Why Investing in Real Estate Can Top The Stock Market

   Why the real estate market tops the stock market!

     Sure, you can make a fair amount of money in either stocks or real estate, but that doesn't make deciding where to invest any easier. And while all investments are cyclical, there's a reason sophisticated investors are becoming increasingly more comfortable with owning property.

Everyone knows someone who has made a good investment in property - someone who got in at the right time and bought low and sold high.

The same could be said for stocks and bonds. It's not unusual for those in the financial services industry to have reports with "documented results" or testimonials from investors who have reaped significant gains through strategic planning and market-timing.

Still, there's an inherently large amount of risk associated with investing in the stock market and as smart investors will tell you, real estate, by contrast, provides a controllable, predictable source of wealth generation that affords a certain comfort zone.

 That's because the stock market is a fickle thing unpredictable, intangible asset that has little, if any, tax benefits.

Real estate, on the other hand, is far less volatile, has superior tax benefits, significant cash flow and a high degree of leverage. The comfort that comes from these attributes gives those investors whose comfort level lies somewhere between low and no risk an ideal investment vehicle.

In future blogs I will cover 5 main points of real estate investing that seem to be an advantage over mutual funds, stock market, GIC's and Witchcraft!

You make money in real estate when you buy it, not when you sell it!

Ty Lacroix Broker of Record & Owner

          

'NOT ALL REALTORS* ARE THE SAME', One call or email to me and you will know why!

Your London and S/W Ontario source for results!

519-435-1600   www.enveloperealestate.com

9 comments • Ty Lacroix • December 29 2009 12:35PM

London Ontario Vacancy Rate Moved Up in 2009

London Ontario Vacancy Rate Moved Up in 2009

 The Canada Mortgage and Housing Corporation (CMHC)released its Fall 2009 Rental Market Report for the London Census Metropolitan Area.  Highlights of the Report are as follows:

• London Ontario  vacancy rate moved up to five per cent. Movement of households from rental to ownership, a soft youth labour market and more rental apartment completions contributed to this increase in the vacancy rate.

• The average two-bedroom rent in 2009  increased by 1.2 per cent.

"The increase in supply outstripped demand growth. As a result, the vacancy rate increased," said David Lan CMHC's London Market Analyst. "On the supply side, many rental apartments have been completed during the past few years. On the demand side,absorption of these new units has been relatively slow due to economic uncertainty early in 2009. Low mortgage rates have also freed up some rental apartments as renters moved to homeownership."

So What Does this All Mean?

Buildings that are well maintained from single family homes to high rises have little problem keeping their units rented in Lopndon. Landlords which experience high vacancy rates occur when apartments are rundown, poor local management and a poor maintenance history.

I know of small landlords with a waiting list of tenants waiting to rent and a few of the luxury high rise apartment buildings are leasing out before completion.

As with any investment, proper care and 'minding the store' is a wise move. Real estate investing profitably requires professional skills and mindset.

 Perhaps we should sit down and have a talk!

 

 

 

 

 

Ty Lacroix Broker of Record & Owner

          

'NOT ALL REALTORS* ARE THE SAME', One call or email to me and you will know why!

Your London and S/W Ontario source for results!

519-435-1600   www.enveloperealestate.com

5 comments • Ty Lacroix • December 23 2009 03:49PM