Real estate has always been the fortune shift. You buy as a principal home and save rental amounts while you build an asset on the side. OR you invest in real estate to generate an extra source of income.
While buying real estate is a fortune changer, it doesn’t happen overnight. It requires a process and patience to reach when real estate is a fortune changer for you.
Here, I’ll share some very basic but critical fortune changing tips for buying real estate in 2021. The process starts with learning.
Learn First, Then Earn
It is the first rule for anything. Learning would guide you on real estate trends for the year, what’s required to become a realtor, the incentives, and more.
I was recently preparing a post for first-time homebuyers, and I learnt that there are a few incentives for the first-time homebuyers the Canadian government offers.
Other important things you could learn are from blogs. Like what are the real estate trends in 2021, the right time to buy or sell a property, and so on.
And if you’d go beyond, think of becoming a professional real estate agent. At the Real Estate Council of Ontario (RECO), you’d learn the rules set for real estate salespeople, brokers, and brokerages.
Always Think Big
You can’t change your fortune unless you start thinking big.
Thinking big doesn’t mean living in fantasies. It means that you set bigger goals over the period. For instance, when you enter the big world of real estate, you might think of investing in a condo and selling it after a year to make profits. Later that time, you don’t want to stick in investing in condos. You then may want to buy a bungalow, sell it for a profit or perhaps build your residential plaza and beyond.
The only thing you should keep in mind is consistency and a more realistic approach.
Start Small
You may wonder that earlier I talked about thinking big and now I’m saying ‘start small.’ Well, it is a strategy.
Start small means that you don’t hush towards making terrible decisions in your life. So, when you plan on entering the real estate market, investment is not the primary thing; it is learning the real estate market (like I said in the beginning). Learning about the market is the first and a small move that leads forward to a brighter future.
Similarly, when you plan to build a residential plaza, you need to understand all the related information, a team of experts, compliance with local laws, and a hefty investment. These are all small steps helping you achieve your bigger goal.
Understanding the Economics
This is diversification and broadening your knowledge.
Learning is not limited when you plan to enter the real estate market. It keeps on going with every move you make.
What are the possible ways of earnings? How could you facilitate your clients on saving some bucks? Which property type returns the best while keeping the risk level at a low level? How could you improve the property’s value just by shuffling the in-house items (staging services). And so on.
Investing with private and public companies related to the same domain is also understanding the economics of real estate.
Learn more about the economics from Investopedia’s Key Factors That Drive the Real Estate Market.
Explore
This is the phase where your dreams would start coming true.
The big world of real estate has so much to offer than you could ever imagine sitting far from it. Some of the ways where you’d enjoy the outcomes of investing (or even relating) in real estate include:
- Rent a spare room: if you own a principal house and have a spare room or space, you’d rent it out and generate an extra income.
- Buy and rent: if you have a good amount as savings, you could buy a home (let’s say a bungalow) and rent it out.
- Buy and sell (buy and hold): this is another common way people make significant money by buying and selling. For example, you buy a bungalow now in Brampton, keep it for some time (assuming a year), market it on bungalows for sale in Brampton, sell it for the best bid, and repeat the process.
- Flipping properties: this is a relatively new way to invest and earn. You buy a house for less than its market value (for any reason like it required some upgrades or the seller was in a rush). Make some renovations, remodeling, or upgrades, and then it in the market. Though flipping properties sounds impressive, it’s kind of a risky investment. You need to be very clear that you’d lose your investment if flipping backfires.
- Investing in ETFs and mutual funds: like stocks of publicly traded companies, you’d also invest in companies listed with the stock exchange and relating to real estate. Real estate is mostly a profiting market; your stocks, ETFs, and mutual funds are also expected to go up with time.
- Private investment: the benefits of investing with private real estate firms are that you could always meet the chairman and important decision-makers in person (of course, you’d need an appointment). They’d tell you how they plan to use your investment and the expected return rate.
Summary
Let’s review the fortune changing tips for buying real estate:
- Learning is the key to success and always pays off.
- Always aim higher and work towards achieving your goals.
- Make smalls steps, and make every move count.
- Learn how the real estate economy works.
- Explore different ways of earning from real estate.
The Bottom Line
Real estate is always appreciating. Even in pandemic times last year, Canadian real estate made a big jump in Q3 and Q4, after a small dipping period. Experts are also optimistic about 2021. They expect an average hike in home prices to go up by 6% by the end of the year.
These factors are all in favour if you genuinely want to make a future in real estate as a professional realtor or independent investor.
