Don’t worry, we’ve got you covered: Real Estate Investing 101.
For quite some time, real estate has become a hot topic in British Columbia. Although Downtown Vancouver and Greater Vancouver are in demand, more recently, the Fraser Valley has sparked investor’s interest for its diverse countryside properties. Good investing starts with knowing how to ask all the right questions. That’s why I’m here to help, these few questions outlined here will help learn some of the crucial ways to assess an investment before committing your hard-earned cash.
First, are you an experienced investor with time and expertise to invest actively or are you newbie investor who’s just started to think about real estate generally. Do you enjoy the idea of buying a property and then renting out for several years and being a landlord or would you prefer not to deal with tenants. Would you rather purchase a property to flip it and sell it within a year or two? What’s your timeline? Are you looking to purchase quickly? What’s liquidity to you and does it meet your particular investment needs?
Think about it…
These can have an immediate impact on the specific investments you pursue, plus the overall costs.
How will real estate affect your overall portfolio?
One of real estate’s benefits is its ability to diversify a portfolio. But diversification is not always equal so it’s crucial you understand exactly how the addition of the new investment will impact the overall risk and earning potential of your investment situation.
Are there any potential tax benefits or implications to a particular investment When selling a revenue property in Vancouver capital gains are taxable. But by how much?
“It is absolutely taxable,” says Canadian accountant Sean Akeroyd with Akeroyd & Leung. “But how much depends on a couple of factors; your income tax bracket, how much income from other sources you have. Generally, 50% of the sale of an investment property will be included in your income.”
If you feel confident after reading this article, give me a call and we can look into some beautiful properties and find an investment that meets all your needs and requirements!