Is a Real Estate Investment Still Profitable?

Real estate is often viewed as a great investment, although it’s natural to wonder whether this kind of investment is still profitable. Real estate agents in Mississauga get asked this question a lot, and generally speaking, a long-term real estate investment has historically generated great returns, although there are many factors that can impact your return, including location, how much you pay for the property, and how much it increases in value. 

While there are no guarantees, most real estate agents in Mississauga will tell you that a real estate investment is safe as long as you buy property at the right price in an area where the value is sure to rise. You need to be smart about your budget and location because if you purchase a property at unrealistically high prices, you will have to pay down your mortgage for a long time before you can make a profit.

Real Estate Investment: More Tangible Than Stocks or Bonds

Compared to stocks and bonds, real estate is a safer investment because it has a high tangible asset value and will almost always increase in value over time. 

Investing in property, however, does require careful planning, and you need to first clear any debt, after which you need to start saving. Put money aside for a down payment and research market trends and up-and-coming neighbourhoods to find the right home. Working with experienced real estate agents in Mississauga is also very important, as they will guide you through this very large purchase and will help you focus on properties with the best potential for growth. 

You can also consider purchasing houses as rental property if you are interested in additional income while making an investment that will appreciate in value. There are two types of rental opportunities, including single-family, where you rent out the entire home or condo to one tenant, and multi-family, where you rent separate units on each floor.

Faster Value Appreciation

Single-family homes tend to appreciate faster and are easier to sell, which makes them more liquid. Additionally, you will need to find and deal with just one tenant, which will make it easier to collect bills and set up utility payments, and you won’t have to worry about complaints and issues among tenants. Multi-family homes, on the other hand, can provide you with better cash flow with more units, and lower unit prices can make it easier to find tenants. If one tenant moves, you will still have the cash flow to help cover your expenses, and it can be less expensive to manage on a per-unit basis. 

Knowledgeable real estate agents in Mississauga will discuss every detail to help you determine if real estate investment is still profitable. If planned carefully, real estate investment can allow you to grow your net worth by amassing properties, and because of appreciation, real estate purchase is almost always a good investment. 

Our real estate agents here at D’Souza Homes are experts in this industry, and we will help you buy the perfect home based on your needs, requirements, and future goals. We specialize in the Mississauga and Caledon areas and have access to all the listings in these communities. Contact us today at 647-628-3434 to start your search!