Ask any real estate broker, you will never go wrong with property investments. Given a very volatile and uncertain market, real estate would definitely provide that much-needed balance and would beef up your investments strategy.
You should have a well-diversified portfolio that includes hard assets or real estate properties. It is important to note that when selecting investment instruments, you have to spread your risks and not put all your eggs in one basket. Brokers would often say that owning a prized real estate property is like having a blue chip stock which won’t necessarily make you a millionaire overnight but will perform well over the years and can yield sizeable revenue.
It is important to have a large portion your overall net tied up to a real estate property. There are different ways to invest in real estate property which includes real estate income trusts, real estate limited partnerships, and secondary properties. When investing, no one type of asset should dominate more than 50% of your investment portfolio. It should be a mixed investment depending mainly on your risk tolerance. Investment portfolios differ from one person to another.
There was a time that condo sales in Toronto fell to 18% one year after another. At that point, people were asking whether purchasing a real estate property is actually feasible in Canada. People would usually look at their home as an investment. Your primary residence could be an investment but not if you are not making money out of it. There are different options when acquiring property; you can buy secondary real estate properties or a vacation home. You can develop real estate properties for rental purposes or you can build or buy and sell houses – these are the investments right there.
Here are the top places to invest your money in Canada:
- Milton. This is referred to as The Fastest Growing City in Canada with population overpowering infrastructure and amenities like schools, hospitals, and the like. There is a rise in residential development and population growth plus a decline in the vacancy rate which puts Milton on top of the list. The population is also expected to double in the next couple of years.
- Brampton. This is one of the contenders in the Top 10 in Vacancy Rates and one of the popular places that anyone should consider investing in this year. With the increase in population and growth in career and employment, Brampton fell by a few percent in 2015.
- Barrie. This has been designated as the Urban Growth Centre as the city reaps benefits from the economic diversification, improvements in infrastructure and transportation, and employment growth.
Real estate thrives in leverage as real estate prices grow over the years and therefore increase in value. However, when the prices go up, fewer individuals will be able to afford it and thus, the profit will stop flowing in.
Checking the trends and values in your area will help you come up with smart real estate investments. You should also look at other factors that can affect or impact the prices like GDP growth, employment growth, and economic growth which will determine real estate pricing. With real estate investment, you should never settle for cheap, always think about long-term demand and development.