Top 5 Mistakes First-Time Real Estate Investors Make, And How to Avoid Them
- Abask Marketing
- Jul 31
- 3 min read
Real estate investing is one of the most accessible and proven ways to build long‑term wealth, especially in Ontario’s ever‑evolving market. But for first‑time investors, a few missteps can delay your progress or reduce returns. We believe Real Estate Investors, like you, can succeed with the right guidance. Whether you’re aiming for passive income, financial security, or portfolio growth, knowing what not to do can make all the difference.
Here are the top five mistakes first‑time Real Estate Investors make, and how to avoid them.
1. Failing to Understand the Market
Jumping straight into a purchase without studying trends and data is risky. For example, CMHC’s fall 2024 Rental Market Report states the average vacancy rate in purpose‑built Canadian apartments rose from 1.5% in 2023 to 2.2%, still below the historical average, while two‑bedroom rents grew 5.4% to $1,447 (CMHC, Apr 16, 2025)
Why it matters: Knowing vacancy and rent trends in the GTA helps set accurate income expectations.
How to avoid it: Regalway Homes supports you with deep market insights, so you invest in areas poised for stability and growth.
2. Ignoring the Full Cost Picture
Purchase price is just the tip of the iceberg. The Government of Canada (FCAC) states that mortgage payments, property taxes, utilities, heat, and insurance combined shouldn’t exceed 39% of your gross income². Other legal and closing costs can add 1.5–4% of the purchase price³.
Why it matters: Overlooking these costs can squeeze your cash flow and stall your investment.
How to avoid it: We help first-time investors build realistic budgets that include mortgage, taxes, insurance, maintenance, vacancy buffers, and closing costs, so you’re never caught off‑guard.
3. Going It Alone
Many first-timers underestimate the complexities of tenant screening, legal compliance, contractors, and property management. As CBC noted, new investors often overlook nuances like provincial landlord‑tenant rules⁴.
Why it matters: Missing key details can cost time and money or lead to legal issues.
How to avoid it: Regalway Homes offers coaching, hands‑on management support, and partnership options, helping you tap into proven systems and expert networks.
4. Chasing Quick Flips Instead of Steady Cash Flow
A 2024 Reuters poll forecasts modest home price growth of just 2.8% in 2025 amid tight affordability⁵. The emphasis is shifting toward long‑term returns, rental income, and capital appreciation over fast flips.
Why it matters: Flips depend on market timing, which can backfire if interest rates dip or markets soften.
How to avoid it: We guide Real Estate Investors toward stable rental properties in areas with solid rental demand, ensuring predictable returns and wealth-building potential.
5. Thinking You Must Be Wealthy to Start
Many people believe real estate is only for the wealthy. The OECD reports Canada has a housing affordability “gap,” which has made shared‑ownership and creative financing essential for new investors to get started⁶.
Why it matters: You don’t need to go it alone, and you don’t need full capital upfront.
How to avoid it: At Regalway Homes, we match you with financing partners, co‑investment opportunities, or rent‑to‑own models. We believe anyone can be a Real Estate Investor with the proper structure and team by their side.
Why Regalway Homes?
✓ Decades of GTA Experience – We’ve coached and partnered with real estate investors at all stages.
✓ Empathy for First‑Timers – We know what it feels like to take that first step. We guide you gently and confidently.
✓ Customized Partnerships – Whether you need mentorship, capital, or a joint venture, we tailor a plan that works for you.
✓ Knowledge + Tenacity – We dig deep, find hidden opportunities, and stick with you long after the first deal closes.
If you’re ready to start or finally succeed as a Real Estate Investor, we’re here to help.
👉 Visit regalwayhomes.com or book a consultation to begin.
Sources
Canada Mortgage and Housing Corporation. “Looking at the Data behind Canada’s Rental Market Report in 2024.” CMHC, Apr 16, 2025.https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/rental-market-reports-major-centres
Government of Canada, Financial Consumer Agency of Canada. Buying a Home. Jan 14, 2025. https://www.canada.ca/en/financial-consumer-agency.html
RBC Royal Bank. “How You Can Afford Your First Home in Canada.” Jul 8, 2025.
https://www.rbcroyalbank.com/en-ca/my-money-matters/goals-aspirations/ buying-a-home/buying-your-first-home/how-you-can-afford-your-first-home-in-canada-yes-even-in-this-market/
CBC News. What First-Time Investors Should Know, 2024. https://www.cbc.ca/news/business/real-estate-new-investors-2024-guide-1.7123842
Reuters. Cross, Olivia. “Canada home prices to rise modestly, affordability to stay tight: Reuters poll.” Sep 3, 2024. https://www.reuters.com/world/americas/canada-home-prices-rise-modestly-subdued-demand-despite-rate-cuts-2024-09-03/
Organisation for Economic Co-operation and Development.
OECD Economic Surveys: Canada 2025, May 26, 2025.
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