Buy and Hold Real Estate
The real estate market is up and down, but over the last 10 years we have seen a steady uptick in price growth. If you had purchased in 2008, you would have already doubled your investment. Although we are currently in a buyers market now, it is always a good idea to buy and hold real estate. In this video I will discuss 6 reasons why you should consider the buy and hold approach.
#1. Appreciation - even if you had purchased real estate at its peak in 2007 homes prices have already doubled since then. And yes real estate markets are up and down, and no prices will not correct 80 percent. That is just dreaming. If that was a reality it would throw the entire economy into shock.
#2. Passive Income - with possible higher returns than other investment options like mutual funds,
#3. High ROI on Investment - as with any real estate investment you are just putting a downpayment, making mortgage payments, and paying for property maintenance. But you are getting the the gains on the full market value of the property. In comparison to the initial investment, you are getting really good ROI.
#4. Principal Pay Down - If you are renting out your home, don’t forget with every monthly rental payment you are also reducing the principle on your mortgage. This also saves you interest the longer you hold the property ultimately paying off the property in full.
#5. No Re-qualification Mortgages - Applying for a mortgage for the first time maybe be painful, but once you are approved, and when it is time for renewal, the lender will not ask you to provide more documentation, they will just as you to sign a renewal. This is great especially if you own multiple properties and plan to own them for a long time.
#6 Retirement Income - Look at your RRSP’s and when you can access those funds? Age 70?? When you invest in real estate, you have more control. You can decide when you want to pay yourself. After you pay off all your property expenses you can treat your rental income as your retirement income.
So there you have it the 6 reasons why you should consider buying and holding real estate. If you have any questions please reach out to me.
Question of the day, would you buy and hold real estate? Please leave it in the comments below. I will try my best to personally answer all comments myself.
As always please like, share and subscribe and become smart savvy consumer. I make educational videos every Tuesday and videos every Friday. This is Alex from Vancouver and Thank you so much for watching this video eh?