First time home buyer? Seasoned real estate investor? Average person hoping to learn as much as possible about the real estate industry so that when you're FINALLY ready to buy a home you'll be able to do it right? If you feel like any of these descriptions relates perfectly to you (number 3 is personally right up my alley), the next few minutes of reading will be worth your while!
As adults, our days and weeks are often spent working, studying, exercising, cooking, cleaning, and maybe (just maybe!) getting enough sleep to stay up until 9 o'clock. As we live our busy lives, we often don't have time to stay up to date on all of the goings-on around us - so when we come into some unexpected money, or our kids leave home to live on their own, or life throws one of its many sudden curve-balls our way, we need to rely on the advice of someone more savvy than we are to help us make the right decisions moving forward. That "someone more savvy" can be anyone from your brother to your banker to your hair dresser to your friend - and while Vince Cavaliere and his team at River City Realty may not be your closest friends, they are most certainly here to assist you, advise you, and support you loyally and personally, as would your most trusted advisor. At the recent seminar Create Amazing Wealth by Investing in Real Estate, Vince shared the knowledge he has developed and fine-tuned over the last 25 years with the Kamloops community - free of charge! In case you missed it, here are some of the highlights.
THIS IS NOT A GET RICH QUICK SCHEME
Success in Kamloops real estate (or any city, for that matter) DOES NOT happen overnight. It occurs OVER TIME for people who:
- invest in themselves
- surround themselves with others whose successes they can learn from
- diversify their wealth portfolio by adding real estate to it (not just stocks, mutual funds, etc.)
- save 10% of their income annually
- accrue good debt and manage their expenses
BUT WHY INVEST IN REAL ESTATE?
Diversifying your wealth portfolio may seem to make sense, but what's so smart about investing in real estate, specifically? Well, as long as our population continues to grow the way it is, people are going to need places to live. That means that there is always going to be a demand for what you are investing in. Furthermore, you can get into the market with a fairly low investment, and can maintain your investment while someone else (a tenant/tenants) pays off the debt. Finally, one word: appreciation. Your investment property will increase in value over time, and that inflation will contribute to a very positive net equity value over time. Have a look at this equation:
APPRECIATION + RATE OF RETURN = NET EQUITY
As mentioned above, appreciation is an increase of value (of your property, in this case) over time. Currently, inflation rates in real estate sit at just under 2%. Next, we have rate of return. The rate of return refers to the annual income that your investment property generates in rent. So, your property will continue to appreciate over time, and as you will continue to receive rental income, your net equity will increase as your mortgage value decreases, benefitting you in a multitude of ways.
WHAT IS EQUITY GOOD FOR ANYWAYS?
Your home equity can be useful in many different ways. Obviously, your net equity position can come into question if it comes time to sell your home - as it represents the money you have the potential to pocket if you sell it successfully. Home owners can also borrow against their equity in order to make home improvements that not only make their home a space that is more comfortable to live in, but also to increase its value for renters or for re-sale. Equity can also provide you with the opportunity to invest further in Kamloops real estate - so, as you can see, there is essentially no real downside to this investment property outcome!
WHAT SHOULD YOU CONSIDER BEFORE INVESTING IN REAL ESTATE?
1) Income Stability:
What does your financial situation look like? Do you have have lots of outstanding debt? Do you have a partner or spouse whose income supplements your own? Do you have family support? Do you have a steady, reliable job?
2) Life Situation:
Family stability - do you anticipate any significant costs coming up? Financial goals - are you hoping to invest in further education, business goals, or travel plans that might impact your earning schedule and/or saving ability?
3) Goal For Investment:
BE REASONABLE!! Are you hoping to find a charming fixer upper, flip it a la HGTV and sell it ASAP? Are you looking mostly for a positive monthly income, long term appreciation/equity accumulation, or both? Do you want to invest on a short-term or long-term scale? All of these questions are worth considering, and it is very important to be aware of what you are hoping to accomplish with your investment so that your realtor can help you find the best possible property.
4) Personal Finances
As with factor #1 above, your personal financial situation is a paramount factor when considering investing in real estate. Outstanding debt, personal savings, and regular expenses must all be taken into account.
5) The Real Estate Market
Kamloops was just named one of Canada Real Estate Wealth Magazine's Top 100 Neighbourhoods for investing! Suffice it to say the market in our town is HOT right now and is only going to get hotter. Your Team Cavaliere - River City Realty investment advisor will have all the juicy details on how your local market is looking, and will be able to advise you on when and where you should be investing!
6) Future Goals
What do you want to accomplish over time? Do you want to continue to invest in real estate no matter where you are? Do you want to pursue education or business goals - or follow more personal dreams of meeting a partner, having kids, and building a family? All of these are important considerations.
KAMLOOPS PROPERTIES YOU CAN INVEST IN RIGHT NOW WITH A RIVER CITY REALTY EXPERT ADVISOR
Sign up with River City Realty TODAY to start your investment property search!! Our team is always here to help you with all of your real estate investing needs!!