When is the Best Time to Invest in Real Estate?
Having the courage to purchase your first investment property is your first step to changing the trajectory of your life.
Having the courage to purchase your first investment property is your first step to changing the trajectory of your life. For most investors, the desire to gain wealth through real estate starts with a desire to have control over their financial well-being and the freedom to either retire early.
The 3 keys to Real Estate investing are as follows:
• Know your why
• Use the equity to build wealth
• Positive cash flow
Know Your Why
When you purchase your first rental property, know why you’re doing it. Everyone has a different reason for building wealth through real estate. Knowing your reason will keep you motivated as you move through the process. Once you know your goals, you can develop a plan that will deliver your desired outcome.
Use Home Equity to Build Wealth
As the owing amount on your mortgage decreases, the value of your home increases, the bank will lend the mortgage owner a percentage of the difference. This percentage is your home equity. Once you have one property in your portfolio, use home equity to purchase an investment property. Using equity effectively, you can turn one investment property into several over time. By increasing your doors, you build up tremendous wealth, both with property values and passive income.
Positive Cash Flow
Work with a professional Real Estate agent who can provide investment opportunities that match your investment goals. You want a neighbourhood that is poised for growth, both in value and market rental rates. It is advisable to do the math before you purchase the property to ensure the rent will cover the expenses, and if possible, provide positive cash flow.
The best time to invest in real estate, is, well, now. If you’re considering investing in Real Estate in 2020, let the experts at Forest Hill Keystone assist you with this exciting step. At Forest Hill Keystone, we know and understand the Milton Real Estate market. Contact us today to take the first step into Real Estate Investing.