Many believe that real estate is indeed the best and safest investment and is something common between most of the richest people today. If you are wondering whether investing your hard earned money in real estate will be worth it, here is a list of reasons to help you decide.
Principal residence not taxed
In Canada, your principal residence is exempt from capital gain tax. This makes real estate a more attractive investment compared to others, which are often heavily taxed.
You are forced to save
Nearly everyone agrees that saving is important for a secure future. However, even if you have your savings in the bank, you do have access them to them, and there is always the possibility that you will turn to them when you are low on cash. Real estate on the other hand, is not very easy to liquidate and given that inconvenience, you are likely to leave it be for a considerable time period.
Sense of ownership
Having your own house is a big achievement and allows you to work on it according to your preferences and express yourself. Dedicated homeowners spend a lot of time tending to their property and improving it, for themselves and the neighborhood.
Relatively more stable than other investments
Generally, real estate is not so prone to radical changes, even during high inflation. While, real estate prices do suffer, as is the case towards the south, Canada is more secure when it comes to real estate investments due to a number of reasons.
- Firstly, Canada enjoys a steady flow of immigrants who are willing to invest in real estate and own property.
- Furthermore, the banking system in Canada has been carefully regulated, resulting in a solid financial foundation.
- Real estate investments have been on the rise in Canada and their strong track record is testament to their stability.
Source for rental income
Renting out your property is an excellent way to supplement your income. If you have enough space, you can contact a real estate agent, you will help you look for suitable tenants. However, you will need to take local laws into account before you decide to become landlord. Once you rent out the property, not only will your investment be secure (and grow over time) but you will be generating rental income which can go towards meeting other expenses, including your mortgage payments on the property.