Are you Retirement Ready? Find Security with Toronto Real Estate Investment
When you think about your retirement, what are your primary considerations? We all want to live our golden years in comfort, so many would immediately think about money. Now think further into your retirement—after 10 or 15 years of your pension or RIF cheque finding itself in your account like clockwork, what will you be doing? For many mature residents, Toronto real estate offers the best avenue for secure retirement income. With the average detached home in Toronto exceeding the $1 million mark in early 2015, even those with a modest sized home would agree that investing in property can be lucrative.
Cashing in on real estate income during your retirement requires planning and isn’t just about continued appreciation. Although there seems to be no sign of cooling, our market isn’t guaranteed to see continually robust years like 2015. Seasoned investors have the ability to make your income properties work for you, and not only in Toronto. In fact, several GTA properties in nearby suburbs show considerable promise of returns, without the hefty price tag of a Toronto home. The key is to work with a professional that can pick the market and set realistic goals.
For middle-aged investors interested in securing retirement income, purchasing a condominium or house as a rental property can pay off when it’s time to retire. It would take around 15-18 years to pay off a typical mortgage strictly with rental income. Once your property is paid off, it will be a source of passive rental income for the rest of your life.
While it may have been tempting in previous years, buying a rental home in a tourist or resort town isn’t the wisest idea. Focus on local economies that are rapidly growing—just north of the city, commercial and institutional construction has increased, which indicates population growth. For the well-financed investor, buying a house in Markham, Newmarket, Aurora and Woodbridge are top choices. Some more affordable municipalities to consider are Whitby and Ajax where rents might not be as high as they are in Toronto, but are substantial enough to carry your mortgage.
For those who are closer to retirement or have already retired, the responsibility of owning a rental property might not be as appealing. If you fall into this category, consulting with a Toronto Real Estate Investment Professional can help you find a more viable option.
With anything in life, planning is the key to a successful retirement; treat these years as a project by setting clear lifestyle goals, reviewing your plan annually, and ensuring you have rainy day funds tucked away, should unexpected expenses arise. If you are planning your retirement, talk to your loved ones, and schedule a meeting with your investment advisor, who will be able to steer you toward the path of a comfortable and happy retirement.