As summer is in full swing in the U.S. and Canada, many real estate investors can feel not only the heat of the weather but also the hot real estate market. Plus, many full-time workers have time in early July off of work due to national holidays such as Canada Day and the Fourth of July in the US. This may be the perfect time to zero in on those investment projects, especially considering the exciting prospects of the summer real estate market slowly coming to a close.

Summer Real Estate Market Trends

The spring and summer real estate markets are commonly known as the best time for sellers. Seasons affect the market in a somewhat predictable way. No matter what side of the transaction you are hoping to be on, either buyer or seller, it is advantageous to be aware of how seasonality affects your financial prospects.

However, if you are in the home flipping or commercial real estate business, you probably already know that most buyers are also sellers and vice versa. Summer is known to be a competitive market. As the busiest real estate season, spring, has come to a close, many prospective buyers are looking to quickly buy up property. 

Do not let this assumption discourage you from using the summer to invest in real estate. In fact, if you do your research, having a competitive market can sometimes be an advantage! Here is what you should know:

Values of Real Estate Investing

There are numerous benefits to investing in real estate, from the most obvious financial reasons to some more personally gratifying reasons. Here are some of the tops reasons to either get started or continue with real estate investing:

• Diversification of Financial Assets

One of the most valuable benefits of real estate investing is the opportunity to diversify your portfolio. Because the real estate market often behaves differently than the market at large, it is a good way to  increase your chance for high returns.

• Cash Flow and Tax Breaks

Not all investments have only long term payouts. For real estate investments, one can benefit from tax breaks during tax season and have flowing cash due to a surplus from rental units.

• Long Term Growth

Like with any investment, investors can receive returns on their investment that can help them either prepare for retirement, build equity, have expendable income, or be able to make more investments.

• Personal Enjoyment and Purpose

Besides all of the obvious financial risks and rewards, not many mention the general sense of accomplishment that can come from real estate investing projects. It can supplement a career or become one all to itself.

Bottom Line: Real Estate Can Light Up Your Portfolio

While we all want to lie back and relax while the days are long and the weather fair, it’s hard to deny the power of real estate investments. Whether you pore over your portfolio poolside or in a nice air-conditioned office, you don’t want to sleep on real estate.

Have a great July, and happy investing as always!

Jacky

A LAUGH OR TWO FOR GOOD MEASURE

HELPFUL LIFE HACK #2

WHY INVEST IN REAL ESTATE?

Passive Income

According to FortuneBuilders, passive income real estate is a strategy through which an investor can create earnings without having to be actively involved. The term “passive income” is used loosely, as the level of required activity and involvement varies based on the investment type.