Why Invest in the GTA?
Canada has been ranked one of the top countries to invest in real estate. It offers a safe haven for investors who seek to have their money in a stable environment, lower interest rates and strong economic growth. The Greater Toronto Area (GTA), consists of Toronto and the surrounding cities, is among the TOP cities to invest in real estate due to the housing demand of people who want to move into Toronto to live and work. With 6 campuses of the 3 universities (University of Toronto, York University and Ryerson University) in GTA, rentals are in high demand. Young people seeking a downtown lifestyle, empty nesters downsizing and people tired of commuting all make Toronto extremely popular and a perfect place to invest in. Toronto is the number one city in North America for new condominium construction and availability, with over 260 projects planned or already under construction. Investing in the Greater Toronto Area will be a smart investment decision.
TOP 6 REASONS TO INVEST IN REAL ESTATE
1. Cash Flow
Whether you buy with all cash or use today’s low-interest mortgage financing, positive cash flow will occur when the monthly operational expenses (mortgage, property tax, insurance and management fee if applicable) is deducted from the rental income you received. This will give you a monthly income from your real estate investment.
2. Appreciation in Value
Appreciation is the increase in the value of the property, which generally occurs over time and thereby increasing your equity over time. It can also be increased by investors who add value to the property through repairs, renovations and improvements on the property.
3. Mortgage Reduction
As you pay the mortgage payments over the years, you are reducing the loan balance and a portion of the mortgage payment goes towards equity, thereby increasing the equity you own in the property.
4. Tax Benefits
An investor can usually write off costs against income earned and potentially claim a depreciation expense of the property as a tax deduction.
If an investor used 100% cash to acquire a property worth $100,000, and the property increased $5,000 in value in one year, then the investor made a return of 5% (assuming no other costs involved).
Your funds for down-payment and mortgage payment on the property may be automatically locked up for a certain period of time, so you may be forced to save for this purpose instead of spending it on other non-essential items.
** Please Contact BETTY SO-KWOK for more information **