Real Estate investment may not be as risky as you think! I know, it's a weird thought for some risk-averse people, but it is a healthy way to increase your net-worth without risking it!
With interest rates currently below 5%, it is the perfect time to secure a long-term mortgage on a revenue property. A revenue property will provide you with revenue and the benefits of our strong real estate market.
What are the benefits of this market? And how strong is it?
Take a look at the numbers:
The average sale price of a residential real estate property in Saskatoon in 2009 was $278,153.00. This is pretty modest compared to 2013's average of $344,973.00. In four short years we have seen an increase of 24.02%, that's a rolling average of 6% per year. Keep in mind that most of these investments are leveraged by debt, and people are seeing a much larger return on investment.
I've also found a chart that may help you simplify your future investments:
Risk-averse individuals say that our market must be peaking due to its consistant progress, but the recent unveiling of Saskatchewan's budget that prioritizes our housing industry shows the government's opposition to this statement. The government's policies are poised to encourage sustainable real estate growth for years to come. Growth, that you as a individual should take advantage of!
If real estate investment does interest you, I'd love to go for coffee or lunch with you!
Blogpost written by Spencer Chilliak, B.COMM - Finance, Registered Real Estate Professional