Investing for the Future
Real estate investing can unlock the keys to your family’s financial independence. There are many reasons why it can be a great vehicle to get you where you want to go, and many ways to do it. You may need to rent right now but want to start building your wealth to buy your forever home down the road. You may be wondering how your kids are going to afford to get into the market and want to give them a hand-up. You may just want to get some income working for you so you can start enjoying life with your family more. It’s easy to talk about saving for retirement but it’s harder to do. When Canadians retire, often, their only assets are their real estate properties. Real estate investing forces you to save through monthly mortgage payments.
As investors know, few investments create as much wealth as real estate. You’ve probably heard the old saying by Andrew Carnegie “Ninety per cent of all millionaires become so through owning real estate.” However, while it’s true there is a chance for greater reward than traditional investments, you must work with experts who know the market. Investing in real estate is not for everyone. As with every worthwhile endeavour, it can take time and energy to really see the returns. There are several different ways to invest: investment properties (condos or single-family homes), income properties (homes you live in with rentable apartments), and flipping, to name a few, all of which can be great investment opportunities.
Real estate has without question been a good long term holding. It’s a great place to weather recessions. Home prices overall in the GTA have climbed over 5% annually since 1990. Factors such as high rates of employment, rising incomes, GDP growth, increasing population and immigration, and millennial desire, all contribute to projections for continuing demand for property in Toronto. Places in the core hold their value very well. As Warren Buffet says “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” Choose properties with high walk scores, close to good schools, and transit. Rental prices are expected to rise 11% in the city this year because of low vacancy rates. Keep in mind, using a Realtor to find a good tenant is key.
Toronto is an expensive city but there are still great opportunities out there. As jazz musician, Ray Brown is famous for saying, “The best time to buy a home is always five years ago. The next best time is today.” Prices show every sign of continuing their steady climb over time. A good Realtor will be able to guide you towards profitable choices and protect you from ones that look great but don’t give a good return. A great mortgage broker can secure a rate for you that will mean the difference between being cash flow positive and not breaking even. I’m holding a seminar with a mortgage broker who specializes in investment opportunities on April 11th. Email me if you’d like to attend to find out more about how you can make real estate investing help your dreams come true.