Creating Retirement Wealth with Real Estate

 

 

Tips to Buying a Turn Key Investment Property

I have compiled this short but fundamental list to take into consideration if you want to buy a lucrative and highly profitable Investment Property.

1. Choose a proven real estate professional that specializes in investment properties.

Ensuring you are using the right investment property specialist will give you peace of mind and is essential for a successful investment.  Check the Realtor’s track record, ask to seeclient testimonials and try to contact former investors.


2. Make sure you understand the basics of property investment & current market conditions.

While you should use a Realtor who specializes in investment properties during the

investment process, you cannot entirely rely on them. Make sure that you understand the basics of property investment and all financial details involved. This will enable you to spot any potential risks ahead of time to find a profitable investment opportunity.

3. Have a clear picture of what type of investment property to buy.

There are a variety of investment properties, duplex, triplex’s, fully commercial, mixed use properties, or overseas properties. The type of property will also determine your investment strategy, so make sure that you know what kind of property and investment strategy you are looking for to achieve your desired profits.

4. Is the property in favorable condition and is it in a good location?

These should be crucial considerations, as you will either want to lease the property, or sell it to another property investor or home-buyer. A property that is in good condition might be more expensive, but buying a relatively cheap property in a bad condition will always incur significant additional repair costs. Whether you want to find tenants, or resell the property, the location will be crucial, and a property in a bad neighbourhood or in an economically vulnerable location will rarely turn out to be a good investment. 

5. Will you find tenants for your property?

It is essential to make sure that you can find tenants for your property. This will depend on the location, property condition, the rent, and many other factors. Some Realtor's will even help place tenants in the investment property.

6. Do you understand how to maximize your returns?

Achieving a positive cash flow will make your property investment successful. While it is obvious that every investor wants to maximize returns, you will have to understand how to make this happen. Finding a property possibly below market value but in a good location and good condition will be crucial for the success of your investment. You will also have to understand how to minimize the costs, including repairs, and taxes, and you should also make sure that the property remains occupied for most of the year.

7. Do you understand the risks?

Property investment will never be without its risks, and you will thus need to understand all the risks involved. Economic growth might not be as expected, or you might not find tenants for a longer period. By understanding these risks, and developing an effective risk-mitigation strategy, you will find it easier to turn your property into a successful investment.

Are you or someone you know buying, selling, downsizing or investing in the Toronto Real Estate Market - call me!  

Are You Financially Equipped For Retirement? Here's a Guidelines to Get You Ready!!

Start Saving

 Canadians spend an average of 20 years in retirement. If you’re not saving, it’s time to start.

Estimate Your Retirement Needs

Expert’s estimate that you will need about 70% of your preretirement income – for lower income earners, the figure is 90% or more – just to maintain your current standard of living when you stop working.

Participate in a workplace Retirement Savings Plan

If your employer offers a retirement savings plan (RRSP), sign up and contribute as much as you can afford. Your company may kick in to match and your deductions can be automatically taken from our paycheck.

Educate yourself about your investments

How you save can be as important as how much you save. The type of investment you make play important role in how much you’ll have saved at retirement. Learn and ask questions about your investment options.

Find out how the Canada Pension Plan (CPP) Works

Your contributions to the Canada Pension Plan provide you with a stable and dependable pension you can build on for retirement.

Your contributions also provide you and your dependents with     basic financial support. Check out Services Canada Website http://www.servicecanada.gc.ca/eng/isp/cpp/cpptoc.shtml

Have a Real Estate Portfolio

Your principal resident is your tax free retirement fund. Buying an income generating property can provide cash flow in your retirement years.

Believe it or not I learn so much just putting all the information together for my blogs every week. I truly hope you enjoy reading these helpful hints.

Curious about the current value of your home call me today for a Complimentary No Obligation Home Evaluation

Are you or someone you know buying, selling, downsizing or investing in  Toronto Real Estate? Call me! Living, Loving & Selling Toronto for over 30 years!

HANDLING YOUR INHERITANCE WISELY

Canada’s Zoomers are in line to inherit a vast cumulative fortune in their retirement years. Here are a few helpful guidelines with spending and investing your inheritance.

Start with your children’s education

Helping your children pursue post-secondary education is a costly proposition. Use the first big chunk of your inheritance here because it will help set them up for success, as well as provide you with a guaranteed 20% return. That is the amount of the grant the government provides on your contributions. Like most families, you probably haven’t been maxing out the $2,500 per child per year. Luckily you can go back in time and catch up.

Max out your Registered Retirement Saving Plan (RRSP)

The next thing to do is to max out your RRSP, but not just for this year. Find out how much RRSP contribution room you have in total and start using it. You can probably contribute a big chunk of the money now then work with an accountant to determine when you should actually take the deduction to get the highest refund on your income tax.

Pay down your mortgage with your tax refund

Those nice, big RRSP contributions will generate a higher tax refund than you are used to. Provided your home mortgage has a lump sum pre-payment option, you can use the extra money you’ll get from your tax refund to bring down your home mortgage. True, interest rates are low these days, but paying off your mortgage faster will save you interest over time and is a guaranteed return.

Set up an emergency fund

You now have about $10,000 left and put it in a Tax Free Savings Account for emergency use. Just be careful about how you define emergency. It isn’t a vacation or new car. It is something that you could not have anticipated like a job loss or a health issue.

Depending on the size and complexity of the inheritance, you might also consult a  wealth manager for guidance in developing a retirement plan for investing and spending your newly attained wealth.

I hope you enjoyed reading this weeks Blog. When Downsizing, Investing, Buying or Selling Real Estate in Toronto & GTA visit my website at www.movetorontoseniors.com

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A Grandparents Guide

Seven Easy Steps to Handling Your New Role

Set the Stage for Peaceful Relationships

Right from the get-go, many expecting parents experience tension or a feeling of being torn between two – or even three or four – sets of grandparents forcefully asserting their wishes. It's a recipe for stress that soon-to-be moms and dads definitely don't need.

As much as you can, stay positive, be flexible, and go with the flow. Focus on supporting the expecting parents rather than telling them what you want – they'll appreciate it.

Listen and Accept

No matter how many kids you raised or how they turned out, your adult child and his or her spouse or partner is now in charge of the child rearing. Be cautious about offering opinions or advice unless asked directly. And even then, tread lightly and express yourself gently.It's all about respecting limits.  We all parent differently, and it's your child's turn to learn what works for them.

Go Gentle on the Buying

It's tempting to go on a shopping spree. But before you do, ask the parents-to-be what they need, what they don't want, and whether there's a baby registry or wish list you can consult before you buy anything.

Some expectant parents welcome all gifts, but others would prefer to make most of the choices about clothing, toys, and gear themselves. And there may be other factors they're weighing, like an impending move or limited space.

Don't take their Decisions Personally

They're advocates of co-sleeping? Don't want to circumcise? Want to name their baby boy Thor? Honestly, it's not your problem. Yes, you may feel a tad embarrassed sharing your grandson's new moniker with your friends, but you didn't name him, right? Just raise your eyebrows and report it with a smile.

Let the Bonding Occur Naturally

You've been so excited to meet the new baby – and then she wails nonstop whenever she's in your arms and ignores your coos and funny faces. It's disappointing, sure, but don't fret that your relationship will always be so rocky.

You anticipate having a wonderful relationship with your grandchild, but that doesn't automatically happen. It may take time and may not always resemble the picture you have in your mind."

Try to avoid specific expectations – they can be a recipe for disappointment.

Support their Rules

You're used to being the one in charge, but this time it's your child's turn. If your grandchild has a routine for naps and meals, make sure you maintain it, even if it means cutting an outing short. If every time your grandchild goes out with Grandma they come home exhausted and cranky, those outings are not going to happen as often.

Give the New Parents a Rest

It's easy to forget how overwhelming it is to be a new parent, and how hard it can be to accomplish the basics. This is where you can step in to save the day.

During visits, offer to take care of your new grandchild while the parents nap or get other things done. Ask if you can help by running errands, making meals, or cleaning up. Some new parents are reluctant to ask grandparents to help, so you may get better results if you just jump in and do what's needed, like filling the dishwasher or making sandwiches.