A person's risk profile dictates what they invest in. Some beginners won't find it easy to invest in real estate because of the higher learning curve.
We have found that real estate investing is both a satisfying and profitable investment strategy for our clients.
Is it still worthwhile to invest in real estate in 2022?
Real estate is one of the best ways to invest your money.
Here are five reasons to consider this type of investment strategy.
A real estate property is a physical asset. There's a limited supply of land; therefore, the price of land rises over time. Real estate is a lower-risk investment than stocks and bonds because its performance isn't completely dependent on its managers.
Returns on Investment
We have seen a solid appreciation in the KW Region for detached houses. This is due to supply and demand. On the supply side, there’s a limited supply of land and houses to meet the demand. There’s a huge influx of people coming from Toronto to the Kitchener / Waterloo Area. Plus Canada also attracts people from other countries. We have great social benefits, like free healthcare, education and safety.
Fewer Market Fluctuations
Compared to other types of investments, real estate is more resistant to changes in the economy. A person still needs a place to live even when the economy is in rough shape. More people are choosing to rent instead of buying. An increase in rental demand will result in higher cash flow.
A physical asset like real estate, which holds its value, is low-risk. Mortgages typically provide lower interest rates than margin trading, since banks can loan up to 95% of your property's value.
You can manage your real estate investments. This will allow you to control the returns. You can increase the value of your property by upgrading it.
Risks Associated With Real Estate Investing
Investing in real estate can be very lucrative, but it is not for everyone.
Consider the following factors into consideration before you begin:
Larger Investment Required
Buying a property requires a larger investment than stocks or bonds. To be approved for a mortgage will depend on two things: your credit and your income. By partnering with us, we will determine the best lenders to give you the ideal rates and terms.
Stock market investing is among the fastest ways to make money due to high daily fluctuations and easy transactions via the internet. Real estate is a less liquid and a longer-term investment because it has less volatility than other assets and the transaction takes more time and involves more people. As a buyer or seller, we will give you a seamless and efficient process, while getting you the most value for your investment.
Good Intuition Required
Individual real estate investments do not have reporting metrics like stocks or bonds. So, in order to find deals and generate returns with real estate investments, it is important to understand how to make money with them. Following that, you will need to learn about renovating, leasing, and managing the property. You will get coaching when you work with our team. Our real estate team will help you understand the basics of investing in real estate, how to get started, and how to grow your portfolio.
Real estate investing involves work since you are in charge of your investment. The process of looking for good opportunities, doing the upgrades, leasing out the property, managing the tenants, and managing the property takes time. Getting your first property up and running can be a challenge. However, we'll help the best way we can. If you need additional assistance, we are well connected to leasing and property management teams that can help out.
How We Can Help
Our team is ready to help you out, even if real estate can seem intimidating. In addition to offering you expert real estate investing insights, we will teach you and guide you through the whole process of setting up your investment property. Have trouble managing your property? We can connect you with property management teams who are ready to do the heavy lifting. You can count on us to help you meet financial challenges as your portfolio grows.
Work with Mike Bolger for real estate investing. I will help you locate real estate investment properties in the Waterloo and the surrounding area. The market is always changing; having the best insights will help you see an opportunity where no one else does.
Contact me today to discuss your real estate investment ideas.
CALL MIKE NOW: (519) 616-2656