Should a Student Invest in Real Estate?

Recently, a student who is currently in medical school reached out to our team with a question. Should they start investing in real estate today? Should they wait until they have more cash flow or income? Until they’re actually a resident?

Regardless of what you’re studying or where you’re at in your life, our recommendation will always be the same: enter the real estate market as soon as you possibly can.

If you’re in a position where you can buy a small condo off-island and start investing some money, you can expect the same thing as you would from any other investment: all you have to do is park your money and wait.

As long as you maintain the property well, its value will grow year on year. Especially in the current market, prices are continuing to rise in the Greater Montreal Area, and with interest rates so low right now, we highly recommend jumping on a property if you have the ability to take advantage of these circumstances.

Now, one of the options that a banker proposed to this student was: “What if you were to buy a new construction project, where you’re only going to get it in three years? By then, you’re going to have the salary that you need, and for the time being, we can probably qualify you with a cosigner so you can at least lock down the property.”

While that is an interesting proposal, many of these new construction properties are trying to price themselves out based on future value. So you’re no longer seeing the same potential gain like you used to three, four, five years ago.

Years ago, when you bought a pre-construction property, you were buying it at its current value and would therefore benefit from the upswing. But now, many developers are selling at the prices they expect to see in the next year or two.

So, if at all possible, get into something that’s already built today, so you can start riding the wave and benefitting from the appreciation right away.

The best time to buy property is yesterday – the second best time is today.

Any questions about breaking into the property ladder? We’re all ears! Reach out to our team and we’ll be happy to have a chat.

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