Benefits of Investing in Real Estate
Who doesn’t love a couple extra bucks in their pocket each month? With a positive cash flowing property, you will have just that. Ideally, a couple hundred dollars (or more) each month to spend on vacations, savings, paying down your mortgage, or into the property’s ‘Reserve Fund’
Your tenants rental payment each month, goes towards building your equity. They pay down your mortgage, and you will ultimately own your home, mortgage free, with out any of your own dough. Nice! Any extra cash you ‘make’ every month, is considered Cash Flow, and if you pay your allotted 20% of the mortgage balance each year, you could have your home paid off in a few years! There after, every month your tenants pay, is cash in your pocket.
Having a Buy & Hold strategy, means you are in this for the long haul. Hopefully, you buy today and in 20 years, your home will be worth double the price you paid for it! In Hamilton, the real estate market has appreciated an average of 5% per year. In 2015, it grew 9%, and 13% in some areas! The more the market appreciates, the more your home will be worth.
This means you renovate your home, to make it worth more. There are a couple different strategies you can take with this, depending on if you want to renovate and sell, or renovate and refinance, or renovate and rent (to a higher tenant profile).