|
Due to significant boost provided by the federal government’s RRSP Plan (individuals can use up to $20,000 from their RRSP’s tax free to purchase a home), and reduced down payment requirements (5% down Payment Program), the sales of both new and resale homes are all time-high across the country.
Mortgage rates are considered the number one reason why the resale market remains strong.
The monthly carrying cost for an average resale home purchased in Ontario has fallen over 30 percent from approximately $1700 in mid 1990 to about $1100 at present.
The five year mortgage was at 13.4% compared to
*5.05% now. If you have a mortgage of $100,000 at 13.4% interest, you pay $1,130.89.
Today, if you have a mortgage of $100,000 at *5.05% interest, you pay only $584.45. Imagine the big savings.
It doesn’t make sense to continue renting when you can own your home.
Real estate has proven to be one of the best long term investments for your money.
Your chances of making a substantial profit in real estate are excellent if you can afford buying a property now and are able to hold on to it for 5 to 10 years.
The three main factors influencing your choice of real estate should be: location, location, location!
With mortgage rates on the down swing, you are able to make a bigger investment in property while maintaining the same monthly payments.
One of the common ways to make money in real estate is by forcing the issue.
Buy an old home and renovate it, or buy a vacant lot and build on it.
USING A REAL ESTATE AGENT: A real estate agent should be totally familiar with the area in which he or she is helping people invest.
Your agent should be able to guide you in choosing a home that best suits your needs and investment capability.
Investing in property should be an enjoyable experience, a learning experience, a profitable experience!
Real estate will continue to be a solid, long term investment.
There maybe peaks and troughs, but you’ll be glad you made the leap in the long run.
Note: *The interest rate may have changed at the time you read this article. | 
