What happens when you leave your money in a TFSA, RRSP or an RESP?
You lose a small percentage of value everyday.
Canada has reported an accelerated inflation rate of 5.1% as of January 2022. The highest since September 1991. If you’re not investing in a vehicle that can provide you with a return that beats the inflation rate you will be losing the buying power of your money every day. Historically, real estate is the only vehicle that has outperformed inflation and has given an average return on investment around 8-10% yearly. Not to mention, your capital is guaranteed 100%*
Now is the time to leverage.
If you live in the GTA your principle home, within the last two years, has grown on average about 35%. Why not leverage that money and invest in an asset which will give you a rental income + growth in equity.
If you take 100K-150K equity out of your primary home, you will be able to use that money as a 20% down payment on an investment property.
For example,
A pre-construction property;
The average condo price is $600K and is set to close in 3 years. 20% downpayment is $120K
A builder will always incorporate approximately 8% inflation into their costs (material costs, labour costs, borrowing costs, etc) By the time of closing if you've chosen the correct property, it would have appreciated by 24%.
At closing your initial 20% down payment would have grown to $155,827
Property Price: 600K
20% downpayment from home: 120K
After inflation 8% x 3 years = 24%
120K downpayment = $155,827
At this point you may choose to sell on assingment or use it as a second income generating property.
We specialize in helping individuals create wealth through real estate. Numerous of our team members have found success with this method, therefore have a deep understanding of the process. We teach you through our own real life experience.
Let us help you:
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Leverage your equity and increase your buying power with the correct vehicle that will help grow your wealth.
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Help choose the right investment property for your goals
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Help you borrow the equity utilizing our veteran mortgage brokers
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After we’ve secured your first official investment property, our team can help you manage you property while we work on securing your third, fourth and fifth property.
