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economist suntmbune april j96 re11 real estate is a good investment real estate has historically been consi dered a safe haven for the individual inves tors hardearned dollars if you have chosen to buy a second house to provide you with an income and a hedge against inflation realize that it is an invest ment decision like any other you must de termine if it fits in with your overall invest ment strategy and compare it to other possible investments ultimately you should consult a financial advisor like an accounant or a banker an incomeproducing property has a lot of advantages particularly for the person with a small amount of money to invest your cash will always be returned from real estate even though you may have to wait for the right time to sell consequently your capital is never at risk not only will your property provide you with rental income but your equity will appreciate at a rate that has almost always outpaced inflation over the past 50 years in addition the costs and benefits of buying and selling property are easily understood the typical investor can see what he is investing in and the fluctuations of the real estate market are easily identi fied and reported almost daily by the media real estate investors can also make use ful the number of tax breaks involved in ownership expenses incurred in main taining the property mortgage interest costs and depreciation of the property are all tax deductible depending on the size of your downpayment and the rental market the income could cover your mortgage pay ments offsetting these advantages are two dis advantages the prudent real estate invest will consider when you buy an income property you automatically become a landlord you will have to find suitable tenants for your prop erty this is an exercise that requires care not only because you want responsible peo ple in your house but also because of the implications of landlordtenant legislation in many provinces in some areas this leg islation severely restricts your ability to deal with or evict tenants you will have to maintain the property answer tenants queries and be prepared to fund emergency and periodic repairs unless you hire a property man ager buying housing is rarely a shortterm or liquid investment while housing value in creases traditionally outpace the inflation rate the selling price of homes is expected to increase only five to ten per cent in most centres in the next 12 months to realize a substantial real profit your property should be allowed to appreciate over a number of years while there is al ways a market for real estate that is realis tically priced a typical property can take anywhere from two to six months to sell despite this the real estate investor does have some financial flexibility if you own a rental property and would like to use it to yield immediate cash one option available is to refinance by taking out a large mortgage while you wont be able to recoup 100 per cent of the propertys value you can obtain a substantial amount of money that is tax free and at the same time retain ownership of the property you may even be able to increase your rental rates to cover your increased carrying costs on the other hand if you sell the proper ty your profit will be taxable as a capital gain if the decision has been made to invest in a second house it is important that you check on the background of each property you are considering what are the rental and vacancy rates in the area how does the rent you plan to charge compare with your carrying costs of maintenance taxes and mortgage are other properties in the neighbor hood increasing in value are nearby homes wellmaintained is the real estate market in that area up down or stable since you want your property to appreciate time your purch ase for when the market is down or stable in some markets condominiums make good income property investments be cause the rent they command often ex ceeds the carrying- costs however before purchasing a condomi nium you should check the corporations financial statement carefully paying par ticular attention to see if the monthly maintenance fees are adequate to main tain the property value also note condominiums have strict rules concerning what changes you can make and you may not be able to make substantial improvements to markedly in crease the value of your property markham- heritage rd 10000 sq ft industrial space 24 ft ceilings immediate occupancy 330 per sq ft net olus commis sion call grant cats 4777181 peter le grice real estate ltd realtor serving markhamunionville stouffville uxbridge and surrounding areas are you looking for privacy 3 bedroom bungalow on large private lot hardwood floors thruout new roof a super property for 1st home buyers 4716600 remax markville realty ltd rltr first ad 765001 close to 404 4 bdrm 1 vi storey with full basement on 60x200 lot in area of nicer homes would look great board battened aly lyons 6404960 remax execu tive realty inc rltr unionville the bridle trail 204900 4 bedroom stanhope vendor delighted with service pricel thinking of selling your home- call dan lebarr 4716600 res 4711774 remax markville realty ltd rltr super bungalow stouffville 3 bedrooms 18xl8 solarium family room finished rec room fireplace 1v4 baths possible inlaw many extras derek thornton 640- 4960 remax executive realty inc rltr open house sat april 26 1 pm to 4 pm 66 dorman drive one of a kind inground pool sauna many extras 147900 sandra clark 6404960 remax executive realty inc rltr looking for that special retirement home then look no further this 3 bed room raised bungalow on a acre backs onto a picturesque river 3 walkouts professionally finished rec room with stone fireplace and bar asking 91900 sharon gray 6406755 res 18525855 remax scugog realty limited rltr 1 acre country view of lakel have a walk in the woods feed the birds in your back yard relax in this country home fireplace 4 bdrms mary jean 6404960 remax execu tive realty inc rltr calling all starters in town stouffville brick bunga low hardwood floors sun room separate dining room finished rec room 94900 de rek thornton 6404960 remax executive realty inc rltr unbelievable valuei vi acre lot gorgeous ravine set ting panoramic view restored century home move in condi tion only 119900 bob new man 2945817 6404960 re max executive realty inc rltr 13 acre conservation 2500 sq ft 5 br 2fp pool landscaped fruit trees close to 400 and 404i hank degroot 640- 3948 6404960 remax execu tive realty inc rltr first ad 675001 close to 404 3 bdrm bungalow with fireplace eatin kitchen with dishwasher overlooking park with beach rights aly lyons 6404960 remax execu tive realty inc rltr a touch of country 121900 buys this 4 bdrm 2 storey main floor family room with fireplace and walkout to deck patio large eatin kitch en separate dining room shar on gray 6406755 res 1-852- 5855 remax scugog realty li mited rltr attention renters in markville area if you are thinking of buying and would like to stay in the mark ville area this 3 bdrm home will suit your budget main floor fam rm too call me for financ ing information johanna parker 4716600 reduced to sell 2000 sq ft of antique ele gance many extras in this cen tury and a half home hank de groot 6403948 6404960 build your own 175 acres bordered by trees on front of property permits avail able 72900 mary jean sider 6404960 remax executive realty inc rltr country living at its best just ne of mt albert 10 ac a br bungalow large 10 stal barn easy commuting 145900 hank degroot 640- 3948 6404960 remax execu tive realty inc rltr heart of old village this home is a 3500 sq ft beau ty close to arena and libraryin the heart of old village of mark- ham this home must be seen call joyce ramer walker 471- 6600 remax markville realty ltd realtor markhamunionville 4716600 remax markville realty ltd rltr stouffville 6404960 remax executive realty inc rltr uxbridge 6406755 8526143 remax scugog realty limited rltr tjtx r t 4 r 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