Young voices from the housing market: “Our financial life centres around the costs of our home…”

A lot of millennials are disgruntled about their economic situation, a recent poll showed. To find out more, The Globe & Mail asked young adult readers to talk about their work experience, their housing situation and what makes them angry and hopeful. You can read what they had to say by clicking here or copy and paste https://www.theglobeandmail.com/investing/personal-finance/gen-y-money/article-young-voices-from-the-housing-market-our-financial-life-centers/

I find it unfortunate that we keep portraying millennials as a generation that is less fortunate than the others were prior. There are different opportunities and challenges today like there were 30 years ago and 30 years prior to that. As the time evolves, we need to adapt and come up with different solutions to the new problems we face.

Some have realized that creating more than one source of income is the way to go and some are still living and thinking like their parents and following their parent’s outdated advice of going to school and getting a safe secure job for the most part. In this new economy, we should be looking at creating different sources of income in addition to our jobs. One huge advantage we have that the generation prior didn’t is access to information online. So much can be done with the internet that would not have been possible then.

As for housing, it is more expensive just like it will be even more expensive in 10 years from now. Taxes will also be higher than they are today. Let’s stop complaining about it and take action on buying investment properties that cash flow to offset our own cost of living instead. I am still baffled that so many people think they need to buy their own house to live in before but they can’t afford it. Look outside of any major city and buy something for half the price, rent it out and ensure its cash flows. The mortgage pays down over 10 years and perhaps some appreciation will allow you to save much faster and more efficiently for buying your residential property in the future.

Click the button below to download my free report – “The 10 Questions Millennials Always Ask Me About Real Estate Investing”

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Canadians Investing in the USA the Differences You Need to Know & Understand with Omar Khan

Canadians Investing in the USA with OMAR KHAN

Today’s Guest:

Omar is a successful investor with 10+ years of experience in real estate investing, raising capital, buying multifamily investments, and in syndications. With a history and preference towards Commercial Real Estate Investing, Omar has become an active and successful Canadian investor now living in Texas.

Episode Highlights:

  • Learn about investing in the USA
  • Learn about the main differences between Canadian and US Real Estate Investing  
  • What do Canadians need to know before they invest abroad 
  • Understand the factors to consider before investing in American Real Estate 
  • What are some of the misconceptions we hear about that we can’t or shouldn’t do as Canadians (such as 1031 exchanges, LLCs etc.)
  • What are some of the best ways for Canadians to Invest their money in the USA
  • Storage and Mobile-home investing
  • How to get a team on the street while living in another country
  • Learn about syndications 

Contact Information:

For more information, visit www.boardwalkwealth.com

Email Omar at omar@boardwalkwealth.com or call him directly at (214) 727-8643

Battle of the Sexes: How Millennials’ Financial Attitudes, Habits Differ by Gender

 

PNC Investments released findings from their 2018 Millennials & Investing Survey

Among respondents, female millennials report having saved an average of $66,700 for retirement compared to the $101,500 male millennials have saved

19 percent of female millennials and 36 percent of male millennials say they have a solid understanding of how to successfully invest their money

Male millennials place a higher premium on alternative investments (i.e., cryptocurrencies) to help them retire successfully

You can see the full infographic and report by clicking here or copy and paste
https://www.prnewswire.com/news-releases/battle-of-the-sexes-how-millennials-financial-attitudes-habits-differ-by-gender-300664862.html

This is a very interesting article that shows that even though we are in 2018 there are gender differences when it comes to financial knowledge and investing habits. Women, including millennial women, are not as much risk takers when it comes to investing so they will save or invest more conservatively. However, with time on our side, this is the time to look for investment opportunities that are geared towards growth as we are able to absorb market downturns by holding on for the longer term. A market dip will not affect us as much as a baby boomer retiring in the next couple years. 

It is important that as a millennial man or woman, we look for the growth opportunities rather than being too conservative as we have the compounding effect on our side.

For example if you were to invest $10,000 today and not put in another dollar and wait 20 years here is what you would have:

Very Conservative/ GIC type of fund 1.5% = $13,469
Conservative fund mutual fund 3% = $18.061
Stock market balanced growth fund at 8% = $46,610
Growth fund at 10% = $67,275

As you can see being too conservative overtime will have a detrimental effect on your retirement plan.

Also, a very important thing to note is that fund fees and management fees can negatively impact your progress over time in the same way. In Canada, we pay ridiculously high fees.

Mentor Tip: Always ask how much the fund fee is as you may realize that you are losing most if not all of your money to the financial advisor you are paying that is pocketing this in commissions. And then factoring that each year inflation absorbs 2-3%of our return, going to conservative results in your dollars shrinking.  Over 20 years, a 2.5% fee will cost you $16,386! Reducing it by 1.5% to 1% or less by buying an ETF (exchange-traded fund) or the index, for example, can save you $4,184 in 20 years. And the more money you start with the more money you can lose to these fees.

It’s unfortunate that many don’t realize this until they are ready to retire. So as we are still young and have time on our side, let’s invest wisely now so that we can reap the rewards later on.

Click the button below to download my free report – “The 10 Questions Millennials Always Ask Me About Real Estate Investing”

DOWNLOAD NOW!

The Canadian Real Estate Investing Landscape – 25 Years of Research and Analysis with Don Campbell

Episode 15 – Don Campbell

Are you a real estate investor looking to sharpen your skills? Or a newbie looking for your first investment? You’ve come to the right place! Join host Sarah Larbi for a journey into the world of Canadian real estate investment. In this episode, Sarah speaks with Don Campbell on current real estate trends, top Canadian markets to invest in, and much more! You do not want to miss this one!

Don R. Campbell is a Canadian-based real estate investor, researcher, the best-selling Canadian real estate author in history, author of 8 best sellers and a real estate investment educator. He is the Senior Analyst with the Real Estate Investment Network which has entered its 25th year of providing unbiased research and analysis on Canadian real estate markets.

Don made his first investment in residential real estate in BC’s Fraser Valley back in 1985 and hasn’t looked back since. His portfolio now includes Light Industrial, Residential, Commercial and Agricultural properties across Western Canada.

Don shares his strategies and economic research and he can speak in detail on any market in the country and is not afraid to tell the truth about where the market is headed. Don is a trusted on-air expert in media and his research and systems have allowed him to accurately forecast trends, markets and demographic shifts long before they become mainstream, thus giving his clients a unique, long-term advantage and perspective. He has become the go-to for many media outlets who are looking for unbiased analysis of any real estate market across the country.

Connect with Don Campbell:

http://www.donrcampbell.com

FB: Thereinman

Twitter @donrcampbell

Are Millennials Being Excluded From Buying Real Estate?

Here is a great article from the CBC about millennial housing trends. Click here or copy and paste  http://www.cbc.ca/news/canada/toronto/millennial-home-buyers-1.4636387
Millennial home buyers are facing more competition with smaller budgets: report
Millennials have seen their purchasing power slashed by 16.5 percent since sine 2017
The stress test seems to have slowed down the market slightly among other changes done by the Liberals and financial institutions these past 12 months. Prices have dropped somewhat and we will see it go back up eventually as it always does overtime.
It is however great to see millennials starting to think outside the box by buying outside of the main city and into more affordable markets. Something I have been preaching about now for quite some time. A 1.5-hour drive can get you a house under $250,000. As for what you can afford, I think its important that every millennial looking at buying a home in the next year speak to a mortgage broker to truly understand what they can afford to buy and at what terms before they start shopping around.
Personally, I think that Toronto will continue to remain expensive and out of reach for most millennials regardless of any government or financial intervention, but let’s not let that stop us. There have been so many improvements to transportation that it allows us to more easily commute in. Think of the Go Train expansion in the past few years into Barrie and St Catharines.
Looking at it from the perspective of a cashflow investor this is all good news for us, as ultimately, it means more tenants and future tenants for the rental market. Rents will keep increasing and demand will remain high for rental units. Millennial friends, I suggest that you look into investing in real estate rather than buying your primary residence.
House prices will go up and down, market cycles will happen, banks will make it more and more difficult to borrow, new regulations will be implemented, but those who are dedicated and find a way to own rental properties will come out ahead at the end of the day.
What are your thoughts? I would love to hear in the comments below.

 

 

 

Show Notes

In this episode, Sarah sits down with award winning mortgage broker Dalia Barsoum to discuss financing options for investors.

Dalia Barsoum is an experienced mortgage broker and real estate investor who specializes in helping real estate investors scale their business without hitting the financing wall. Dalia is a well-known mortgage broker in the real estate investor community who focuses on solving complex problems and helping clients achieve their real estate goals. Dalia is also Sarah’s mortgage broker and she has saved Sarah thousands of dollars and has helped scale up her portfolio still with A lenders. Dalia is also a best-selling author who wrote Canadian Real Estate Investor Financing: 7 Secrets to Getting All the Money You Want. In this episode of “Where Should I Invest?” Dalia shares her tips and tricks for choosing the best financing options.

Episode Highlights:

· Discover the importance of planning your financing

· Learn the difference between banks, trust companies, credit unions and private lenders

· Learn how to strategically use certain lenders at appropriate times and circumstances

· Discover the difference between commercial financing and residential financing

· Learn about down payment requirements, refinancing properties and mortgage rates

· Understand Canada’s new mortgage rules and how they impact real estate investors

· Gain an understanding of the January 1, 2018 stress test

· Learn how to finance flips and properties that need significant renovations

· Learn about mortgage plus improvement options for financing

· Receive tips for purchasing recreational properties and raw land

· Discover financing solutions for the self-employed individuals

· Learn how you can grow your investment business without hitting the financing wall

Contact Information:

For more information, visit http://www.streetwisemortgages.com or send an e-mail to Dalia’s attention at info@streetwisemortgages.com