05/30 Investing in Pre-Construction: Invest & Wait, don’t Wait to Invest
Six Degrees Real Estate Mixer
Come learn about:
Invest & Wait, Don’t Wait to Invest
Presented by Aaron Charles
Opportunity to Network with like-minded investors
Monday May 30, 2016
Geary Lane ★ 360 Geary avenue, Toronto ★ Free Parking ★ CASH BAR
$20 admission(cash at the door) or
► ► Are Townhomes a Good Investment?
► ► Is it Smart to Buy a Townhome for a Rental Property?
► ► What is the Strategy Behind Investing In Pre-Construction Townhomes?
Come and find out on May 30.
The simple answer to this question is yes, townhouses are a good investment, otherwise we would not be offering these properties as a lifestyle or investment opportunity to clients. But, as with any property purchase, the advantages and disadvantages must be carefully considered.
Condos and townhomes are “shared-wall” housing, in which each unit has one or more walls in common with another unit. That’s where the similarities end. A townhouse is a type of building, and each owner owns her home and the land underneath it, and a condo is a type of ownership. A condo owner owns the space between the walls, but not the structure or the land underneath. Condos and townhouses appeal to investors because they’re usually less expensive than single-family detached homes. Investing in a townhouse is essentially the same as investing in any other single-family home. Condo investments may be more complicated because they’re governed by homeowner associations. Still, condos and townhouses both offer many opportunities to make money.
To many investors, townhomes represent attractive investment options because of their low cost of entry, numerous community amenities, and nearly maintenance-free environment. Because land typically comes along with a townhouse purchase, many investors also expect high appreciation for these properties, especially in the GTA.
╚►Three Things That Make A Great Real Estate Investment
Great article in Forbes Magazine that states 3 criteria to make a financial decision:
If you’re looking into real estate investments, you likely want to earn wealth on real estate based on risk you are taking, while minimizing the amount of time you need to spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment property. Your goal should be to strive to get as close as possible on as many of these optimal scenarios as possible:
✔ Pays a Fair Cash-on-Cash Return
✔ Isn’t Too Risky an Investment
✔Doesn’t Require a Lot of Time or Managing
It’s the nice, boring, wholly owned, in good shape, cash flow-positive properties that are the best investments. They are out there for your picking, but it’s not as simple as finding a property on the MLS and buying it.
You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments!
Come and discover if Pre-Construction Investing fits your criteria on Monday May 30th.
6:30 pm Doors Open | Networking
7:05 pm Laure Ampilhac | Investor, Mortgage Agent, Certified Wealth Management Advisor
7:10 pm Idan Mizrahi | HST Rebate Canada, the leading rebate provider for HST New Housing Rebates
7:30 pm Aaron Charles | Realtor | Investor | Speaker
8:30 pm Isaac Olowolafe | CEO of DreamMaker Realty Inc, Developer 9:00 pm – 10:00 pm ~ Networking
“Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family.” — Kofi Annan
╚► Helping Canadians RETIRE EARLY WITH REAL ESTATE ★ Leveraging home equity ★ RRSP ★ Designing Early Retirement Plans
☆☆ Real Estate Investments Consultant | Certified Wealth Management Advisor | Mortgage Agent | Refinancing | Private Mortgage Lending | Six Degrees Real Estate Investors Mixer
► My expertise and my passion for “early retirement” has allowed me to mentor anxious Canadian families and home owners who have not managed to invest their life savings effectively.
I help them acquire properties, diversify their investments and build a long-term retirement strategy using their home equity, savings and Registered Plans (RRSP, RESP, LIRA & TFSA).
Today, my clients include home-owners and individual investors who are ready to fathom new avenues for their own investments. I help them by:
★ Educating & Empowering though the Six Degrees Real Estate Investors Mixers (www.realestatemixer.ca meetup).
This is where I bring together seasoned investors, speakers and mentors from various backgrounds.
★ Educating & Coaching though one-on-one consultations.
This is where we take stock and compile their savings, pension, investments and available home equity (net worth).
★ Designing and Implementing a retirement income plan with a new investment strategy that incorporate their current locked investments with new acquisitions.These cater to the clients’ current AND future cash flow needs.
HST Rebate Canada is the nation’s leading HST Rebate provider. Our clients receive the maximum rebate amounts that they’re entitled to for their new or renovated homes.
WHO WE ARE
Our team comes from a background of real estate development with over 35 years of combined real estate experience. Our longstanding relationships with the CRA and Canada’s largest real estate companies make us the top choice for delivering your HST Rebate on time, with 100% satisfaction.
THE WORK WE DO
The government of Canada has launched several programs to help homeowners get a portion of the HST they’ve spent on their home construction back.
If you’re a real estate investor and purchased a new condo or home that you plan to rent out, upon closing you’ll have to spend thousands of extra dollars, sometimes as much as $30,000 upon closing. The good news is, HST Rebate Canada will help you get that money back through the government’s Rental Rebate program.
If you’ve purchased a brand new home or condo, and you plan to live in it as your principal residence, you’ll also quality for an HST Rebate of up to $30,000 provided by your builder.
If you’ve completed a major renovation, added a new addition to your home or built a new home you can qualify for an HST Rebate of up to $16,080!
Our HST Rebate experts take care of all of the administration on your behalf, and communicate on a regular basis with the CRA. Our process begins with a free consultation call or meeting to assess your eligibility for HST Rebates. We provide our clients with all of the information they need to provide us with the documentation for their application. We fill out all of paperwork required for the application, and represent our clients on regular phone calls with the CRA. We ensure that no eligible expense is left out of the rebate applications in order to maximize the rebates our clients receive. We also ensure that only eligible expenses are used on the application, and that all of the information is filled out correctly to ensure that our clients don’t get rejected by the CRA.
We don’t charge a penny for our services upfront. Our fee is charged only upon success, once you’ve received your cheque. And remember – your HST Rebate is non-taxable!
The saying goes that, “every man is the architect of his future.” Aaron Charles’ passion for real estate lies in not only in constructing a solid and impactful foundation for his vision but also in his commitment to actualize the dreams of the individuals and families who he works with to help secure their biggest investment. To create, design and build a solid groundwork for any venture, one must have a big vision – a trait that Charles prides himself on possessing. The ability to see the bigger picture despite small instances, setbacks and obstacles is what has been the cornerstone of Charles’ success. His simplistic approach to real estate is a principle that he applies to life as well – buy low, sell high. In life you have to build from the ground up but aim high.
Six degrees of separation is the theory that everyone and everything is six or fewer steps away, by way of introduction, from any other person in the world, so that a chain of “a friend of a friend” statements can be made to connect any two people in a maximum of six steps.
The Real Estate Mixers are designed to educate & connect home-owners and investors in an intimate and warm environment.
If you are interested in learning more about how to invest in an rental property/multiplex (active investing) or invest your RRSP/Cash savings in alternatives investment vehicles in real estate (passive investing), then you have come to the right place.
The aim of these evenings is to create a space for like-minded people with an interest for real estate and investing Come and learn about money lending (private mortgages), MICs, Real Estate Investment Groups/Private Equity Funds and more.
HOSTED NETWORKING EVENTS
Laure will be there to connect you with the professional, lender, investor that you have been looking for your project, real estate transaction or investment. Come to us during the networking event and we will introduce you to the right person! See you there.
Barrister and Solicitor
10 King Street East Suite 1400
Toronto, Ontario M5C 1C3
647-499-8848 direct telephone
1 (844) 496-7197 toll-free fax
647-498-1330 local fax
Licensed in Ontario and Illinois, U.S.A.
Alex Bell, B.A.
Home Insurance / Property Insurance
Commercial Account Executive Reality Practice
35 Stone Church Road, 3rd Floor, Ancaster, Ontario L9K 1S5
Tel: 1-888-385-8466 Local: 905-648-3922 ext. 2617 Fax: 905-648-6980
Cell: 289-237-6829 Direct: 905-304-2617
THE BENEFITS OF INVESTING IN THE REAL ESTATE ASSET CLASS:
#1. Cash Flow
A big advantage real estate has over other investments, is that it can produce cash flow on a monthly basis. Positive cash flow is derived from the revenue collected in the form of rent and laundry income minus expenditures required to pay for and operate the building. The cash generated by a real estate investment will always be a much larger percentage cash-on-cash return than any other investment. The reason for this is leverage.
Leverage is the ultimate power of investing, and the fact is that there is no investment where the application of this tool is more powerful than real estate. In real estate the leverage is based on the asset itself, and even the notoriously conservative banks will loan up to 75-80 percent and sometimes higher of the total asset value. Banks are comfortable lending large sums of money for the purchase of real estate because they know it is one of the safest and most profitable investments available. Also when you leverage an investment, you reap the benefits of appreciation on the total asset value, while only having a small percentage of your own money in the deal.
Real estate generally is a long term investment, and its benefits are best realized over the long term. It takes time for real estate to appreciate in value; however, while the property is appreciating the residents are paying down the mortgage. On top of this the rental income grows on a percentage annual basis.
The average compounded annual increase in real estate nationally has been 5% per year for the last 25 plus years, since 1980. Depending on the real estate cycle at any given time, the geographic location and type of property, the percentage annual increase could be substantially higher of course. Residential real estate appreciates more than the annual rate of inflation over time.
#4. Hedge Against Inflation
Many people feel that the commonsense thing to do is to take your money and put it into a savings bond or bank account that yields 2 to 3 percent per year. The main argument for this type of investing is that it is “safer” than real estate or other types of investments. The problem with this strategy is that you do not make any money, due to inflation.
Inflation is the price we pay for goods measured against a standard of ability to purchase those goods. The long term average of inflation has been nearly 3.5 percent since 1913, the year it began being tracked. That means that putting your money into a bank investment or account that yields only 2 to 3 percent, earns you no purchasing power in the future. You are actually losing wealth because inflation is higher than your returns. The gain in interest is wiped out by the rising cost of living. You are not becoming wealthier, you are becoming poorer because the cost of goods is growing faster than the value of your money.
The beauty of real estate is that it is a tangible asset-a good. Meaning it will generally rise either at the rate of inflation or much higher. Historically real estate has risen at 5 percent per year -a full 2 to 3 percent higher than inflation. And that is just appreciation. That does not take into account the cash flow generated, nor the tax advantages such as depreciation, refinance, and tax deductible mortgage interest.
Depreciation is an income tax deduction that allows a taxpayer to recover the cost of wear and tear, deterioration, or obsolescence on an annual basis. For real estate, it is a nonoperational expense that can be used to your advantage come tax time.
Another advantage of real estate over other investments is the ability to withdraw cash through a refinance of the property. This, too, is a tax shelter. When you refinance a property you are restructuring your existing mortgage debt based on the added value of the property. Refinancing also allows for investors to pull their initial investment out, while still continuing to have a vested interest in the property, creating a cash-on-cash return of infinite because the capital investment is zero!
#7. Asset Protection
There are a number of ways to legally protect a real estate investment that cannot be utilized by other investments like stocks and bonds. If a stock or bond company has a bad year, and suffers losses, the individual investor is simply out of luck. Real estate is one of the few investments that can be insured and protected from damage caused for whatever reason. By having the proper insurance coverage, you are able to claim losses for the actual value of the asset before the loss, and during the loss.
Another distinct legal advantage of real estate is that it can be placed into a corporation or family trust that allow you to protect your personal wealth by individualizing and protecting your assets in an event of a lawsuit. There are also distinct tax advantages.
#8. Physical Asset
Real estate is a physical asset, that cannot be traded by a click of a button by an online brokerage. You can physically walk the grounds of the property, and inspect the building. As such, it’s not subject to the volatility of other investments like stocks, where change can happen fast. You are not at the mercy of the company’s public relations department, waiting to hear from them. Meaning, if the company announces poor earnings for a quarter, the stock will drop suddenly with little warning. Your only option is the react, but not before you’ve lost a substantial sum.
Real estate is different. While it still has its ups and downs, for the most part real estate takes a more tortoise like approach: slow and steady wins the race. By paying attention, and knowing what to look for, we can see the trends that lead to changes in the market, well before they happen. Allowing us to formulate an investment plan on how to change operations or to sell. This in turn maximizes our return on investment or cash-on-cash return.