So you want to invest in real estate, but you’re afraid of the ‘risks’. Well, I’m here to tell you that there is practically NO risk when it comes to buying and renting out real estate.
You Own It
That’s as simple as that, you own the property so even if the house goes vacant for a few months and you lose some money on the interest, you still own the property! You can sell it or rent it out at any time and recoup your investment and then some. This also means that if you ever need money in the future, you can take the money out of your mortgage and use it! For example, if you had $60,000 of equity in a house and you wanted to get $20,000 out for a new rental’s down-payment, the banks are very likely to give you this money as you have the house to ‘back up’ your loan and make it much safer for them.
Interest Is A Tax Write Off
Now that you are paying interest on your rentals mortgage, you can actually claim that as an expense and you won’t get taxed on that dollar amount! So even if you do have a few months of vacancy and you get a bit down on rent money, the interest being a tax write-off can almost always make your investment worth it!
Quite Simply – It’s Real Estate
Real Estate is the backbone of our economy, the only time it will ever crash is if the banks get too greedy again (like in 2008) or if the entire economy collapses – in which case, I think we have a lot more to worry about that your house being worth a few thousand less. But you have to remember, even if the whole housing market crashes again, it will come back, just like it did last time, and just like it will come back every time it goes down in the future!
Long story short, real estate is the safest investment you can make besides a GIC, and Real estate will yield MUCH higher returns than the GIC. So get into it if you want the best investment you could ever make, and come to us if you have any questions about it!