Agent Blogs

I WAS ALWAYS TOLD TO NEVER PUT ALL YOUR EGGS IN ONE BASKET WHEN DEALING WITH FINANCIAL PLANNING.  THE OLDER I GET THE MORE THIS CONCEPT MAKES SENSE TO ME.  YOU CAN NEVER RELY ONE HUNDRED PERCENT ON MUTUAL FUNDS OR PENSIONS AS A MEANS OF ACCESSING CASH FOR YOUR RETIREMENT.  REAL ESTATE IS A PROVEN LONG TERM INVESTMENT AND OFFERS YOU MORE CONTROL THAN ANY OTHER INVESTMENT.  SIX YEARS AGO I PURCHASED MY FIRST HOME.  I BOUGHT A THREE BEDROOM TOWNHOUSE IN THE NORTH EAST END OF BARRIE.  I WAS WORKING AT THE HONDA PLANT IN ALLISTON AT THAT TIME ON A TWENTY MONTH CONTRACT AND I HAD THOUGHT TO MYSELF, I BETTER PURCHASE A HOME WHILE I'M WORKING HERE BECAUSE I WANT SOMETHING TO SHOW FOR THE TIME AND EFFORTS I PUT IN.  MY PLAN WAS TO FINISH THE BASEMENT AND LIVE DOWN THERE WHILE I RENT OUT THE THREE BEDROOMS UPSTAIRS TO A FEW BUDDIES.  THE PLAN WORKED LIKE A CHARM.  I ENDED UP GETTING FULL TIME WORK AT HONDA AND CONTINUED TO LIVE IN THE BASEMENT AND RENT OUT THE UPPER ROOMS.  I STILL OWN MY TOWN HOME TODAY AND IN THE SIX YEARS OF OWNING IT I'VE  MADE JUST A HANDFUL OF MORTGAGE PAYMENTS.  I RECENTLY PARTNERED UP WITH A GREAT FRIEND OF MINE AND IN A SHORT TIME WE WERE ABLE TO ACQUIRE A COUPLE INVESTMENT PROPERTIES WHICH WE NOW HAVE RENTED OUT AND THEY ARE PAYING THEMSELVES OFF. 

INVESTMENT PROPERTIES ARE A LONG TERM INVESTMENT.  MANY PEOPLE STAY AWAY FROM THIS TYPE OF INVESTMENT BECAUSE THE HORROR STORIES OF BAD TENANTS HAVE SCARED THEM AWAY.  I'LL TELL YOU FIRST HAND THAT THERE ARE MORE PROS THAN CONS IN PURCHASING AN INVESTMENT PROPERTY.  OF COURSE YOU WILL HAVE TO OCCASIONALLY DEAL WITH VACANCY, NON-PAYMENT OF RENT, EVICTIONS, AND DAMAGES.  HOWEVER, IF YOU CAN STOMACH THESE MINOR SETBACKS AND DILEMMAS, YOU CAN MAKE SOME REAL MONEY FOR YOURSELF AND FAMILY IN THE LONG RUN.  THE IMPORTANT THING IS TO STAY POSITIVE AT ALL TIMES.  THE ABOVE CONS I MENTIONED CAN BE TURNED INTO PROS IF YOU THINK ABOUT IT.  NON-PAYMENT OF RENT IS A TAXABLE EXPENSE, AND SO ARE DAMAGES.  OTHER TAX BENEFITS INCLUDE: MORTGAGE INTEREST, BILL PAYMENTS, HOUSEHOLD EXPENSES SUCH AS FERTILIZER, SALT FOR THE WALKWAY, SNOW BLOWER, LAWN MOWER ETC..  YOU HAVE TO CLAIM THE INCOME YOU RECEIVE FROM THE RENTALS, SO WHATS WRONG WITH A LITTLE EXPENSE TO OFFSET THAT INCOME.  RENTAL CONTRACTS ARE ANOTHER IMPORTANT ISSUE WHEN INVOLVED IN THIS BUSINESS.  IF YOU HAVE A STRONG BUT FAIR WRITTEN AGREEMENT, THAN IN THE CASE OF EVICTIONS THE HASSLE SHOULD BE MINIMAL.  THE IDEA IS TO PROTECT YOURSELF AND THE INVESTMENT FIRST AND FOREMOST.  VACANCY IS ONLY AN ISSUE IF YOU DIDN'T PREPARE FOR IT.  PREPARATION STARTS BEFORE YOU EVEN MAKE THE PURCHASE OF YOUR INVESTMENT PROPERTY.   HOW IS THE LOCATION OF THE UNIT?  WHAT WOULD ATTRACT PEOPLE TO THIS PARTICULAR AREA?  WHAT MAKES THIS AREA A DESIRABLE PLACE TO LIVE?  WHAT IS THE AVERAGE RENT IN THIS AREA?  THESE QUESTIONS MUST BE ANSWERED PRIOR TO PURCHASING IN ORDER TO SATISFY YOURSELF IN KNOWING THAT YOUR PURCHASE WAS ONE BASED ON STATISTICS THAT CAN BACK YOUR IDEALS AND GOALS.  LET'S TAKE A LOOK AT SOME OF THE PROS OF INVESTMENT PROPERTIES.  IT'S AN INVESTMENT THAT GIVES YOU CONTROL OR OPTIONS.  YOU CAN SELL IT, RENT IT, LIVE IN IT, BORROW FROM IT, LEVERAGE IT AND PURCHASE ANOTHER.  OVER TIME YOU BUILD EQUITY AND YOUR TENANTS ARE COVERING THE OPERATING COSTS THE ENTIRE WAY.   LET'S NOT FORGET ABOUT INFLATION, OVER TIME PROPERTY VALUES INCREASE.  TAX BENEFITS WHICH WE ALREADY TOUCHED ON.  IF YOU HOLD ONTO THE PROPERTY(S) UP UNTIL YOU RETIRE, YOU JUST CREATED A SOURCE OF STEADY INCOME NOT TO MENTION THE HUGE AMOUNTS OF EQUITY YOU WILL HAVE IN YOUR PROPERTY(S) AT THAT POINT IN TIME.  IT ALSO GIVES YOU SOMETHING TO DO IN YOUR OLDER YEARS.

THESE ARE JUST A FEW OF THE REASONS I BELIEVE IN REAL ESTATE AS AN INVESTMENT BOTH SHORT TERM OR LONG TERM.  IN TODAYS MARKET WITH INTEREST RATES BEING SO LOW, I THINK IT'S A GREAT TIME TO PURCHASE AN INVESTMENT PROPERTY.  I KNOW I HAVE MY EYE ON  AVAILABLE PROPERTIES.  NOW THAT I HAVE A FEW SMALLER UNITS, I THINK I'LL BE LOOKING TO PURCHASE A THREEPLEX OR FOURPLEX NEXT TIME AROUND.  I'LL BE LOOKING FOR SOMETHING THAT CAN GENERATE SOME RESPECTABLE CASH FLOW.  AS A LICENCED REALTOR IN THE CITY OF BARRIE I HOPE TO SHOW YOU SOME PROPERTIES ONE DAY AND DISCUSS IN PERSON WHY I FEEL SO STRONGLY ABOUT INVESTMENT PROPERTIES.  GOOD LUCK AND HOPE TO HEAR FROM YOU SOON.