Should you invest in real estate?

Should you invest in real estate? Many Canadians look at real estate as an investment tool/income-generating source and one of the safest investments. An excellent real estate investment will build equity based on the appreciation of your property plus provide cash flow from rental income. Although each type of real estate investment involves a certain amount of risk, doing your due diligence proves whether your money will be well spent.

In 2022, the Canadian housing market will continue to boom due to low-interest rates and limited inventory. This boom made residential properties increase in appreciation faster across Canada. Investors can now buy a property with lower mortgage payments while the property increases in value.

How popular is real estate investing in Canada? According to Crea.cafe.ca/2020,

· 551,000 — the number of residential properties Canadian investors and foreign buyers bought in 2020 — a new annual record.

· Average home prices across Canada were up 17.1% since 2019

Before you make the leap, consider your long-range goals, current financial situation, market conditions, type of property, location of the property, type of tenant, and whether you want to be a DIY landlord or outsource to a property manager.

1. Begin with the end in mind. What’s your exit strategy?

What do you want your real estate investment to do for you? I once attended a motivational seminar where the speaker said that most people fail to realize their goals because they set vague goals. Set specific, realistic goals, within a reasonable time frame, then work backward. Rather than saying — I want to own millions of dollars of investments, reframe to I want to own two single-family residences, each worth $500,000, that make at least $1500 per month cash flow within four years.

Or take real estate investing for a test drive by renting out spare rooms in your primary residence or renting a suite in your primary residence. It’s a great way to start your real estate journey.

Would you like some help figuring out your investment goals? Take my masterclass — Do you want to be a landlord. Feb 11th at 11:00 MST. To attend this event, click here 15…