Invest In Real Estate - Bram Sandow
Bram Sandow

Looking to Invest?

Historically, investors in the Toronto and GTA real estate market have profited handsomly by buying, holding, leasing, assigning, flipping and selling property. This applies to both the freehold and condominium markets.

How are people making money? Preperation is the key! Outlined below are important aspects of investing to think about.

Finances

Arranging a mortgage for a second property isn’t as simple as borrowing for your primary residence – you’ll often need at least 20% of the purchase price for a down payment. If you are looking to lease be aware that a portion of the income you generate from rent (aprox. 80%) will be considered in qualifying you for the mortgage. When dealing with commercial properties, you’ll likely need a down payment of 50%.

Taxes

It's important to know that money collected as rent is considered income and thus is subject to taxation. Often when an investment is sold it is subject to capital gains taxes. It's important to discuss your unique tax situation with a qualified and trusted accountant so that you're aware of any and all tax implications.

Goals

What are your goals, increased cash flow? Increased equity via a tenant? Are you looking to renovate and flip? It's important to have clear goals as well as an understanding of the different factors that influence you acheiving your goals.



Options

1 - Pre Constuction & Assignments

Purchasing a property before it's built, or 'on plan' in a development that is both hotly anticipated and in demand will allow you the opportunity to assign, or sell your contract with the builder for a profit to a purchaser who did not have the same initial vision or opportunity that you had.

My reputation across the city means that I am often amongst the first to be invited for a private tour of new development projects around the Greater Toronto Area and given opportunity to purchase ahead of the general public. I look for experienced developers who have a successful track record of building projects that yield solid returns through unique architecture, design and livable floor plans that maximize square footage.

2 - Condominium Rental

This option ties in nicely with purchasing pre construction. You purchase a suite with the intent of renting/ leasing so that your equity is increased by someone else.

Many factors will contribute to determining how much of the carrying costs you recover via renting such as interest rates, property taxes, rental market etc. It's very important for anyone considering becoming a landlord to familiarize him/ herself with the Residential Tenancies Act so that you are aware of your duties and obligations as well as those of the tenant.

I have experience representing both Landlord and Tenant and will guide you every step of the way.

3 - Flipping

HGTV makes this option look easy... I'm sorry to say that it is not. Essentially what flipping entails is purchasing a property that is in need of a makeover or modernization, renovating and selling.

Flipping homes can be, and is extreemly profitable for those who understand the pit falls and have a vision that alignes with what Buyers are seeking.

I will work with you to identify potential properties for purchase, as well as examples of successful flips and together we will run the numbers, plan and execute a successful flip.

4 - Income Property

For most people this means building and renting a basement appartment. An income property can really descibe any real estate investment that provides a return but it's common meaning is renting space where you yourself live. Homes with self-contained apartments are VERY HOT commodities in Toronto. If your basement is extra space that you're not fully utilizing, this option may provide an additional $1000 or more per month of income!