You must have heard everyone raving about the real estate market in Canada and how you can sweep fortunes once you start investing in it. Well, profits come to people who think smart and strategize their moves. Before you make any decision about investing your money in real estate in Canada, it is important to be well informed and fully aware of the pros, cons, and risks of doing so. New information of this magnitude can be overwhelming, and we are here to help you navigate through it.
1. You are saved from paying heavy taxes on your principal gain.
Let’s say you have a good amount of money in your bank account or invested in stocks. Every year, the state would require you to pay a hefty tax on the principal gain of your savings. The more you make, the higher the tax. If you decide to invest this money in real estate, instead you will save yourself from paying the tax. However, there is a catch. Tax will only be exempted if that is your principal property.
2. Rental property in the residential real estate market
Current statistics estimate that most Canadians own at least a million dollars worth of financial assets, in addition to their principal residence. Most people tend to invest this money in real estate, as it is a stable market with a high scope of value appreciation. Although dealing with tenants and working out rental agreements can be tedious and may cost you a few weekends of yours, it is good money.
3. Rental property in the commercial real estate market.
Commercial property is also an excellent option if you happen to have a knack for dealing with high-end brands and businesses. Buying a shop in the mall or offices can go a long way, and there is always a demand for these spaces in the market. Of course, due to the ongoing COVID-19 pandemic, commercial real estate prices have dipped, we are confident that they will peak again once the situation returns to normalcy.
4. Canadians have been opening up airbnbs, and have been running them successfully.
If you look around the airbnb culture has become immensely popular especially over the last three to four years. It is good business and more and more Canadians have been investing in it. Although it can be hard to maintain the space especially if you are new to it, it is still easier than the hotel and inn business.
I hope that you got hold of the most important principle about investing in Canadian real estate at a quick glance. Like all other businesses and new ventures, this one has its own risks. However, if you are willing to take a leap of faith and trust your instinct, it will be worth more than you can imagine. Contact me for a free consultation to see how you can make your money work for you.
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