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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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