Hi Friend,
I hope you are doing well.
I always enjoying meeting with experienced real estate investors, because I always learn a lot from them.
During a meeting I had recently with a very experienced real estate investor (40+ years of investing in real estate) , one quote stuck out in my mind from our conversation more than any other.
The quote he said to me was…
“Conservatism never hurt anybody”
Here is the context of the conversation I was having with the experienced real estate investor, when he said this quote…
Context
We were discussing the real estate market in the Greater Toronto Area, and it’s performance over the past 12 years. The experienced real estate investor was confirming that over the past 12 years, the market has performed exceptionally well. Further to the market performing exceptionally well, he envisioned that the market would continue to do well, however, at a much more reasonable and historical rate of return, and no where near the record highs of the past 12 years.
The expert investor went on to conclude that if your given real estate market is performing at or above the cost of inflation, this is a very good thing in the long run, as this is all you need.
Many, many people, especially young real estate investors living in the Greater Toronto Area have become used to a real estate market in which prices rise at a rapid rate. According to the experienced real estate investor, this is not reality, and a more balanced market where prices rise at a lower rate is much more sustainable.
We then spoke about markets in and around the Greater Toronto Area that have been performing at a much more balanced level. These have been levels that have been equal to or just slightly above the cost of inflation. He concluded that these types of real estate markets can be very beneficial to the long term real estate investor, as you are able to make money in these markets if you invest for the long term.
In Summary
“Conservatism never hurt anybody”
In my mind, this quote means, that you do not have to hit it rich when you buy your first rental property. Take calculated risks that will benefit you. Don’t take on too much risk. If you do, you could lose everything. After all, slow and steady wins the race…
Happy Investing!
Best Regards,
Neil Uttamsingh
ps: Remember, I am an experienced Real Estate Investor and Licensed Realtor. I help new real estate investors like yourself purchase your first rental property. If you are buying Oakville real estate, Hamilton real estate, or Toronto real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started!!
