10 REASONS TO INVEST IN VANCOUVER REAL ESTATE
There are several benefits for investing in real estate, from creating situations where profit potential is up to you to building your dream lifestyle through passive income. Through strategic investing, you can:
OWN YOUR OWN BUSINESS
Work part-time or full-time, manage your properties or hire a property manager, and make your own schedule.
TAKE ADVANTAGE OF APPRECIATION
Real Estate typically appreciates around four to five percent annually, a rate that generally takes place as part of the natural market growth. Beyond that, you can find opportunities to force appreciation through renovations and cosmetic improvements.
GENERATE POSITIVE CASH FLOW
Invest in rental properties in order to create positive monthly cash flow. Depending on the area’s vacancy rate and rental values, some properties can be rented for more than their total monthly expenses (principal and interest, strata fees, taxes, and insurance), allowing you to make money while someone else builds equity in your property.
CREATE A HEDGE AGAINST INFLATION
In times of inflation, there are many opportunities in real estate. Inflation tends to force higher real estate prices and your property can be counted on to be there (considering some investments may not survive economic downturns).
MAKE MONEY WITH LOW START UP COSTS AND MINIMALIZE RISK
Many investors fund their investments with very little capital of their own. In addition to conventional lenders, there are always private lenders/investors who have money to invest but who do not know how to find deals or wait for opportunities to come to them.
PROFIT FROM EQUITY BUILDUP
Build equity while your property is naturally increasing in value due to market conditions and demand. You can also tap into that equity to help finance additional investments.
ESTABLISH MULTIPLE CHANNELS FOR PROFIT
There are several options for investing in real estate, whether you are a casual investor or a full-time investor. Once you understand the array of options available, then you can choose which types of investments will help you reach your individual goals.
BENEFIT FROM REPEATABILITY
Investing in real estate can be a steep learning curve, but it’s not rocket science! Once you learn the basics, learning advanced skills can be easier than you might realize. You can then use established knowledge and systems that you gain from your initial investment to repeat the process again and again, on different types of properties, increasing your profit margins without increasing your efforts.
BENEFIT WITH TAXES
When you invest in real estate, make sure to discuss with your accountant the opportunities that may be available to you through writing off business expenses, depreciation, and tax breaks.
BUILD A POWER TEAM OF PROFESSIONALS
To succeed in real estate investing, you will need to create an all-star team of professionals within the housing industry to help you reach your goals. This may include your REALTOR®, Mortgage Specialist, Property Manager, Building Inspection, Designer, Contractor, Financial Planner, Lawyer, and Accountant, to name a few. Once you have established a strong team, your future investments will require less time and effort, using people you trust with your portfolio.