Investing Strategies

Diversification – Don’t misunderstand the term …




Hello Springtime!  I just love it when I start to see the temperatures rise, the birds returning home, and Mother Nature spreads her magic!  What else I see often during Springtime?  A whole lot of houses, town homes, condo units up for sale!  Is it time to sell or buy … or time to diversify?

When people hear the term “diversification”, I’ve encountered many who think they need to buy stocks in different categories (for example, in technology companies, pharmaceutical, retail, etc.), and wow … they couldn’t be more wrong!  When I talk about “diversification”, please do NOT misunderstand the term – I’m referring to the different asset classes and types in real estate!

So, given the current GTA real estate conditions in today’s market, should one consider to buy, to sell or what?  My two cents would be to invest in properties both residential and commercial (if you are prepared and have the expertise) in GROWING towns and cities NOT necessarily in GTA, unless you have the funds too of course!  But what my main objective is to try to knock down those deals that would give you immediate (or with a bit of work) close to immediate CASHFLOW!  While the housing market is so hot, there will be an increase in rentals so having a couple of them during this time would be quite rewarding!  

Diversification in the types of real estate, like stable rental homes, fixer upper homes, student rentals, apartment buildings (multi-unit), and commercial properties are just some types for you to consider.  But again, doing your own due diligence is key to finding the best and safest ones – I can’t stress that enough!  Don’t just jump into anything and expect cashflow without doing your homework!  If you need help with analyzing real estate deals, you really should seek a professional you trust and who have walked the walk and not just the talk!

When you are truly “diversified” – that is where your risk is reduced!

If you are interested in learning more about diversification and starting to walk the walk to building your own financial freedom, feel free to contact us at CE Properties!  We’re more than happy to assist you in your real estate goal-reaching journey!

To another month of success!