Homeowners vs Renters in Canada
According to Statistics Canada, in 2005, 37% of people were home renters and 63% of people were home owners. Most home renters would love to be home owners but choose to rent because of lack of money available for a down payment, unfavourable credit or simply are not making enough money to carry a mortgage. When you are renting for said term outlined in the rental agreement, you are making your landlord a very rich person. In this process, you are paying down his mortgage and putting cash in his pocket every month. At the end of your rental term, you walk away with nothing. Knowing this most people neglect the units and do not take pride in their living space and that is why most of the rental units are substandard.
As a home owner, you can get into your property with very little down payment. In the next 10 years, you will have paid down your mortgage which means that you will have built equity and possibly doubled the value of the property. One of the many benefits of ownership is that for your principal residence, your equity and the appreciated value are not taxable. It is one of the only tax loopholes in Canada; you get to keep a 100% of the appreciation and equity. You can also rent out your basement and have regular cash flow every month to have more spending money or to help with your mortgage.
As homeowners and investors, people take pride in their property knowing that the property will be one of the things of high value to pass down to their children. They renovate and upgrade to make sure the value of the property increases. Emotional benefits outweigh the financial benefits, the feeling of accomplishment and pride is priceless. Owning a home is one of the largest investments you will make in your lifetime.
Canada will not tax you a single cent. This is the best loophole available in Canada. You can buy and sell your principal residence tax free. Majority of Canadians take it lightly that home ownership can make them a multi-millionaire. Once you have a pre planned goal, the missing element is always education and tax implementations. All other investments are subject to taxes and capital gains.
Once you get the hang of it, the sky is the limit, with a little time, patience, and a lot of education, you can build wealth, massive and passive income.
World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeship which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. You can attend Real Estate Millionaire Apprenticeship online or in person. To find out more, please go to http://www.WorldWealthBuilders.com
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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