If we told you that right now is a good time to invest in real estate, would you think we are crazy? How could that be possible right? The rates are rising, home prices are still astronomically high, and home inventory is at an all-time low. However, today we are going to do that. We are making a bold statement and saying that right here, right now is a great time to invest in real estate!
Even though the rates are rising and the market is red hot, it is still a good time to invest…and we are not alone in this thinking. We interviewed Real Estate investment expert Mike Ponte to get his expert opinion on the market, the rates, and why you should invest now.
If you didn’t have a chance to check out the video (we suggest you do when you have a moment!) let us defend our case and convince you that right now is the time to invest.
First, we should explain that anytime is a good time to invest in real estate provided the numbers make sense. What we mean by that is, your investment simply needs to create a positive cash flow. Any property makes sense to invest in if the numbers check out to a positive cash flow in your favour.
So, with that in mind, it really doesn’t matter what the market is doing. Red hot or pain-staking slow; if the property you buy has positive equity or cash flow you are making a good investment. Along the same lines, the rate at which you qualify for is a negligible factor. Low rate or high rate if it produces income for you then it was a wise choice.
Now, why should you choose real estate over another investment? Real Estate investing can provide you with many benefits. The most prominent is the immediate profits. Building up your real estate portfolio holds tremendous financial rewards over time and historically can produce a much higher ROI than other forms of investments. The ideal, of course, is to have a mix of both real estate and stock investments, but if you are looking for one of the most historically sound and profitable places to invest your hard-earned dollars, real estate is the place to do so.
If you do consider moving forward with real estate investing there are a few key pieces of advice that can further ensure success.
- Build your Team
- By Team we are referring to the people who will be involved in the process of starting your real estate portfolio. This will typically consist of a Realtor, Accountant, Lawyer/Notary, Financial Advisor, Property Manager, Mortgage Broker. Pick your professional network carefully and you will reap the benefits!
- Have a Mentor
- Take time to find someone who has been in the business for 10+ years. This person can be a sounding board for you. They can give you advice on investment property financing, rate and insurance premiums, planning your long-term investment goals, etc.
- Get Educated
- You are investing in real estate, but you also need to invest in your education. In addition to finding a mentor find a dedicated network that can help you grow and learn. For instance, the Investors Network of Greater Vancouver is one of the best organizations around to help you succeed.
- Pull the Trigger
- After all of this, don’t be afraid to pull the trigger! So often people will get to the final steps and step back due to fear. If you have followed the above three steps, then trust us-you are ready! Dive in head first and we can assure you that there will be no regrets.
In conclusion, when is the right time to invest in real estate? Every time the numbers add up in your favour! It can be an exciting, stressful, crazy time when you choose to invest. By carefully building a strong team around you and recognizing that at the end of the day the numbers must add up, then you will be successful in building your real estate portfolio. If you do require additional assistance, GLM is here to help you crunch the numbers. We can also help you with the process of purchasing your investment property and talk about the financing implications. Are you interested? Download the e-book below and give us a call. We are here to help and be a part of your Real Estate investment team!