Is real estate the answer to investor angst?
Where, oh where, can I invest my money? That’s the question I heard repeatedly last week when I did a series of phone-in shows on CBC Radio stations across the country.
In a piece for the Toronto Star's Moneyville, Gordon Pape discusses the challenge Canadians face when it comes to investing their hard-earned money. There are several options available, such as GICs, stocks, bonds and real estate.
It is increasingly common for those looking to invest to obtain a mortgage on a primary residence or an investment property. That coupled with the recent trend of low interest rates makes this a smart investment, as long as it is done properly.
In this article, Pape discusses some things to keep in mind if you are considering investing in property. First of all, be sure you can afford it. Interest rates do fluctuate, so it is important to know you will still be able to make your monthly mortgage payments if interest rates go up. Next, are you purchasing a property to resell for profit? If so, you must be sure you will be able to complete any necessary renovations and be ready to put the house back on the market while it's still hot. Finally, ensure you factor in any extra costs. Take into account insurance rates, condo fees, heat, hydro and any unforseen expenses that come with home ownership.