Shelter is a basic need. People will always look for a place to live. If you purchase or construct a house in a growing population, its demand will go up. The reason, more people, moving will be in the area creating a higher demand for housing. With increased demand, prices go up. If you had bought the house on mortgage, the debt would decrease with time because tenants pay the principal on your loan.
Very few assets match the cash flow of real estate investments. A small investment in real estate yields a continuous income, and the income keeps increasing with time. Before you know it, the mortgage will be paid and rent increases.
Compared to other investments like stocks, real estate is more predictable. It carries less risk as well. I am sure you have never heard of a case where one woke up to find out that their property disappeared at night.
This is a tangible asset. The owners can easily add value to their properties through efficient management and improvements. Unlike other forms of investments where you cannot access your money, owners in real estate can actively decrease expenses increasing income, rents in this case.
It is not affected by inflation
This is how it works, as inflation increases, general cost of living increases and rent increases. Since rent is the real estate returns, the owner will earn more in times of inflation.
Why invest in Canadian real estate
The demand for food is high globally. This is as a result of increasing populations and reduced food productions. Canada has remained to have high food population, and this makes it a good investment place.
For food to grow, we must have soils which support its growth. The need for natural gas, petrochemical, and potash all available in Canada is on the rise globally.
We cannot do without fuel. We will need it as long as we are living. Canadian oil continues to be marketable and in demand globally.
Forestry keeps the soils fertile and attracts rains. Canada is among the world’s timber and forest richest countries. From the above, it is clear that Canada is a good investment land. Try as much as you can to get yourself a house there, rent it, and you will never regret investing in Canada.