We get to hear, see and read all the time that buying real estate is by far
the best and safest investment opportunity. It is a perception that goes with
real estate investment unlike stock trading. But stock trading, again it is
perceived to be, is that it comes with significant amount of risk. As a result,
most people do not want to engage in speculative activities. But real estate is
something which more people get involved in, basically because everyone at some
point of time considers buying a home for himself.
However it should be remembered that no investment is entirely risk free, and
everywhere a certain amount of due diligence is required. There is certainly no
denying that fortunes can be made in real estate, but it holds equally true,
that it is not an easy option. Investing in the right kind of real estate, at
the right time, with right real estate agent isnít always a cakewalk. Talk to
people who have invested in real estate, they will vouch for it.
The bitter truth about real estate investment that nobody wants to talk about is
the legal aspect of investing in real estate. The tedious long documentations,
clauses, forms, deeds... itís an exhausting journey, one long haul. If you are
careful to not take shortcuts or bypass rules, you will have done a good and
clean investment. For this you just need to tell yourself and get used to the
idea that real estate investment will bear fruits only if legal procedures are
The next most important thing to consider while investing in real estate is if
it is within your budget. Can you afford it? Of course you will be given to
understand that to meet your needs there is mortgage available. But donít forget
that mortgage is a major expense that comes with additional related expenses
such as property taxes and energy costs and so on. Make sure that you pay as
much money as a down payment as possible, so that the mortgage payments one has
to pay will be less. I donít know how many of you would be advised on these
lines while making the real estate investment.
The recent situation caused by the subprime crisis was the result of people
buying homes that they couldn't afford. If they had purchased homes that they
could financially manage, then they could have waited for the prices of their
property to rise instead of selling them at a loss in a hurry.
When purchasing a property, there are professionals who will assist you for a
fee. Get a genuine, experienced and most important of all - local real estate
agent to help you in your real estate investment. He will be able to help you in
assessing the true value of the property. He will also attach you to a real
estate lawyer who will take care of all the technical aspects involved in buying
or selling of a home in Toronto.
Real estate investment is considered to be one of the surest forms of
investments. But since it involves such huge sums of money, one should get
involved in it with due diligence.