Everyone always wants to know how to make more money. Do they ask their boss for a raise? Do they invest in stocks, GIC's, TFSA's, do they start their own business? But what about investing in real estate, do you invest in commercial or residential, how do you know what works for you or what area.
Toronto is booming, condos going up everywhere, no more 1 story buildings or plazas, everything is intensifing, going up multiple levels/stories.
I have invested in stocks, Tax free savings accounts, RRSP's some have made profits, some i have taken losses. However, just recently i have started to invest in real estate, starting with condo units, hoping to work my way up.
Real estate is more stable then stocks, less volatility, less outside influences effecting the outcome. WIth mortgage rates so low more and more people are investing in real estate. Commercial markets are having far fewer listings becoming available, and when they are available what use to be the going rate of a 7-8% cap a few years ago is between 5-6% return on your money. Residential investment properties such as apartment buildings, 6 plexes, mix-use buildings are becoming more and more popular because vacancies are easier to fill, mortgages are sometimes easier to get depending on the leases, and collecting the rents are sometimes easier as well.
The world is getting more and more expensive, cost of living is going up, prices of gas, heat and food continue to rise. However, with these historically low mortgage rates, investing in real estate whether it be commercial or residential, may help add another income to your portfolio and help you built ur net worth. With the competion for commercial real estate very high and the supply very low, maybe looking in to residential is a good investment in this market.