Real estate is an effective investing tool towards building wealth, especially these days, when the market continues to show strength and growth. But, a lot of people are intimidated by the risks – real or imagined – associated with investing in real estate. TRREB’s Chief Market Analyst Jason Mercer met with Canada’s leading female real estate investing expert Tahani Aburaneh for an episode of the Ready to Real Estate Podcast . Learn more about her inspiring story to become a leader and mentor to women looking to invest, as well as some of her tips on getting started on your own real estate investment portfolio. Here are five of those tips.
No Goal Too Small
When Tahani started out in real estate investing, she was setting out to make a living and provide for her family. That might be all you’re looking to do; or maybe you’re looking to build a significant amount of wealth. It all depends on how much you’re willing to put towards your goal (which, of course, might change over time).
Tahani advises that when you’re starting out, keep things simple and focus on getting your foot in the door. If you don’t have a property yet, look for one where you can rent out a part of it and live in another part (e.g., a house with a basement). Or, if you already do own, you can buy another property.
Find Your Comfort Level with Risk
A huge resistance to real estate investment is the assumed risk, but Tahani says that there are different risks associated with different kinds of investing, and different methods of managing that risk. If you rent out your investment property, for example, and manage your cash flow well, you can command steady income over and above its value, especially if you intend to keep the property long term.
Money, Knowledge, and Time: You Need Two to Begin
Tahani says you need at least two of the following resources to start investing in real estate: money, knowledge, and time. For example, if you have knowledge and time, you can look for people to invest in your real estate venture. Or, if you have knowledge and money, you can hire an expert REALTOR® to seek out investment opportunities on your behalf.
Look Outside Your Own Backyard
The GTA continues to be an active real estate market. But, even if you live here, it doesn’t mean you need to invest here. There are centres in the Greater Golden Horseshoe (GGH) with strong local economies that have a lower price point than the GTA – places like Kitchener-Waterloo or Barrie. Within any centre, there may be neighbourhoods that could see a greater-than-average value appreciation or command above-average rents over time, due to factors like changing demographics and strong local employment opportunities. This is where additional research pays dividends.
Tahani is on a mission to inspire 10,000 women to buy an investment property and start building their own wealth. What a great way to ring in Women’s History Month! Catch the rest of Tahani and Jason’s conversation and hear more advice on real estate investment.
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