WHY INVEST IN REAL ESTATE?
1.) It is non-speculation investment
- Speculation (ie, most stocks, mutual funds, high risky business ventures) is dependent on the asset increasing in value for you to be profitable.
- Non-speculation real estate involves buying properties that produce income, so money may be generated even in a flat or declining market.
2.) It is based on a “real” asset (as opposed to a virtual paper-based/mutual fund/stock based asset.)
3.) It provides tax advantages
- Equity growth on a major portion of the return (the equity portion, which is the combination of mortgage paydown, and appreciation through time) are tax deferred.
4.) Current Canadian real estate market is profitable.
- Canada is rated #1 in G-7
- Conservative government provides stable focus for medium-term investments
- Vancouver and Toronto are havens for international markets