Greater Toronto Area is an area in that many investors are always yearning to put up an investment there. Many are keen on investing here because of the benefits that come along with it. With it being a preferred choice for many, there are still things people get wrong about investing here. You too should not make such a mistake and that’s why you should have the right information. As you plan to invest in pre construction homes, have the right information at your fingertips. Make sure you get it the right way in all the things people know wrong about investing in GTA. The following are the 5 things people know wrong about investing in Greater Toronto Area.
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If you wait long enough, you’ll sell at the price you want
For a while, many sellers have thought this is true. They believe that if they put their houses on the market and wait for a long, a buyer will come and pay them what they want. Some of them will therefore tend to despise buyers who want negotiation. They will do so thinking that they will get buyers who will pay their high prices without thinking twice. In the end, their houses end up staying on for too long in the market because no one is coming to buy them. When the houses overstay in the market it makes potential buyers wonder. Buyers are left with questions as to why a particular house has stayed on the market for too long. The buyers, therefore, tend to think that there is a problem with that house and that is why it has stayed on the market for too long. Therefore to their surprise, this statement is not true. If you are one of those who have been thinking it is true, you should stop immediately. Before you think of investing in Greater Toronto Area you better get this statement off your mind.
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Freehold houses do not have maintenance costs
This cannot be entirely true. If you want to own a freehold house in Toronto, you will not escape from maintenance costs. Though the monthly costs are not stated in the MLS, you will always have to get into your pocket. Of course in freehold houses basements flood, pipes freeze, furnaces die, and roofs leak as well. All these problems will require you to spend money to have them solved. The money you will spend here will likely be even more than the maintenance fees in a condo. Maintenance costs will never be far from you even if you are eyeing one of the best pre construction condos. Always keep that at the back of your mind.
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Finding tenants is a hassle
This is a myth that people generally believe is the case in the real estate sector. This alone makes some potential investors shy away from investing in rental property. They keep off rental property just because they do not want to struggle to find tenants for occupying their property. Finding tenants can never be a hard task in this era. Of course, you have your real estate agent who can help you get them with ease. Within a very short time, your real estate agent can help you get the best tenants who will meet all the requirements you want in a tenant. In Greater Toronto Area, there are a lot of people who are always looking for spaces to rent. A large number of immigrants keep coming in every year and it means they too will need a place to stay. This is a great opportunity for you who is keen on investing in rental property. Don’t you see this as a good chance for you to even invest in pre construction townhomes? You do not need to worry about getting tenants because it’s never a hassle. They will bring themselves to you.
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It costs 5% of the value to hire a realtor to sell your house
If you want to sell your house, you will not need to pay a realtor 5% of the value. Don’t be scared that you will lose a lot of money. The amount you will need to pay the realtor is probably less than 5% of the house value. You could end up paying the realtor about 3.5% of the value if you need their services. This will be so because the realtor will reduce their end of the commission. Ordinarily, the end of the commission is 2.5%. If they reduce it to about 1% and then add to the other 2.5%, it leads to the 3.5% that you could pay. So if you are looking forward to investing in real estate, you better keep that in mind. Having this kind of information at your disposal is very important because it will let you know what you will do when selling your house.
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A fixed-rate mortgage can protect you from interest rate increases
An increase in interest rates is not always a good thing for many potential home buyers. It usually discourages many from investing in real estate because they fear huge facing expenses. So if you thought a fixed-rate mortgage could protect you from interest rate increases, you could be wrong. This is not always the case. This statement is therefore partly a misconception because it depends on the situation. In most cases, the fixed-rate mortgage can’t guarantee you protection. From now henceforth keep this in mind. A fixed-rate mortgage could protect you in two scenarios where;
- Variable rates have to increase quickly.
- The fixed rate has started off being close to the variable rates available at the time you make a choice.
Conclusion
Knowing the 5 things people know wrong about investing in Greater Toronto Area could be the starting point for you. Since you now know what the right thing is, you’re in a better position to go ahead and invest. Greater Toronto Area is the nicest place you can ever think of when it comes to investing in real estate. Bring your money to GTA, and you will not regret it; investment in real estate here is what you have been missing. If pre construction homes are your choice, don’t forget to reach out to G1 Homes. They have the best deals for you as far as pre construction homes are concerned.