Investment Properties

Recent low interest rates and a volatile stock market may have you wondering whether investing in real estate is a good addition to your portfolio. Investment real estate properties can be a fantastic opportunity based on equity appreciation and positive cash flow. There are a variety of different investment options depending on the type of risk and property management you choose. Some of the options are traditional yearly lease rentals, student rentals, room rentals, vacation rentals, and executive business stay rentals. Each option has a different combination of financial requirement and time commitment. An important factor is monthly cash flow. We are of the opinion that there should always be a positive monthly cash flow and a consideration for future increases in interest rates for the investment to make financial sense. This is where a professional opinion is important; rental rates have not increased at the same rate as the resale values in some neighbourhoods. Finding the right combination of purchase price and rental return is not necessarily possible in all neighbourhoods. An experienced real estate salesperson can give you information on rental rates, vacancy rates, property selection, and a projection of cash flow and return on investment. With research and the right business partners, investment properties can be interesting, exciting, and lucrative.