I'm sure everyone has a few key lessons that they heard 1000's of times growing up. Lessons that made them feel annoyed that they simply brushed off; only to realize, years later, that their old man was right! For me, one of those key lessons was "Later Takes Longer."
Some of the time this lesson provides an immediate feedback. Put off shovelling your driveway until the snow is packed down. Let the dishes pile up until everything requires a deep scrub. Or letting a huge pile of gravel freeze solid!! Why do today what you can put off and spend ten times as long doing tomorrow??!!!
But what if the wisdom in this lesson doesn't provide immediate feedback? What if the lesson is only learned after it is too late? Unfortunately, that is the financial situation for many Canadians. Choosing not to invest today is easy and has no immediately apparent impact on your day-to-day life. It’s only when we step back and take a 10 plus year look that we can notice the impact.
Einstein referred to compound interest as the eighth wonder of the world. While this is certainly true in traditional investments, it is equally true in real estate investing. We have witnessed this ourselves first hand. Month after month the mortgage pays down via rent payments. At first this seems insignificant. Slowly but surely it keeps paying down faster and faster and faster. Until one day you look up and realize you have created more equity, in one investment, than an entire year of working at your job. That’s the power of real estate ownership over time.
Real estate investing is not a get rich quick scheme. But it is a get wealthy eventually plan. The key is to get started. Every single person I talk to that invests in real estate wishes they started sooner. Take control of your financial future today!! You could wait and do it later, but then it’s going to take you much longer.