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If you’ve got some extra money sitting in your savings account, you may be tempted to let it sit and collect interest (and dust). Although this may seem like a promising starting point, investing in real estate is where the best of investors typically hit a home run. Not only does this help to diversify one’s investment portfolio with a safer, more conservative option, but it also has a multitude of other benefits! 

The Pros

Two, Four, Six, Eight, Who Do We Appreciate?

Unlike cars, which depreciate the moment we drive away from the dealership, houses tend to trend upward for years and years to come. It was reported in October 2020 that the current national rate of year over year home appreciation was 7.3%. That is tremendous growth that just keeps on growing!

Renting/ Building Equity

Unlike other investment options, real estate puts you in the driver’s seat. Many investors make an impressive profit by renting out their property to tenants. By doing this, the tenant becomes the one footing the bill for your monthly mortgage payment, not you. Not only this, but once the home is paid off , the house is owned by you, but paid off by the renters! When you look at it this way, it’s as if you only had to reach into your wallet for the down payment!

Control

Unlike the stock market, real estate investments offer more control on your end. Your actions and choices influence the end value of your investment property. You are not leaving things up to chance when you’ve got the control panel.

Naturally, with every investment opportunity, there is room for failure and misfortune.Luckily, real estate provides one of the most stable investing opportunities, but experts do have a few warnings for potential real estate investors.

But Wait––What Should You Watch For?

While there are so many pros to investing in real estate, it is always excellent to go into this game well-prepared for the unexpected. Here are some things to keep in mind:

Responsibility

Like anything in life, things can go awry. It’s best to know your tenants well enough to know if they will be fit to keep your property clean and functional. Risks may include damages to property, potential lawsuits, and tenants who won’t pay or need to be evicted. 

Time & Money

Investing in real estate will require a downpayment to obtain the mortgage. The home may also cost money to fix up if needed. Additionally, you must remember that investing in real estate may be equally as draining of your time as it is on your wallet. 

Knowledge

Often considered a rookie mistake, some real estate investors may purchase at the wrong time. It is important to maintain an understanding of how the housing market works, and to keep an eye on market trends, so that you can buy when the time is right. If you do this, you’re bound to make a nice return on your investment!

Ultimately, investing in real estate poses risks like any other investment. Fortunately, the rewards often outweigh the risks, making it a great investment opportunity overall.  

 

About Ian Webb

 IanWebbInvestments.com is actively investing in Kelowna, Edmonton, and Fraser Valley area real estate for a number of years.

His mission is to provide an above-average return on investment (R.O.I) for his investor partners and himself. It is truly a win-win way of investing!

Ian offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Ian.
For more information about Ian and his investment program,
please call (250) 470-1354, or visit  https://ianwebbinvestments.com