I was walking in the park the other day as we are having an amazing spring this year here in Calgary, which is quite frankly a rare site! Normally I don’t consider even booking my summer tire swap until just about the beginning of June due to the threat of a huge snowfall! As I was walking in the park I was just thinking how amazing the dandelion plant is, how even before the grass has had its first thought of turning green there are thousands of of these plants that have grown, polinated (with what insects and how I will never know) and seeded – truly amazing! This make me think a lot about how these plants are similar to real estate investing in both Calgary and abroad. There has been an economic shake up in Alberta as well as a new majority government put into power, but guess what? The dandelions don’t care about any of that; here they are to welcome in spring before there are leaves on any of the trees. Real estate investing is very similar in that the houses don’t really care what political climate or economic climate that the rest of society is currently in. There are of course different strategies that will work best in each of those climates, but at the end of the day a house is a house and if you buy on the fundamentals then what it happens to be worth on the market does not matter one little bit. Similar to the dandelions real estate in term of passive income is a lot like the seeds you see flying all over the place in the spring, if you planted 1 dandelion on your back yard you better believe you will have 10 more the next year – buying passive income properties will give you the cash flow for years to come and eventually (not as fast as the dandelions to be sure) you can leverage that house to be able to buy more (plant another real estate seed) if you structure things properly. Real estate is also a patience game, a lot like gardening or the forestry business – you need to think long term and be able to set up your cash flow to be able to weather the economic storms that will come and go over a 10-15 year period. Those that are currently buying up properties on the expectation that they will make money on appreciation only will be unpleasantly surprised when the market tides change. Enjoy the weather here in Cowtown or wherever else you happen to be in Alberta this spring the outlook for real estate is looking especially bright in our opinion, much like the forests little yellow plants on all the medians all the parks around this city!
To you success!