Why invest in real estate?

Over the past year, real estate prices have continued their upward trend. The return on investment obtained in real estate has, among other things, the reputation of being a very good long-term investment and of being less subject to the vagaries of economic cycles. An excellent reason to dive into the market without delay!

Real estate: a growing demand

The demand for real estate in all categories has been growing for several years. The value of real estate has undoubtedly increased over the years. This increase has skyrocketed since the beginning of the pandemic. We have discussed this on several occasions, the market is always in disequilibrium and in favor of sellers, but the fact remains that for a buyer, it is perhaps better to buy now than later…

Possible income

With a rental building or even a duplex from which you rent a part, you will receive recurring income. This promotes faster capitalization and can significantly reduce your current expenses. This can be a very interesting option if you wish to obtain greater financial freedom, maintain your lifestyle in retirement or even help your children get started in real estate investment.

The process for buying an income property is the same as for buying a home. For example, in the case of an income property with 4 units or less, if all units are rented, the minimum down payment is 20% of the purchase price.

It is also possible to refinance one property to finance the purchase of another. A mortgage broker will be your best ally in this process.

A long-term investment

In short, real estate should be considered as an investment if you are looking at the long term. The unprecedented period in which we are immersed because of the pandemic will not last forever. In the recent past, there have certainly been owners who have benefited from a short period of resale at a profit. This remains the exception. In real estate, it is necessary to be patient and to consider the return on one’s investment over the medium and long term in order to measure the extent of the real return. Moreover, you will have to think about maintaining the property so as not to see its value wither in the long term. One of the best things about your property is that you can decide when is the best time for you to crystallize your gains. Despite a less favorable economic cycle for real estate resale, you can decide to wait instead of selling, your property will keep its integrity unlike other types of investments.

Contact one of our brokers if you wish to discuss this further, we will be happy to guide you.

*Source: Centris


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