Why Investing in Real Estate is How 99% of Rich People Made Their Money-
The number one reason-Canada wants people to buy Real Estate because it helps the economy. So they have given people a very big incentive. You can claim over $400 k interest-free in capital gains
when you buy and sell Real Estate-(this means you don't have to pay taxes on
over 400 K of the money you earn in buying and selling Real Estate.
The number two reason is you can get your money working for you in Real Estate. You can put 5 to 10 percent down on a property but you are earning interest on the total value of the property. Here is how you can leverage your money in Real Estate. If you put 60 k down on a property that is worth 600 k that is 10 percent. You now own that property and as the value of that property goes up you are not just earning on the 60 k, you are earning money on the total value of that property. In other words, you are multiplying your earning power by 10 times.
The number three reason you can earn extra money in Real Estate. For instance, a home for 650 K in Scarborough will be a home that has not been updated. But a home that has been fully updated is worth 850 K. Most people looking to buy want an updated home but they can't afford 850 K. So the smart people will buy a 650 K home and update it over time as they can afford it. Here is the most important part. What people want are new bathrooms and new kitchens. If you update those you can turn a 650 K home into an 850 K home. Bathrooms cost about 10 -15 K to update and kitchens cost about 15 -20 K. Here is the secret: when you update those two things-it doubles their value. In other words, a kitchen that you pay 15 K to update adds about 30K in value to the home. You are doubling your money. Most people don't think about this-they want the updated house now. Here is another thing to consider. If you have any skills you can do some of the work on your own and save even more.
Many people are saying that I will wait until I can afford a fully renovated house. But what they are not considering is that while they are waiting, housing prices are going up. The Toronto board has stated that they believe housing prices are going up 10 percent this year. So if you wait until next year to buy a house you will pay about 60 K extra for a house worth around 700 K now. So why not consider buying a house and fixing it up as you can afford it. Then you are the one who will benefit from the increase in home prices.
If you would like more info and links to government incentives for buyers please call me Ed Bulmer/Right At Home Reatly-Office 416 391 3232 Cell 647 891 4028 or click here and send me and email-