The Canadian housing market is currently booming due to low-interest rates and limited inventory. As such, investors have established residential and commercial properties quickly, increasing the appreciation rate. Even in the middle of the COVID-19 pandemic, residential and commercial buildings are cropping up in almost all Canadian residential areas. While it may be the best time to invest in real estate in Canada, it is not always easy to begin investing. Here is a beginner’s guide to buying Canadian real estate.
- Goals. The first step to buying Canadian real estate is determining your goals. Your goals should outline what you want out of your investment. Your goals will define the next step you take after investment. However, most people set general goals like “I hope to grow my investment.” Always set Specific, Measurable, Attainable, Realistic, and Timed (SMART) goals. Such goals will help you understand what you want and how to attain your real estate investment. Always revise your goals as time goes by and set new SMART goals.
- Consult. Entering Canadian real estate without any knowledge or guidance can be challenging. However, this does not mean that it is not achievable. Real estate experts recommend that you consult with an experienced real estate investor to learn more about the industry and seek any advice that they have to offer. Someone with extensive experience in real estate is likely to have unlimited knowledge. They can share their failures and success stories and advise you on the best route to follow to avoid making losses. Seasoned investors will also advise you on whether to purchase an initial investment or expand your financial portfolio.
- Know the Market. Current trends in the actual industry market play a significant role in determining how well an investment will do and how quickly. As such, you must consider knowing the housing market, its history, and any expected changes. One of the best ways to do this is to evaluate historical data alongside current trends. Real estate is a cyclical industry since economic trends impact its supply and demand. Assessing this data will help you understand the market better. You can also speak to people with invaluable information regarding the housing market, like estate brokers and realtors.
- Target Audience. In the real estate industry, a target audience is the demographic you wish to attract to your rental property. Your target audience determines the location and type of property that you will purchase. For instance, if you want to target the working professionals, you must know their values and way of life. Working professionals work long hours in urban areas or are recently graduated from college with no families. As such, you should consider buying a small condominium or apartment near an urban centre.
As a beginner, you should not get scared of investing in the Canadian real estate industry. Instead, you should see its potential and seek advice and information from Condo News Canada to succeed.