One of the best and most promising business ventures anyone in Oshawa can invest in is real estate. Although the economy might have affected this industry over the past few years, the real estate market in Canada is showing a comeback (economically) as realtors are making good money out of the same. More and more investors are coming to Oshawa to invest in properties and especially in housing. Investors can invest in vocational homes, residential, condominiums and even beach houses here. Discussed below are some of the reasons why you too should consider real estate as an investment in Oshawa.
1. Property appreciation: Research shows that properties in Oshawa appreciate double fold within a year. This despite the recent recession that caused a drop in property values. Another reason why houses and homes are showing a steady graph of appreciation is due to many people moving into Oshawa to live or even work here. Even international investors have shown interest in investing here, as business is good in this part of Canada.
2. Tax benefits: One of the reasons why most people are reluctant when it comes to real estate investment is taxation. Nonetheless, the government allows property owners a tax deduction after a certain period. Investors can also claim an interest portion in his/her tax deduction hence making the business more profitable. This means you get to save and receive more money in terms of returns on investment.
3. Leverage: This is one of the reasons why many people admire investing in real estate here in Oshawa. Take an example where an investor needs around $100,000 to acquire a house. Homes and houses in Oshawa appreciate at an estimated rate of 5% per annum, meaning the property would increase by $5000 within the year. In addition to this, it is much easier to get financing from financial institutions such as banks. This because you would only need an initial deposit of $20,000 to buy the house, with the bank financing the remaining $80,000. This an irresistible investment for any investor.
4. Cash flow: With hundreds of people living and working in Oshawa, plus the number who come for a vacation here, houses for rent are like hot cake here. These people need a roof over their head for as long as they are within the city. This good news for any investor who invests in rental and houses to let. Even you had the bank finance the investment (in the form of a home loan); you can get regular cash flow from monthly rent paid by tenants. As a matter of fact, you can pay the mortgage using the rental income, and then use the remaining as passive income.
Another apparent reason and advantage of investing in real estate here in Oshawa is fact that you will be generating long-term wealth. As long as the houses are kept well, you could make tons of money, which you would invest in other houses or other beneficial ways. You will also have more security for your money as well as have the capacity to borrow more money from financial institutions over time. It is however advisable to do a market research on the property market in Oshawa or contacting a realtor to advice on the same is recommended.