Growing your Toronto property portfolio will take more planning and better nerves of steel than it would in other parts of the country simply because of the very high prices for real estate. If you are interested in building property assets, then it is incumbent that you get your feet wet as soon a possible.
Getting the down payment on your first property is the only way to property start on your road to real estate stardom. Once you have that first property, you should pay it down as quickly as possible. Building equity in your property will allow you to then leverage it towards your second property.
You don’t have to pay it off fully before using the value of the home to tap your next real estate down payment. Every year your property will increase in value. Add to that increase the fact that you will have paid off part of it and your stake in the property will growing exponentially. When you have enough equity in your existing property you can then borrow against it to fund your next property purchase.
As your next purchase will likely be an income property, that next property, if you play your cards right, will be able to finance both your mortgages so that you can save your money for other projects or your third real estate investment.
Owning property does come with risks and you must be ready to troubleshoot problems with plumbing, electricity, maintenance, etc… you must also be prepared to deal with difficult tenants. However, if you are able to manage, then your investments will pay off big-time in the end.
Getting the down payment on your first property is the only way to property start on your road to real estate stardom. Once you have that first property, you should pay it down as quickly as possible. Building equity in your property will allow you to then leverage it towards your second property.
You don’t have to pay it off fully before using the value of the home to tap your next real estate down payment. Every year your property will increase in value. Add to that increase the fact that you will have paid off part of it and your stake in the property will growing exponentially. When you have enough equity in your existing property you can then borrow against it to fund your next property purchase.
As your next purchase will likely be an income property, that next property, if you play your cards right, will be able to finance both your mortgages so that you can save your money for other projects or your third real estate investment.
Owning property does come with risks and you must be ready to troubleshoot problems with plumbing, electricity, maintenance, etc… you must also be prepared to deal with difficult tenants. However, if you are able to manage, then your investments will pay off big-time in the end.
