Understanding Real Estate
Written by: Remington Joseph
It may sound like a basic question, but for anyone even vaguely considering investing into real estate, knowing exactly what it is should be looked at as fundamental information. The world of real estate is vast, and while a lot of people just consider it to be house buying, there is so much more to it than that. Understanding real estate can open up a near endless amount of opportunities, as there are several investment avenues that can be taken, each leading to success in their own way.
Residential Real Estate And Commercial Real Estate
While there are many different kinds of real estate out there, the two most commonly discussed types are residential properties and commercial properties. Just as it sounds, a property is considered residential when it’s used to house tenants. Whether it’s a single-family home, a condo, duplex, or townhouse, these are all looked at as residential real estate.
Commercial real estate are properties being exclusively used for business. This includes anything from retail stores and restaurants, to hospitals and movie theaters. Interestingly enough, apartment complexes also fall under the label of commercial real estate despite being designed for residential use. This places them in somewhat of a special category where they can be considered as both.
Is Real Estate Worth Investing Into?
The shortest answer we can give to this question is yes. For several decades now, Canada’s real estate market has transformed into one of the nation’s highest booming industries, serving as one of the ideal ways of earning a steady flow of income while building generational wealth. Regardless of whether the property you own is commercial or residential, you’ll be able to earn through renting out property. As more and more people look to build their lives in Canada, rental prices will continue to rise. Only by investing in real estate will you be able to take advantage of that opportunity.
When it comes to residential real estate, another great reason to invest is to start building appreciation along with equity. As time passes, the value of properties continues to steadily increase. The price you buy a home at today will likely be worth a lot more than it’s going for now in the next ten to fifteen years. Combining that value with equity, money that you can pull out of a property to refinance it towards other projects can open up the door to a lot of new opportunities. Appreciation and equity take time to grow however, so you’ll want to own property as soon as possible if you plan on making use of either.
A Look At Pre-Construction
Pre-Construction builds are homes that are still in development. While this can refer to houses, the term is generally used in reference to condominium projects. The development of condos is a continuously rising trend across Canada, with many investors buying into condo development projects well before construction has begun.
While pre-construction properties may take years before they’re actually completed, investing into them comes with its own set of advantages that you won’t get by investing into pre-built real estate, otherwise known as resale properties. In addition to being an especially lucrative investment route, pre-construction deals give you the benefit of time, giving you the chance to back out of the investment while still allowing you to make a profit.
As a driving force of our economy, there’s no better time than the present to consider investing into real estate. With a lack of true understanding of the market, many of us let headlines dictate whether or not we should be investing, or if we even can. Starting with the basics, and building our way up, we at REC Canada will show you that investing is a road you can walk down, and the great places it can lead to.