Exclusive Information from the Team Bush Home Selling Team
INSIDE THIS ISSUE:
- Investing in Real Estate and how to make Passive Income
- Building Wealth in Real Estate
- What Homes Are Selling For In Your Neighbourhood
- Sending Kids to Summer Camp!
Investing in Real Estate and “Passive Income”
We get a lot of questions in our office regarding investing in real estate, and rightly so! Real Estate has been a foundational platform for generational wealth for centuries and may just be something you may want to add to your portfolio.
The beauty of real estate investment is that it can provide returns in three different ways. The first is in capital appreciation. Properties traditionally go up in value. Just last weekend, the Hamilton Spectator had an article written my Mark McNeil that stated that Hamilton condo units, due to the T.O Effect, have enjoyed an average of 9.4% increase in the last 12 months! Equity is the combination of appreciation and the amount of your mortgage paid off each month. Since property is a real asset, it offers good protection against inflation and property prices generally increase by at least the annual rate of inflation.
The second way real estate offers returns is Cash Flow. Cash flow is the monthly amount you have left over after all expenses and have set aside estimated tax liability. In the early years, there may be little cash flow, but as your tenants pay down the mortgage, the property will begin to provide income beyond your expenses. At some point, once the mortgage is paid off, the majority of the rent payments will become your income. With a couple properties, this may replace your income, or provide a nice supplement to your retirement income, as well as be an asset you can pass onto your children.
The third way real estate provides returns is in reducing your taxes. Now who does not want to lower their taxes? The interest component of the mortgage on your investment property will be a tax deduction, as will the other expenses the owner pays to provide the rental unit. There will also be a depreciation factor for the unit itself that becomes a write off. In the early years, this will be a benefit as you gain equity and, in the future, will be reduced as the property is paid out.
I would like to dispel the thought you have probably heard that real estate provides “passive income”. For many investors, finding the right home is the easy part! Managing the property requires education and compiling a list of affiliates which will include a lawyer, contractors, handymen, at some point a property manager and, of course your professional real estate consultant here at Team Bush! There are several flavors of real estate investments.
For some investors, they like the pre-built condo opportunities. It allows some appreciation before the unit is completed and the units are often easy to rent to cover the costs. There are also multi-family homes ranging from homes with a suite, to triplexes and higher density properties. Single family homes are also to be considered as they rank one of the easiest properties to manage.
Each of these options involves different levels of participation and exposure. Have you thought about investing in Real Estate? There is no, one size fits all, answer for all investors. How are your other investment doing? Would you like to participate in the ways real estate provides returns? Were there other investment questions you would like us to discuss in future articles? We’d love to hear your comments and when the time is right, set up a meeting to discuss if this is an option for you. Have an awesome day!
See Below for Great Investment and Cash Flow Properties For Sale
THE VIP CLIENT – Real Estate Investor Corner
BUILDING WEALTH THROUGH REAL ESTATE
We have special financing options available as well as tenants who will rent these homes if you need assistance with that. If these homes do not interest you, then contact us about other great investment opportunities. Just know the good deals go fast!
If you know of anyone else who may be interested in building wealth through real estate investing, please pass on our contact info or provide us with theirs.
Team Bush – Craig & Coleen Bush 905-297-4885
We are on a mission to raise $10,000 for CityKidz of Hamilton. Thousands of children are growing up in poverty in Hamilton and sadly, their financial circumstances often prevent them from enjoying even the simplest of summer experiences. For many of the CityKidz children, swimming, sports leagues, canoeing and campfire s’mores are dreams beyond reach.
We want to help send as many kids as possible to Summer Camp. This is why we here at Team Bush-Your Home Sold Guaranteed have resolved to do what we can to help. The video above, is of our interview with CityKidz founder, Todd Bender. We had just given our first donation to CityKidz this year of $2,000.
When we sell homes, we are donating a portion of our income to CityKidz to help them in their quest to Break The Cycle of Poverty in the city of Hamilton.
This is where you can help!
Who do you know considering making a move you could refer to our award-winning real estate sales team? For anyone considering a move that we help, you but that a solid portion of the income we receive from the transaction will go toward a very worthy cause. We want to make it easy for you to refer your friends, neighbors, associates or family members considering making a move, so you can pass along our business card to them, we have enclosed a couple here for that purpose. Of course you can always call us direct as well at 905-297-4885.
You and your referrals mean more than ever to our Team. As we move forward in this new season, please know we are extremely thankful for you and your being a special part of our business.
With all our appreciation, Team Bush – Craig & Coleen Bush