Real Estate Investment Strategies for all Canadians

picture of Michael Huber mortgage broker kelowna slocan british columbia, mountains in background, okanagan lake

The Current Canadian Real Estate Story

In a climate where the housing affordability crisis dominates headlines and tales of exploitative corporate landlords clash with struggling tenants, many Canadians feel discouraged from delving into rental property investment.

It’s easy to count yourself out, thinking you’re either too affluent, too ruthless, too risk-averse, or too financially limited to participate in real estate investment.

However, upon closer examination, you’ll find that numerous everyday individuals employ creative strategies to initiate their journey into real estate investment, even on modest incomes.

What is Cash Damming?

Contrary to popular belief, investing in real estate doesn’t always demand a hefty upfront capital investment.

Instead, it hinges on adopting alternative financing approaches that leverage existing resources intelligently. Through education, contingency planning, and strategic financial maneuvers, virtually anyone can carve out their path to real estate investment success.

One such method gaining traction among everyday investors is rental cash damming. This technique allows investors to mitigate initial negative cash flows on investment properties without relying on additional income.

By optimizing existing debts and income streams, individuals can create breathing room during uncertain times.

PLUS…it’s approved by the Canada Revenue Agency.

How Does Cash Damming Work?

For instance, cash damming involves channeling rental income to rapidly pay down the mortgage on your primary residence. The freed equity is then leveraged to cover new property carrying costs, sparing you from depleting your savings or scrambling for additional cash.

Once your financial structure is optimized, market forces take over.

Rents gradually rise, assets appreciate, and opportunities emerge, enabling you to progress to the next level by tapping into accrued equity. This cyclical process fosters sustainable growth, allowing you to focus on personal and professional endeavors while your portfolio flourishes in the background.

Long Term Planning = Cash Damming

While this strategy demands meticulous planning and a long-term outlook, its self-funding nature makes it accessible to anyone willing to invest the time to understand its intricacies.

Although the learning curve may seem daunting initially, the rewards unfold over years rather than days, underscoring the importance of patience and perseverance.

Conclusions and Further Thoughts

By taking control of your financial future through real estate investment, you can chart your course on your terms.

All it requires is the willingness to explore, learn, and seek guidance from trusted professionals. If you’re ready to break free from financial inertia and embrace the possibilities that real estate investment offers, let’s start a conversation.

Contact Huber Mortgage to talk through your options!    Over 50% of my clients are self-employed! Contact HERE.

Sincerely,

Michael

PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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