Every once in awhile, we all take some time to stop and think about the best investment strategies to secure our financial future. Though the stock market has done wonders for many, every time I hear of someone considering investing in it, I can’t help but wish them good luck. People may not be aware of the volatility of the stock market and how unpredictable it is.
Personally, I consider the best investment strategy to be the real estate market. It’s the best investment for those who want to grow their capital rather than putting their money in a fund where someone else will manage their money. And the beautiful thing about real estate is that there are so many strategies that can be successfully used. My favourite? Multi-family properties.
Why multi-family properties?
Investing in multi-family properties is considered the next step in the real estate investment business. Experts have dubbed it to be a better step to take than to invest in single-unit properties. There are many reasons why I love multi-family properties. Here are some benefits of investing in a multi-family property:
- Cash Flow:
It generates monthly cash flow – one of the most important reasons investors like multifamily property. Rents are also predictable, and units can be turned over easily so that you can re-rent the unit to keep the cash flow steady. Should a unit stay empty, the rest can carry the mortgage and operational expenses in the meantime without compromising cash flow.
- Passive Income:
Small multi-family properties provide a constant influx of revenue while facilitating the expansion of the rental portfolio. It’s a great way to generate higher additional passive income.
- Low Risk:
It’s the safest investment as compared to other real estate asset classes. Even during an economic downturn, people need a place to live. Those who cannot afford their private homes look for rental housing which creates prolonged demand for a multifamily property.
- Fewer Loans:
Another benefit of a multi-family property is that – depending on the size of your multifamily choice – you can get a loan with less difficulty than the equivalent number of single-family properties. Even if it is a 10-unit apartment building, you will get the one traditional bank loan versus having to apply for 10 individual loans.
Investing in multi-family properties in Ontario is an excellent opportunity for new as well as seasoned investors. Ontario provides an excellent location as well as a booming real estate market that can prove to be very profitable for investors looking to generate reliable revenue streams for themselves.
Do we need more reasons to invest in multi-family properties? How about they are pandemic resilient? Real estate has been able to survive recessions and now it is thriving despite a pandemic. Multi-family properties offer that extra cushion should owners need to deal with additional expenses or less income due to the adverse events brought up by the pandemic.