Is real estate a good investment?

Is real estate a good investment in Canada?

via Canadian Real Estate Magazine.

“…When it comes to investment opportunities in the True North, investing in real estate is one of the safest options for those looking to increase their net worth and invest in properties that will quickly grow in value. For those looking to buy property in Canada, there are plenty of options for making an income by buying land. As an investor, purchasing a rental property or investment home can help you grow your income, while also contributing to the Canadian housing market and economy…

The best times and places to invest in real estate

Real estate investing is one of the safest, risk-free ways to earn money from investments. Since the housing market in Canada is booming, houses are seeing an increase in appreciation over a short period of time. As an investor, building home equity for financial gains can typically be a long waiting game that could take years, whereas, in Canada, the market is so hot that homes are seeing appreciation in value on a month-to-month basis. For investors, real estate is an opportunity to diversify their investment portfolio while taking advantage of long-term capital gains.

Since the pandemic is still in full swing, low-interest rates are becoming part of the allure to purchasing single-family homes as an investment property, which makes 2021 the best year for investing in real estate. Even if you plan on living in your investment and making it your principal residence, your property will increase in value over time and you’ll get a decent return on your investment – especially if you undertake projects that help increase value like finishing a basement or renovating and updating your kitchen.

Short-term rental

Another option for properties is to convert them into short-term rentals. Having short-term tenants pay to use your home is a great way to increase your cash flow. Canadians are looking for personal escapes, so you’re single-family home or new condo could be a great place to escape for a weekend while paying a premium to you as the primary owner. You could make as much as $400 a night.

Long-term rental property

Another option for your investment house is to consider making it a rental property. Having tenants pay rent makes it easy for you because they can cover most, if not all of the cost of your monthly mortgage payment, and property tax. When you invest in rental properties, you also assist the housing market by providing rentals. Rental income can increase your cash flow, and having rental income allows you to fluff out your own personal financial situation…

Real estate investing during COVID-19

While many people may be unwilling to sell in today’s pandemic-charged market, the pandemic has actually changed the way we view real estate investment opportunities. As an investor, COVID-19 has halted any risky moves, and since real estate investments are a safe, low-risk investment it’s natural that the market is still thriving despite everything else suffering.

What’s more, is that the pandemic has provided a spotlight on the need for housing in Canada. As more and more people are forced to share personal space and work from home, the opportunity for buying homes outside metropolitan areas is arising and appealing to younger generations. But investors are taking notice of these outliers and scooping up investment properties to ramp up the rural rental market.

One of the biggest benefits of buying an investment property in today’s real estate market is the opportunity for rental income from students. In University towns like Guelph and Waterloo, investors are changing their principal residence into a place for students to rent out on a room-to-room basis. This means investors can capitalize on the need for student housing in certain cities and towns…

There has never been a better time to get into Canada’s real estate opportunities, as there will soon be an influx of people coming in and scooping up all the good land that’s available. For an investor, it’s extremely savvy to take advantage of all the opportunities while the border is still closed. Since the pandemic is going to end and increase demand, that means the prices of land are going to increase even further to new astronomical records. If you want to see increased capital, unique homes, an abundance of opportunity and the beautiful great white north, get in on the fantastic real estate investment opportunities while they’re still around!”

To read the full article, click here.