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Further
Reading ...
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Late Mortgage Payments Sabotage PMI Cancellation - Mark Walters
Late Mortgage Payments Sabotage PMI Cancellation There's something you should know about PMI! Private mortgage insurance is commonly referred to as PMI. If a buyer makes a down payment of less than 20% of a home's value the lender will insist that...
When Tactics Are Not Enough - Robert A Kelly
Please feel free to publish this article and resource box in your ezine, newsletter, offline publication or website. A copy would be appreciated at bobkelly@TNI.net. Word count is 975 including guidelines and resource box. Robert A. Kelly ©...
Simple Steps to Project a Professional Home-Business Image - David A James
One of the more difficult tasks to deal with when starting a home-based business is to decide how to establish your pathways of communication in such a way that you appear organized and professional, yet don’t have to break the bank to get...
Rebuild Your Investment Portfolio Today - Laura Cotterman
Its time to change your thinking about this beaten-up stock market and get excited about the tremendous long-term potential. If you find the current market makes you feel like sticking your head in the sand and you long for the "good old days" of...
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Don't Sell Your House--Ever!
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Written By:
Neeraj Varma
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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.
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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.
To qualify for the lowest mortgage rate in Canada, go to http://www.mortgage-rate-canada.com and click on Canadian "Mortgage Calculators". Check out the "Pre-Approvals" and "Credit Problems" pages to get the banker's perspective on your credit profile.
For ideas on how to set up a reliable monthly income from rental properties when you have very little time or money go to: http://www.netman-ecommerce-guru.com/rental-strategies
Warm Regards,
Neeraj Varma
Get the inside scoop on what it takes to qualify for the lowest mortgage rates in Canada - (http://www.mortgage-rate-canada.com). For personal service apply online.
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Will Your Business Survive Without You? - Kathy Gulrich
I had a health scare in December. As it turns out, everything's perfectly okay. But the possibility of things not being okay really knocked me for a loop. For the first time ... ever ... I thought about what would happen to my business if I...
Old Ideologies, New Vision: How to Harness Both to Succeed in the New Economy - Cheryl Rickman
The New Economy. It’s fast paced and constantly changing. Lifelong jobs are a thing of the past; technology is at the forefront of modern business, tech titans Hewlett Packard and Compaq are even merging… it’s a fragmented world out there. So how...
Build Your Business Success one Step at a Time - Michel Richer
You want to be rich fast ! You want to grow your business in one month ! Think again ! Even the most dynamic, highest-earning entrepreneurs in the industry took MONTHS to begin seeing an income of any real significance. And the real wealth, the...
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