I have to admit that I’ve been avoiding looking at my mutual fund statements lately what with the stock markets tendency to yo-yo from day to day. It does lead me to wonder if there are any recession proof mortgage investments. I know that with mortgage rates at near historic lows that the residential market is hot, but one shouldn’t really consider their house a short-term investment, right? Not to mention that economists have been throwing around the dreaded “real estate bubble” phrase a little too much for comfort lately.
Apparently, apartment buildings are a predictable and stable way to invest money. I would have thought that this kind of property would be out of most people’s league, but several factors are making this kind of investment accessible.
The availability of financing through CMHC at rates of 3.5% on a five-year term and as little as 15% down, not to mention low vacancy rates of less than 3% translate into a steady source of income.
Perhaps I should a get group of friends together and we can pool what’s left of our RRSPs and invest in an apartment building. At the very least if lose my house in the bubble I’d have somewhere to live.
