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Making a Difference with Real Estate

2014-11-04_0957The basic premise for anyone who invests in real estate is to make money and secure wealth. But there is more. Beyond the cash flow, appreciation and ROI there is the intrinsic need to provide accommodation. There will always be those who rent a house or apartment as opposed to those who insist on buying.

When it comes to condominiums just over one quarter (¼) of those living in condominiums in Canada, are renters. The 2011 National Household Survey (NHS) showed that 1,615,485 households (12.1%) lived (either as owners or renters) in condominiums. Of these households, 1,153,580 were owners while 461,215 were renters. That’s a lot of rental income. (At an average of $1,000 per month = $461,215,000!!!) And that’s just the condominiums.

Demand for rental income continues to grow and is driven by population gains as well as by the maturing group of young people leaving their parents home to strike out on their own. Many new immigrants arriving in Canada tend to rent upon their first arrival in the country. A stable employment level for young workers aged 20 -24 also supports the rental market demand. In fact, data from Statistics Canada reveals that households headed by individuals in this age group have the greatest tendency to rent.

There are a lot of creative ways to buy real estate and investors and homebuyers continue to find new avenues of opportunity by thinking differently than your typical renter. Many investors have gone beyond the traditional model of “buy a property, find a renter, build wealth” to working in groups, creating joint ventures, offering “rent-to-own” properties and other such ideas. At the end of each of these opportunities lies the major component of making the plan work, “The Renter”.

If you think about the “media built” image of a landlord, you may be visualizing the so called “slum lord” who continually raises the rent, does no maintenance and pretty much abuses the renters rights and ability to live a comfortable, healthy life in a rented property. While there are certainly those out here who fit this bill, they are definitely the minority. Today`s independent investor/landlord is primarily a sophisticated person who understands that providing a safe, healthy, well maintained and appealing rental property will secure their investment, limit their expenses (repairs) and provide a consistent cash flow through having a loyal tenant. Investors strive to accomplish this and ultimately, the renter has some real influence on this situation.

There are two sides to every coin and in the case of investment real estate; the renter is the other side. Investors who tend to be very successful certainly do their due diligence when it comes to cost of investment, taxes, financing and such, but they also consider the quality and quantity of renters in the market they choose.

They know that there will always be those who need to rent (even if market prices go down, actually, especially if the market goes down) and providing quality accommodation to these renters is beyond the numbers, it’s the right thing to do. And, being a landlord who works with and for the renter is really and truly, making a difference.

Legacy Wealth Income Properties helps people build wealth, one property at a time. Ask us how you can make a difference and be a sophisticated landlord/investor.



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