Rental Property as a Real Estate Investment
As most of us already know the majority of Millionaires and even more of the Billionaires in the world today have made their fortune through real estate. I read a very interesting article last week written after the author had interviewed the investment guru Warren Buffett. In the article Mr. Buffett noted that the very best investment he could make in North America today would be residential real estate. He stated that he would purchase a couple hundred thousand single-family residences in the one hundred to three hundred thousand range, mortgage them at today’s very low mortgage rates and then rent them all out. The rent being paid more than covers the mortgage, taxes, maintenance and miscellaneous costs. As well, each and every month that goes by the equity in each investment property grows as the tenants continue to pay down the outstanding mortgage.
The only problem he sees with this investment plan would be the Herculean logistical task it would be to manage the sheer number of properties efficiently. Although very few people could look at building this many investment properties, this sound investment strategy is the same with just one house. Over the past 5 years Alair Homes has built over 50 single-family properties for investors. These investors are not Billionaires. They are people who have seen the value and huge up side in including some Real Estate in your investment portfolio.
Alair Has Experience Building and Renovating Rental Properties
The original Alair Homes in Nanaimo is currently building a number of these real estate investment single-family homes, as is our Edmonton location with projects planed in Courtenay, Calgary, Regina and Toronto. The clients to date have been happy with the returns, and the increase in the property equity year after year. A number of the clients have even returned to us to do their second, third, fourth and as many as sixth single-family investment residences with us. In these days when you need to be brave to watch the local news and all you hear is that the economy is struggling you might want to look into different avenues of investments other than RRSP’s from your bank or low return savings bonds.
Does the prospect of building or renovating homes as a real estate investment interest you? If you have questions about home renovations or are looking for home builders in Nanaimo or other areas across Canada, contact us! We can answer all your questions and even provide you with a completely free quote!
