WHAT ARE RESIDENTIAL PROPERTIES?

Residential real estate properties can simply be defined as homes that are inhabited by tenants who either lease them or acquire them through another kinds of rental agreement.

Residential properties are mainly for individuals or families to live in. Residential real estate properties can come in the form of a single family dwelling to huge a multi unit apartment complex. 

Unlike commercial real estate properties which are leased out solely for business purposes, residential real estate is solely for individuals and families to live in. Residential properties attract a lot of investors since a lot of people are familiar with the idea of leasing out a property to live in.

Markham City is know for its many divers cultures, technological hubs which include a lot of innovative start ups, and also its appreciation for ancient history. The city has many cultural sites, theme parks and recreational facilities. Buying a residential real estate property in Markham is a great move. A real estate lawyer in Markham is always ready to assist you with any legal hurdles you might face when trying to acquire any type of property.

SOME TYPES OF REAL ESTATE PROPERTIES

There aren’t many different types of real estate properties in the residential category. Some of these include;

•  A stand alone house. Stand alone homes are also referred to as single family homes. These types of residential properties are built on their own plots of land and are usually the most common types of residential real estate properties. 

 

•  Town houses. A town house also referred to as a town home is usually owned by an individual and shares a wall with a neighbouring real estate.

 

• Condos or condominiums. These are privately owned properties by individuals which is situated within a community of other units.

 

• A multi family house. Multi family houses can be made up of a duplex and also a fourplex. The are usually made up of two or four dwellings. Buildings that contain five dwellings are typically considered as commercial properties.

THE INS AND OUTS OF RESIDENTIAL PROPERTIES

Residential properties can be grouped into a single home, a condo unit, apartment, townhouses, a duplex and the list goes on. Residential real estate can also be a very lucrative form of investment. Investing in a residential real estate property also comes with certain tax advantages. 

THE RISKS OF INVESTING IN A RESIDENTIAL REAL ESTATE PROPERTY

Just like every form of investment, there are some downsides. One of the biggest downside of owning a residential real estate property is that, it is not a very liquid investment. Even though cash flow and appreciation overtime is great, as soon as a building stops delivering as a result of external factors like mismanagement and market conditions, an investor usually has a hard time cutting his or her loses and getting out. In order to successfully sell a struggling residential property, you will have to find a buyer that would have to see a potential value in the property that you can’t see.

Every form of investment including real estate investments all come with some form of risk factor. This may include, the depreciation of an assert, financial lose, as well as legal issues. Get in touch with Niro law real estate lawyers for a free consultation with all legal problems.

WAYS TO INVEST IN REAL ESTATE

Buying and owning real estate can feel like both an accomplishment and a smart investment strategy. By using leverage, prospective real estate owners can acquire a property by simply paying a portion of the total cost of the property upfront. Overtime, they are able to pay off the balance with a little interest. However, this isn’t the same with bonds and stocks investments.

Another good way to make money with real estate is by becoming a landlord of a rental company. There is also the act of flipping real estate properties. Flipping real estate properties is buying old and run down properties with the intention to renovate and put the property back in the market at an even greater value. Employing the services of a real estate agent is always the right call when looking to invest in real estate.

A LITTLE ABOUT THE TOWN OF NORTH YORK

North York is a town located at the North of York hence its name. North York is one of the 6 administrative districts of Toronto. The town of North York has a great socio economic infrastructure with great homes and facilities. A real estate lawyer in North York and agent in the town will provide you with the best legal and expert council or advise

OWNING RENTAL PROPERTIES

Owning rental properties is usually done by individuals who aspire to be land lords. You will have to be hands on if you decide to be an owner of a rental property because it requires a lot of time and dedication being of service to tenants. A downside to owning a rental property is that a subtotal amount of capital is required upfront with maintenance and to cover vacant months.

PROS OF OWNING A RENTAL PROPERTY

• Owning a rental property can serve as a regular source of passive income. 
• Another merit to owning rental property is that, one can maximise capital through leverage.
• A lot of expenses can be considered as tax deductible.

CONS OF OWNING A RENTAL PROPERTY

• Managing tenants is not an easy task.
• The property is at risk of getting damaged by tenants.
• Low income from potential vacancies

MORE ABOUT HOUSE FLIPPING

House flipping usually requires having a lot of experience in in the real estate market, skills to renovate properties and marketing. A real estate agent will help you get the best deals out there. House flipping requires the investor to have a significant amount of capital and the ability to supervise repairs.

Real estate flippers often are on the look out for under valued properties to renovate and sell at a higher value in a 6 month period. 

PROS OF REAL ESTATE FLIPPING

• The investor’s capital is usually tied up for a short time unlike long term real estate investments.
• Flipping houses usually offer quick returns to the investor since the property doesn’t stay off the market for a very long time.

CONS OF REAL ESTATE FLIPPING

• You have to have a level of understanding and experience in the real estate market you to succeed.
• Sometimes markets that are doing well, suddenly fail.

ONLINE REAL ESTATE PLATFORMS

This type of real estate is usually reserved for those who want to own a particular piece of property with others. These properties are usually big commercial or residential real estate properties. These transactions are usually online and they are also know as crowdfunding. This still requires the investor to put up capital however, it’s not as much as the amount of money required to buy a property outright.

Online real estate platforms connect investors looking to diversify their investment portfolios with real estate developers. Usually not much money is needed in this type of investment.

PROS OF ONLINE REAL ESTATE PLATFORMS

• You can chose in invest in a single project or have a portfolio of real estate investment.
• You have the ability to diversify your real estate portfolio geographically.

CONS OF ONLINE REAL ESTATE PLATFORMS

• You have no liquidity since your money will be tied up in your investment for a period of time.
• You pay a lot in management fees

LEASING PROPERTY: WHAT IS A LEASE

A lease can simply be defined as a written agreement drafted by the lessor which contains terms and conditions under which a lessee is to agree to abide by when leasing out a property. This agreement usually contains a specific amount of time that the lessee will agree to own the property while the owner of the property is assured specific payment during the entire duration the property is leased out. 

Both parties are bound by the terms and agreement of the contract, and in cases where either party fails to meet contractual obligations, there are consequences. 

TYPES OF LEASES

Leases differ a lot when it pertains to properties. The structure of a lease is decided by the lessor. Current real estate market trends can also influence the structure of the lease. Depending on how a lease if formed, there can be a burden on the renter or the property owner, if it’s not designed to satisfy certain requirements from either party.

Below are some common types of leases;

1. Absolute Net Lease: This form of lease requires a tenant to take on a lot of roles. Some of these roles include, paying for taxes, paying for insurance and also taking care of the cost of maintenance of the property. This form of leasing a property is usually found in the single tenants system. Single tenants system, simply means that, the owner of the property builds housing to cater for the needs of the tenant. The owner then makes the renter, have the property for a duration of time agreed upon.
2.  Triple net lease. This form of lease comes with three levels of expense associated with it. These include, insurance, property maintenance, as well as real property taxes. Triple net lease can also be referred to as pass-through or expense because, the property owner entrust the entire management and responsibilities associated to the property unto the renter as rent excess. 

A Triple net lease can also be called NNN. They are suitable for single as well as multi-tenant leasing agreements. The tenant is solely responsible for maintaining both the landscape of the property as well as the interior maintenance. The tenant therefore decides what the property should look as long as the tenancy holds. 

 

However, in the case of a multi-tenant agreement, the property owner has complete control over the appearance of the entire property. This way, no tenant can destroy the overall appearance of the property. 

        3. Modified Gross Lease. This  form of a lease transfers the entire burden accosted with the rental property to the owner. Based on the terms and agreement of the lease, the property owner is responsible for paying for the building insurance, paying taxes and also maintain cost of the property.

4.Full Service Lease. Full Service List usually includes taking care of most of the cost of operating a business. Theres certain limitations to this such as phone and internet bills. This type of lease is usually in the best interest of the tenant since it means there are no extra charges above the monthly rate. However, the renter usually charges a premium price for the extra cost they might incur.

COMMERCIAL LEASE AGREEMENTS

A commercial real estate lawyer specialise in drafting and negotiating on your behalf to meet the needs of the tenant as well as the landlord for that particular transaction. Commercial real estate lawyers can be found in every city in Canada. Cities like Ajax have a long list of real estate lawyers that can assist in preparing lease agreements. 

A real estate lawyer in Ajax, usually drafts and negotiate commercial lease agreements on behalf of the renter to protect their interest during the entire process of the deal. Examples of specific areas real estate lawyers specialise in are; negotiating lease terms on behalf of the tenant of landlord, clarifying maintain ace and repair obligations to the renter and landlord and also terminating the lease if the tenant dose not provide the required qualifications for leasing a property.

PROBLEMS ONE MIGHT FACE WHEN BUYING A HOME

Buying a house is not an easy task. There are so many moving parts and questions you need to ask yourself before making a decision to purchase a house. The thought process with buying a house includes, thinking about a suitable location you would deem ideal to live in, & also dealing with the owners of the property you want to purchase. And lastly, the most important element in acquiring a house is dealing with a mountain of paperwork. This is why a home buyer would need the help of a real estate lawyer Markham. 

SOME CHALLENGES A HOME BUYER MIGHT FACE 

One of the most challenging hurdles in acquiring a home is the location of the house. There are tons of information online that advice home buyers on what to look for when making a decision on the location of their house. However, there isn’t just a right answer on how to go about this entire process since every home buyer has a different preference in what they are looking for. 

Some home buyers might consider living in the outskirts of the city while some might want to invest a lot more money in a tiny apartment in an ideal location in the heart of the city. When you’re in the market for a house, deciding on where to live should probably be the first decision you make as a home buyer.

Dealing with sketchy or dishonest house owners can also contribute in the hectic of buying a house. The biggest fear when buying a house for many people is dealing with fake house owners. There are so many instances where house owners are dishonest when selling a property. 

Another problem individuals have to deal with when planning to buy a house is property titles. It is imperative to properly check property titles to see if it’s valid and not filed with any form of inconsistency. As a home buyer you have to be careful into being talked into purchasing a house by a house owner or a real estate agent especially when the property title isn’t all the way clear. One of the most common misunderstanding is when a home owner claims to own the property with another relative and promise that won’t result in any form of issue during the process of acquiring the property. This is a red flag which ends up complicating the entire process of buying a house and can even lead to an expensive settlement. Therefore, it is very important to get a house with a clear title attached to it.

WHAT CAN YOU AFFORD? 

In recent years, almost no one pays only cash when looking to acquire a home. However, payment plans are usually made in the form of a down payment, and also acquiring a loan from the bank. This is called a mortgage. The maximum price a house buyer can pay for a house is usually determined by the maximum amount of money offered as a down payment and also the maximum amount of money they have as mortgage 

In conclusion, buying a house isn’t for the faint of heart and a decision to take lightly. It’s said to even be a once in a lifetime decision which requires a lot of research and planing. 

INVESTING IN THE RIGHT REAL ESTATE

The first thing that comes to mind when an individual thinks about real estate is probably houses. However, there are many options out there when it comes to real estate investment and not all have to do with physical properties.Over half a century, real estate has become a very popular & lucrative form of investment.

  REASONS TO CONSIDER INVESTING IN REAL ESTATES 

• Firstly, when trying to diversify your investment portfolio, investing in real estate should be on the top of your list since its considered to be an assert class on its own.
• Secondly, as an investor being a landlord of a rental property can be a very lucrative way to make money.
• Flipping properties is another key way to make money as a real estate investor. A simple way of explaining this process is buying a property for a cheap price and renovating that property to add value and putting the property back on the market at a higher price.
• Lastly, by practicing Real Estate Investment Trust (REITs), individuals can market real estate properties without having to own or pump their own money into a real estate properties.

  PRICES OF REAL ESTATE PROPERTIES OVER THE YEARS

For a very long time, real estate without a doubt has been considered to be a smart & lucrative form of  investment opportunity and that is for a great reason. Historically, real estate properties especially housing data shows prices appreciate every single year, making this kind of investment less risky.

  REAL ESTATE: RENTAL PROPERTIES

People who chose to invest in rental properties take on the role as landlords. One must consider taking on the role of a landlord before investing in any form of rental property. Certain roles as a landlord include paying mortgages, paying insurances, property taxes, maintenance of the property, finding genuine paying tenants and also taking on every problem associated with your rental property.

Being a landlord isn’t an easy task, Its hands on and therefore requires a lot of attention to critical details unless you are prepared to hire a property manger to handle any day to day activity in regards to your rental property. To lower the risks associated with being a landlord of a rental property, one must be careful when choosing the property he or she wants to invest in and also, pay close attention to who he or she chose to be a tenant of said rental property. The main way to make money as an owner of a rental property is to collect rent from tenants. The location of the property is key when determining how much you’d want to charge tenants as a land lord. 

                                 

 FLIPPING REAL ESTATE PROPERTIES

A real estate lawyer in Etobicoke can play an essential role when you are considering purchasing a property with the sole purpose of flipping. Real estate lawyers are important in the closing of property deals. Real estate flippers buy properties with the goal of keeping the property for a very short period of time for no more than four to five months by investing money in renovation works and selling the property at a higher price..