I still think owning a piece of real estate is a great way to build wealth over time. The trick is in the “buy”. Not all investments are equal and this holds very true for real estate today. Rules no #1#2 and #3 are “location” “location””location”! Prime locations overall, appreciate substantially over time. For example, a building that was purchased in Montreal in 1958 for $86,000 is today being sold for between $850,000–950,000 in a good but not excellent locale. The best results though, are seen over a ten year or more period that you hold the investment. Here in Montreal, one only needs 5% of a downpayment if purchasing a property under $500,000. Above $500,000, a 10% deposit is required. In some cases it’s cheaper to own then to rent, and your quality of life, in terms of what you get for your rent dollars is so much higher when purchasing.
If you’re planning to not live in the same place for too long, you can still have the option of renting our your property. By doing this, your tenant will be paying off your mortgage for you.