2021- A Year of Real Estate Opportunities
Year forecasts, shift in the market
With many people working from home, there has been an increase in suburbanization, where people seek larger affordable living spaces, with enclosed home office space. This is contrary to the open-plan city homes that used to be in demand. Similarly, the condominium market has been largely affected as people seek larger living space with gardens over small square footage high rise apartments.
Commercial real estate has seen a dramatic change in light of the Covid-19 pandemic.
Industrial real estate has triumphed with the growing demand for E-commerce. Rents have increased by almost 10% over the last year. The trend for multi-level industrial properties could see a rise as industrial companies seek efficient warehousing space.
The open-office space plans that were once sought after have become impractical with social distancing measures and strategies to work from home. However, this may be a temporary consequence and working in offices may soon return.
As general retail shifts to e-commerce, some vacant retail properties can adapt to accommodate warehousing, distribution, or fulfilment.
Whether you are looking to invest in rental property or a primary residence, the key to success is careful planning.
It is always useful to understand why you want to invest in rental properties. Common reasons could be:
to financially secure retirement
to finance travel, hobbies, or a child’s education
to gain reliable returns
to challenge oneself
Establishing the ‘why’ is the drive to making goals and achieving them.
You must decide what you are specifically aiming for, what is the desired result? The more detailed and precise the goal, the easier it becomes to plan and act. For example, rather than saying ‘real estate investment,’ a more defined goal may mention ‘residential condominium investment in the GTA region’.
Establish how you will measure your success. Assess where you are now and at what number you wish to arrive at. For example, ‘increasing rental portfolio by 20%’.
Ensure that the goals are attainable. While challenging ourselves, we must also consider the limitations and practicality. Making attainable goals allows reaching them possible and motivating in the long term. Similarly, the goals need to be realistic and relevant, according to the market and other factors. For example, cutting down renovation costs aggressively may upset tenants, making them want to leave.
Give yourself a deadline, when will you achieve your goal by? This is imperative, to help plan and schedule all the necessary steps to reaching your goal. Moreover, it will keep you on top of tasks to get you to succeed.
Accomplishing your goals
At The Address Property Management, we will help you to achieve your rental real estate goals. Assessing your goals, we will guide you to select the right investment properties, using our connections with trusted realtors. We represent you and will take you through all the purchasing steps. After purchase, we will take care of the entire rental cycle, so that the property is run efficiently and maximising rental revenue.