In this market, I'm often asked where I would invest money. We are currently in a market where homes are being sold with multiple offers and the rent does not make sense in comparison to the purchase price. One must look at the market and the market rent before making the decision to invest in real estate. One must also look at where the market is headed in the next 3 to 5 years.
Investing in real estate is not a quick "flip and get rich" scheme. On social media, television and other advertising streams, we are inundated with; investment seminars, how-to seminars, and where to invest seminars. These are all just another marketing tool for an agent to attract buyers for listings, which are on the market and not necessarily the best investment opportunities for you - an investor.
For the Region of Waterloo, we will have a high demand for condominiums and affordable housing. If you are thinking about investing, it would be wise to start looking at investment opportunities in condos, mid-rises and stack townhomes as an alternative to an investment in single-family freehold type dwellings. The primary reason for investing in condominiums is that the rate of return based on the purchase price still makes sense and one can attain between 6% to 8% annual return on their money and still have the tenant pay down their mortgage. Another benefit to investing in condos is that we will see an appreciation in the next 3 to 5 years as condos will be the only affordable housing options for millennials entering the market.
Consider your options before signing up for an investment seminar, which will lead you to projects and listings that don't provide the rate of return or upside potential, as these homes have already accelerated in value! You must really consider your options and seek the advice of a professional who is truly looking after the interest of the buyer/investor!
If you have any questions about the current market or real estate investing - give me a call. 519-624-5555 or email@example.com