East London; therefore, it is critical to understand London ON Real Estate clearly.
Interest rates are at their lowest point in history, following a series of rate cuts by the Bank of Canada to help the economy during the Covid19 pandemic. Those with job security may find that now is a good time to invest in London ON real estate.
While open houses were put on hold during the pandemic, homebuyers and sellers relied on technology to buy and sell homes. The key to real estate investing success is selecting the right strategy and not overextending yourself financially.
A real estate investor can be anyone. If you decide to invest in real estate and do it correctly, you have a good chance of making a lot of money.
Here’s how to invest in London ON real estate.
Joint Investment
If you want to take advantage of current market conditions but lack the capital to do so on your own, consider finding a partner and pooling your resources. Make certain that the partner you choose is not financially overextended and has good credit. Request that a lawyer draught a legal contract outlining the details of the partnership.
Rental Properties
Investors in the London rental market have seen their property values rise in general over the years, while still leasing their property to a renter to earn income. Look for desirable areas near public transportation, employment, and education hubs, where rental unit demand is high and consistent. If you do the math correctly and have tenants paying rent on a consistent basis, you will have enough cashflow to cover your mortgage payments. Make certain that the rent you charge your tenants is sufficient to cover your mortgage payments and maintenance costs. Talk to your realtor about London ON Real Estate to learn more.
People using this investment strategy have been drawn to London and the surrounding area. Because it is a highly desirable place to live, with numerous lifestyle amenities, job opportunities, and close proximity to public transportation. Choose the right properties strategically to increase your chances of attracting renters.
House Flipping
There are numerous house flipping shows on television that have popularised this real estate investment strategy in London ON. This can be a good investment if done correctly, but you may have to get your hands dirty. Finding properties in the city that are priced below market value is the first step in house flipping. These properties could be undervalued because they require upgrades and renovation. To flip a house, you must see the potential of the property. Make certain that your realtor provides you with a detailed market comparison in the London ON real estate market.
If you swoop in and secure a property at a lower sale price, you will need to either do the renovations yourself or hire a contractor to do them. Strategic improvements to key areas such as the kitchen and bathrooms will increase the home's value. Stay within your budget if you want to be a successful house flipper. If the market conditions are favourable, you should be able to sell the house for a higher price than you paid for it.
Buy and Hold
Starting the home-buying process while home prices are down could be a smart move for homebuyers looking for an opportunity to enter the market – assuming prices rebound again. The pandemic temporarily halted home sales in April 2020, but activity has quickly resumed across London ON real estate markets, and prices have remained resilient, with the same expected in 2022. Having said that, there are a plethora of markets that provide excellent investment opportunities.
An investor can buy a house or condo that is priced below market value and hold onto it for the long term until the value rises again – and long-term values in London have been rising. During the time you own the property, you can rent it to tenants and use the income to cover the mortgage payments. You will eventually be able to sell the property and receive a high return on investment due to the increased value. By then, you should have paid off a significant portion of your mortgage with rental income. This investment strategy relies heavily on patience!
Choosing how to invest in London ON real estate can be difficult. You can take a simple buy-and-hold approach or embark on a renovation project and do a house flip. Consider your financial situation, the amount of time you want to devote to the investment, your risk tolerance, the local economy, and your desire for rental properties in the area. Take the necessary steps to conduct research in order to select the best investment strategy for you.
Looking for London ON Real Estate? Search MLS listings today to find you next dream home. Contact Realtown owner Yasir Khan, Sales Representative at RE/MAX.
