How do you choose a home to get the best return on investment?

When buying a home, choosing a property that will gain a lot of value can be a wise decision. It is a good idea if your main goal is to invest or live in your property.

Vistoo, the platform that showcases new real estate, gives you some tips to keep in mind to ensure the best return on investment when shopping for your next home.

Invest in a property in an attractive environment

Location is one of the most important criteria to look at when looking for a property that will offer a good return on investment.

In general, there are three main areas where properties are always popular. These areas are:

• Downtown
• Residential and family neighborhoods
• Areas that have access to many services

If you are able to find a property in an area that fits these criteria, it is an excellent investment opportunity.

However, how to take full advantage of an area can vary. A good downtown property will not meet the same requirements as a good property in a more residential area.

Choosing a home in Quebec for rental investment

If you are looking to buy a home that you can easily rent out, it is important to choose the property according to the neighbourhood where it is located.

For example, a property in a more dynamic area will be more interesting for students and young workers. As such, a property with a smaller space will be more suitable for renting.

Conversely, more space is often better in residential areas, which are attractive to families.

For a good return on a rental investment, it is important to adapt our purchase to the type of person who rents a property in the targeted area.

A good rental investment will be more lucrative than many other types of financial investment.

The occupancy rate: a factor to consider

When looking to make a profit on a home, it is important to consider the occupancy rate of the area in which it is located.

Unless you feel that the area will gain in popularity in the coming years, a low occupancy rate is often not a very good sign.

In general, properties in areas with high occupancy rates are more expensive, but that occupancy rate also demonstrates an interest in the area that is not likely to diminish.

This is not to say that you absolutely must target a home in a high occupancy area to get a good return on your investment.

In fact, it is quite possible that one area will gain in popularity while other areas have too much demand for supply and potential buyers or renters will look elsewhere.

In short, if the occupancy rate is a factor to consider when buying, its importance can vary if you judge that a sector will gain in popularity.

Investing in real estate projects in Quebec

If you want to make the most of rising real estate prices, it may be more interesting to buy a new home.

The main advantage of new real estate is that you won't have to budget for additional costs for renovations and repairs. This way, you can make the most of the good real estate performance in Quebec.

When you buy old real estate, there might be repairs that need to be done to keep the property in good condition. Despite what we often hear, not all renovations are profitable.

Indeed, while flipping, the practice of buying a home and selling it on a short term basis after some renovations, is common and potentially lucrative, it is not as simple as one might think.

For example, some repairs are important to be able to sell the house, without necessarily having a good return on investment.

On the other hand, other renovations will generate a good return on investment, but would not be necessary to sell the house.

Judging the value of a renovation is quite complex. It can vary depending on the potential buyers you are dealing with.

When you buy new real estate, you enjoy several advantages, such as:

• No need to anticipate renovation costs
• A stable value, which has a constant upward trend
• The certainty that you are getting something with the latest trends
• And much more!

If you're looking to invest in a home and don't want to make it difficult for yourself, a new construction will always be one of the best real estate investments.

Be prepared to adapt

It can be difficult to provide advice that applies to all budget situations and real estate markets.

For example, the home you need to buy to get a return on your investment may be different depending on your selling desires. If you are looking to sell in the short term, the house to buy is not the same as if you are looking to sell in the long term.

There are many factors that influence the profitability of a house.

Our interactive map is an excellent tool to evaluate the market in a region of the province.

It allows you to see new homes and real estate projects, as well as their location in the province. There's no better way to shop for a home and quickly see the surrounding area it’s located in.

For the best real estate offers in the province of Quebec, it is Vistoo, the real estate platform in Canada.