How are your investments doing lately? Did you dump the oil and dig for gold? Play the currency game, or shelter in Bonds?
It’s tricky to know what to go into and tempting to jump around for the best return. That’s never really a good long-term plan. I’m not a financial advisor, so I’ll leave that to them. But, have you been thinking about investing in Real Estate – beyond the family home type investment?
To start, 20 – 25% down payment isn’t easy. But when you have that, the question is: “Is Real Estate where you want to be?”
Lethbridge and area is indeed a fairly solid and stable place to invest your money into Real Estate. January 2018 saw new mortgage rules come into play for investors, so it’s important to shop around for best fit for your portfolio on a mortgage along with the best rate. Credit Unions may have some options to deal with your qualifications.
Let’s have a quick view of how a real estate investment could look with, say, 20% down on a $250,000 home that has a suite up and down. This gives an opportunity, theoretically, to have the tenants pay the expenses and mortgage on the property. In 20 years, one could forecast that the property will double in value (Here’s where the risk perhaps is, as there’s never a complete guarantee on that, but again, advantage to Lethbridge with a stable market). So, a $50,000 investment becomes $500,000 in 20 years, a ten-fold increase which is clearly better than most investments available.
There is another important consideration: Are you ready to be a Landlord? Ah, not so fast there. It can truly be a royal pain. So there are options to help you with this. More options mean less profit, but I believe the right fit can be found for most anyone.
I would love to talk with you about it – give me a call!
-Ron