Why Real Estate
INCOME VS HOME PRICE INCREASE
Is it possible to save enough for retirement just by putting some of our wages aside? If we could live for 300 years or so then we might have a chance at reaching this goal. In our relatively short careers, we have quite the bold challenge – to make a comfortable living today and also provide for retirement in the future when working is not an option. Essentially, we need to earn two wages.
When you check the trends of the average salary and home price, it becomes clear that everyone should try to take advantage of real estate’s performance to remedy this financial discrepancy.
The financial engineering that makes home ownership work is not as confusing as it may initially seem. The math is actually quite straightforward and easy to understand. When buying a residential property, most buyers take a large loan at a fixed point in time in order to make a big investment. Right off the bat, you have a serious amount of money at work on your behalf.
The other main reason why residential property investment works so well is the reality that everybody has to live somewhere and most can expect to pay up to around a third of their income to do so. You end up with a situation of very stable demand and generally stable cash flow.
My own example
When we bought an investment property for the fist time after moving to the country back in 2005, we did not know that real estate investment was a thing — we did not know what a ‘mortgage’ was. I worked 9 to 5 like the majority of Canadians and, even then, could not save a dime. Our own personal residence ownership compiled with our active lifestyle which burned all of our income, leaving us without the chance to save for future retirement.
Fast forward 10 years and our property had appreciated by 244%! When we sold it, we felt like we just won the lottery. We had not done anything except rent the property out to two families in Toronto’s North York area for 10 years. We realized that it would not have been possible to save that much money any other way and that investing in real estate is what we should be focusing on from that point.
I spent countless hours educating myself and meeting successful investors to both share experiences and learn from them. I joined REIN Canada in 2015 and earned the Top Investor award in 2017. My best advice after my immersion in the industry is as follows: the secret of investing in Real Estate is to understand its power and its 7 Profit Centers.
7 Profit Centers of Real Estate Investing
In order to make money in Real Estate we have to have one or more profit centers at work.
We at Forward Investments Group find investment opportunities to make all seven of them work in conjunction to maximize returns.
For the ideal investment, we find a property in one of the Top 10 Ontario towns according to the REIN Canada research team (contact me to get a copy of latest REIN Top 10 Towns report), we add value to the property to force appreciation right away (renovating it and adding second suite“Creating Secondary Suites article” for example), we leverage mortgage financing and cashflow, and from there we hold the property for 5 to 8 years to benefit from the market’s natural appreciation. Over the course of holding on to the property, we refinance it in order to take equity out to buy more properties (learn more about infinite ROI opportunities here “What are the infinite ROI opportunities”).
Win back your time with right partnership
Today I encourage everyone to start investing in Real Estate. It may require plenty of learning and experience to do it right, but it is well worth it. We at Forward Investments Group have realized this since our inception and utilize a great team of experts to circumvent all challenges. We have more than 30 years of combined experience to be able to help those who do not have time to invest — this is not just a part time gig of ours. I know many people who started investing without proper education and found themselves struggling and their investments performing very poorly. I recommend to work with an expert, maximize your returns, and win back your time for your family and your hobbies. Please contact us for a discovery call to learn about current opportunities and to learn more about partnering with us.
Here are some
reasons to Choose
Real Estate
Real Estate provides several advantages that make it a superior investment for many people. It provides your family with an appreciating asset that generates cash-flow every single month. That asset is secured against real property. The leverage built in to real estate investment allows you to maximize your return on investment and provide excellent tax advantage. Want to know more? request our details case study.
vlad@forwardinvestments.ca
