4 Benefits to investing in real estate today!
A home purchase can be a savvy financial investment whether or not you plan to live there. Today’s real estate market could be the best time to purchase investment property that will secure your long-term financial goals. Why should you consider investing in real estate?
- Cash Flow – A rental property offers monthly income to cover the mortgage and provide you with cash flow.
- Build Equity – Monthly mortgage payments build equity, providing you with a financial gain when the house appreciates.
- Passive Income – Real estate as a long-term financial investment creates passive income once the mortgage is paid off.
- Tax Benefits – Interest payments, mortgage insurance and expenses related to your investment property can be claimed as tax deductions.
Market indicator: Vacancy Rates
- Ontario vacancy rate declined to 2.5% in April 2015, from 2.8% one year ago
- Fixed sample 2-bed apartment rents grew at a rate of 2.1% in the spring of 2014
- Factors exerting downward pressure on vacancy rates include: improving job prospects for young adults and less first time buyer demand
- Factors exerting upward pressure on vacancy rates include: declining net migration and more condominium rental completions