Reasons For Investing In Real Estate Property - CIRCLAPP

1. Reasons For Investing In Real Estate Property Buying real estate has a no-brainer way to make a lot of money over the last decade, especially the place like Canada. The Local real estate has proven to be an effective long- term wealth creator. By owning rental housing you get the added advantage of earning the regular income from the investment. There are a number of advantages and disadvantages for buying the property ​apartment for rent​ and then renting it out.

2. 3 Key Advantages: a) You pay less tax: You can conduct certain expenses from your income-reducing the taxes you owe. This includes: ● Property taxes ● Insurance ● Maintenance/upgrades ● Property management ● Utility bills (if you include them in the rent) ● Mortgage interest b) You may be able to deduct losses for the tax purposes: If your expenses exceed your rental income, you may be able to deduct that loss from any other source of income you have. This will reduce your total tax bill. c) You can get a regular monthly income: Other kinds of investments may pay out often or income may be less predictable. 3 Key Disadvantages: a) You take on the responsibilities and challenges of a landlord: Rental units need repair- sometimes on the emergency basis. Dealing with the tenants can be challenging, especially, if they don’t pay their rent on time and your cash flow is tight. If you will hire the property manager to take care of these for you, their salary is an added cost. b) It may be difficult and costly to sell the property later Real estate is not a liquid investment. That means it can take the time to sell, depending on the market conditions. c) It may be difficult to finance the purchase: You must have a downpayment of at least 20% when you buy a second property. You may need the mortgage. And, you will have the high monthly expenses to cover when you own the building.