REAL ESTATE INVESTING IN CANADA
People are making money right in your own backyard. Canadians in greater numbers than ever before are turning to real estate as part of their portfolio to build wealth. That’s not to say real estate investing is as simple as “colour by numbers”—that’s why there’s money in it. Not everyone will use creativity to create wealth, and Canada is only the tip of the iceberg.
Here’s some helpful advice how to get started in real estate investing. This article will share some Canadian real estate investing know-how, written in plain English so you don’t get lost in any industry jargon.
1. NO RISK, NO REWARD…PLAN TO MAKE MISTAKES!
You can’t get involved with a Canadian real estate investment and not expect to at least make one mistake. Real estate is more liquid that any stocks, bonds or cash. The only way to learn is to make mistakes, so we recommend that you minimize the size and make them as fast as possible. Don’t be afraid to explore new ideas and opportunities, and remember: we can help.
2. IGNORE THE HEADLINES
Don’t get caught up in the headlines that say the market is collapsing. It may be raining in some parts of the country, but there are still rays of sunshine. Keep in mind that in tentative economic environments such as the one we currently live in, there are ripe opportunities awaiting your involvement. It’s not all doom and gloom.
3. DO YOUR HOMEWORK
Read articles and consult professionals. When it comes to obtaining data on real estate trends, do the research yourself or work with people who have done it. Local real estate boards and real estate advisors are a great data resource, as is Census Canada data for population trends by community. The “sky-is-falling media” seemingly everywhere nowadays is not normally accurate. Do not let lazy opinions sit unchallenged—get specifics.
4. FOCUS YOUR INVESTING
Even during poor economic times, housing and shelter is always a need. Focus your investing on categories of homes that are needed (think apartments & starter homes) so your exposure to risk is less.
5. EXPECT DOWNTURNS
Even though there are federally mandated safeguards to protect the real estate market in Canada, we are not immune to economic peril. Downturns are normal, and are swayed by the global markets, not just what is happening in our country. Keep in mind that economic fluctuation is normal and is to be expected, so plan for it and plan to profit from it.
6. SHOP AROUND
Because real estate is played locally there are always opportunities in any market; up, down or sideways. Focus on good communities with employment diversity and a growing population.
7. FIND A TEAM
Find a good team of people like the advisors at True North who know how to invest, and more importantly understand how to mitigate risks. A good team will steer you around obstacles and get you through tough times. They have decades of experience and learned the hard way, so why not leverage their experience? It’s never to early or too late to start working with a great advisory team.
8. THINK FOR YOURSELF
Don’t buy into the hype. When everyone is running one way, there is probably money to be made going the other way. Proceed with caution when listening to your family and friends. Only listen to people who are experienced in the industry. Stop listening to negative conversations. J. Paul Getty saw the Great Depression as an opportunity to acquire assets for his businesses at discounted prices. Getty didn’t listen to the press, he made independent decisions based upon his own beliefs about the market. In fact, he did the exact opposite of what everyone else was doing.
9. HUSTLE A LITTLE
Stop sleepwalking and get busy. Get out of your comfort zone: going to a monthly “real estate investment meeting” does not make you money.
In Canada, there is a surprising lack of independent professional advisory (non broker) real estate investing experts, plus a very limited supply of solid information on Canadian real estate investment. If you are having difficulty in finding answers to simple questions or a real estate investing mentor then True North can help.
Contact us today to find out how we can help.