Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following: 1. Second stream of income: When you move to another place and keep your current house as a rental, this gives you an extra stream of income. 2. Pay less tax: Your rental property produces business income. When you have a business, you are entitled to tax write-offs. This could save you a lot of money that you would normally pay to CCRA (Revenue Canada). 3. Fast wealth: Tenants will pay off your mortgage in a rental property. Your net-worth will grow without you having to save out of your own income. When you have one or more tenants there is a team effort in building your wealth, fast! 4. Bargain priced: You will never again be able to buy the same type of property for the amount you paid for it originally. The value of all the other houses have gone up along with yours. You already own what an investor would consider a bargain in the current market. 5. High rate of return: The rent you can charge for your house is based on the current market. Rents have gone up but the cost of your house is still what you originally paid for it. You are getting a higher return on investment. In the current market you would have to spend a lot more to get the same rental income. 6. Guaranteed income: If you are willing to make some small changes to your house so it meets the standards required for disabled people, you will have a long list of potential tenants waiting for you. In many cases, some government agency will be paying their rent. You will get a good, stable, low-maintenance tenant. You will also be helping someone in need. If you need money for the renovations, you can re-finance as much as 90% to 100% of the market value of your house. Government grants may also be available. 7. Increased tax write-offs: In most cases, you can write off the interest paid on the mortgage of a rental property. If you keep the mortgage as high as possible, you maximize the tax write-offs. 8. Pay off your own home faster: Keep the mortgage on the rental property as high as possible by re-financing to the max as the value goes up. Use that equity to pay off the home you live in, faster. 9. Tax-free retirement income: After your house is paid off quickly by using the equity in the rental property, you may be able to use the refinanced cash as a tax-free retirement income. Borrowed money may or may not be taxable. Check with your accountant. 10. Gain freedom from the slavery of a J.O.B.: It takes far less time to maintain rental properties than the amount of time you would spend in a job. If you build up your portfolio of rental properties to 5 or 10 and pay them off (or keep refinancing), you will have as much or more income than your present job. You can be your own boss, work only a few hours, spend time with your family, and really enjoy your life. These strategies will not work for everyone. Before you implement your plans, check with an accountant, lawyer, mortgage broker or other professional. You may need to work with someone. Use your children, parents, brothers, sisters, good friends as a co-signer or co-investor. Grow wealthy together, with the people you love.
The location of your home to a large extent determines the price tag of your home. If your home is located in an upscale area, your house will be priced costlier. If however your home is located downtown in a low beat area, your house will be priced accordingly. So, it's important to consider the location of your house when attempting to sell it. The better location, the better the amount.
Always remember that the process of selling your home starts with a preview of your home. You will need to ensure that nothing detracts from the beauty of your home if you are going to sell it successfully. Part of selling your home involves getting it evaluated and priced. And all this will be dependent on how good it looks.
When you are selecting a real estate agent, you need to be careful. In the first place there are real estate agents out there who do not have an inkling about what real estate really is because they have no form of formal training. Always demand credentials from any real estate agent you are looking to hire.
It is pertinent for you that any medium you are using to advertise your home has all the basic information about your home. A flyer containing information about your home should also have your name, telephone number, email address and website address (if any). Always ensure that any medium of marketing you use to create awareness about your home has a contact address or contact information.
If your home is full of junk, and you are thinking of selling it, it may be advisable to create space before you do so. Organize a jumble sale to get rid of the extra furniture in your home so that you can give your home an uncluttered well kept look.
Make yourself available to your homebuyers, don't be evasive about information concerning your house when you want to sell it. The fact about the matter is that the more open you are about your home, the more interested homebuyers will be.
You can choose to make your home marketable by improving on it. If your home is in dire need of repairs, you should embark on a renovation project in a bid to increase your chances of selling it faster. The more you invest in making your home more beautiful, the more returns you are likely to get.
Your involvement in selling your home can be minimized if you hire the services of a real estate agent. You can decide to have the knowledge of real estate sales tucked under your belt by getting involved in the process of selling your home. Selling your home can be an exciting process depending on how informative you are.
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