1. Earn Passive Income For Life
The number one reason to invest in property is to generate a passive income for yourself so you can enjoy more of the things you want.
2. Diversification Leads to Increased Stability
The variation of assets helps to ensure that a portion of your investment portfolio is performing well at all times, increasing the overall value of your portfolio at any given point in a fluctuating economic cycle. Adding property to your portfolio helps offsets against volatility of other high-risk assets, thereby reducing the overall risk level of your portfolio, and providing you with steadier returns.
3. Cycles to Your Advantage
Effective market timing (buy low/sell high) is a crucial component of successful property investing. The property market timing is not an exact science, however there are several key indicators we use to determine where a market is in its lifecycle. A number of factors, including seller motivation, supply and demand, interest rates, employment trends and population growth can all have significant effects on market timing.
4. Use Leverage to Maximize Returns
Leveraging Your Investment Capital
When you use borrowed capital to enhance the earning potential of an investment, you are using the full power of leverage; and since property is a tangible or hard asset, financing is readily available. The potential return on your leveraged property investment is substantially increased compared to a non-leveraged investment.
Leveraging Your Mortgage Financing
The rental income you earn from your property will usually be sufficient to offset your mortgage payments and all associated expenses for each unit you own.
Leveraging Your Time
Using us to manage and carry out due-diligence. You benefit from owning a high quality investment, while the day-to-day tasks associated with managing the property are left to the professionals.
5. Increased Cash Flow
A fundamental benefit of property investing is its potential to generate income, especially over the long-term as your mortgage is paid down. The income generated from your investment property will often be sufficient to offset your mortgage payment, taxes, condominium fees and other expenses, while still providing you with increased monthly cash flow.
Your cash flow will be strengthened over time as you pay down your mortgage and funds can then be used to supplement your retirement income.
6. Real Estate is a Renewable Source of Capital
Investment property also provides you with a renewable source of capital through re-financing options, as property values increase and mortgage financing decreases over time.
7. Free Title Ownership
Giving you complete and total control over your property. With this control comes the ability to sell, refinance, or hold the property as you see fit, while giving you the security of hard asset ownership.
8. Wealth Creation
Over time, strategically selected property investments can be powerful vehicles for wealth creation. The value of your investment property increases, while the corresponding mortgage financing is reduced nominally through regular mortgage payments. The result is increased equity and increased wealth.
The equation is quite simple:
Mortgage Financing Reduction + Property Value Appreciation = Long Term Wealth Creation
9. Inflation Hedge
A long-term property investing strategy is an effective hedge against inflation because the value of this asset class has historically increased at a rate similar to the rate of inflation. You are thereby ensuring that your “real” or hard asset will help maintain your wealth and your standard of living.