Everything we own can either be a liability (draining money, like a car) or an asset (generating income, like successful stock market investments).
Real estate, however, is a unique case: it can be either a liability or an asset — depending on location, rental potential, maintenance needs, and many other factors.
Let’s explore what makes real estate attractive as an investment and what you should pay attention to when considering a purchase — and, consequently, entering this market.
What makes real estate an asset?
Simply put — it should work for you, not the other way around.
That means:
* It rents out without constant headaches;
* It generates steady income;
* It doesn’t eat up everything through taxes, repairs, and vacant months;
* Ideally — it also appreciates in value.
When all of that lines up — you’re holding a solid asset that strengthens your financial position.
And when does real estate become a liability?
* When you bought it “because the neighborhood is cool,” but the rent doesn’t even cover half the expenses;
* When every month brings a loss, and you’re just hoping the value will “go up someday”;
* When repairs, tenants, and management are driving you absolutely crazy.
That’s when — yes, it’s a liability, and you need to tread carefully.
Where does the mistake usually hide?
Many people aim to buy closer to the center of a big city, thinking “it’s always safe there.” But the truth is, in those areas, real estate is often so expensive that even solid rental income can’t cover the costs.
If you’re open to looking a bit farther from the city, you can find properties that:
* Generate positive cash flow;
* Have strong rental demand;
* Are less affected by market volatility.
What is important when evaluating investment real estate?
* The numbers: income, expenses, mortgage, taxes, maintenance;
* Location: not trendy — but practical;
* Condition of the property: ready to rent or requires major investments;
* Growth potential: how the neighborhood is developing and what’s around.
What can I offer?
If you’re considering investing in real estate — I have real options with positive cash flow that generate income today. And there are others that require additional investment (some minor remodeling) with the potential to house several tenants afterward.
I’ll explain where the catch is, where the potential lies, and where it’s better to simply pass by. All without “rose-colored glasses” or magical promises — only based on facts and experience.
Ready to discuss?
Write or call — let’s see which option fits your budget, goals, and expectations.
Or maybe it will turn out that it’s better to wait for now — and that’s perfectly fine too.
The main thing is to understand what you’re doing and why.
Serge Skyba
Realtor at Realty 7 Ltd, Brokerage
416 305 6525
serge@agent1.ca
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