Real estate is the only investment where you can rent or live in it and build equity at the same time. Throughout history, great fortunes have been made in real estate; if you look at any high-net worth individual, the story of how they got to where they are will include real estate investment.
Stocks are riskier, if you consider the huge market crash of 2008, when even the best companies lost over 50% of their value, the right piece of real estate with a long-term investment plan is a smart way to grow your financial portfolio while also potentially earning rental income.1. Cash Flow
Cash flow or cash return, the difference between what you collect in rent and the expenses you payout.
Toronto properties have historically appreciated favourably for investors, Toronto has the talent, the living is good and is considered the New Silicon Valley.
When you pay down your mortgage with the property’s rental income you are building equity.
Investing in real estate, like any other weighty decision, can be both exciting and scary, the thought of owning an investment property is exiting but the excitement often fades with the thought of where the market is heading, and the fear of overpaying. This fear has prevented many first-time investors of making amazing investment returns during the las few years.
The fact is that over the last 20 years real estate values have consistently appreciated in the GTA. Don’t let fear trump over your courage to act, call me and I will help you focus on both the business and the emotional part of investing that are important to make an informed decision.