The most essential ingredient in real estate investment is to always look at the big picture – think long-term. When times get tough think about why you started investing in real estate in the first place.
The next few years could prove to be a little challenging for real estate investors just getting started on their journey. Real estate appreciation is expected to slow, interest rates will be rising, new lending regulations have been introduced in Canada and the HST will just add to operations expenses.
Here are some tips to keep you in the investing game – long-term:
- A more challenging lending environment: Revert to old school tactics to get the financing you need. This means investigating real estate investment clubs, apartment associations and speaking with friends & family to unearth any potential financing you can take to the bank. Additionally, think about a joint venture with another like-minded individual or group.
- Softer markets and slower appreciation: Markets that have recently surged will begin to soften as mortgage rates rise and lending policies tighten, look to emerging markets with infrastructure, transportation and employment plans to realize bigger appreciation gains at a lower market entry point.
- Higher expenses and less cashflow: Be hands on and prudent with your expenses. The HST will take effect in Ontario and British Columbia in July; creating higher expenses for landlords. Take a look at your bank statements and draft a plan to increase revenue and decrease expenses over the next few months/years, focus on efficient operation of your portfolio.
Let Investagain know what you see coming in the next 3 – 5 years for the Canadian real estate market and what your plans are.
Posted by Investagain Inc. 
