Equity build-up.
Basically, the longer you own the home the greater the equity that
you build.
Historically real estate has
been a sound financial investment. Over the past 20 years, the
average increase in residential property values on a national
basis has been approximately 10% a year. Of coarse there are no
guarantees.
Inflation hedge.
Naturally, the appreciation of the value of property over time
includes an inflation factor. Historically, land appreciation
value on residential homes has been 3 to 4% greater than the
inflation rate. However, this can vary, depending on the number of
variables.
Low down payment.
You can get into the real estate market by paying as little as %5
down. The balance would be financed through a mortgage, using the
property as security.
Tax advantage. In
Canada, the exempted anyone who owns a principal residence (home)
from tax on that gain. So any increase you make is tax-free.
Copyright 2007, John MK Lam -
RE/MAX - City Realty. All rights reserved
