Real estate investing is a sound strategy to build wealth for you and your family.

It is vital to establish an investing attitude in order to attain the greatest results. As a Waterloo Realtor, you’ll evaluate properties based on their profit potential.

How Can You Make Money Investing in Real Estate?

You must have a plan in order to achieve any goal in life. Your investing strategy is the plan you’ll follow to achieve your objectives. It is recommended to invest in a home with a positive cash flow because this type of property can pay for itself over time. This could be real estate that you can purchase for a lower price than the market value. Choose a property in an area with higher-priced homes and where you can do minor repairs to increase its worth.

Here’s how to tell if an investment will pay off:

  • Determine the amount of gross income the property will generate.
  • Find out how much money you spend on a monthly basis. Financing costs, repairs, vacancy costs, insurance, property taxes, and property management fees all fall under this category.
  • Subtract your monthly expenses from your rent payment.
  • Calculate the capitalization rate and the cash-on-cash return.

If you work with the proper people, investing in real estate can be a lot of fun. Working with a reputable realtor in Waterloo can assist you in identifying the greatest investments and rental properties in your area. The market is constantly changing; having the most up-to-date information will enable you to spot an opportunity that no one else can.

Here are some interesting facts about the area:

  • Purchasing a Home Is Less Expensive

Purchasing a property in the Kitchener-Waterloo area is significantly less expensive than in the GTA and nearby suburbs. We look for properties in Kitchener that are 25-40% less expensive.

  • Year-over-year GDP growth with a growing population

Kitchener-Waterloo is one of Canada’s fastest-growing metropolises. (Remember when Milton was just getting attention in the late 2000s and fast growing? Well, due to increasing pricing, it’s now a more difficult place to invest in.)

  • Rental Rates That Are Too High

Kitchener rental rates grew at the quickest pace in Canada, ranging from 10% to 17 percent depending on the unit size. In 2020, the steady increase will continue.

  • Vacancy Rate Is Low

With a vacancy rate of roughly 1.3 percent for three-bedroom homes, the region boasts one of the lowest vacancy rates in the country, as well as minimal renter turnover.

  • Tenants of Higher Quality

Kitchener has more AAA tenants in a large IT eco-system. With COVID-19, a growing number of white-collar workers are working from home. For additional space, they are looking for larger homes outside of the GTA. Payment delinquencies and property damage are the two biggest concerns for landlords. However, as the quality of professional renters we rent to improves, we are witnessing an increase in high-income/skilled tenants with higher job security.

  • Innovation

There are world-class facilities that support technological, creative, and cultural advancements, as well as Top Educational Institutes like the University of Waterloo, Laurier University, and Conestoga College, to name a few. Because of the employment options, a high majority of these graduates choose to stay in the area.

  • Silicon Valley North

Kitchener-Waterloo is known as Silicon Valley North because it has the highest density of tech start-ups in Canada and the world. Google, Shopify, D2L, Christie Digital, Vidyard, Thalmic Labs, OpenText, Miovision, Communitech, and Square are just a handful of the worldwide tech behemoths that have made their home in Kitchener-Waterloo.

  • Infrastructure investment

Major transportation infrastructure improvements have recently been made in Kitchener-Waterloo, including the completion of the iON LRT. In addition, the minister of transportation has stated that two-way, all-day GO trains between Kitchener and Toronto will be operational by 2024.

Population growth, job possibilities, corporate development, and infrastructural expansion are all important factors in the city’s continued development. The region is quickly expanding, making it an excellent investment prospect.