Presentation: Should you invest in residential property?

To make it easier for you to prepare materials for clients, we’ve developed this text for a slideshow on the pros and cons of residential property investment. The presentation is in a Word file to make it simpler to customize the content to your client’s needs. All you need to do is fill in your own details and add them to your favourite presentation software or app.

SLIDE 1 The real estate market can tell you a lot about the state of the overall economy.

SLIDE 2 Real estate growth spurs consumer spending.

And when home building improves, producers of materials such as lumber, copper and concrete post strong gains.

SLIDE 3 Makers of finish goods like windows and doors, washing machines, and furnishings also benefit from strong housing markets.

SLIDE 4 And residential property, particularly multi-family dwellings, can make great investments.

SLIDE 5 But before telling your realtor to start the property search, consider these pros and cons.

SLIDE 6 Pros

SLIDE 7 1. Real estate will help offset stock market volatility within a portfolio because housing, generally, is a more stable, long-term investment.

SLIDE 8 2. Supply often is limited, so as demand heightens, property prices rise.

SLIDE 9 3. Vacancy rates are at historic lows in most Canadian cities. If you choose a buy-rent-hold strategy, you can charge premium rents.

SLIDE 10 4. Rental income can be used for other investments or to cover property maintenance costs.

And consistent renovations could help the unit sell for more.

SLIDE 11 5, Mortgage interest rates are still affordable.

SLIDE 12 6. If you purchase the property with your retirement goals in mind (perhaps you want a cottage or condo for your golden years), it could become your nest egg.

SLIDE 13 Cons

SLIDE 14 1. You could lose money if you’re forced to sell during a market downturn.

SLIDE 15 2. If you don’t crunch the mortgage payment, maintenance costs, and property tax numbers right, you could get in over your head.

SLIDE 16 Tips for real estate investing

SLIDE 17 1. Get investment, legal and tax advice before you buy so you know you can afford the property.

SLIDE 18 2. If you’re going for a buy-rent-hold strategy, interview existing tenants and make updates to leases before you buy.

Or, insist on vacant possession.

SLIDE 19 3. Get new tenants to sign leases before moving in, otherwise you have no recourse to remove them after a set time, or for bad behaviour.

SLIDE 20 4. Check employment status and income, as well as referrals from past landlords, to ensure tenants are reliable.

SLIDE 21 5. Invest in simple renovations over the long term.

This increases the property’s value, and can attract more buyers in the event you eventually sell.

SLIDE 22 6. Choose a neighbourhood that’s attracting families or higher income earners. These factors lead to increasing property values.