Invest in your future with real estate
In every investment plan you should diversify and putting real estate in your portfolio is a good way in investing in your future. This is a great time to invest in Windsor and surrounding areas. Prices are low and interest rates are low. Real Estate is a long term investment and you can earn 10% a year get great tax write offs and earn equity in your property. The real estate market is resilient and the past couple of years has proven it over and over again. Even though real estate prices have gone down if you did not have to sell your assets you will rebound with the market.
Long Term Non Passive Investment
Give yourself a realistic timeframe in which to realize your investment objectives. For example, normal real estate cycles are five to eight years, and in some cases 10 to 12 years
Buy specific types of revenue property that are in demand and are easy to maintain and/or manage (for example, a single-family house–ideally with a basement suite for separate revenue, a condominium, duplex, triplex, or fourplex.
Strive to have a break-even cash flow. In other words, try to avoid debt-servicing the property because of a shortfall of rental income. Make sure you cover all expenses from cash flow such as mortgage payments, taxes, property management, condominium fees, insurance, repairs and maintenance and allowance for vacancies
Ensure you have competent management, whether you do it yourself or hire an expert.
Buy when no one else is buying, and sell when everyone else is buying. This is the so-called contrarian view of investment. It does the opposite of conventional wisdom or the “actions of the masses”.
. Tax Advantages
There are numerous types of tax advantages to investing in real estate, whether you have a principal residence or investment income property. It would be difficult to find an investment that has as many financial benefits as real estate.
Example:All the interest you would receive from a bank account, term deposit or GIC is fully taxable as income. If you are obtaining interest of 4% on your deposit (the nominal rate) on your deposit, and the inflation rate is 3%, the effective or real rate of return is 1%. If you are paying tax at a 35% rate, then effectively you are breaking even, or possibly having a negative return on your money. In practical terms, taking inflation and taxes into account, you have lost on your bank deposit investment. Equity investments in the stock market have a degree of risk, depending on the nature of the investment, of eroding the principal and having no positive return.