Canada’s real estate market is booming. Toronto’s home sales rose 12% in October despite housing starts falling 42%. The market remains strong even as Toronto’s prices remain out-of-reach for many buyers.
Real estate businesses are booming, and there is still room to grow a business in Toronto or anywhere in Canada.
“Whether you are refinancing, selling or purchasing a home, one of the most important things you need to do is to identify an experienced real estate lawyer at the outset of the process,” states real estate lawyers Diamond & Diamond.
Starting with a lawyer to protect your investments and business is the first step to success followed by:
1. Hidden and Off-Market Properties
Real estate goes quick. Buyers snatch up properties rapidly, and looking at the same listings as everyone else means higher competition levels. Hidden, off-market properties are key to growth in the industry.
Networking is a quick way to find off-market properties that won’t be listed on realtor.com or the usual sites.
A few methods of finding these hidden properties include:
- Connect with other real estate businesses
- Connect with realtors
- Banks often have internal foreclosure listings
- “For Sale By Owner” properties offer great opportunities
The goal is to find properties that are lesser known. Less competition allows for an easier purchase and the opportunity to find rare properties that have a lot of potential.
2. Fix and Flip Still Has Potential
Fix and flip opportunities are still great options. Finding hidden properties is great when they can be fixed, flipped and turned for a profit. There is a lot of work that goes into the process, and it’s best to know someone that can assess the true value of the work needed to bring a property up-to-date.
Modest profits are the norm, with most properties not making the $100,000 profits seen on television.
Foreclosures are a great option for flips. A lot of research needs to go into the process before diving in, such as:
- Market value
- Market crime statistics
- Cost of repairs needed
Not all properties have potential, but there are properties that need minor TLC that can then be flipped for a decent profit.
3. Rental Businesses Are Hot
Selling real estate isn’t the only way to make money. Renting out properties is a very lucrative field, and there is a lot of money to be made, too. Airbnb and other options make it easy to start promoting your property to millions of potential renters.
Tourist and vacation markets do very well with rentals.
The goal is to buy cheap properties, make them acceptable for rentals and start making money off of the investment. Selling in the future is possible, or collect the rental money to have recurring income.