Investing is one of those tough decisions.
Where to put your money? Who do I have manage it? What will I invest in?
If your anything like me, it was challenging to just hand over my money to the banks Mutual Funds manager and forget about it.
I need to have control, be able to look at an opportunity and make a decision for myself. Decide if it's worth the risk. Risk, that word scares a lot of people. That's why the bank get so much of peoples money with the promise of keeping it safe. Safe, and not growing. Not to say that there haven't been people who have made plenty of money from the bank. Just how long did it take, now that's another question.
Anyway, side tracked. I've been reviewing CMHC's stats on the current rental market in Newfoundland and how they feel it will fair in 2010. It's pretty optimistic. Vacancy rates are expected to be at 1.5% for the year, and rental rates have increased from $630 for a 2 bedroom apartment to $700 in 2009.
That means if you already own a Two Apartment or Multi-Unit your most likely making more money this year.
But it's not all roses. Property prices have seen record increases over the last few years, so picking up a rental property today can be more stressful when trying to balance cash flow to turn a profit. Then again, when prices rise there are more people who will want to rent, and the more people that are renting the more competitive they get over the good apartments.
But just like you would have a representative from the bank manage your money. You need a professional to guild you through the in's & out's of property investment. There are certainly risks.
So, if your looking for a place to put some extra cash, and expect reasonable returns, investment properties can be the way to go. If you have the stomach for it of course.
All the best in the new year
Jerry Boyles