People ask me why I invest in Windsor, ON, since its not a popular market, nor a big city, nor have many people even heard of it.
Sure, its an affordable market that is booming, check out this article here regarding population growth, (which is a great indicator of whether or not a market's real estate prices will be going up)...
However, the main reason I invest in Windsor, ON is because I know the market, being that I was born and raised there.
As a result, I know the city, I know the neighborhoods, I know the streets, I know the homes.
And when you know this information about the market you are or thinking of investing in, it makes it so much easier, as well, it allows you to start investing in real estate right away, because knowing everything there is about a real estate market, is crucial to your success when investing in real estate.
This is also why I say that the golden rule when investing in real estate is where you live, or near where you live, and in a market you know.
So, if you are thinking of starting to invest in real estate, I urge you to invest in a market you know, where you grew up or live now, because trying to learn a new market is risky, will take time, and will increase the risk involved with investing in real estate.
Sure, you can hire a Realtor, who will know the local market, know which areas to invest in and which ones not too, however you will be investing blind, having to rely on someone else’s knowledge and none of your own.
This is not a risk I recommend you take when investing in real estate, and especially when trying to start investing in real estate.
This is why I've only invested in a real estate market that I'm familiar with.
I have knowledge of which areas will attract good tenants, which areas will appreciate better than others, which areas are more affordable, what the rents are in the areas, what the resale prices will be if renovating a property to then sell, and which areas are up and coming.
This helps dramatically reduce the risk associated with investing in real estate.
And mitigating your risk is key when investing in real estate.
This is why when people tell me that real estate is too risky and it's why they won't own real estate, I tell them that by reducing the risk, by understanding the market, you are effectively lowering your risk.
I personally don't view investing in real estate as risky at all because I've mitigated the risk by learning the market I’m investing in.
As well, I mitigate my risk by understanding how to analyze a property correctly, and by building a team of professionals that I trust to help my business run on autopilot.
So, if you are thinking of investing in a market you don't know, stop, and learn about it first.
By knowing the real estate market you will be investing in you will put yourself on the path to being a better real estate investor, which in turn will make you more money in the long term.
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