Passive Real Estate Investment in Mississauga & the GTA
Passive Real Estate Investment – Trends in Financial Market & Real Estate
Nothing is easy even for seasoned players in the field when it comes to making the most of your investment portfolio, whether you are an active or a passive investor. Toronto’s well-known advisor and Chief Financial Commentator for CTV News, Pattie Lovett-Reid, in a recent article states that there is nothing passive about passive investment these days. It takes time and money, to make money. She talks about a few means of generating passive wealth over time, with Rental Income being the first choice. Trends are clear – real estate investing is gaining popularity, along with a passive investment style for today’s busy individual.
Passive Real Estate Investment – Invest. Sit back. Gain over time.
Many seasoned investors have improvised their investment style by moving the management of their portfolio to smart financial brokers. Some of these financial planners have a track record to outperform the index year after year by helping investors choose funds that come with a small fee. As a busy professional, I definitely prefer hiring an expert to manage my financial portfolio. Successful and trusted professionals can handle one’s portfolio actively on a day to day basis, while you reap the benefits of higher than market returns. (This is my view and is not to be construed as financial advice of any type).
Passive investment works exactly the same way in real estate. My team and I actively manage many individual investors who passively enjoy their rental returns as landlords year after year. We take care of selection of tenants, properties and neighbourhoods with a good growth potential. Apart from buying good real estate investment properties, our services include easy lease renewals etc. as part of our la Carte property management services.
Active or Passive Real Estate Investment – What Suits Your Style?
Real estate investing is an active style of investment (REITs, Mortgage investing etc. are some exceptions ). A common real estate investor buys a property, manages tenants, undertakes repairs or improvements on the property, ultimately to sell or flip for a profit.
Top Two Questions for Active or Passive Real Estate Investment
What is the best time to invest?
It’s always a good time to invest, and any professional will vouch for it. In my opinion, it is always a good time to invest as long as you put down enough money so that the rental income can take care of the monthly expenses such as mortgage, taxes, repairs, condo fees and other property management expenses. There are some basic rules when investing in freehold or condos.
Should you buy with 100% cash?
Of course no one can stop you from doing that, but you need to understand that returns multiply when you leverage (opposite can also be true). If real estate grows @ 5 – 6% on an average annually and if you were to put 50% down payment, your returns on down payment (cash) would multiply two times because of the principle of leverage in real estate.