This compares to the stocks, mutual funds, and fixed income investments that typically offer returns between 3% and 8% over the long term.

Long Term Appreciation

Over time, real estate will increase in value.  It has been shown that real estate is an excellent investment over time and will keep pace or exceed inflation.

Leverage

Canadian banks will finance the purchase of real estate.  For a small down payment, financial institutions will lend utilizing the property as security, and allowing the investor to realize the appreciation on the value of the property multiplying the returns on your investment.

Cash Flow

Choosing the right properties allows investors to earn cash flow or passive income that can be utilized to pay expenses and mortgage costs.  Hence, your tenants will pay off your investment.  Eventually, loans will be paid off and rents will increase providing greater cash flow over time.

Tax Advantages

Real estate profits are not taxed until the property is sold.  This allows the property to grow tax-free over time.

Real estate can also be re-financed which allows some of your profits from the investment to be removed without immediate tax implications and the funds may be reinvested.

The cash flow of the property is also reduced by the Capital Cost Allowance (CCA) or the depreciation of the building.  The depreciation is the wear and tear of the building and no tax is paid on this portion of income until the building is sold.

When you do sell only 50% of your Capital Gains are taxed versus other investments such as bonds or interest income where 100% of the profits are taxed.  Hence 50% of your profits are tax free.

Liquidity, Security & Control

In real estate you can maintain control of your investment with title ownership.  You may sell, refinance or hold the investment whenever you wish.

Real Estate Risks

Real Estate investing is similar to running a business.  There are risks and concerns that investors have but many of these can be overcome by partnering with a real estate expert that can help to minimize the risks and maximize the rewards.  Some of the most common concerns are as follows:

Lack of knowledge and understanding – We provide a proven system, that invests only in areas with strong economic fundamentals, and in properties that fit our proven system.

Market instability – We take a longer term approach and look at holding properties a minimum of 4-5 years.

Not enough time – We provide all the work, completing the research & analysis, finding the property, due diligence, arranging financing, managing the property, accounting, and ongoing property development.

Not enough cash flow – We seek opportunities with strong cash flow and strong appreciation potential.

Tenants and Vacancy – We hire excellent property managers and oversea the properties to ensure rents are at market levels, and the properties are well maintained to maximize rents and the future value of the investment.