It is right for you?
Are you trying to decide if a real estate investment might be the right thing for you? This month, I thought I’d outline the attractions and risks for you to consider.
The attractions of real estate investment outside your primary home are many and significant. Here are a few:
- A real estate investment can generate additional monthly income for you—this will require that you have the right balance between rental income from tenants and expenses. Smart investors work with a mortgage expert and a real estate agent for expert analysis to ensure positive cash flow.
- You will benefit in the long term from property value increases and the wealth they create. Real estate has appreciated in value steadily over the past 25 years, and looks to continue to do so in the future.
- Adding real estate to your investments helps you diversify your portfolio, which in turn helps balance risk and provides you with confidence that the money will be there when you want it.
- Real estate involves a relatively small down payment or capital investment with an attractive return on investment (ROI).
- With mortgage interest rates at record lows and plenty of great tenants clamouring for living spaces in Vancouver, there is a high demand for real estate investors in the local market.
- It’s a great option if you usually have a tough time saving money—think of it as a forced savings account that reduces your debt and builds your equity as you pay down your mortgage principal.
- It doesn’t require all your time, it’s flexible, and you can learn the skills you’ll need if you have the right experts coming alongside you to advise you.
The risks, on the other hand, are relatively low. As I mentioned before, real estate has been appreciating steadily for decades and will likely continue to for the long term, meaning your chances of losing money are relatively slim. However, it is vitally important that you do your research on your desired market before you buy. And that’s why you need to surround yourself with expert advisors and a strong team.
Is investing in real estate right for you? How do you get started? That’s what I’m here for! I’ll walk you through it step by step, help you build your Real Estate Investment Plan (including acquisition and exit strategies), and put together a Power Team to surround you with expert advice you can trust. Give me a call for more information to decide if you are ready to purchase a rental property and build your Investment Plan!