Reason for this Goal: Wealth through real estate investing goals is the foundation of a high percentage of high net worth individuals, Because there is only a limited supply of land, and the population of the world continues to increase at record pace, real estate will continue to increase in price when viewed as a long-term investment. There are several distinct and unique advantages to establishing real estate investing goals. Real estate is something the average person can understand.
Some people strive to become millionaires to support their retirement goals. Real estate investing is a proven way to become a millionaire, as long as you invest for the long term.
As a simple example, let’s say you purchase a home or condo for $300,000, which produces a break-even cash flow. After having your tenants pay off your mortgage over the 25 years, you will own the house outright; but after 25 years, the house is likely to be worth at least double what you paid for it. At 5% appreciation per year (quite possible in some locations/markets), your $300,000 house will be worth more than $1,000,000. If homes don’t appreciate 5% per annum in your area, that’s okay too. You will still have a substantial paid off asset when you are ready for retirement.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt
Owning physical real estate isn’t for everyone. You need to have a certain temperament to deal with tenants and maintenance issues, or trust others to look after this for you. If you can, the payback can be tremendous! For those that can never see themselves as landlords, there are other ways to invest in real estate and still benefit, such as through lending as a silent partner in a joint venture agreement, or investing in a real estate investment trust (REIT). REITs were established for small investors not interested in the responsibilities of property maintenance or managing tenants directly, to be able to invest in real estate without the large capital required to purchase real estate directly, yet be a part owner in the underlying real estate.
I have written a book, entitled, Buy Your Neighbours House . . . a strategy to developing wealth on your own street, based on our success in owning our Gables on The Park properties—4 heritage homes in a beautiful downtown location close to Lake Ontario. If you are interested in more information, this book explains that there are several distinct and important advantages of owning property in close proximity to your personal residence, and how to know if it makes sense for you to establish these real estate investing goals.
Investing in real estate as a "hobby" by purchasing all four homes on their street has been one of the key reasons for Brian and Kathy's success in accomplishing so many of their life goals. It's been so important to being able to live their dream life, that Brian has authored a book on the “buy your neighbour’s house” method of real estate investing to help others interested in real estate investing goals.
The Authorities book in which Brian is a featured co-author contains powerful wisdom from remarkable authors:
Raymond Aaron - Co-Author of Chicken Soup for the Parents Soul and Canadian Soul
Marc Shimoff - NY Best Times Best Selling Author
Dr. John Gray - NY Best Times Best Selling Author and author of the book "Men are from Mars, Women are from Venus"
In this chapter book, Brian explains why buying investment real estate, and specifically why buying your neighbour’s house (or a house in your neighbourhood), is a desirable way to develop your wealth, support you in your quest to live a good life and help fund you in your retirement years. Your neighbour’s “house” could also be a condominium, townhouse or another type of residential property. He explains in detail the reasons for doing so along with helpful information on how to go about doing it. Real Estate is one of the best vehicles for the average family to develop long-term wealth and transform financial health.
The chapter content of this book about developing real estate wealth includes:
Suggested Goal(s): Buy a rental property as one of your real estate investing goals.
Your Outrageous Goal: Own multiple investment properties.
Return to financial goals.