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Many financially successful people and their advisers recommend having Real Estate as part of a healthy diversified savings portfolio. Owning property comes in many forms: Most often ownership is defined by the personal ownership of an occupied residence. Investors however also look to other options, most which have an income stream with the principle of having rent paying tenants cover the cost of monies either borrowed or invested from savings.
Like in all business, Real Estate is a calculated value based on a rate of return from an investment. Real Estate comes with its fairly easy to grasp calculations, which in turn help us measure the success of potential for a property: “Cap Rates” are calculated as means of standardizing, understanding and comparing the amount a property will pay you based on its purchased price. Gross and Net monthly and annual income streams and Operating Costs are also assessed. Smaller easy to run residential buildings are often a money making and retirement savings hobby for newbies and enthusiasts. Multiple unit buildings can be owner occupied and are sometimes converted from large interesting historic homes in order to meet a better principle of highest and best use in higher density areas. Commercial and large scale apartment buildings are a wonderful way for corporations or even an organized group of friends to invest. Many people opt to owner occupy a home to make improvement on it and then resell or “flip” after a required period in order to generate either a larger down payment or to diversify into additional investment.
In its many forms Real Estate proves itself to be a reliable, sound and often fun way to make and invest money. Please visit our Sales Statistics link in order to gain a perspective of value over the course of time in the city of Ottawa.
To learn more about Investing, please contact us at info@ottawaliveshere.com.