Real Estate has made a lot of Canadians and foreign investors wealthy.
According to Wikipedia Real Estate is “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general.”
Real Estate includes a bundle of rights consisting of the right of ownership, access, use, selling, and leasing. Any one or all of these rights can be sold or rented out for a period of time. The Real Estate industry, which includes the buying and selling of real estate and related services (realty brokerage, legal, accounting, property management, appraisal, inspection, renovation, maintenance, construction, etc.) have created more millionaires in Canada than any other industry. Other industries that have created a significant number of millionaires is mining and banking.
For the average Canadian buying a home is the largest investment they will make in their lifetime. A typical Canadian that prefers to own their home, will make three home purchases in their lifetime and according to their life-stage. The appreciation in the value of their home is a significant generator of net worth and a great savings tool. The built-up equity in one’s resident home can be leveraged to help with the purchase of an investment property.
With investment rental properties, investors are able to receive both a monthly cash flow and a long-term appreciation in the value of the asset. The more investment homes that are bought the greater the wealth that will be created over the long-term. However, not every investment is equal and some properties will generate much more wealth with lesser risk than other properties. To make the best choices investors should work with a good realtor who knows the market and the business and who can provide the necessary support and deal team for the investors specific needs.
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