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Navigating the Real Estate Market with Expert Advice from TD Wealth
At Radio Y’s South Asian Pulse, RJ Tania recently had the pleasure of hosting Jeet Dhillon, Senior Portfolio Manager at TD Wealth. The conversation shed light on the current real estate market, investment strategies, and the impact of interest rates on both.
Real Estate Market Resilience
Despite a recent nominal interest rate cut in Canada, the real estate market is expected to remain steady. Jeet Dhillon explains, “Rates are still significantly higher…compared to what we’ve seen in the last few decades. Even though we’ve seen a rate cut, it’s probably not enough for people to get really interested and excited about the real estate market just yet.” She adds that many potential buyers are waiting for further reductions before making a move, suggesting that once rates stabilize, we may see renewed interest and activity in the market.
Investment Strategies in a Shifting Market
Dhillon emphasizes the importance of a diversified investment portfolio. “It’s always good to have a diversified portfolio…that has access to real assets, but also liquid investment assets, whether they’re good quality stocks, bonds, or even cash.” This approach ensures that investors are not overly reliant on one asset class and can weather market fluctuations more effectively.
The Role of an Advisor
Navigating the complexities of the real estate and investment markets can be daunting. Dhillon advocates for working with an advisor to understand your current situation, identify gaps and opportunities, and make informed decisions. She highlights, “that’s really where, an advisor can come in handy, to help you understand what your current situation looks like. For example, is your portfolio diversified? Where are the gaps? Where are the opportunities?”
Opportunities in the Bond Market
With the bond market offering attractive yields, Dhillon highlights the potential for investors to benefit from good-quality bonds. “A lot of good quality bonds are paying a good amount of yield. And when interest rates continue to go down, their prices are likely going to bounce back.” This presents a lucrative opportunity for savvy investors, given the inverse relationship between bond prices and interest rates.
Real Estate Investments Beyond Homeownership
For those looking to invest in real estate without purchasing property, Dhillon suggests exploring alternative investment vehicles. “There are a lot of real estate investments that can be acquired by working through various companies. So that’s, again, where an advisor can really come in handy and say, here’s all the different options of how you go about getting access to real estate and other investments.”
Making Informed Decisions
Dhillon’s parting advice is to make investment decisions based on your unique financial situation and long-term goals. “It’s good to have a financial plan, because understanding your finances and making decisions within that context can help you be more successful.” She stresses the importance of looking beyond current market conditions and considering future implications, recommending the guidance of an advisor to help ensure sound and suited investments.
Tune into Radio Y for More Insights
This informative session with Jeet Dhillon from TD Wealth underscores the importance of expert advice in navigating the real estate and investment markets. For more valuable insights and updates, stay tuned to Radio Y, South Asian Pulse, your trusted source for financial news and expert interviews.
Connect with a TD Wealth Investment Advisor today at td.com/wealth.
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