There are a lot of decisions to make when you are buying your first property. You have to look at various factors such as the location, finishes, and price. However, the most important thing to consider is to put the property as an investment property or to buy it as a principal residence? Even the most experienced buyers have a hard time to make up their mind. It is advisable that you should purchase a property as a principal residence first and then add pure investment properties to your portfolio. Exceptions are always there like maybe you are living with your parents rent-free, for example. But you will be sensible if you buy a home, especially in Windsor Ontario as prices in Windsor are compressed far longer than anywhere else in Canada. Here are four reasons to Buy an Investment Property in Windsor Ontario.
When it comes to tax benefits, you must look at the bigger picture in the long run. Primary residence is a rare opportunity in Canada as it is an elusive tax-exempt investment vehicle. You will never have to shell out anything on taxes, no matter the value of your house appreciates a little or not but it is not possible if you don’t live in it primarily. As tax rates continue to increase and the government tries to crack down on a loophole, you must think about the long term and take the biggest tax advantage as soon as you can. This will help you stay strong in the investment game by setting a solid foundation. You will also be able to reduce taxes that you owe such as mortgage interest, property taxes, property management, insurance etc.
This is one of the key features of an investment property. The total return accruing from rental income of an investment property over the long term is significantly high. The return of income in investment property is less volatile than those that rely on capital value return. Furthermore, real estate is more attractive and easy than any other traditional source of income. The treasury rates are low and it also allows you to make profits as soon as you find tenants.
EXPERIENCE AND PRIDE FROM HOME OWNERSHIP
The right expertise comes from dealing with tenants and living in the first home you buy over the years. It is a unique experience that makes you a better landlord and will eventually grow your portfolio. A lot many problems arise and you will learn how to solve them. You will learn about the kind of wear and tear that can be inflicted on a property. This will expand your horizon and you will become better at handling such experiences. Furthermore, owning a house is part of the Canadian dream, more than half of the Canadian population are homeowners. Homeownership gives you a sense of pride and stability.
PROPERTIES IN WINDSOR ARE AFFORDABLE
The market in Windsor is hot and prices are rising. Therefore if you look in the long run, the value of your property only appreciates. In addition to this, a lot of new communities are being built around Windsor and is also known as the Greater Windsor Area (GWA). Because of the compressed prices, you will find affordable properties with 8% cap rates and above. Further, the area is equipped with good universities like the University of Windsor that has improved in the last 6 years with international attendees. Also, Detroit is just across the river that provides you everything that a big city would and the best thing is you can crawl back to your safe Windsor after enjoying the big city amenities.
Invest property is a great addition to your portfolio, nowadays, more Canadians are getting educated about the options available to them. However, you should not just jump in with any investment without doing your homework. Consider your long and short term goals and see if you have the aptitude to manage a real estate investment. Talk to a real estate expert for further doubts on Windsor area.