- Properties are more affordable to buy now than they were in the past because of low-interest rates.
- Property is a tangible asset that can be used as collateral for a loan.
- There are more home buyers than property sellers right now, so there’s less competition for properties purchase.
- The real estate market is strong, with prices rising and people looking to move into new homes at all price points
- Interest rates have fallen, making it harder for those who hold their investment properties to outperform those actively managing them.
What are some ways to invest my money in passive real estate?
- Property flipping and renovation.
- Buy a property, hold it, and then rent it out to generate passive income.
- Invest in the stock market and take advantage of the low-interest rates.
- Invest your money in real estate indexes like the S&P/TSX Capped REIT Index.
- Invest in a property fund.
- Invest in a REIT and then invest through dividend reinvestment.
- Invest in structured products like preferred and secured notes.
- Invest for income by purchasing income-producing properties.
Is Passive real estate investing safe?
Passive real estate investing is less hands-on than active real estate investing. It is a long-term investment strategy, so there is no guarantee that it will profit. Prices can drop, and rents can fall, but passive real estate investing is a long-term strategy with excellent profit potential with patience, efforts, and drives to maintain the property.
How does passive real estate investing relate to gentrification?
- Gentrification is the forced displacement of low-income individuals or businesses from areas deemed desirable by those in power because their low income threatens the quality of life in these areas for those with higher incomes.
- Gentrification is the process by which an influx of more affluent residents into lower-income urban neighborhoods. As this happens, the commercial activity focuses on these higher-income residents, making it harder for local business owners to run a successful business.
- Gentrification also hurts property values.
- Gentrification can change a city’s character and make a living and running a business more expensive.
- Gentrification means that real estate prices are increasing, making them less affordable to the lower-income individuals who are the primary tenants of commercial property.
- Gentrification of low-income neighborhoods leads to the displacement of low-income people, forcing landlords to raise their rents or seek out new tenants that won’t be as affected by gentrification as those displaced before.
- Gentrification affects the economies of entire cities as well.
Is Passive real estate investing easy?
It depends on the kind of passive real estate investing you do, but it’s what you make of it, try to learn as much as possible before doing any passive real estate investing. There will be teaching things; there is no perfect passive real estate investing strategy. For example, I know of one investor who flipped 15 properties and got his first rental check. After that, he went on to buy a property and is still working on it by renovating and replacing old windows.
