As an avid investor in the Canadian real estate market, I have spent years researching and analyzing different methods of entry. One strategy that has consistently stood out to me is pre-construction investing. In this blog post, I will share my experiences and insights, as well as the advice I gathered from successful individuals in the industry. Join me as we uncover the best method for entering the Canadian real estate market through pre-construction projects.
When it comes to investing in the Canadian real estate market, the Boys have uncovered a secret method that can give you a head start – pre-construction. As an investor who dipped their toes into the world of real estate in 2013, I can confidently say that pre-construction is the easiest way to get started. In this article, I will share my personal experience and provide you with valuable insights on why investing in pre-construction is the best method for entering the Canadian real estate market.
- The Ease of Pre-Construction:
Investing in pre-construction properties offers a seamless and straightforward process. Unlike buying resale properties, which often require a hefty 20% down payment (unless it’s your primary residence), pre-construction allows for a more flexible deposit structure. You can secure your investment with as little as a 5% deposit, which is a significant advantage for first-time investors.
- Affordable Entry Point:
In certain areas of Canada, finding houses for 80 grand is simply impossible. The real estate market in desirable locations demands significantly higher prices, with average house prices sitting around a million dollars. However, with pre-construction, you have the opportunity to enter the market at an affordable price point. This means that even if you don’t have a million dollars in your pocket, you can still invest in real estate and reap the benefits.
- My Experience:
As someone who took advantage of pre-construction, I can attest to its effectiveness. In 2013, I bought my first property and only had to put down $11,000 as a deposit. This allowed me to secure the property and benefit from the market appreciation that occurred during the construction phase. By the time the property was completed, its value had already increased significantly, allowing me to make a substantial profit.
- Comparable to New York:
If you’re looking for an investment opportunity that offers similar returns to the bustling real estate market of New York, look no further than Canadian pre-construction properties. The market here is booming, and the prices are comparable to those in major metropolitan areas. Investing in pre-construction allows you to tap into this potential and capitalize on the growing demand for housing in Canada.
What is the average price for a house in Canada?
- The average price for a house in Canada is around a million dollars, varying based on location and property type.
Can I invest in pre-construction properties with a small deposit?
- Yes, one of the advantages of pre-construction investing is the possibility of securing your investment with a smaller deposit, typically around 5%.
How does pre-construction investing differ from buying resale properties?
Are pre-construction properties a good investment for first-time investors?
- Absolutely! Pre-construction properties provide an easier entry point into the real estate market, making them an excellent choice for first-time investors.
Can I expect significant returns from investing in pre-construction properties?
In conclusion, investing in pre-construction is the best method for entering the Canadian real estate market. It offers an easy and affordable entry point, more flexible deposit structures, and the potential for significant returns. With the real estate market in Canada showing no signs of slowing down, it’s time to follow in the footsteps of the Boys and leverage the opportunities presented by pre-construction investing. Don’t miss out on your chance to make a mark in the Canadian real estate market and secure a profitable investment for the future.