Investment diversification is a strategy to prioritize more than ever. The purchase of multi-unit properties is on the rise, among other things, to facilitate the financing of a primary residence. How to take advantage of this financing tactic without exacerbating the housing crisis?

Real estate investment

Investing in a dwelling is an excellent way to build a real estate portfolio for retirement. It's a medium-to-long-term investment, as the idea is to invest money and time now to facilitate additional income later. Once the dwelling reaches its occupancy rate on a regular basis, it will be very pleasant to reap the rewards of your efforts on a consistent basis. A few renovations here and there to optimize your dwelling and you're all set!

If, like many, your wish is to become a homeowner, managing a rental property is a very effective financing method. For the first real estate purchase, it is better to prioritize a less expensive region with a high demand for housing. This type of sector can generate a lot of income without needing to raise prices. It's a decision that will finance the acquisition of your own property. Landlord status also offers flexibility and mobility during your young professional life. It's a way to move to the most strategic neighborhood, within your own housing units, while saving for a property when you're ready to put down roots.

Of course, being a landlord requires commitment and patience. You are responsible for customer service for your tenants. Although it is a financially sound investment, you must assess whether this responsibility is compatible with your personality.

When ethics rhyme with profit

Ethically speaking, it is more responsible to aim for long-term profits in real estate investment to avoid contributing to the housing crisis. If one seeks to make profits quickly, a vicious circle awaits us. We must prevent purchase debt from turning into pressure to monetize one's money at all costs. This pressure for profitability, experienced by new owners, inflates rents for tenants and contributes to the housing crisis.

Be aware that, as a multi-unit building owner, a drastic increase in rent could cause problems with the Administrative Housing Tribunal (TAL) if tenants file a complaint. Patience and respectful negotiation should always be prioritized.

In order to promote homeownership, the Canadian government has developed a series of measures that support and protect the Canadian population.