How to retire early


One of the main things that financial planners try to remind our clients is that trying to time the investment market is foolish. As much as the banks and fund managers like to put out expectations for the year, they are notoriously wrong. Looking back at 2020, I can’t find one article that anticipated a 37% drop in the TSX by the end of March, but it would be up 2.17% overall by the end of the year.
The housing market is a little different. 
Sure the expectations are still a guess. Not sure how many people expected housing sales to be dead in April and May 2020 and then booming in October and November. But the swings are still there. However, you know when it is the right time to buy and when it is the right time to sell with the metrics you have. 
Every month I see over 50 posts on Instagram regarding the stats from the previous month. 
  • The number of homes sold. 
  • The number of new homes on the market. 
  • The average price per deal.
If there are more sales closed than new homes on the market, the supply is going down. If there are more new homes on the market than sales closed, supply is going up.
You can use that knowledge to time when you are going to purchase your next investment property. You can also use that knowledge to time when you sell an investment property to free up cash to purchase two investment properties in the future.
Don’t forget to use the information you have as real estate agents to your benefit regarding your financial plan. It’s the difference between retiring at 60 and retiring at 80.