First Rental Property

Hi There,

I hope you are doing well.

As I am writing this article, I am thinking about to how long it has been since I have been helping people invest in real estate.

I think it has been about 12 years.

Over those years, I have talked to probably thousands of people, and have seen several hundreds of people actually pull the trigger and buy real estate.

I don’t keep the actual number of how many people I have helped, because I am not an egomaniac.  🙂

What I do keep track of though is behavioural patterns of people…

On the whole, people generally act in similar ways.

People who take the leap and buy real estate behave in a somewhat similar way to each other.

Also, people who don’t by real estate generally behave in a similar way as well.

This of course is a tremendous generalization I am making, but hear me out.

Over the past serval years, I have noticed that people who DO NOT buy real estate are making one big mistake with their thinking process

The number one underlying mistake that they are making is:

Listening To Advice From Uneducated Sources…

Okay… so let me break this down and explain to you exactly what I mean.

1. People who are interested in buying real estate, but don’t end up buying anything are afraid.
2. I should also qualify this statement by saying that people who BUY real estate as well are also somewhat fearful.

The one major difference though between the people who buy real estate and those that do not, is that the ones that DO NOT, are tuned into the wrong radio station.  

What I mean by this is that they are listening to the wrong ‘frequency’.  They are listening to the wrong ‘sources’, and they are listening to the wrong ‘people’.

So many times, I have heard people tell me….

“I don’t think buying a condo (or home) for investment is a good idea.  I am going to get calls in the middle of the night from the tenant saying that they have broken the toilet, and that I need to come and fix it.”

Excuse me, WHAT?

Who the hell is telling people this?! (sorry that I swore…I am getting FIRED up.)

I mean, seriously.

You could make hundreds of thousands of dollars owing just one rental property in The Greater Toronto Area, and you wouldn’t do this because someone may call you regarding a broken toilet?

But wait… it gets better.

The people who are instilling fear into these would-be investors, are not people who own rental properties themselves, they are people with absolutely no experience investing in real estate whatsoever!

• They have never had a tenant before.
• They have never collected a rent cheque before.
• They have limited to no experience in the world of real estate investing.
• They ARE the worst possible person to listen to for advice.   

They are generally people who look at the glass as being “half empty.”

And then… they are projecting their concerns, fears, and worries about owning real estate onto those people that are interested in investing, and that are looking for guidance.

They tell them that now is not a good time to buy real estate, and that they should wait, and wait for the ‘bubble to burst’. 

“There Is No Bubble”

Okay… If you are from the Greater Toronto Area, there is something that you should realize sooner rather than later.

THERE.    IS.    NO.   BUBBLE.  

People talk circles around me when they try to tell me that there is a Bubble in the Greater Toronto Area (GTA) real estate market.

I can list for you major reasons why there is no bubble in the GTA market.  If I did here, this article would become the length of a small book and will probably become a New York Times Best Seller!

Seriously, if you think there is a bubble in the GTA real estate market and you believe this wholeheartedly, we could never be friends.  😉

Let’s Re-Cap

Uneducated sources (ie: people), tell aspiring real estate owners (ie: other people interested in buying real estate).  That:

• There is a real estate bubble that is going to burst
• They should wait and not buy real estate now
• If they buy a rental property, they are going to have to deal with tenants who are going to call them in the middle of the night regarding a  toilet that they just broke.  (Apparently this tenant will also want them to come to the rental property in the middle of the night to repair said toilet.)

Here Is The Reality…

The reality my friends is that the real estate market in the Greater Toronto area is going up at record levels.

The gains that the market is experiencing now, have never been seen before.

There are a number of factors that are causing this, but to simply put it, it is a ‘supply and demand’ issues.

People are coming from all over the world to live in the great rolex yacht master 44mm 116681 78211 herren silberton weises zifferblatt country of Canada, and a large percentage of these people are settling in the GTA.

Now is the time to buy real estate here.  Not tomorrow.

The next chapter in this real estate saga will be the Chapter that talks about all of the hundreds of thousands of people that are priced out of the market, and who cannot afford buying a property.

That time is coming, and it is coming sooner than I thought it would.

My closing remarks are:

GET INTO THE REAL ESTATE MARKET NOW.

To your success!

Neil Uttamsingh

ps: I am a Real Estate Broker and a VIP Realtor.  I specialize in pre-construction projects and residential resale in the Greater Toronto Area.  I have access to over 100 new condo projects all over the GTA.  Sign up  to receive special builder DISCOUNTS and INCENTIVES that you cannot get from going direct.  To your success

pps: If you found this article helpful, you should probably read this one as well…  How To Make Money Buying Pre-Construction Condos

ppps: Also, this one.. How To Make Money Buying Real Estate In Toronto

Hi There,

I hope you are doing well.

Today I would like to talk about how you can make money buying real estate in Toronto.

More specifically, I am going to touch on how to make money in real estate by investing in the Greater Toronto Area.

For those of you that are familiar with the current state of the Toronto real estate market, the title of this article may appear to be the most useless title ever.

Useless as it seems that “EVERYBODY AND THEIR MOTHER” is making a lot of money buying real estate in the Toronto Area now…

Is this true?

For the most part it s.

Is it true in all cases?

Definitely not.

I would like to share with you some important points to consider that will allow you to profit the most when you buy real estate in the Greater Toronto Area.

Before I begin, for those of you that are not familiar with what is happening currently in the Toronto Real Estate market, I recommend you do a Google search, or two, because Toronto and the surrounding areas is THE place to invest in real estate NOW!  To say that the real estate market here is on FIRE, would be an accurate statement.

#1) “Location, Location, Location”

So this is probably the most popular real estate term EVER.

Not only is “Location, Location, Location”, the most popular, it is the most important aspect of real estate.

The basic premise is that you should buy real estate in the absolute BEST location possible.

I can tell you from personal first hand experience, this is true.

You want to own in the best location possible… not the second best, or third best.

When you own real estate in the best location, you will receive all of the benefits that come with this.

The Benefits of Buying Real Estate In The Best Location

The benefits of buying real estate in the best location can include:

• The highest property appreciation
• The most desirable tenant profile
• The best transportation and Infrastructure in the area
• The quickest and highest property resale value
• The best jobs and the best employers.
• Safe neighbourhoods with low crime rates.

Buy The Correct Property Type

A fundamental strategy towards making sure that you make money buying real estate is to make sure you purchase the correct property type.

What does the “correct property type” mean, and how do you know how to find that?

The answer to this is a bit more complicated than understanding the basic term, “Location, Location, Location”.

In order to pick the best property type, you need to know 2 things:

A) How has the real estate market performed historically?

and

B) Which property type is having the biggest gains now?

If we look at the Toronto real estate market for example, we know that historically, detached homes and pre-construction condos have experienced BIG gains in value.

If I were to rank these 2 property types in the order in which you will experience the highest property appreciation, it would be

#1) Detached homes (Freehold)

#2) Pre-construction condos

If you have the capital to buy a detached home in the Greater Toronto Area… stop reading this now, and go buy one!!

By the time you finish reading this article, the value of the home you were interested in has probably gone up!

If you don’t know already, are you starting to get an idea of how HOT the Toronto real estate market is?

Property values are going up TENS AND HUNDREDS OF THOUSANDS of dollars in a matter of months, depending upon their location.

This may be unbelievable to comprehend if you are not from The Greater Toronto Area.  However, ask any buyer that is currently trying to buy real estate in the Greater Toronto Area how their experience is going.  They can tell you first hand now much the real estate market is moving up here…

Not Everybody Has a Boat Load of Money

Not everybody can afford buying a detached house in the Toronto Area.

I get that.

If you don’t (have a boat load of money), and you still want to make money by buying real estate, you should buy a pre-construction condo.

I recently wrote a detailed article on How To Make Money Buying Pre-Construction Condos.  This article is a good read for anyone interested in profiting by purchasing real estate.

As the real estate market in the Toronto area continues to rise in value, fewer people will be able to afford detached homes, and more people will be buying condos.

The good thing(s) about buying in a new condo project in The Greater Toronto Area are:

• Generally no multiple bid scenarios for buyers purchasing in new condo projects
• The completion dates of new condo projects are up to 4 years into the future, which means that by the  Occupancy Date, the condo will already have gone up on value.
• If you deal with a VIP Realtor (like myself), you can get special builder INCENTIVES and DISCOUNTS.

An example of an incentive would be the builder of the new condo project offering:

3 Years of Free Maintenance

Depending upon how the builder structures this incentive, it could mean that for the first 3 years, you are paying no maintenance fees for your unit.

More commonly, the builder will take the total value of the maintenance fees, and either deduct that from your purchase price, or sometimes they give that to you as a ‘cash back’ at closing.

Let’s look at a quick example of this…

You are interested in purchasing a condo in a pre-construction condo project in Toronto.

The maintenance fees for the unit you are interested in are going to be:

$385/month.

If this builder is offering Free 3 Years Maintenance, and deducting this value from your purchase price (on closing), this is what the math equation would look like…

$385/month * 12 months = $4,620

$4,620 (maintenance fees in one year) * 3 years = $13,860.

Therefore in this scenario, at the time of purchase, this builder would deduct $13,860 from your over all purchase price.

Why Do Builders Offer These Amazing Incentives?

The real estate market in Toronto is a competitive one.  At any given time, there are hundreds of new condo projects, and new homes being built in the GTA.

Builders need to sell their inventory ASAP for a variety of reasons.

The number one reason is because of construction financing.

If a builder is borrowing money from one of the Major Banks in Canada, in order to build their condo project.

The bank releases money to the builder in stages, which is dependent upon the percentage of units the builder has sold in their project.

I Am Going To End It Here…

Before this article becomes too long, I am going to end it here.

In summary, the real estate market in the Greater Toronto Area is on absolute FIRE.  

If you have the capital to invest in this market you should buy:

A) A Detached Home

B) A Pre-Construction Condo

If you don’t have enough capital to buy a detached home, then next on your list should be a pre-construction condo.

Let me know if you have any questions, or if you need any help!

To Your Success!

-Neil

ps: I am a Real Estate Broker and a VIP Realtor.  I specialize in pre-construction projects and residential resale in the Greater Toronto Area.  I have access to over 100 new condo projects all over the GTA.  Sign up  to receive special builder DISCOUNTS and INCENTIVES that you cannot get from going direct.  To your success!