The Smart Investors Choice
Real Estate is still one of the best investments available, offering excellent returns and security. Wisely chosen properties will almost always appreciate in value... often very substantially; and let's face it, you can't live in a mutual fund.
The next ten years promise to be one of the most profitable eras in history for BC real estate Investors. And, as you'll quickly discover, it doesn't matter if you're just starting out or a veteran investor, you can have the same opportunity to grab your share of this exciting market. Why invest in real estate? Here are just a few good reasons.
- Consistent returns. Over the long term, real estate has consistently proven to grow significantly in value. Just look at how far values have come in 30 years despite occasional downturns.
- Forced savings. Paying down a mortgage automatically forces savings and contributes to future security.
- Tax-free profits. When your home is your principal residence, and you sell it, you will not pay tax on any of the profits.
- Equity increase. You could use the significant gains in equity achieved the last few years to obtain additional financing, move-up to a larger home or acquire a rental property.
- Lower your taxes. You can claim deductions for costs incurred and don't forget deductions for depreciation.
- Generate Income. Properties yielding a pre-tax positive cash flow are harder - but certainly not impossible to find. Remember, a positive after-tax cash flow can still come from a negative pre-tax cash flow. You may be able to use depreciation to shelter other taxable income.
- Use Leverage. You can 'magnify' your return by borrowing a large part of the purchase price. By limiting the cash you invest, you can dramatically increase your return.
- Growing Equity. Even at a modest rate of appreciation, real estate yields a higher return on actual cash invested than most other vehicles. Each mortgage principle payment you make is a payment to yourself. You build equity as your mortgage principle shrinks.
The key is shopping carefully for the right property and getting solid advice from a knowledgeable professional. Review your expectations and think about how long you plan to hold onto your investment. When you reach your "equity target", it may be time to sell or refinance - and perhaps use the freed up cash to buy another investment property.
We have helped many investors acquire excellent properties and profit substantially from their holdings. We can help you reach your real estate goals as well.
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