Franc’s Real Estate Myths
Myth #1: Your primary residence is not an investment? ~
I’ve been hearing this a lot recently from the financial community, and I don’t necessarily agree.
A quarter of all Canadians are planning on using their homes as their primary source of income once they are out of the workforce, according to various surveys.
And who’s to blame them? It’s been working quite well, especially taking into account the weak returns most people have been getting from other investments.
Real estate equity is what has been allowing many Canadians to get rid of high-interest debt such as credit cards, collect income through rent, help their children buy a first home, start a business or retire debt free by selling the family home and downsizing to a smaller place.
Let’s not forget: everyone needs a place to live and there’s always a cost to that, plus the sense of security of owning a home is priceless.
Also, unlike many investments out there, homeowners have control and a good understanding of what they own. They can tailor their investment to their priorities, by making upgrades either for comfort, to increase the value or even presale to get the best sale price.
When I look for homes with my clients, we always consider two major factors: my client’s personal needs for their quality of life, and the investment prospects of the property.
By asking a few simple questions I can help buyers better determine the investment potential of their homes: