Many people have at one time or another wondered if real estate is the right investment for them when trying to grow their own personal wealth and assets. So, is real estate a good investment in today’s market? And if so, how can our law firm help you with your investments?
As with any potential investment, doing thorough research and examining all your options is always very important. You need to properly understand the risks involved and avoid working with lenders and companies that use questionable practices. Investing in real estate won’t be for everyone.
If you are fortunate to have some money you can spare, buying property will be the most direct and hands-on way for you to invest in real estate. However, purchasing property involves a lot more than simply making a purchase and holding on to it.
Here are a few ways to invest in real estate:
1. Purchasing and renovating a home
We’ve all seen those TV shows where they purchase an older home in need of some tender loving care and will fix up and renovate the place in order to increase its value. Once the home is ready, they can then sell it for more than they purchased it earning them a nice profit in the process.
2. Rent-to-Own a Home
Rent-to-own is a tactic where you will sign a contract to rent a home for a pre-set period of time with the option to purchase the home once that time expires. Often, that option is a requirement that shows your intentions to buy the home in the end.
3. Purchase and lease
You can purchase a home with the intention of renting it out and using the money you receive from monthly rental payments to cover your mortgage. Once you have finished paying off your mortgage your monthly rental income becomes profit. Another example of this would be purchasing a duplex and renting the top or bottom half out so you can collect rent to go towards some of the monthly mortgage payments.
4. Purchasing vacation property
Since the launch of Air BNB many people are now renting homes and apartments when heading to their vacation destinations instead of booking hotels. This has created many opportunities for purchasing property to rent out on sites like Air BNB and make a nice profit on.
5. Purchasing commercial non-residential property
Purchasing commercial property like buildings can be a great way to get in to real estate investment however it can also be one of the more expensive options. Although long term you can potentially make a lot more on your investment there is a higher entry cost and more risk associated as well.
Investing in real estate can be a great way to expand your wealth and increase your assets but you need to make sure you can afford to get involved. Investing with others or as part of a group can also be an option which will lower costs and spread the risk out more evenly among everyone involved. This will also reduce your profits as you will be sharing them with everyone involved in the purchase. Whatever you decide, always remember to do your homework and research so you know what you’re getting in to.
For any questions or concerns about investing in real estate in and around Montreal and how our law firm can help you reach these goals, visit our website or call us for a free consultation. We can help you along every step of the way.