profitable financial decision you could make. Consider the following:
1. Second stream of income: When you move to another place and keep
your current house as a rental, this gives you an extra stream of
income.
2. Pay less tax: Your rental property produces business income. When
you have a business, you are entitled to tax write-offs. This could
save you a lot of money that you would normally pay to CCRA (Revenue
Canada).
3. Fast wealth: Tenants will pay off your mortgage in a rental
property. Your net-worth will grow without you having to save out of
your own income. When you have one or more tenants there is a team
effort in building your wealth, fast!
4. Bargain priced: You will never again be able to buy the same type
of property for the amount you paid for it originally. The value of
all the other houses have gone up along with yours. You already own
what an investor would consider a bargain in the current market.
5. High rate of return: The rent you can charge for your house is
based on the current market. Rents have gone up but the cost of your
house is still what you originally paid for it. You are getting a
higher return on investment. In the current market you would have to
spend a lot more to get the same rental income.
6. Guaranteed income: If you are willing to make some small changes to
your house so it meets the standards required for disabled people, you
will have a long list of potential tenants waiting for you. In many
cases, some government agency will be paying their rent. You will get
a good, stable, low-maintenance tenant. You will also be helping
someone in need. If you need money for the renovations, you can
re-finance as much as 90% to 100% of the market value of your house.
Government grants may also be available.
7. Increased tax write-offs: In most cases, you can write off the
interest paid on the mortgage of a rental property. If you keep the
mortgage as high as possible, you maximize the tax write-offs.
8. Pay off your own home faster: Keep the mortgage on the rental
property as high as possible by re-financing to the max as the value
goes up. Use that equity to pay off the home you live in, faster.
9. Tax-free retirement income: After your house is paid off quickly by
using the equity in the rental property, you may be able to use the
refinanced cash as a tax-free retirement income. Borrowed money may or
may not be taxable. Check with your accountant.
10. Gain freedom from the slavery of a J.O.B.: It takes far less time
to maintain rental properties than the amount of time you would spend
in a job. If you build up your portfolio of rental properties to 5 or
10 and pay them off (or keep refinancing), you will have as much or
more income than your present job. You can be your own boss, work only
a few hours, spend time with your family, and really enjoy your life.
These strategies will not work for everyone. Before you implement your
plans, check with an accountant, lawyer, mortgage broker or other
professional. You may need to work with someone. Use your children,
parents, brothers, sisters, good friends as a co-signer or
co-investor. Grow wealthy together, with the people you love.
To qualify for the lowest mortgage rate in Canada, go to
http://www.mortgage-rate-canada.com and click on Canadian "Mortgage
Calculators". Check out the "Pre-Approvals" and "Credit Problems"
pages to get the banker's perspective on your credit profile.
For ideas on how to set up a reliable monthly income from rental
properties when you have very little time or money go to:
http://www.netman-ecommerce-guru.com/rental-strategies
Warm Regards,
Neeraj Varma
No comments:
Post a Comment