When to invest in an income property

Real Estate Agent with Keller Williams Elite Realty

When to invest in an income property. Most people know that real estate is a great investment. Over time it's a great way to build equity. In fact for most people, their home is their largest single investment. With the variety of equity financing vehicles available from Canadian banks, homeowners can now take money out of their home and invest it elsewhere.

So why is it a great idea to invest in an income property? The reasons are numerous.

    Return on Investment: In the past real estate has always outperformed the stock market. Of course most investment professionals recommend that any investment portfoloio be diversified.
    Tax Advanteges: All expenses related to the property are tax deductible.
    A Pension for the future: Because many Canadians lack adequate pension income, an investment property is an excellent way to create income. When rental income covers all financing costs of the property you are actually having your tenants do the saving for you. When the financing is paid off you have a nice flow of passive income.
    House your university age child: Many Canadians are sending their children off to other cities to attend university and housing them in their own revenue property. This saves on stucent residence fees and with the help of other student renters helps pay down the mortgage.
    Home improvement: If you're handy and can use your own labour, investment in an income property is a great way to build equity. Improving a property that needs a facelift can produce great short term results.  
    Improved mortgage products: With as little as 10% down and amortizations up to 40 years ownership of a 2nd property is no longer for the wealthy only. Canadians can use equity in their own home to leverage their way into income property. For more information on how to put all the pieces together click here to go to my website. So when is the best time for you to own an income property?

Comments (2)

John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
Welcome to ActiveRain, Milo, from a fellow KW agent in Las Vegas! Falling prices and a weak US dollar are presenting some great opportunities for Canadian investors looking for warm-weather vacation homes. Of course, none of the other markets match the excitement level of Las Vegas!
Jan 22, 2008 02:09 PM
Larry Estabrooks
Independent Real Estate Agent - Moncton, NB
100% representation means NEVER DUAL AGENCY !

Good consumer post Milo.

Milo, I'm inviting you to join an active|rain group of your fellow Canadian REALTORS® , the Canada, eh group - http://activerain.com/groups/Canada.

And please include any of your posts with a Canadian angle by also posting them to the group.
(no properties for sale please, listings should be posted to Localism.com)

When I login to ActiveRain.com I always check the Canada, eh group first to read the Canadian posts because Canadian bloggers are so much easier to find on the group home page.

I'm looking forward to reading your posts there.

Jan 23, 2008 01:26 PM