How to get the highest ROI Investing in Vacant Land

How to Evaluate Return on Investment (ROI) in Real Estate

Investment in Real Estate is considered to be very profitable and stable in most part of the world.  The focus, seem to be on growing economies such as India, China and Brazil where property prices are expected to be on the rise.  Nevertheless, there are lucrative investment opportunities even in developed countries, especially Canada.  Due to oil deposits, Canadian economy has survived the economic downturn and is on the path of growth.  This is supported by the strong currency and infrastructure.

While making any sort of investments, the major factor to take into account obviously is the Return of Investment (ROI). To know whether it is wise to invest in real estate, you only have to compare the ROI with other types of investments such as bonds and stocks.  While doing so, you may also have to understand that there are two types of returns – nominal and real.  Nominal returns do not factor the inflation but real returns include the effect of inflation.

This can be understood from this example.  While a nominal return of 20% may seem very attractive, the real return would be only 4% if the inflation rate becomes 16%.  Thus, any investment which offers a real return of 5% is better than 20% nominal return in such a scenario. You may have to keep this in mind when investing in real estate and should aim for a ROI of 10% or more which can cover your monthly expenditure on the property.  The ideal rate would be 15% so that it can offset taxes and inflation.

It would help you to make a wise decision if you compare the ROI in real estate to that of stocks and savings in banks.  You may also take into account factors such as tax advantages, leverage, government regulations and economic conditions which can impact real estate market in future.

The ROI of Real estate would depend on many factors including its location, growth prospects in the area, expenses for developing it and the money available for investment.  The purpose of investment in real estate may also vary for individuals.  After taking all these aspects into consideration, if you find that the ROI in acreages for sale is more than that of other investment options, you can go ahead.

Since investment in Real estate is a long term commitment, you need to undertake a good research about available properties and their future prospects. For this you may have to study the economic, political and other conditions in the area so that you can make an assessment of the possible return from the investment after a decade.  You may have to look for places with potential for future growth such as developing neighborhoods of cities such as Ottawa and Toronto as well as rural land with resources.

If you consider above factor before investing in Real Estate in Canada, you can be assured of good returns. A great resource to check out when looking for an investment property in vacant land is dignam.com

Country Acreage for Sale In Ontario Canada

For many people the term country acreage brings to mind a picture of an old-fashioned cottage located in an English countryside. Till some time back it was not very easy for the common population to own a secluded piece of land in Canada. Now a charming and extravagant cottage that you have wanted is much more possible than one may imagine, with several reasonably priced acreages available for sale all across Canada.

Tips for Purchasing Acreage

Different people have different reason for buying acreage. It may be because you want to build a weekend getaway far from the city hustle and bustle or construct a beautiful cottage to improve your quality of life. With more people preferring the concept of a fresh life in the countryside it is important to make sure that the land you buy meets your expectations and requirements.

When you are looking for that perfect acreage and have discovered it, you must find out more about it before buying the property. Is there a garbage removal service in the neighbourhood? How is mobile and Internet connectivity? In case you want to construct a cottage, does the land have water, proper sewage and electricity? When making your budget, you must include any added service that you may need to set up in the pastoral area. Check out the snow removal service if you will stay in your cottage during winter. It may not be possible to commute on some of the rural roads without the right vehicles. 

Gardens and Animals 

Once you start researching country acreages for sale, you will see many different kinds of properties. There are acreages next to ponds, lakes and streams and while some are full of timber and others have very few trees. In case you want to grow vegetable and fruits, make sure that that the piece of land gets proper shade or sunlight, based on the plants you will cultivate. To make the best use of your garden plots, plant foliage that need similar conditions near one another.

People who wish to keep animals must find out about the local regulations and ordinances to ascertain that you can keep the animals you like there. Some areas have restrictions on certain animals, in case of the property being within the limits of the city. They animals allowed on an acreage often changes with location. For example for property near water animals can pollute the water body. 

Purchasing country acreage to build a cottage is a very attractive idea for many people now. Even if one can spend a few days away from noise and air pollution, it is very appealing and can change life. Once you decide on the kind of property you want, it will become easy to locate acreages for sale according to your requirement. 

Growing Construction Rates, but a decline in Condo Sales

Declining Returns from Real Estate Investments in Toronto

Toronto is booming with real estate constructions.  According to available data, the number of sky scrapers under construction in Toronto stood at 144 in February 2013, which is matched by no other city on earth.  According to a Urbanation Inc, a Toronto research firm, there are 253,768 units of new condos, an increase of 10% as compared to the previous year.  This includes four luxury hotels opened during last two years, which houses condos. 

Notwithstanding this hectic building activity, the sales of condos are actually decreasing.  This is primarily due to the apprehension that there may be a stall in the Canadian expansion, which is presently based on debt funding.  This slowdown may continue till there is a global recovery which can increase exports. 

Economists also fear that since Toronto seems to be relying on its housing sector, any crash in Condo prices can adversely affect those who are investing in the constructions and real estate.  Many now find that their investment in condos such as Trump suite does not provide returns as anticipated.  Many such buyers of condos are currently suing their builders for millions of dollars for misrepresenting facts about returns from their investment.  In these lawsuits, the buyers of these condos claimed that the developers had projected up to 27% return for their investors.  The builders also were not clear about mortgage financing and room rates.  They complained that the developers are now declining to answer their queries.

The developers, on the other hand, affirmed that there are no merits in these allegations.   They claimed that the documents provided to the buyers tell about the risks involved in these investments.

Notwithstanding the slowdown in investment returns, there are several projects which are being constructed in Toronto.  These include three towers being constructed by famous architect Frank Gehry.  One of these towers has 85 floors and may become the tallest residential building in North America.  

Despite the heavy construction activity, it is apparent that there is a decline in the property market in Toronto.  For the economists, this is one of the indications that the Canadian economy, which is considered to be stable, is also being affected by the global trends.

Although the growth in the larges city of Canada may be going through a real estate slow down, out side of the city still fairs strong growth and investment. Land for sale in Northern Ontario continues to see the largest growth in profit year over year.