CREATING AND MANAGING YOUR SAFETY NET
How you are experiencing COVID 19 is often related to your inner social circles. Some people are working harder than ever, and even collecting bonus pay or overtime. Some people are bored and unemployed. Some people are heartbroken, stressed, fearful and grieving. Regardless of who you are, and who you are most connected to, almost everyone is talking about money. In our opinion, this is a very healthy thing.
Money is often a taboo subject in the notoriously-polite Canadian culture. Well, nothing like a world-wide pandemic to blast us all out of that social comfort zone!
Many people had retirement plans and emergency funds in place, some did not. Whatever financial plan you had pre-COVID, it is almost certainly facing some challenges. We are not financial planners. We simply want to enter the discussion about creating your financial safety net.
If anyone had any doubts: gone are the days of employment security. Almost anyone can be downsized for any number of unpredictable reasons. Stock markets are a wild roller coaster ride these days—and many dividends are being slashed for the remainder of 2020. Some people are even concerned about losing their capital investments if certain companies file for bankruptcy.
So what can we do to protect our future, and create a retirement that fulfills us? Your favourite financial advisor will have plenty of advice and resources for you!
But sitting quietly in the background right now, is the possibility of investing in real estate. Look at those incredibly low interest rates!!! The cost to finance an investment property is almost unbelievably low. People who remember interest rates of 18% call today’s borrowing “free money.” Well, not quite, but close! Real estate prices are already low in Alberta. Incredible deals are out there, if you’re ready to take action today. With consumer confidence dropping to a low point, debt stresses leading to downsizing, and a rising divorce rate, there will be many renters for the near future. Yes, some renters are in trouble—but an astonishing number of tenants are continuing to pay their rent.
As many of us re-strategize our retirement and financial plans, real estate investing in Alberta is emerging as a strong contender for growing both your cashflow and your net worth. Or maybe, your real estate assets are simply your backup plan? COVID-19 is forcing us to evolve, and not go back. We hope everyone is developing plans, backup plans and safety nets.
Maybe your safety net will catch you when you fall—for example, if you experience a job loss, or your small business faces unexpected losses. Maybe your safety net provides multiple layers of protection while you are fearfully navigating hard times (like the young boy in the picture). And maybe your safety net allows you to move forward with confidence—like the young girl.
If you want to have a conversation about real estate investing in Alberta, we love chatting about opportunities. @MtnEdgeDevelops @MtnEdgeRenovate
