Why Should You Invest?
It is our goal is to work with clients who want to build up a diverse portfolio of easy to manage properties. Whether you are a first-time investor, or have an extensive Real Estate portfolio, we will work with you to fin the perfect investment for your situation. To help explain why we feel so strongly about positive cash-flow property investment, we have prepared a list of 10 Reasons to invest in a positive cash flow condo…
1. Historic Performance
Historically speaking Real Estate has outperformed all other forms of investment. Period. Over the last few centuries it has almost singlehandledly been responsible for the vast wealth held by many familes in the world today. By leveraging a small down payment on a cash-flow positive property, it allows you to mitigate your risks and maximize your profits on an exponential level.
2. Cashflow is king
Cash flow is one of the most important considerations investors face when making real estate purchases. Positive cash flow means that the investment is earning more than it costs to maintain and finance. In essence, a positive cash flow real estate investment will “pay for itself” while you own it, regardless of market appreciation.
3. Tax advantages
There are many positive tax implications to investment property. You are able to offset all of the costs involved with the purchase, financing and ongoing maintenance and costs relation to the investment against the taxable income that the property produces. Although each situation is different, the tax benefits of this type of ownership can add a great deal of benefit to the purchase.
4. Current Market Conditions
Canada is HOT. Having faired much better than many countries in the recent real estate downturn, the market began showing signs of life in 2009, and is quickly picking up steam so far in 2010. The recent Housing Outlook report from the CMHC projects that housing starts will increase through 2010. Prices in most areas of the country have recovered to, and in many cases exceeded their peak levels from 2008. CMHC projects that prices will continue to rise through 2010. Mortgage rates are expected to remain very low in historical context, and Canada will continue to enjoy strong inward migration.
Download the report: Q4_2009_CMHC_Housing_Market_Outlook.pdf
5. Individual ownership.
Privately-held investment real estate has a stabilizing effect on an investment portfolio. Unlikes stocks or REIT income trusts privately held condominium does not fluctuate with the stock market. Because you have individual ownership, you are free to sell or make changes to your investments at any time.
6. An Instant Boost in Equity
If you buy publicly traded stocks or bonds, you will pay the current market value for these investments. You may enjoy price increases over time, but you will not immediately advance your current wealth. Not true for real estate in Canada right now. Due to recent market fluctuations & oversupply in some areas, you can buy property for much less than its market value. As the market normalizes over the next few years, your property value will increase, providing a very important equity boost for your investment.
7. Management
We firmly believe that proper management is key to hassle-free investment property ownership. We partner with local experts in each market to facilitate local project and property management. Full service property management can alleviate much of the stress and hassle that can be involved with this type of investment. Please contact us for more details on the management packages available for each project.
8. Rental Program
Vacancy and tenant turnover is a realistic part of any real estate investment. When your unit is empty, all expenses will have to be paid out of pocket. A rental program can go a long way towards mitigating this risk by spreading rental income across all members. This helps avoid the income spikes when tenants turn over, and allows you to be confident about the minimum rental returns that the investment offers. Many of our projects have an optional rental program, please contact us for exact details.
9. New construction
One of the drawbacks to real estate investment, especially at a distance, is the ongoing need for repairs & maintenance. Many of our projects are brand new, or almost new construction which means that the individual units will still be covered under the new home warranty. This is an additional layer of insurance when purchasing an investment condominium, and helps prevent unforeseen maintenance expenses.
10. Growth Areas
At CashFlow Condos, we work hard to find & present properties in attractive local markets which are poised to produce consistent returns. We focus our efforts on properties in locations with promising economic potential while providing our clients with investments that will sustain themselves for the long-term and produce consistent positive cash flow.
Ready to get started? You can send us an email or simply fill out the Registration form and we will send you more information.
