Hello, Real Estate Investors in Hamilton, Ontario!
Have you noticed that everyone’s watching real estate prices like a hawk? And who can blame anyone concerned?
You must have already seen the stats I shared in my previous article. Here’s the link to the article in case you missed it.
I read a story of a couple who by the time they had saved up enough money for a down payment, prices had moved beyond their reach.
It’s like… “Here’s a house in your price range… AND IT’S GONE! 😞
And not just starter homes, duplexes too!
With prices of duplexes also on fire, and who can blame the heated real estate market; House hacking is all the rage these days.
Here’s why:
Banks will lend more when there is rental income, and from my due diligence, houses with a back yard are the ideal real estate, over, say a ‘pie in the sky’.
Anyways, to take advantage of a rising market in the most sellers’ market I’ve ever seen, we have a couple of properties we bought between 2014-2017.
The 2017 duplexes were purchased in the dip, so those were especially great deals.
One appraisal came back just over $1 million, so we’re happy!
We may see a correction like 2017 when the market went up so much in a short period. Thanks to the dip, we were able to pick up properties for 400k-500k, and now they’re worth over a million! Ka-ching!!!
Now, we plan to take some equity out tax-free and, without having to sell.
Also, with the war in Ukraine and inflation running wild, I’d like to have some cash on hand should any opportunities present themselves. The stock market is looking pretty good after all *wink*.
You may wonder…
‘Why not sell properties instead of refinancing?’
Here’s the simple truth…
I’m still very bullish on real estate, and if there is a war, holding hard assets like houses will be the winning asset class. Even Elon agrees 👇👇👇
In addition to that…
Refinancing and buying more property is how you compound your returns. And the power of compounded returns is the reason we started investing for my two kids at such early ages.
Till next time – Happy Hamilton Investing Everyone!
Erwin.
PS. We have a ‘Cherry and Erwin’s Real Estate Meetup’ coming up on Saturday, March 26th, and we’ll elaborate more on where the market is at and review what happened during the last correction of 2017. What happened may disappoint you as it was a wonderful time to get into the market.
I think the best part of this meeting is that it’s an in-person event!
So grab a ticket and come network with like-minded folks! I’m especially excited… It’s been too long since I’ve seen my investor friends.
If you’d like to receive details of upcoming events so you don’t miss a thing, join my email list by filling out the form below.
