What makes investing in Cobourg property really a good investment option? Well, in general terms, even when there are other investment avenues open, the appeal of investment properties never fade out. Even while the other avenues are offering better rates of return, people still go in for investing in the real estate. The reasons are multiple, from the purely financial consideration based on profitability to the more emotional and psychological reasons. Let us explore some of the reasons which make investment properties, and particularly Cobourg investment properties hot.
Absolute returns matter: Investing a big sum in the real estate sector over a period of time can actually make you earn big after some period of time. While some other options may be offering you better returns, there might be requirement of lower sums which might in fact make you diversify more rather than putting all money in one option to get maximum returns. In property, you have to invest big. For the Cobourg investor, the good news is that there is still a wide range of opportunities available. Unlike locations closer to Toronto, it is still possible to purchase a single family building and you can still rent it our for enough to cover the mortgage costs.
A thing which you can own and use: Commodities or metals, most of the times, can not be used. These can only be used by selling these off or mortgaging them to convert these to money which is then used for doing anything else. Property can be used as such either for living or for work anytime that you like. Given Cobourg’s location, still an hours drive to a range of employment opportunities to the west, and the concurrent rise of real estate values to the west, there will continue to be a steady stream of renters looking to locate here.
A more secure investment: Can a thief take away your property? He can of course take away the investments done on papers and deprive you of possessions but this is not possible to be done with property unless there is intentional white collar crime done against you with malicious means. Larger cities can have urban blight that will steal the value of your property. This is far less likely in Cobourg.
Earn income in more than one way: With investment property, you can take the rental income by leasing out your unit or you can even sell off the same during the peak rate season to get the maximum profit. Rental income can be substantial in some areas. You can retain the title to the property even while earning income from it. The rental market is tight in Cobourg. Demand for accommodations is high. this provides value in two ways…value in the form of renters, and also value to the rental unit that is fully rented out. Low occupancy means more cash flow; a consideration when it comes time to put a value on your property for resale.
While it is true that there are some distinctive advantages of it, there are some peculiarities of this investment as well. You need big sum to invest which might not be possible for everyone. Also, the market demand may not be all that good for selling the property or renting it at the desired rates. You might have to wait for the opportune time in future or compromise with the rates that you are seeking. Fortunately the real estate market in Cobourg is robust and recovering from a slower period over the last few years. Real estate, like many things, seems to move in cycles. The trend is up right now.
Despite these peculiarities, investment properties are still desirable since, historically, the property prices have not crashed often. These are far more stable or are always witnessing the upward trend. However, downward curves do happen, as we have seen in the last decade. However, in a buoyant economy, the need for more residential, commercial, industrial and other spaces grows considerably and the high demand for limited spaces pushed up the prices. You can design a portfolio of investment in different properties depending on their special features and your objectives.