KAMLOOPS REAL ESTATE
HOME BUYER'S GUIDE: REAL ESTATE INVESTMENT
If you invest in the stock market, which includes an assortment of equities, bonds, mutual funds and other options, you're likely in for a rocky ride. Many financial advisors suggest that if investors cannot stomach the rapid rises and falls of a stock, they might want to consider investing elsewhere - stocks are not for the faint of heart! So what about real estate?
Real Estate Is a Solid, Familiar Investment
Forced Savings: Contributing towards a mortgage automatically forces a family to save. Rather than paying rent, these monthly payments contribute to future security.
Appreciation: By nature of the demand and supply, home prices rise. This means if you take good care of your home, you'll likely make money on your investment, not lose!
Tax-Free Profits: When your home is your principal residence and you sell it, you will not pay tax on any of the profits. This is one of the last and greatest advantages for building wealth left in Canada!
Equity Build-up: Your home will naturally rise in price according to the market. In addition, you'll be contributing to the reduction of your mortgage. The difference between what is outstanding on your mortgage and what your home is valued at, is called your earned equity. Your equity is a valuable commodity that can be used to obtain additional financing, obtain a second mortgage, or move up to a larger home.
Real estate has long been recognized as an inflation-resistant investment, providing homeowners with a tangible incentive to save. Buying your own home or investing in one is widely-accepted as one of the soundest financial commitments you can make.