It’s no coincidence that most wealthy people got rich by owning real estate.
After all, real estate is the #1 millionaire-maker in the world!
Here are 7 ways to create wealth:
- Benefit from inflation
- Inflation is only bad unless you don't own an asset that's gaining value. If property values and rent values rise, so does your profits.
- Generate cash-flow
- This should make your mortgage payments for you. Once your mortgage is reduced or paid off, all this cash can be invested for retirement.
- Reduce taxes.
- The expenses of operating a revenue property are tax deductible.
- Asymmetric risk and reward.
- This is another way of saying that if you put down a small sum of your own money, borrow the rest, then as property increases in value, your equity position rises substantially. The bank takes most of the risk, while you enjoy the reward.
- If you have the time and skills, you can save money by managing the property yourself.
- Asset appreciation
- You may initially take on a lot of debt when you buy a revenue property. But it's a "good debt" that will generate investment-grade returns over time.
- Inexpensive source of funds
- Once you've built up some equity, you can access it at inexpensive mortgage rates to fund new investments
For more tips on how to use your mortgage to generate wealth with real estate, please call:
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
Jessi Johnson Vancouver Mortgage Broker Vancouver Luxury Realtor