Some of you may be surprised to know you are all ready on your way to being a future Donald Trump! If you already own your own home, guess what? Congratulations! You are a Real Estate Investor! Owning your own home in Canada (as your principal residence) is a great investment because your home can appreciate in value and you don’t have to pay any capital gains on it when you sell it, like you do on stocks or bonds. Paying down a mortgage is an automatic savings plan. This is a great way to build wealth. Once you have built up some equity, you can take out a second mortgage, invest it and the interest from that loan is tax deductible!
As a home owner, if you like the idea of investing in real estate further, there are many different ways to achieve this objective. I always suggest people educate themselves and create a plan. Talk to friends, neighbours or a mentor for their ideas and experiences. (I would personally love to tell you my story of how I got started as a real estate investor over a coffee sometime if you are interested.) Also, talk to realtors, mortgage brokers, and accountants about investing strategies.
There are numerous educational seminars and books on this topic (in Vancouver there are REAG and REIN. These are two local Educational Real Estate /Seminar groups). Take your time and find out what is going to work for you. You do not have to buy an apartment building tomorrow, but there is certainly nothing stopping you once you have the knowledge. If you are not a home owner yet or you currently rent stay tuned for more….