Local Kitchener Waterloo
A Few Reasons Why People Invest in Real Estate
November 6, 2008 by Benjamin Bach · Leave a Comment
Real Estate is Easy to Understand
- You buy a property, and someone either works in it, or lives in it, and pays you rent. That’s the business model.
Real estate is an Investment you can see & touch
- You can physically inspect the quality of the real estate asset you’re investing in. You can walk the neighbourhood, talk to the neighbours, and see what the ‘facts on the ground’ are before investing.
You can Leverage your Equity when Investing Real Estate
- Most people don’t pay all cash when they buy a house - they have a down payment, and borrow the rest as a mortgage. This means you can leverage your capital and purchase 3-10 times as much value (i.e.If you have $25,000 you can likely purchase a $100,000 property), with the bank or a lender loaning you the rest.
There is a constant demand for real estate
- People need shelter. Real Estate is where you live and work. The chance that people in our Canadian climate will no longer need to live indoors is slim to none. Until then, they need somewhere to rest their head, and it might as well be your condo.
You can improve the value of your investment with sweat equity
- Real Estate offers you the opportunity to physically improve the property, thus increasing the value of the asset. If you take a property that is renting for $1000, and maybe only needs new flooring and a coat of paint to raise the rent to $1200, you have increased the value of the property by tens of thousands of dollars (depending on the income to price ratio in your area)
Try doing that with your Nortel stock.
Your Real Estate Investment can put a roof over your head if needed
- Many people make their first investment in Real Estate as their first home. They’re putting their money into an asset, and they can also enjoy the benefit of living in their own home.
Real Estate has a basic value
- There is only so much land in the world - and with the exception of a few places like Dubai, they aint building any more of it. When you own a property, there is value in the building, and in the land. The building may come and go - eventually needing to be replaced after many decades or even centuries in some cases - but the land will always be in demand.
What are some of the reasons you like to invest in Real Estate ? Leave them in the comments or email them to me!
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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.
Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a residential, or income & investment property in the greater Waterloo region.
You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447
**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007
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