The spring market has already started. The fact that interest rates remain low and house prices have balanced makes it a perfect time to buy. Remax forecasts an average increase of 3% for 2011. On the day I wrote this article, the rate published by the Bank of Canada was 1.25%.
Now you don’t have to be a mathematician to realize that Real Estate is a great place to INVEST. There are so many options to invest right now. For example; Some great condominium projects are being built in the GTA. If you bought a condo for $300,000, by the time it was built, based on a 7% annual appreciation over three years, that would be more than a 100% return on your 20% down payment. This is an exciting time in Real Estate; There are so many amazing opportunities to take advantage of!
Personally, I don’t agree with RRSP and RESP as your best investment option. I know that won’t sit well with a lot of people who think inside the box. Why not take $30,000 of equity/savings or line of credit, buy a townhouse in one of the top 10 places to invest in Ontario, wait five years, and have someone else pay your mortgage for those 5 years? Plus, earn a profit each month that you can use to pay off your line of credit and pay off interest.
An investor I know has this definition of a tenant: “A partner in business who will open the store every morning and lock it at night. He will take care of security and tell you about potential problems in the business. He will cut the grass.” raking leaves, shoveling snow, and paying all the utilities. They’ll even pay all your mortgage payments and taxes. Then, in the end, they’ll give up all monetary interest in the business and walk away, leaving you with the profit.”
Basic home prices have risen steadily over the decades. We have a GDP rate of just over 3 percent and population growth to support the development that is happening in Ontario. This only leads to higher rental demands. So I ask you; Is 2011 the time to buy your first investment property?
