Blog #34: Real Estate: Stabler than Stocks

You’re probably familiar with the concept of investing in stocks, but here’s a quick overview.

The “stocks” you buy are small investments in a company- a share of ownership. These can cost more or less depending on the value of the company at the time of your purchase.

People buy stocks with the intention of making money on them, which can happen in two basic ways: either through cash dividends, which a company might distribute to shareholders if it’s doing well financially, or by selling the stocks for more than they were purchased for.

Stocks are one of the first things people think of when they think of investing. That does NOT mean that they’re the best investment option, though.

Stock prices are influenced by so, so many factors. Supply and demand? Those are factors influencing every market, but the stock market is especially susceptible to that influence. If you’re trying to invest in a particularly popular company… well, good luck. When the demand for a stock is high, the price gets high with it.

A single share of the most expensive stock in the New York Stock Exchange, Berkshire Hathaway, costs around 340k per stock.

But here’s the thing. On March 23rd, 2020, that price was closer to 240k– a hundred thousand dollars lessWhat’s going on with that?

Well, a few more things influence the stock market. Supply and demand can be shot off in different directions depending on things like how safe people are feeling in the current social and political and economic climates.

March was around the time the pandemic started getting really bad, and for that reason, people were selling their shares like crazy. That’s the thing about stocks. They’re pretty easy to liquidate, and so when people get antsy, they cut their losses and run, taking the value of the stock down with them.

Another thing about stocks is that they’re heavily, heavily influenced by the economy at large. If you invest in Apple, and then everyone stops buying iPhones because the economy is going sour, then suddenly, your stock isn’t going to be doing you any good. And the economy has been all over the place lately.

So, what’s a market you can count on to weather the storms of the economy?

Think real estate.

Real estate is a solid market. It’s right there in the name: real estate is Real. A solid piece of land, and the sturdy building that sits on it? Those things aren’t going anywhere, no matter what the economy is doing. Stocks are, in a way, abstract. They’re just reflections of how a company is doing, but they’re not an actual thing.

Real estate is stable for a few reasons. One is the above mentioned solid nature of it. Properties you’ve invested in don’t just get up and walk away.

Supply and demand also aren’t as topsy-turvy in real estate as they are in the stock market. No matter what the economy is doing, people still need places to live or do business. That’s always going to be the case. The demand is always going to be there. And the supply? That’s pretty much set. The Earth isn’t getting any bigger. The demand is more likely to outrun the supply- and that means that property you invest in is going to, if anything, increase in value.

Even when external factors do influence the real estate market, they tend to do so much more slowly and less drastically than is the case in the stock market. Let’s talk about Berkshire Hathaway again. We already said that on the 23rd of March, it had a value of 240k per share. Want to know what it was worth three weeks before?

324k. A drop of 84 thousand dollars, in three weeks.

Real estate doesn’t pull that kind of trick on you. If you are looking for an investment that won’t give you the run-around every other week, think about investing in properties.

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #33: Real Estate Gives You the Reins

When you invest in the stock market, you are, in a way, gambling. You’re entrusting your money to the whims of someone else’s company. The stock market is a popular place to invest, but when you invest in it? You don’t really control what happens next.

If you have shares in a company, sure, you might have the option to vote on things like who gets to be on the board of directors, but ultimately, what the company does is out of your hands. You’re just along for the ride.

Real estate is different. When you invest in a property, you have direct control over your investment. You decide exactly what you invest in, and what to do with it! You get to make decisions like:

  • What type of property you’re investing in
  • Where that property is located
  • What kind of market you’re buying in
  • What kind of financing you use
  • And perhaps most importantly, how the property is maintained or improved!

That last one is a big one. When you invest in real estate, you have a lot of options. You have a very serious and direct influence over the value of the property. You can choose to improve the condition of the property as you see fit, and in that way directly increase the amount of profit you can make from it, either by reselling it or by renting it out.

If you buy a property, you can do things like renovations that tangibly and immediately make it worth more than it was before. If you invest in the stock market, you’re counting on a company to perform well. Maybe it will, maybe it won’t. You don’t get to decide. You don’t have control.

With real estate, you get to make your own decisions as an investor. If a property is underperforming, there are steps you can take to get it in top-notch condition and help it get you the money you want and deserve.

You want to have control over your financial future, right? Making the right investments is key to that. Investing in real estate means you’re handing yourself the reins of your own life. You get to make the decisions, and you get to take control.

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #32: Real Estate vs. Money in the Bank

Investing in Real Estate vs. Banking your money: Why real estate keeps your money working for you. Here’s a question you might have been asking yourself: Is it better to invest your money, or hold onto it by keeping it in the bank?

There are so many old adages about money and investing, and perhaps the most important and relevant one? “Make your money work for you!” Another common phrase is “You have to spend money to make money!”, and that’s what’s at the center of the answer to this question. These sayings may be well-worn at this point, but they hold some truth.

When you leave your money in the bank, it does very little besides just sitting there. Sure, having a big number on your account balance looks nice, and it is useful to have some liquid assets you can tap into, but if you’re looking to really pump up your net worth, you’re going to need to put your money into something. You’re going to need to invest.

There are a lot of options for you when you set out to start investing, and real estate is one possible investment. It’s a popular choice, and for good reason.

Why real estate dose the Job

Real estate is an evergreen investment, because it has tangible, actual, inherent, and real value. People are always going to need places to live, and so, as long as there are people, there’s a demand for real estate.

When you leave your money to languish in the bank, you’re trading the chance to have a tangible asset to your name for a bigger number on your account statements. That number is nice to look at, but you know what’s even nicer? Being able to drive past an apartment building, knowing that it’s yours, that it’s making you money, and that you made the right choice.

When you’re deciding what to do with your money, it’s worth remembering that doing something with it—anything, really—is how you make a profit. Money sitting in the bank isn’t doing you any good. But investing in real estate, thus using your money to make more money? Utilizing your intangible monetary resources in order to put your name on something real and eternally valuable? Now that’s smart.

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #31: Gold Vs. Real Estate: Gold Is Not a Solid Investment

Gold has been around for centuries. From ancient royalty to present-day investing gurus, plenty of people choose gold as an investment. That many people can’t be wrong, can they?

Well, as it turns out, gold may not be such a golden choice after all. On the surface, it may seem harmless, lucrative even. However, when you look closely, you might start to notice that there are a lot of reasons that gold isn’t quite the excellent investment people have believed it to be for so long.

Here is why:

A Market Steeped in Instability?

Let’s cut right to the chase. The gold market is simply not stable. That might seem strange, because most people associate gold with prestige and wealth. You figure that it is surely in high demand. Why would its price fluctuate wildly, if everyone wants it?

As it turns out, gold prices move with the economy, like any investment does.That said, gold also crashes harder than some other investments because it doesn’t really serve any purpose, at least not in the way it used to when currency was backed by it.

People like gold, but generally speaking, they don’t need it. It’s a market that people invest in when they’re afraid of paper currencies going under, but its value doesn’t come from it being useful or necessary for society.

Why Real Estate Glimmers

With that in mind, maybe gold isn’t the right investment. Its instability makes it unreliable—you can’t count on gold to weather through a tough economy with you. So, what’s another investment to consider, if you can’t count on this classic?

Let’s take a look at another thing that people have trusted as an investment for centuries: land, property, and real estate. People have been profiting from owning property for as long as there have been people. Since folks actually need places to live and work, it’s a market that’s never going to go away as long as there are humans on the planet.

Now, the real estate market does have ups and downs of its own, just like gold or any other investment. Overall, however, it’s a much more stable option. Why? Because the demand for safe housing and attractive corporate property remains constant for the most part.

Putting your money behind something necessary is a good safeguard against turbulence in the economy. You can’t always count on your coins, but real estate? Now that’s a smart investment.

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #30: Keeping Money in the Bank vs. Investing in Real Estate: Why Real Estate Comes Out On Top

We all want to use our money wisely. For those of us with a little extra to spare, you might consider investing in real estate. If you’re stuck between investing in real estate and saving your money, here’s a quick guide to help you.

Keeping Money in the Bank 

A lot of people choose to take their extra money and put it in their savings account. While they don’t get much back in return, they won’t lose any money. Most people figure that it’s easily accessible if they need it in the future.

However, you miss out on the chance to make even more money if you keep it stashed away. You might earn a little bit of interest (though it’s usually less than the rate of inflation), but investing in real estate could earn you a lot more.

Investing in Real Estate

Real estate has always been a favorite investment for people that want little risk and high returns. While it requires more money and time at the start, the passive income stream and possibly considerable appreciation more than makeup for it.

The biggest reason to invest in real estate is the tax benefits. You can receive lots of deductions, saving you anywhere from hundreds to millions each year, and you’ll still be earning through passive income. Here are some of the ways your real estate investment can get you tax benefits.

Depreciation

The IRS allows you to list depreciation as a deductible expense on your taxes. Anything that depreciates, including real estate, can be counted for a depreciation deduction.

Pass-Through Deductions

Pass-through deductions are covered under the Tax Cuts and Jobs Act. Some business owners, including those who earn rental income, can deduct up to 20 percent of their net income from their taxes.

Capital Gains

With a real estate investment, you have the option to pay capital gains tax rather than income tax, which is typically more expensive than capital gains.

Retirement

Some retirement accounts, like an HSA or an IRA, allow you to invest in real estate tax-deferred or tax-free.

Opportunity Zones

Opportunity zones offer reduced or eliminated taxes for real estate investments in the country’s most rural and distressed areas.

Why Real Estate Wins

If you’re trying to figure out what to do with your money in the long-term, invest in real estate. You’ll earn and save a lot more than you would if you keep it in the bank. The tax benefits alone are enough to show that real estate investments are the way to go.

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #29: Mutual Funds: Eggs in Too Many Baskets?

Investing in a mutual fund might seem logical. It’s an opportunity to let a seasoned investor decide where your money goes, and typically, the investments made by a mutual fund are fairly diverse. That is to say, they fall into a variety of markets, and as such, you can feel protected. If one market doesn’t pan out, perhaps one of the other ones will.

A lot of experts say that diversification in your investment portfolio is a good thing, and to a certain extent, they’re right. Investing in, say, only one stock, is a bit of a dangerous move, because what if that stock crashes? But diversification can also be very dangerous.

If you invest in a mutual fund that invests in a hundred different companies, that doesn’t necessarily mean that you’ve reached optimal diversification. A lot of mutual funds invest specifically in a single industry, which means that you still face many of the same problems you would if you only invested in a single company. And what about mutual funds that invest in multiple industries?

At that point, you run into a problem of over-diversification, which is sometimes, adorably, called “diversification”.

If your money is in a million different companies, keeping track of how all those companies are doing is a nightmare. Another problem is that investing in a lot of companies means having to own a lot of stocks in each of them, meaning that you have to put in quite a bit of cash upfront. And perhaps one of the biggest issues with over-diversification is the fact that having your cash scattered in all directions means that even if one stock is performing well, you still might not make money after you account for how another market is doing.

Now let’s think about another investment: real estate. It might seem on the surface that real estate is an investment inherently lacking diversity, but the truth is, there are all kinds of real estate. You can invest in single-family homes, multi-family dwellings, or office properties. You can invest in different parts of your city, or even in other cities. There are plenty of ways to have diverse real estate investments, and yet it would be really difficult to run into a problem of over-diversification because it’s all real estate.

Real estate is a reliable, steady investment. Everyone needs it, and so it’s not going anywhere. This is just one of the many reasons real estate could be the right investment choice for you.

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #28: Are Bonds Really Zero-Risk Investments?

Bonds are often touted as being very low-risk investments. Some would even go so far as to call them risk-free. But is that really the case? All investments come with risks to balance out their rewards, and bonds are no different. Here are a few of the risks you take on when you invest in bonds.

Interest Rate Risks

This is one of the best-known perils of bonds. The relationship between a bond and the interest rates in the market are complicated, but basically, supply and demand are at play in influencing the interest rate on the bond.

A bond you invest in might decline in value if interest rates rise. Yikes!

Inflation Risks

A bond is worth a fixed amount of money. If you invest 10,000 dollars in a bond, when it’s paid back to you, you’ll get 10,000 dollars.

Seems straightforward and risk-free, right? Nope!

You must remember that inflation is a factor in every economy. 10,000 one year is unlikely to have the same purchasing power five years from the date the bond is issued. In that way, there’s a good chance your bond is going to decline in total value, and that means money out of your pocket.

Default Risk

If you invest in bonds for a corporation, and that company goes under? Who knows what you’ll be getting back.

If the bank repossesses the assets of the company you’ve given your money to, well, that’s simply not your money anymore. It’s gone.

Takeaways?

Bonds aren’t the riskiest investment, sure, but they do come with their own set of risks. And that low risk deal that you think you’re getting also tends to come with low value and minimal rewards.

Bonds aren’t a terrible investment, but they’re not necessarily the best one.

Real estate, on the other hand, is a great investment choice for anyone who wants to see their wealth grow surely and steadily. No matter what happens, if you invest in real estate, you can rest easy knowing that there’s a solid piece of land behind your money.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #27: Investing in Mutual Funds vs Real Estate

When you have money you want to put to good use, you may be tempted  by any number of investment options. Two popular options that often come to mind include mutual funds and real estate. But which one truly comes out on top and why? Today, we will explore that.

What Are Mutual Funds?

Mutual funds pool money together with other investors. Supplemented with a portfolio, you receive a group of stocks, bonds, or additional securities in exchange for your money. 

The value of the portfolio’s assets divided by the amount of shares is what determines the pricing of mutual funds called the NAV, or net asset value. However, know that the investor doesn’t actually own the assets themselves—only the shares.

Also note that each mutual funds investment carries their own goal, portfolio and risks. Fees can potentially arise and cause a reduction of returns which might make mutual funds not a great option for you.

What About Real Estate?

On the other hand, real estate is another way to invest your money. Real estate investing is the process of buying, owning, leasing, or selling properties (land or buildings) for profit. 

Real estate usually falls into four distinct categories:

  • Residential: homes
  • Commercial: businesses
  • Industrial: warehouses, factories
  • Land: farming, ranches

Investing in real estate can take on many different forms. Maybe you choose to invest in properties directly and rent out units. Maybe you are just looking to diversify your portfolio and would prefer to take a more indirect approach to real estate.

No matter your needs or preferences, real estate can accommodate you.

Real Estate: The Better Investment Option?

Investing can be a risky business. Obviously, you want to be ensured when putting your money out there. 

Making up 60% of the world’s wealth and assets, real estate investing has previously proven itself to be a sound way to invest your money.

There are many benefits of investing in real estate, including:

  • Leverage, or the borrowing of capital to increase the potential profit, allows you to invest when you cannot buy the property yourself.
  • Your investment in real estate provides ways to save on taxes, too. Your profits can be listed as capital gains with lower tax rates, and overtime, lower the tax basis with depreciation of your properties.
  • Finally, you’ll have more control over your real estate investments than you would with mutual funds. Instead of waiting for a profit of a stock, you are the person in  charge of prices, improvements of the property, and other forms of revenue at all times.

Bottom line: real estate comes out on top as an investment option that is always relevant, accessible, and meaningful. While you cannot always predict what a market will look like, you can rest easy knowing that your assets are physical with evident value, unlike mutual funds, which can fluctuate wildly.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #26: The High Cost of Mutual Funds

In any investment, there’s a certain level of money you have to put in before you see a return. That’s kind of the point of investing: you put something in to get something more out. It’s not free money, it’s putting your money in the right places to turn it into more money. Investing is great!

But some investments are smarter than others. Some investments, like mutual funds, can cost you quite a pretty penny right up front. Let’s look at some of the costs associated with mutual funds.

Annual Fund Operating Expenses

There are a lot of ongoing fees you’ve got to look out for if you invest in a mutual fund. There are management fees that go to the people who run and operate the fund, and 12b-1 fees, which go towards marketing and selling the fund, as well as other shareholder services. Then there can be a whole load of other administrative and managerial fees that you don’t really want to deal with.

Shareholder Fees

More expenses? That’s right, as a shareholder in a mutual fund you’re also responsible for things like sales loads, which are commissions you pay when you buy or sell shares, redemption fees, which you pay if the fund doesn’t feel you’ve held onto a share long enough, account fees if your investment falls below a certain waterline… the list goes on and on. There are so many little costs you have to account for when you invest in mutual funds just to have shares in them in the first place, let alone if you want to actually do anything with your shares.

How Can I Avoid This?

The best way to get around mutual fund fees is to simply invest in something else. Real estate, for example, doesn’t have all these hidden costs and fees. When you invest in a property, you pay in what you pay in, and if it’s a rental property you probably aren’t even paying the utilities for the building.

Real estate is a really smart investment for a lot of reasons, chief among them the fact that it’s straightforward. You invest in a property, you know what you’re paying and what you’re paying for. This is one of the reasons to consider real estate for your next investment.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #25: Real Estate Makes Money (Without You Lifting a Finger!)

You want to make investments that are going to pay off. That’s kind of the point of investing, right?

With the stock market, there are a few ways to see some payoff. It’s fairly easy to sell stocks, and if you sell them for more than you paid for them, then that’s a profit.

That’s all well and good, but it’s not really something you can count on. The stock might drop in value after you buy it. And while you have the stock, it’s not directly paying you anything. It’s just sitting there. Wouldn’t a truly fantastic investment earn its keep all on its own?

That brings us to real estate. Real estate can do just that for you. If you rent out a property, you’ll see profit in the form of what’s called “cash flow”. This is the profit you see when you rent out a property for more than its expenses cost.

The property owner charges the tenants of the building rent, which covers the mortgage and other expenses associated with the property. However, if the investors are playing smart, there’s some cash leftover from the rent payment after the expenses are paid. That investor could be you!

Real estate provides you with passive income. That’s money that you’re getting from something other than a regular job. Because of that, it’s clear that the stock market can’t always provide for you and your family the way real estate can. Real estate investments can be a great, reliable source of income. If you play your cards right, you get to see the profit without even having to regularly visit the property. The money comes to you, not the other way around.

Stocks are a popular investment, but that doesn’t mean they’re the best option. You can’t always count on your stocks to be worth what you need them to be worth, and you certainly can’t count on them to make you money passively.

Real estate is a superior investment for a lot of reasons, chief among them the consistent income it provides you with. If you want to see a consistent, regular profit, real estate just might be the investment for you.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #24: Your Money: Save it or Invest to Impress?

If you’ve got some extra money sitting in your savings account, you may be tempted to let it sit and collect interest (and dust). Although this may seem like a promising starting point, investing in real estate is where the best of investors typically hit a home run. Not only does this help to diversify one’s investment portfolio with a safer, more conservative option, but it also has a multitude of other benefits!

The Pros

Two, Four, Six, Eight, Who Do We Appreciate?

Unlike cars, which depreciate the moment we drive away from the dealership, houses tend to trend upward for years and years to come. It was reported in October 2020 that the current national rate of year over year home appreciation was 7.3%. That is tremendous growth that just keeps on growing!

Renting/ Building Equity

Unlike other investment options, real estate puts you in the driver’s seat. Many investors make an impressive profit by renting out their property to tenants. By doing this, the tenant becomes the one footing the bill for your monthly mortgage payment, not you. Not only this, but once the home is paid off , the house is owned by you, but paid off by the renters! When you look at it this way, it’s as if you only had to reach into your wallet for the down payment!

Control

Unlike the stock market, real estate investments offer more control on your end. Your actions and choices influence the end value of your investment property. You are not leaving things up to chance when you’ve got the control panel.

Naturally, with every investment opportunity, there is room for failure and misfortune.Luckily, real estate provides one of the most stable investing opportunities, but experts do have a few warnings for potential real estate investors.

But Wait––What Should You Watch For?

While there are so many pros to investing in real estate, it is always excellent to go into this game well-prepared for the unexpected. Here are some things to keep in mind:

Responsibility

Like anything in life, things can go awry. It’s best to know your tenants well enough to know if they will be fit to keep your property clean and functional. Risks may include damages to property, potential lawsuits, and tenants who won’t pay or need to be evicted.

Time & Money

Investing in real estate will require a downpayment to obtain the mortgage. The home may also cost money to fix up if needed. Additionally, you must remember that investing in real estate may be equally as draining of your time as it is on your wallet.

Knowledge

Often considered a rookie mistake, some real estate investors may purchase at the wrong time. It is important to maintain an understanding of how the housing market works, and to keep an eye on market trends, so that you can buy when the time is right. If you do this, you’re bound to make a nice return on your investment!

Ultimately, investing in real estate poses risks like any other investment. Fortunately, the rewards often outweigh the risks, making it a great investment opportunity overall.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #23: Appreciate that Appreciation!

All markets fluctuate based on external factors such as supply and demand. Your gold is worth one sum now, but in a few months might be worth much less or much more. It’s a little tricky to anticipate and keep track of where that value is going. 

The real estate market comes in cycles, too. A key factor in real estate as an investment, however, is that real estate tends towards gaining value, or appreciating, over time. The supply of property doesn’t really change too much, but the demand keeps growing because people always need a roof over their heads. 

The thing about this kind of market is that it ebbs and flows like tides. Sometimes, the appreciation that takes place is strong and fast, and other times, it’s gentler and slower. You have to have the ability to be patient. 

An option that’s going to be a good, safe idea in the long run would involve buying property and waiting to resell or refinance it. The value will come, it just takes time. You might be able to sell your property at 200% of the price you bought it for, but that kind of thing is typically going to take some years to get in motion. 

That’s alright! As long as you have that property, you can be making money through the numerous other profit centers of real estate, like cash flow. The trick with appreciation is that you need to be patient, and good things will come to you.

Another awesome factor in this is that, when you buy a property, you generally finance it through a bank, which can cover 75-90% of the cost of the real estate. So, when you buy a property worth 400,000, you might only put down 100,000 for the down payment (and closing costs, etc.) with the bank covering the rest. Let’s say that that property then appreciates by 10%. It gains 40,000 in value- that’s a 10% return on the total previous value of the property.

But it’s a 40% return on the 100,000 you put in. Nifty, yeah? Leverage and appreciation work together in wonderful ways.

But you’ll need to get started if you want to see the full effects. Since these things have such a timeframe, starting as soon as possible is key to watching your net worth grow and grow. 

Real estate is a fantastic investment for the short and the long term. You can make money every step of the way. You just need to get started!

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #22: What is Private Capital?

Private capital lending is an alternative strategy for real estate investors to enter the property market, but what is private capital, who can use it, and what can they use it for?

Private Capital Definition

Private capital is an umbrella term for investment loans typically unavailable through public markets such as banks.

Private capital is accessed mainly by people with a high net worth who will use the funds for various investment scenarios, including real estate, private equity, and debt markets.

Institutional investors also frequently use private capital to make investments for others, such as insurance and pension funds.

How Do You Access Private Capital?

Access to private equity is different from traditional channels like a bank loan. Private capital reduces the risk to the lender by securing the loan against an existing asset owned by the investor. Collateral can be a house, infrastructure, or a block of apartments. Lenders are concerned with the ability of an investment to create a return that will benefit them and the lender.

Because an asset provides the collateral, the lender will usually have the option to take control of it should the borrower default on the loan. For example, if an investor purchases an investment home, the lender will be able to sell the property to recoup their funds if the investor fails to meet their obligations.

Terms for private capital are more flexible than most publicly available loans, as both lenders and borrowers can add terms and conditions that are unique to their circumstances. Flexible options include the duration of the loan, fees, and payment schedules, to name just a few.

Private Capital Advantages 

Private capital lenders are a lot more flexible in their terms and conditions because they work at a more personal level than the average bank or financial institution. Loans can be specifically tailored to an investor’s unique requirements. Also, a private capital lender will arrive at a decision much faster than a bank, which can be crucial for time-sensitive deals.

For example, an investor interested in a property that is a fixer-upper may only be able to secure a loan from the bank equal to the current value of the property. However, a private capital lender will consider lending funds on top to cover the renovation because they also have an interest in the property’s income potential.

Another advantage of private capital is that much of the red tape is removed during the approval process. Lenders know that an asset backs their funds, so they are not prone to the many regulations and restrictions that can slow a bank’s approval processes to a frustrating crawl.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #21: Why Real Estate is Better Than Cryptocurrencies

We all know investing is the best way to secure our financial future but finding the right investment vehicle can be challenging. Cryptocurrency has been trending of late but is this where you should be focusing your efforts? We discuss why your investment dollar is better off in real estate than the latest cryptocurrency fad.

The Disadvantages of Cryptocurrency

The original intention for cryptocurrency was to create an alternative currency, which is far from reality. While some online retailers and service providers take cryptocurrency, they are few and far between.

When you attempt to pay with cryptocurrency, what you would be paying today could be significantly more or less than its value tomorrow. A dollar in your country is always worth a dollar. The value of a Bitcoin from day to day is anybody’s guess.

Cryptocurrencies are new to the scene, and many governments are actively legislating against them because transactions are anonymous, making them a haven for transferring funds between criminals. Cryptocurrencies’ long-term viability is also unproven and not even close to being “safe as houses.”

Nobody needs cryptocurrencies, but everybody needs a roof over their heads, making real estate much more predictable and stable as an investment vehicle.

Digital currency values are incredibly volatile and impossible to predict from moment to moment. It’s common for values to tumble and wipe tens of thousands and even millions of dollars in value off a portfolio in a matter of minutes. For example, when China outlawed cryptocurrency mining, it wiped out more than $1.8 trillion of value from the world’s cryptocurrencies.

Digital currencies like Bitcoin are untraceable, and your investment is linked to an encrypted file on a fallible digital storage medium. Should your hard drive fail, you accidentally throw it in the bin during spring cleaning, or you lose your Bitcoin password, your fortune is forever lost. According to reports, the value of ‘lost’ Bitcoins in 2021 exceeded $148 billion. You are unlikely to misplace a house, but, unlike crypto, you can insure them against loss through fire and flood.

Advantages of Real Estate Over Crypto

While you can make a fortune in crypto just by buying at the right time, there’s as much risk you could lose it all. You may have to hold onto your real estate for a while, but there’s a lot more certainty that your property will be worth significantly more when it’s time to sell.

Properties never lose their value overnight, but you can lose your shirt with digital coin in a matter of minutes. The cryptocurrency marketplace is incredibly sensitive to investment activity. Should you want to liquidate your entire fortune, your activity could trigger a significant drop in value, making it difficult to recoup your gains. When you sell a property, you can be reasonably sure a professional agent will be able to get you fair market value.

Cryptocurrency investment shares many similarities with gambling, with big wins, even bigger losses, and very little in between. As an investment, it is perhaps the most unreliable and unpredictable strategy to date. Don’t risk your financial future to a cryptocurrency that may not exist in a few years and comes with zero protection. Investing in real estate requires a few more hoops to jump through, but in the end, you will still have your shirt and a comfortable retirement to look forward to. Find out how you can get into real estate investing without the hassle by talking to the property experts today.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #20: Why Real Estate is Better Than Mutual Funds

We’ve all heard the advice that diversifying your investments is the best way to protect yourself should one of your investment channels bottom out. It’s good advice, but there will always be investments that consistently perform better than others. This article will discuss mutual funds and how they stack up against real estate investments.

Real Estate Provides More Leverage

When purchasing $1 of mutual funds, you get one dollar’s worth of value. When you buy real estate, you are leveraging your investment dollar because you are paying a 20% deposit and mortgaging the rest.

If you have $100,000 invested in mutual funds, which doubles in value in 10 – 12 years, you have made $100,000. Not bad, but you can do better with property investing.

An investment in a $500,000 house that has increased to $750,000 nets you $250,000. It’s not unheard of for homes to double in value in that amount of time, potentially raising your gains to $500,000. That net gain is before we’ve even talked about rental income.

Essentially, the ability to borrow your real estate investment gives you significant leverage that is impossible with most other types of investment.

Mutual Funds Expense Ratios and Fees Can Devalue Your Investment

Mutual funds are popular as a hands-off type of investment. However, if you don’t pay attention, the fund expense ratios and fees can eat away the value. Management fees can also vary between funds, and some will pass on sales and marketing costs to their clients.

The fund manager’s expertise can also enhance or degrade the performance of your mutual fund. Your investment may be exposed to corruption, unnecessary trading, and selling losses at quarter’s ends to balance the ledger. Unfortunately, you have little control over these events other than to cash out and try your luck elsewhere.

While real estate investments come with costs, most property expenses can be used to reduce your tax liability. Mutual fund fees and expenses are not tax deductible. You must also pay tax on any capital gains the mutual fund produces every year.

Property Rarely Loses Value Over the Long Term

It’s possible to lose out no matter what investment vehicle you choose. However, over the long term,  property values are unlikely to be worth less than the amount you originally paid.

Mutual funds invest in the stock market, so an economic crisis can pose a significant risk to your capital gains. Many people at the cusp of retiring have been forced to rethink their plans after their mutual funds lost tens of thousands in value overnight.

Property investments are much less volatile. While property values do experience dips and troughs, they are rarely catastrophic. Short of a zombie apocalypse, a couple of decades of appreciation will still put you in front by a significant margin, even if you do happen to be selling at a low point.

Are you ready to consider property investing to secure your financial future? Increase your chances of purchasing income-producing property with potential by talking to experts prepared to share their experience and expertise. A solid real estate strategy will give savvy investors more leverage and options. Property investment also provides stability during economic strife than more volatile mutual funds.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #19: Why Real Estate is Better Than Bonds

Bonds are a relatively secure investment option, but safe choices in the money market rarely produce an attractive return. In contrast, real estate often outperforms bonds by a significant margin, especially over the long term. This article compares bonds against real estate investing to determine which one will give you the best value.

Risk vs. Return

Rental property investing will often yield high single-digit returns and often result in double-digit returns when you hold for long enough.

Government bonds are not complex investments, making them relatively straightforward for new investors to start growing their money. However, the built-in security of government bonds means your investment can lag behind inflation, possibly producing a negative net return.

On the flip side, property investment delivers equity appreciation over time and rental income that increases over the years.

Bonds and Income Taxes

Bond returns increase your tax liability, and you will also be lumped with capital gains tax on the increased value of your bonds.

Property can also attract capital gains tax when you sell, but you have the advantage of offsetting your liability with depreciation. Claiming for depreciation means you can deduct a portion of the property’s value every year against its income, making it one of the most lucrative tax breaks of any investment strategy.

Real Estate is an Excellent Hedge Against Inflation

While real estate investments require more capital and time to get into, and your money is not as liquid as other assets, other advantages will more than offset these inconveniences.

Property values will tend to track inflation. So, as the price of goods and services creeps upwards, so too will the value of your property. You also get the advantage of an income stream that tends to follow the CPI (Consumer Price Index).

Eventually, your monthly rental income will outpace your mortgage and other expenses to produce a positive cash flow. Of course, you will need to pay tax on this income, but you can offset that burden by using your equity and improved cash flow to acquire more property.

Real estate investing is the way to go if you want to ensure your investment dollars are worth more than you paid for them when you retire. When you add the potential for capital gains on the passive income stream, real estate investing takes the lead over bonds by a wide margin. Yes, bonds are almost as safe as houses, but the meager returns are far from exciting.

As we mentioned, purchasing investment bonds is not difficult, making them an easy path to investing. However, if you want to make your money work harder for you so you can enjoy a more comfortable retirement with options, real estate investing could be the right vehicle for you. Unfortunately, locating the best properties in the best neighborhoods can be challenging for inexperienced property investors. Take the stress out of property selection and reduce your risk exposure by partnering with the experts. Contact us today to find out more.

 

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #18: Why Real Estate is Better Than Stocks

Why Real Estate is Better Than Stocks

Stocks are a straightforward, no-fuss investment strategy for putting money away for the future. However, the stock market has inherent risks that can put investors at a significant disadvantage compared to real estate investing. Learn why property investing is the best strategy for building long-term wealth.

Real Estate vs. Stocks: Which Is the Better Investment?

Many Americans diversify by investing in real estate and the stock market. The U.S. Census Bureau reports that 65% of residential properties are owner-occupied, and 55% of U.S. citizens contribute to an employer’s retirement plan, which is usually in stocks or a mutual fund. 

Diversifying your investments is sound advice, but If you want to get the best performance out of your investment dollar, you should know where to focus your efforts to maximize your gains. 

Real Estate Investment Advantages

Even though buying and selling real estate is a complex and legally intensive task, professionals handle the most challenging parts of the job. Most investors only need to focus on finding the right property at the right price, holding it for the long term, and selling it for a higher price after enjoying years of tax concessions and rental income. 

There are always going to be maintenance and tenancy issues, but even here, a good property manager can all but make your property investment a passive one. 

For the most part, property prices tend to keep pace with inflation, ensuring they grow in value from one decade to the next. Property investment also delivers tax advantages, with deprecation, wear and tear, and other property ownership costs reducing your tax responsibilities. In contrast, dividend income from stocks will increase the tax you need to pay, even if their current market value is less than what you paid come tax time. 

Stock Investing Disadvantages

Stock investments are easy to liquidate and diversify, but these advantages come at a cost.

Stock prices follow the mood of the market. A panicked market can bring prices crashing down to wipe out your capital gains, even though you may have been holding the stock for decades.  

During periods of economic unrest, stock owners are always the first to feel the pain. Should companies you have invested in go bankrupt, it can wipe out the entire value of those stocks, with no hope of recovery.

Real estate is unlikely to suffer the same fate because everybody needs a roof over their head, regardless of the state of the market. 

The extra liquidity of stocks means it’s easy to sell on an emotional whim when the most sensible strategy would be to hold for a more market correction. It takes more effort to sell a house, making it almost impossible to offload it in a panic. 

Real estate investing is unmatched in flexibility, tax incentives, and income production if you are researching strategies to diversify your investments away from stocks. While finding a property with potential can be challenging, partnering with the right team can ensure the security of your financial future with professional advice and guidance on every aspect of property investing.

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #17: Real Estate Market Fundamentals: Interest Rates

So, what happens to real estate investments when interest rates rise? With the global economy in its current state of disarray, inflation is trending upward at an alarming rate. It was only a matter of time before the reserve bank stepped in to flatten the curve with an interest rate hike. Keep reading to find out why interest rates rise and how they influence the real estate market.

Why Do Interest Rates Rise?

As with most other market factors, interest rates are influenced by the supply and demand for credit. When credit demand increases, the interest rates will rise, while a decrease in demand tends to reverse interest rates. 

When more money is available to borrowers, the more money there is in the economy. 

Inflation will also cause higher rates. When the inflation rate increases, the Federal Reserve will raise interest rates. Credit is more expensive, which reduces the amount of money in the economy. 

Of course, the economy is more complex than our straightforward explanation. The Federal Bank needs to maintain a delicate balance to create a stable economy, and interest rates are a significant part of their strategy. 

How Sellers are Affected by Rising Interest Rates

Real estate values are inextricably linked to the Federal Reserve’s interest rate. Higher rates make mortgages more expensive, which reduces the pool of available buyers.

For example, a seller trying to attract buyers to a $400,000 property would suddenly find that their pool of prospects could only afford $355,000 should the interest rates rise by 1%.

If interest rates kept rising suddenly, it could still bring prices down even further. There’s nothing quite like uncertain interest rate hikes to spook investors out of the market, which creates more opportunities for savvy property buyers.

Profit could still be made on a property that has been held for a while, but sometimes, the best investment strategy may be to hold for a while longer until the market improves. 

Rising Interest Rates and Property Value

Rising rates will affect cash flow and housing prices. However, a growing economy that keeps pace with mortgage payment increases may not have as much of an impact on real estate values. 

For example, if monthly mortgage payments were to increase by $240, but a strong economy enabled employers to deliver a 5% wage increase, the extra wages could offset the increased mortgage costs and keep property values stable. However, the economy would need to keep growing to prevent the market from plateauing. 

Focusing on your financial goals and sticking to your investment strategy is critical to creating a profitable property portfolio. Housing prices invariably trend upwards despite occasional dips in the market like we are currently seeing. For this reason, buying and holding for the long term is almost always the key to successful property investment. 

While property investment is a long-term strategy, buying the right property at the right price will improve your gains, but it’s not easy. Researching the market and analyzing the demographics of an area are time-consuming and challenging tasks. Fortunately, there are experts available who have made all the mistakes and are willing to teach you how to avoid them. Check out the website today to learn how you can improve your future cash flow through real estate investing.

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #16: Real Estate Market Fundamentals: Demographics

Many variables will influence your property investment decision when considering your options. Demographics is just one, but it has a critical role in adding value to your property portfolio through making good choices. Learn more about how demographics will influence your investment decision.

Demographic Factors Affecting Real Estate

Real estate demographics data are quantifiable data that analytically describe a community. A study of demographics will include age bracket, income, crime risk, school quality, employment opportunities, and population growth, all of which will impact your investment and the returns you can achieve. 

Research the Real Estate Demographics Before Investing

Demographics are critical to your investment research before buying real estate because they are the next best thing to a crystal ball when predicting the future value of real estate investments in an area. For example, a location with a decreasing or increasing population is a good predictor of the future market. 

Another key demographic is the crime rate. This information will give you essential insights into your prospective rental pool and the possibility of increased rental costs such as maintenance. 

While we would all prefer to live in a low-crime rate area, many new investors make the mistake of overlooking this essential real estate demographic. As such, they increase their risk exposure and their ability to improve their portfolio with capital gains. 

Job Growth and Real Estate Values

Research into the job market of an area is another factor to consider. If there are no employers or none are hiring, then the location is less appealing as a place to live. You may find that you can not charge the rent levels you need to create a positive income stream. 

Carefully examine the employment and income data for an area, and extend your search into the surrounding areas as well. Many people are prepared to sacrifice travel time for slightly cheaper rents if the commute is reasonable. 

How Amenities Can Impact Real Estate Investments

Families will search for affordable places to live by balancing rental values against easy access to good quality schools for their children. An area that is local to good schools will generally improve the value of your investment and provide a greater pool of rental possibilities. 

For example, Worcester, MA, is the second largest city in New England and provides an excellent example of how educational opportunities can be a critical factor influencing the quality of an area. 

Many of the suburbs around Worcester have some of the nation’s worst performing schools, with a correspondingly disappointing result in the real estate values. However, one suburb, Westwood Hills, is an exception, as the schools have a solid rating. The local real estate also achieves higher median values than the surrounding areas.

Your research into real estate demographics should seek out these anomalies as they are often less well known to other investors and, therefore, less competitive to enter. 

Rental Versus Owner-Occupied Demographics

The ratio of owner-occupier versus renters real estate demographic data is another indicator that can help you achieve more value in your real estate investments.

Owner-occupiers tend to take more pride in their property’s appearance, so streets with more owner-occupied homes tend to appear well looked after and more appealing. A house on a good-looking street will generally fetch a higher price than a street full of rental stock whose landlords put little value in the property’s general appearance. 

As you can see, researching a prime real estate investment can be overwhelming to investors entering the market. Fortunately, you can ensure you purchase a well-positioned property by talking to the experts who are already successful real estate investors and can help you do the same. 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Blog #15: Government Subsidies, Projects, and Infrastructure

Governments can have a profound effect on the state of the real estate market. Policies, subsidies, and infrastructure projects will significantly influence the current and future prices of properties in an area. Learn more about why your research should include an in-depth analysis of government influences.

Zoning Regulations and Building Codes

Governments have been regulating land use for centuries, with zoning regulations and building codes undergoing frequent changes. Local governments create their own building codes, with requirements varying substantially between areas.

Consider the surrounding properties and ensure your property is zoned for the area’s intended use. For example, a residential property next to a commercial zone will have less value than a residential property in a residential area.

Regardless, homes that are up to code are generally more expensive than ones that need repairs or remodeling. When considering a property that needs work, understanding the extra costs should factor into your decision.

Local Goods and Services

Government-provided goods and services such as fire protection, law enforcement, water sanitation, schools, public transport, and roads make an area more attractive and drive prices upwards.

Locating an area where the government may be planning significant upgrades could help a savvy investor score a lower-priced property that will be significantly more appealing after the planned upgrades are complete.

Government regulations and services can impact the long-term growth prospects of an area. Zoning regulations and building codes often enforce restrictions that prevent investors from doing what they need with a property, such as developing a high-density living area. Every analysis must include the costs for the investor to comply with the local regulations and building codes. 

Investors must also consider the property taxes and the level of government investment in public goods and services. These government-run projects can significantly influence rental prices and the future growth potential of the property, such as market rents, vacancy rates, population, income growth prospects, and overall property values.

Government Subsidies

Subsidies related to property markets provided by the government are often contentious issues. While the government’s goal is to stimulate the economy and make new houses more affordable to more people, you cannot ignore the influence a sudden influx of new buyers will have on house prices. Significant tax deductions and subsidies put more air into a housing bubble until it has the opposite effect as house prices rise to even harder to reach heights. 

Any property investment requires careful analysis, and it’s often challenging to navigate the government’s intentions or even trust they know what they are doing in the case of subsidies. However, opportunities abound in any market; you just need to know how to find them. If you would like to get into the property market, but would rather avoid costly mistakes, talk to investment professionals immersed in the property market every day. The best advice will help you buy the right property at the right price so that you can invest with confidence.

 

 

About William and Marilyn Clark

WilliamandMarilynClark.com is a real estate investment company. We have been actively involved in the Canada, Alberta, BC, Ontario area real estate investing for a number of years.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!

William and Marilyn offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact William and Marilyn.

For more information about William and Marilyn and their investment program,
please call (780) 868-4895 and email them at clark.meisner2012@gmail.com or visit https://williamandmarilynclark.com/

Contact William and Marilyn Clark

William and Marilyn Clark

Professional Real Estate Investors

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