Real Estate Investment
Updated: Jan 3, 2019
In the quest of financial freedom, real estate will come as an option to pursue more often than anything else. I have never owned a piece of property although I know of many who do. I have often wondered if I shouldn't purchase a home, but I never really thought it would be worth it.
After having researched and essentially gone into real estate investing education, I have come out with few goals that I want to achieve.
1. Cash flow management
I want to invest in a property that will provide me with a cash flow that, although it may fluctuate on a monthly basis, should be positive at the end of the year.
2. real estate appreciation
This may be a given. It should be understood that real estate appreciation is the equity that is built into the property as we pay off the mortgage but also as it increases in value (although this may not be tangible unless I plan on selling it). This latter goal is a combination of two goals; that of appreciation of the property and of the mortgage payment.
Investing in a property is not the only way to get your feet wet into real estate. There are also REITs (Real Estate Income Trusts). In the Canadian market there are many available, the way to filther through them is to understand what are one's priorities and rather what is expected to achieve by owning them.
In my case, I am looking to get
1. Dividend payouts (consistent and with potential growth)
2. The stock must be poised to growth
Being a novice investor, the comfort zone lies in a stock that is established. IT must have a market capitalization that is huge. I'm talking Billion dollar huge. Applying that criteria will have the landscape subsequently narrow, and therefore allow me to make few picks with a certain amount of confidence. Maybe in a few months or years I will feel more at ease to go at less established that may present themselves with room for greater growth, but obviously greater risks.