People are torn on the topic of real estate investment. While some think that it is not beneficial, others swear by it. Whatever camp you may be in, we are here to talk to you about some of the major benefits to investing in real estate! For this article, we will list a few of these benefits, as well as discuss some things to be careful about when considering investing in real estate.
For starters, a real estate investment can bring in some serious cash flow. Right now is a great time to think about investing because of the burgeoning population of Canada, and Alberta specifically. Because of the high population and the struggle to provide enough housing for everyone entering the province, rental rates are high, and you will see significant returns faster than you would when the province’s housing capacity catches up with its population. Not only will it cushion your bank account, but there are multiple tax benefits that other investments do not come with, meaning real estate investment will leave you with more in your pocket at the end of the day.
Second, owning property will build equity as well as credit if you play your cards right. When you rent out a home, the property essentially acts as a savings account. Owning property is also more stable than other investments. While the real estate market does fluctuate, the house and land will maintain some level of value if it is cared for. This means that buying property well in advance of retirement is kind of the perfect way to retire in comfort, and maybe earlier than you expected you would! On top of that, owning property builds credit through loan repayment, but also through reputation. Having the ability to own and manage one or more properties shows lenders and associates that you are reliable.
Finally, investing in real estate can be perfect for anyone, because there are so many different ways to go about it. The flexibility of this type of investment means that you can buy big or small, near home or abroad, for short-term or long-term rentals; entirely based on your personal circumstances and what you want to get out of real estate investment.
Now, investing in anything can be complicated sometimes, and real estate is no different.
It is important to consider that real estate investments are long-term. This means that, while you will receive steady cash flow from tenants, you may not make the money back from the original purchase for a few years. On top of that, any home bought with the intention of being used as a rental will need to be thorough, and repairs may need to be made- which will cost you more time and money before you see returns.
With that in mind, you need to be very picky about which property you buy, and where. Real estate generally tends to appreciate in value, but choosing a property with no potential in a community that has not seen significant appreciation can mean that you will not receive the amount of money you had hoped for when you originally made the investment. If you are thinking of investing today, make sure you have the expert advice to help you make the best possible choice! Click HERE and get in touch with one of our agents to discuss real estate investment today.