Why Not to Time The Market and Get Those Soldiers Working For You!

It was the first long weekend of the summer – and we had some great sunshine and warm weather.  We spent the Victoria Day Monday near the lake – our little one is now at the great age where he points, oohs and ahhs and even tries to imitate little things he sees us doing.

It makes you realize that your children are watching your every move – and not only that they are imitating everything they see and hear.

How it that for pressure?

I grew up in an entrepreneurial household – my dad and uncles were all business owners and that was just the way of life.

Nevertheless, my dad encouraged to follow the classic model of ‘get a good education and get a good job’.

I guess the seed was already planted, and the itch to break free and work for myself eventually led me to where I am now.

Many investors I meet want to know how they can use real estate as a vehicle to break free from the corporate world – or plan an early retirement.

It was a lesson I learnt early on – have your money working hard for you, so you can stop working so hard for your money.

And that is precisely what led me to real estate investing.  Taking the plunge almost a decade ago has allowed me to be financially free – and truly because of this very simple principle.

There is a great quote by Kevin O’Leary – which goes like this:

“Money is my military, each dollar a soldier. I never send my money into battle unprepared and undefended. I send it to conquer and take currency prisoner and bring it back to me.”

A great analogy – money should be like your military – little soldiers that are defending you, working for you, and conquering more soldiers to join your growing army.  Brilliant!

The hardest part about real estate, or any other investment, is getting started.  Getting ready for ‘battle’ as Kevin O’Leary would put it, making sure your soldiers are prepared and defended is the biggest step.

Many new investors ask if this is the right time to buy, or the wrong time to buy.

There have definitely been some changes in the market recently – that is undeniable.

A combination of the recent 15% Foreign Buyer Tax, fear amongst the general population and a general increase of listings due to the spring have softened the market from where it was just a few months ago.

There are definitely more listings on the market, and less showings and bidding wars on many properties.  Everyone seems to be proceeding with caution.

New investors are asking me if they should buy now, or wait for the ‘prices to drop’ or the market to shift further.

The thing is – no one knows what the future will hold.  It is impossible to time the market.

Real estate investment is not about making predictions or trying to enter the market at the perfect time  If we look at the history:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

You can see the general trend – the market goes up.  But there are definitely ebbs and flows in the market.

But the most important factor in successful investing is time.

There is no perfect moment to enter the market – but having along term vision (I’ve said this again and again) is key.

Buying good homes in good areas that attract good tenants and cash flow every month – and holding these homes over the long term is what makes you money.  So whether you enter at a peak or a trough in this chart, it doesn’t really matter in the long run.

The market will continue to rise.

So don’t be afraid to take the plunge.  Now is as good a time as ever, especially with the slow down in bidding wars and the increase in inventory.

Have a long term perspective and let time do the work.  Get those soldier working for you.

So until next time, happy Canadian Real Estate Investing.

Jose Jafferji, REIA

Your Real Estate Investment Advisor, Coach & Realtor
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