The Best Ways to Invest in Real Estate with Virani
VANCOUVER – There are many ways to invest in real estate.
Real estate investments have produced excellent returns and there are signs that this trend will continue.
Karim Virani, of Virani Real Estate Advisors, joined CTV Morning Live to share five great ways people can invest.
Each of these options has its own dynamics, capital requirements and risk levels.
Main residence: This is the most popular method of real estate investment. This enables people to pay off their mortgage and grow their wealth. This option allows people to avoid paying rent to a landlord, which means they will not build up equity in the property they live in.
Rental object: Becoming a landlord is a popular way to generate income and build wealth. People can become landlords of a residential or commercial property. Virani stated that the potential for returns is great and it allows people to use it as leverage for buying additional property. People should be aware that there are serious considerations before investing in rental property. Most lenders charge a significant percentage down on an investment home loan. Vacancies, maintenance and unexpected repairs are also associated with risks. It is advisable for landlords to save several months of expenses in reserves.
Buy, repair and mirror: House Flipping is best suited for individuals with extensive experience in real estate appraisal, marketing and renovation. Virani warns that costs can rise dramatically when a fuser face material has serious structural imperfections.
Invest in real estate stocks: Real estate investment trusts are essentially dividend stocks. This method is a more practical way of making money in real estate. They can easily be bought with minimal capital.
Adding a rental to an existing property: There are many short and long term rental options that can generate additional income. This method can be as simple as renting a guest room on sites like AirBnB and VRBO. Another option is to renovate part of the house and convert it into an apartment building. People need to ensure that their accommodation complies with the local statutes and regulations of the classes.
To learn more about real estate investing, watch the full video on CTV Morning Live.