Wealth Creation Strategies & Various Income Streams
Full disclosure, we are not Financial Advisors, Home Inspectors, Lawyers, Accountants or Mortgage Brokers. Any information we provide is for informational purposes only and a guideline based on our experience & personal knowledge.
VIDEO: Big Fear... Real Estate Investing
REAL ESTATE INVESTING:
When you think of real estate investing perhaps think of some big named people like A-Rod, Robert Kiyosaki, Richard Branson, Warren Buffett, Don R. Campbell, Ellen Degeneres – but think about it, were they always that way? Real Estate investing and opportunities truly, is available to anyone of any age and demographic, not just what you’ve seen or heard in podcasts, web or on tv. It’s not only available to Hollywood Celebrities, NBA Players or Big-Named/Multimillion Entrepreneurs and they’ll tell you it comes with being programmatic, developing strategies, gaining knowledge, surrounding yourself with the right people and mindset. Yes, the great thing is that everyone can create wealth strategies with real estate and it all starts with an idea but then, education, strategic planning and most importantly, action. Know however that they didn’t do this alone.
So where does Shannon Murree and the MovingSimcoe.com team come in? Experience. We have the experience and network to help you get started. It starts with asking questions, learning the fundamentals and utilizing our experience (yes, even mistakes we made) so you’ll gain knowledge and able to take action to get you towards your goals.
When it comes to Barrie, Bradford, Innisfil, Orillia and Simcoe County area Real Estate Investing – for Twenty (20) years, Shannon Murree, team, network and strategic partners has the experience, knowledge and connections to help all those interested in creating wealth creation opportunities. We offer solutions and opportunities when you want to make a strategic action plan and take advantage of the Barrie, Bradford, Innisfil, Orillia and Simcoe County area real estate-market. It’s important to have the experienced real-estate investing team on your side.
What will happen at our first meeting?
First, we’ll have a phone consult to discuss your goals and establish whether the right fit or not. We work with pre-qualified buyers and form a strategic partnership with those we work with.
Whether a new or seasoned investor, let us know so we’ll match your skill level. It’s ok if you’re new and don’t know where to start. It can be an intimidating process and it doesn’t need to be. Let us help guide you. Most often, those wanting to learn about real estate investing, will ask what the first steps are. We can only offer information in terms of what we have done for ourselves personally and what our clients and others in our network have done. Our value? We have a team of strategic partners who are specialists in the field who can and will support your vision. So the best suggestion is get referrals from us. We’ve already filtered highly skilled professionals who understand exactly what it is you want to achieve.
Ready to start? Contact us to get connected with a mortgage professional who understands and supports your goals. Most particularly when it comes to a mortgage professional, we often say get the one who is “Investor Focused”.
Just so you know, we could, but we don’t get paid for referrals to those professionals we call our strategic partners. We refer them because it’s a team effort and they get results for our clients and will keep coming back and refer your friends, family and colleagues. That’s how our referral system works. Honestly, ethically, transparency, with integrity and accountability.
What are the Differences? Real Estate or Stocks?
The benefit of having real-estate assets in your portfolio is evident from historical returns of such assets compared to other capital-gain instruments such as stocks, bonds or foreign equities.
When you buy shares of stock, you are buying a piece of a company. Whether that company makes something, sells something, creates applications or software or provides a service, by owning a share, you are entitled to a cut of the profit, if any, for every share you own.
An investment in stocks, bonds or mutual funds will buy the equivalent amount of equities. In other words, $50,000 buys $50,000 of equities;
When you invest or buy real estate, you are buying physical land or property. Real estate will bring a higher and consistent yield, long-term investment than other options like mutual funds, stocks, RRSPs, etc. Other advantages:
- A leveraged real-estate investment buys real estate worth many times the down payment;
You benefit from growth in the property’s total value, not just the original investment, which multiplies your returns;
- The principal of the mortgage is paid down by your tenant who essentially buys the investment for you.
Income Streams from Real Estate
Once the principal on your investment is paid off, and even well before it is paid off in its entirety, the monthly rental payments from your tenant become monthly income for you.
- Rent generally doubles in Canada every 15 years.
- Owning 5, 6 properties or more can generate a substantial monthly income that will continue to increase with every passing year.
Real Estate: But How Do People Buy More than One Property?
Tip: Using Your Home Equity* – your home’s value minus the balance of your mortgage – is available for you to withdraw and invest in a number of ways, including home renovations, additional real estate, post secondary education and much more. You can access up to 80% of your home equity by increasing the value of your mortgage through a refinance.
Other options to access home equity In addition to a mortgage refinance you may also want to consider a home equity line of credit or second mortgage. There are key differences between each loan which are outlined:
- A refinance is essentially a ‘re-mortgage’ and allows you to, therefore, access the same interest rates as a traditional mortgage, while a HELOC’s rates are slightly higher than their variable rate counterpart. Further, unlike a refinance, with a HELOC all of the funds are not advanced upfront. You can withdraw as you please and only pay interest on the amount you take out. You are also not subject to a refinance penalty. As a third option, you could look into a second mortgage, which may allow you to access more than the 80% loan to value ratio offered through a traditional refinance or home equity line of credit product. Second mortgages are almost accompanied with a much higher interest rate, are not offered by all lenders and thus are less popular. Looking at all three options, you can see there are many factors to consider and the benefits must be weighed against the costs. It is best to speak to a qualified mortgage professional who can help you evaluate your equity refinance options.
Still with us and ready to learn more, take action and get some clarity? Connect with Shannon Murree 705.722.7100 and member of the MovingSimcoe.com to gain more insight what we can collectively do for you.