REAL ESTATE INVESTING ISN’T FOR EVERYONE
What do you see in this image? Do you see the gap: between where you are and where you want to go? Do you see the beautiful sunrise or sunset in the background? Do you see the distance from the tightrope to the ground as approximately equal to the height of the person? Or do you assume the chasm is deeper? Do you see a tightrope that looks risky, or the side view of a wide plank?
Or do you simply say, “we need more information to make a decision.”
One little image provides so many perspectives, so many choices.
Investing in anything involves choices. Real estate investing is no different. And with each decision comes risk, and results/consequences. For example, how many of us would have guessed that the TSX would be breaking records just a year after Covid started? Sometimes your choices have very positive results!
Real estate is like its own market, with its own influencers. This week’s news is all about the new mortgage qualifying rules that will likely come into play June 1. How will that influence the real estate market—stay tuned!
We were recently asked by several investors if we could “guarantee” some of the details in our projects. To be clear:
- No one can guarantee if rents will go up or down
- No one can guarantee if housing prices will go up or down
- No one can guarantee what a post-Covid world will look like
To be blunt, if you need a guarantee, we would suggest a GIC, or possibly a REIT.
We do, however, understand that everyone has a risk tolerance for all of your investment vehicles. And that comfort zone matters! So very recently, I told a potential investor that they should NOT work with us. If they are going to be losing sleep with every news headline, worrying and wondering about their real estate—then real estate is NOT the right fit for them. There are many paths to financial freedom; that investor needs to find the path that gives them confidence and lets them sleep at night.
In contrast, many of us are excited about the opportunities that 2021 brings. And many real estate investors are happy to share that journey with their friends and family.
If you’re still on the sidelines, waiting for something, then it’s your job to decide where your risk tolerance level stops and starts. Ask questions, learn more, read more. Then decide on your filters. No action, no investments, simply means a more humble retirement, or a lower financial nest egg for your WHY. How many doors you have is irrelevant. What matters is your financial freedom, and your ability to sleep (and breathe!) with your decisions.
