Royal LePage Kelowna Real Estate Report for October 2021
Is real estate investment right for you?
Investing Wisely for the future can help ensure financial freedom down the road. But is now a good time for you to consider investing in a property? Check out the pros and cons below for some thoughts to consider:
Real estate is generally considered one of the more stable investments over the long term. Even with market fluctuations, home prices generally rebound and appreciate over time. The Central Interior market is particularly vital, with steady growth for many years.
It can be challenging to get into the market, as it’s not as simple as putting an amount into a TFSA. You must qualify for the mortgage, including the necessary down payment. One option is to partner with others to create a larger fund to start with. However, careful consideration and clear conditions are necessary to minimize future conflict.
If your rental income exceeds your expenses, you can gain some positive cash flow to reinvest or even help your bottom line. Even if you only break even, someone else is paying down the mortgage and adding equity to your investment.
The quality of your renters can make or break your investment. Besides being a pain to deal with, they can cause value-reducing damage to your home. This is why it is essential to have a robust screening process for potential tenants, including credit check, references, and income verification. Some investors also find it worth the extra cost for a property management company’s professional help and to reduce their own time commitment and stress.
We are here to help you with this major life decision. Let us advise you as to the timing in the market and what you will need to get your real estate portfolio up and running.
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