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Why invest in real estate?

Leverage—Real estate is a hard asset that banks will leverage. Potential returns could therefore be magnified versus a non-leveraged investment.

Mortgage buy down —Some real estate has the ability to use cash flow that is earned and used to pay down the mortgage.

Appreciation— When purchased in the right locations, real estate has shown to increase in value over a period of time.

Tax benefits—Consult your accountant before you invest in real estate. Taxes owing on the appreciated value of real estate can be deferred until you sell the property. Also, you will benefit from the capital gains status of this profit; meaning that 50 percent of your capital gain is taxed at your marginal tax rate, while 50 percent of the gain is tax free.

Passive income—Cash flow you receive from real estate could increase through incremental decreases in mortgage financing over time, thus creating a passive stream of income.

Value added—In addition to natural appreciation, if done properly, one can add value to real estate by: rezoning and developing land—construction/up grading of buildings—improving property management—etc…