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Three reasons to invest in Real Estate in 2023

If you're looking for ways to make passive income and diversify your investments, 2023 may be the perfect time to consider buying an investment property. Here are three reasons why. 

By Lucie Vanlier 7 Dec 2022

1. The return on investment

The average annual return over the past 10 years has been 4.8% according to the Dow Jones. While in 2021, the average gross return for rental investors was 18.6%, and this figure could be much higher depending on the location of the property. 

Unlike the stock market, which is more than a little volatile right now, real estate is still going strong. It also has the advantage of being a tangible asset, unlike stocks. If you're looking for a good return on investment, a well-chosen rental property could be a better option than growing your stock portfolio.

2. Opportunity to build equity

Instead of buying your first home, consider buying your first rental property. Someone else can help pay your mortgage, and you can potentially start building equity in your property. You can even earn money by charging more rent than the monthly cost of your mortgage. 

3. Inflation protection

Over the past 2 years, the market has experienced inflation and a change in the purchasing power of the dollar. While these changes can affect the stock market for the worse, real estate is weathering the storm of inflation. In many cases, inflation can benefit homeowners. Rents and real estate prices tend to rise with inflation. This means that you can increase the rent on your investment property as inflation increases. With a fixed rate mortgage, your principal and interest payments will remain the same. This can create a greater profit margin without having to invest significantly in the property. 

At Globalty Investment, we will be glad to assist you in this decision. Contact us to begin the process, or have any of your questions answered. We look forward to working with you.

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