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Save, Invest, Repeat

Posted by on Oct 10, 2014 in Real Estate | 0 comments

Save, Invest, Repeat

One Million Dollars! With the size of lottery prizes in today`s world, jackpots in the $50 million range, one million doesn`t sound like much anymore. But, do you think you could live the life of your dreams with One Million Dollars? Most people could or at the very least it would be a great start to bigger things. Did you know that about half the population`s plan for retirement or living their dreams is to win the lottery? So with 14 million to 1 odds of winning, and 20 million people thinking they’re going to win, I do not like those numbers very much. So what’s your plan? Do you have one? Two things. Pretty much all wealthy people will tell you to pay yourself first. This simply means when you get that paycheck, put some money in savings first. The second thing that pretty much all wealthy people do is to buy real estate which primarily secures their wealth with a tangible, appreciating asset. We’re not talking about a home to live in; we’re talking about a rental property that your tenant will pay off for the owner over time. And, somewhere in time, during this ownership of rental property the ability to borrow money from the equity built up provides the opportunity to purchase more real estate. Here’s some basic arithmetic. Buy a condominium for $200,000.00. Make a $50,000.00 down payment. The bank will finance the rest with a mortgage for $150,000.00. Let’s give that mortgage a 3 year term with 25 years amortization and a rate of 3%, resulting in a payment of about $708.00 per month. Rent the condo out for $1400.00 per month and after expenses (Condo fees, Property taxes, Repairs and Maintenance, Mortgage payment, etc) you should net about $160.00 per month. At the same time, get the savings plan in gear and stash 20% of your income in an interest bearing account. Depending on your level of income this could be anywhere from $500 to $1000 or more per month. Let’s see where we are, when it’s time to renew that mortgage at the end of the 3 year term: We received $160 per month for 36 Months = $5,760.00 We reduced the mortgage owing by = $12,680.00 Our property appreciated in value by 2% per year = $12,240 more equity We saved $500 per month for 36 Months = $ 18,000.00 That’s a total of $48,680.00! We are only $1,320.00 away from having the next down payment for the next property.  Chances are pretty good that we could raise that $1320 pretty quickly and we haven’t accounted for any interest on the savings we stashed. That took three years and we have control of one property that is appreciating in value and being paid off by a tenant, and we’re ready to buy our second property and do the same thing again in another three years. Using simplified arithmetic, in 15 years or less, we’ll have appreciating assets valued at over One Million Dollars, 5 properties generating a monthly cash flow of at least $750 per month, and equity in excess of half a million dollars. It’s an old formula and if you seek out the answers you’ll find that the wealthy have been doing this for years. People today are doing this...

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Calgary Home Sales on an increasing trend

Posted by on Jan 15, 2014 in Uncategorized | 0 comments

Global BC reports that “Calgary real estate market red hot in 2013” with an interesting infographic. Read more below INFOGRAPHIC: Calgary real estate market red hot in 2013 – Calgary … Jan 2, 2014 … 2013 saw an 11 per cent sales jump compared to 2012 numbers, and the average price of a single-family home was $456703. Source : GlobalBC The infographic shows the number of home sales over the years and it is evident from 2010-2013 that the sales are on an increasing trend. This is the perfect time to invest in the rising Calgary real estate. Call us at 1 888 691 9905 to know how to.    ...

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Calgary Real Estate Market Massive Growth due to Professional influx & low inventory – Study

Posted by on Jan 9, 2014 in News, Real Estate, Uncategorized | 0 comments

Calgary real estate market is booming because of lack of properties and population growth as discovered by a new study carried out by Royal LePage House Price survey. The survey revealed astonishing results for quarter three – the average bungalow prices in Calgary for the third quarter are up 7.2% year-over-year to $465,411 , Two storey house prices are up 3.4% year-over-year to $446,411. Standard condominium prices are increasing 5.6% year-over-year to $263,087. “A continous period of low housing inventory coupled with a strong economy and an influx of corporate sector workers is pushing prices up regularly” said Ted Zaharko, broker/owner, Royal LePage. “For some time now too many buyers have been chasing too few properties.” He further said that the inventory is low in all housing categories, specially in detached bungalows which are much rarer in Calgary compared to other cities such as Edmonton or Vancouver. The buyers usually react very quickly to house property sales and most of the time sellers are left with higher buyer offers. The aggresiveness of buyers are making it difficult for the first time buyers. Calgary numbers are huge as the average quarter three housing price growth rate of Canada is only 1.2-4.1 percent year-over-year. Researchers mention “Strong economy”, “Low inventory” and “Influx of corporate professionals to Calgary” as the main reasons for the growth in housing prices in Calgary. Prices are expected to rise continously because of the supply-demand mismatch. It’s high time for any investor to approach the Calgary market. Contact Legacy Wealth Income Properties for more information on Calgary real estate market and how to invest in income properties with minimum...

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Why should you consider an investment property?

Posted by on May 29, 2013 in News | 0 comments

Why should you consider an investment property?

Traditional income methods, which include salaries and stock investments, are often not enough to generate the living standard or cash security most Canadians seek. Why should a potential investor look into income properties in Canada or offshore? One of the main benefits of investment properties outside of the buyer’s home, i.e. investment suites developed in the buyer’s own home, is that the buyer is not limited by space, location or local market value. Legacy Wealth investment properties are selected based on stringent assessment parameters which include potential appreciation value, desirability of location, proximity to popular venues and transit, and the general aspect of the property. Simply put, our properties are selected with our clients in mind, as our clients are the ones who retain sole ownership of the property in which they invest. If you would like to learn how investment properties can help you save for a better future — today — contact Legacy Wealth to learn more about our investment...

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