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Is Real Estate Investing STILL a Good Way to Build Wealth?

Of course, you’ve heard it before, investing in real estate is a great way to build wealth. As the saying goes, “the best investment on earth, is earth”…or something like that. But in today’s climate, is it still a good investment?  We certainly think so.  With real estate prices changing as quickly as they do, it’s easy to be unsure about the market or doubt the process of real estate investing and wealth building. To help you on your journey to real estate investing, we have come up with 7 reasons why investing in real estate is still a great way to build wealth.

 

1. Tried, Tested, and True

Before you, there was real estate, and after you will be real estate. Millions of people before you have succeeded by investing in real estate, and it doesn’t look like it’s ending anytime soon. Just think, in the Waterloo region alone, the average home price increased by over $100,000 in just three years (between 2013 and 2017). That’s a significant jump.

 

2. Hands-On Investment

Unlike other investments like stocks and bonds, where you simply put your money in the fund and leave it, real estate offers you the ability to directly manage your investment. You can get involved in the maintenance of the property, or hire someone else to do it. Either way, you have more control over the investment than you typically would with other forms of investment.

3. Fairly Stable and Predictable

No matter what happens in the market, people will always need somewhere to live. So, if you’ve chosen to purchase an investment property where income is generated through rent, you should be okay even if the market experiences a downturn. Simply because people will still require a place to live. I think it’s safe to say that the need for housing will always exist.

 

4. Variety

When it comes to real estate investing, there is so much variety and options. You can choose an apartment condo, a single family home, a townhouse, a commercial property. You truly aren’t limited and there’s almost a little something available for every budget.

 

5. Ability to purchase with leverage

The other great thing about real estate is that it offers the ability to invest by leveraging other people’s money (OPM). A mortgage is a bank loan for the purpose of buying property. The great thing about it is that is it completely the norm to do so, and it is often less risky than borrowing for stock investments. Borrowing someone else’s money while building your net worth is great when done right. And the fact that you don’t need to have all of the money upfront for your purchase is a bonus.

 

6. Generally Straightforward

Since real estate investing has been a popular and successful investment method for so many years, there is a ton of information out there on how to successfully invest. From what type of property to buy to property management, the resources are there to help you.

 

7. Multiple Ways to Profit

With real estate in Canada, you can profit in more than one way. Which include:

  • Cash Flow
  • Appreciation
  • Tax Benefits

 

So there you have it.  7 reasons why Real Estate Investing is STILL a Great Way to Build Wealth!

 

Team Burca Real Estate is committed to providing clients with excellent service. This includes educating clients on their best options when it comes to Real Estate. For more information, contact us today!

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Why Waterloo Region is a Great Place to Live

Image: Colliers International

Waterloo region has seen significant growth and changes over the past several years.  Making it an increasingly more attractive place for families, and home-buyers to invest.  Two of the reasons for this is affordability and location.  With Kitchener-Waterloo being just 1 hour West of the Toronto corridor, 2.5 hours East of Windsor and the Detroit border, and 45-mins North-West of Hamilton, the location is certainly ideal.  Comparatively, home prices are lower in the Waterloo Region, than the Greater Toronto Area, which as we all know, has seen a major increase in pricing.  

Aside from price, there are other noticeable values for home buyers to purchase Real Estate in Waterloo Region.  We’ve compiled the following:

 

Growth

Over the past few years, the region has seen significant growth.  Between 2011 and 2017, Kitchener’s population grew by 6.4% and Waterloo’s by 6.3%.

Student population: Waterloo is popularly known for its 2 major universities and major college.  Attracting tens of thousands of students yearly.  In fact, between 2011 and 2016, Waterloo’s university district grew by 147.9%.

 

Special Plans and Infrastructure

Light Rail (LRT): As part of its growth management strategy, the region embarked on a light rail project in 2010 to better meet its growth and transportation needs. This inter-city rail system offers light-rail transportation along a 36 km corridor and is set to begin operations early 2018.

 

 

Image: The Record

Old Buildings and Commercial Space Conversions: With the revitalization of old spaces, like The Tannery, Arrow Lofts, and more recently, former steel factory into multi-use event space – Lot 42. Much of the area’s old buildings are being given new life with innovative creations and space use.

 

 

 

Other Interesting Facts

Startup Culture: There are over 500 tech start ups in the Waterloo region.  That’s a lot of innovation!  Thanks to veterans like BlackBerry, this region has become quite the startup hub, attracting other global players, like Google and Huwei.

 

Image: Ian Furst

The Grand River: considered the biggest river in Southern, Ontario and one of the healthiest rivers in North America, according to WWF-Canada.

 

 

 

Greenspace: There are 6 conservation areas and over 3000 acres of parks.

Best of Both Worlds: The Waterloo Region offers plenty variety between Urban living, and Country living.  The downtown/uptown core areas have trendy lofts and century home conversions for the hip at heart! And surrounding the city areas, are beautiful country lands and townships.  So whether you prefer quiet country or urban hype, you have options!

 

Diversity: There is a great range of diverse populations making the area culturally rich.  In fact, almost 25% of the region is foreign-born.

 

 

 

So whether you are a current resident, or considering a move to the Kdub (hip for KW…aka Kitchener-Waterloo), there is certainly a lot happening, making this region one of the greatest areas to live in Canada.

Team Burca provides unmatched real estate services to the Waterloo Region.  If you have any questions about buying, selling or investing in real estate, our team is here to help you.  Our focus is always on educating our clients first, to ensure you get the best outcome.    

 

Contact us today for more information.

 

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Waterloo Region: A Buyer’s Market?

 

After a record-breaking year in real estate for the Waterloo Region with a market heavily favoring sellers, experts are now calling it a buyers market.

So what are the conditions for a market to be considered a buyer’s or seller’s you ask?  Simply put, a seller’s market is when there is a noticeable shortage of supply and the seller has the advantage to sell at a higher price. A buyers market is the opposite. This is when there is more supply in the market, and the buyer has the advantage on pricing because of the many options they have.

Although the market has shifted over the summer months and into the Fall/Winter seasons, it may not necessarily be a full-on buyer’s market based on the traditional definition of the term. Given the strong return on Real Estate, we’d say it’s a win whether you are a buyer or seller. However, with the market shifting in the direction that it has been over the past several months, there are some benefits to being a buyer at this time.

MORE OPTIONS

The first and probably most obvious benefit is the whole issue of supply. With more supply available, as a buyer, you have more options to get what you want.

Increased Purchasing Power
When real estate prices decrease, buyers have more room to purchase more than one, or several properties. With this option, buyers find it easier to position themselves as investors with investment properties and rentals added to their portfolio.

 

WHAT TYPE OF HOME BUYER BENEFITS?

First Time Home Buyers
Generally, all buyers benefit in a buyer’s market, but it seems to be especially favourable for first time home buyers, as it allows more first-time home buyers to enter the market faster.

Investors
Investors and savvy business owners have a great advantage in a buyer’s market simply because the lower prices give way to increased profitability and cash flow.

Downsizers
Another obvious one. A buyers market is great for those who are downsizing. There are generally great profits to be gained from selling a larger home and then acquiring a smaller one, regardless of what the market conditions are.

 

BOTTOM LINE

No matter how you look at it, it’s always a great time to invest in real estate. However, it seems like a particularly great time at the moment. With Waterloo-Region being one of the top 10 metropolitan areas in Canada, and it’s continued growth projections, purchasing real estate in the area is an idea worth exploring.

Team Burca provides unmatched real estate services to the Waterloo Region. If you have any questions about buying, selling or investing in real estate, our team is here to help you. Our focus is always on educating our clients first. To ensure you get the best outcome.

Contact us today!