Property and real estate investment

Cash flow

Appreciation

Principal buy down (tenant paying )

Forced appreciation

For example: 400,000x80%-300,000x80%=80k cash for you

=== [END NOT YET] ===

Rule #1: Location location location.

Rule #2: Buy right, refinance, and buy more.

Note: You can refinance to a higher value, pull out some money to invest more once your asset has grown.

Note: You need to know the rules for refinance, too.

Rule #3: Some mortgage lenders will cap you at a certain number of properties.

Note: You should double check the terms and conditions with your mortgage broker.

Rule #4: ~50% of the investment profit will be counted as the income. Then, the tax will be calculated from the income.

Note: If you decided to move in to an investment property and make it as the principal residence, make sure you do get an market value and property assessment from a licensed appraiser (not the assessment from government). Otherwise, CRA may use any number they preferred to count the amount for tax. You should talk to your accountant for an advice.

• Is it a good location?

• Is it near skytrain or bus station?

• Is it near a shopping centre?

• Is it near a school?

• Is it in a high rise concrete building?

• Is it a decent price?

• How much are the strata maintenance fees?

• How many rooms does it have?

• Is it at least 6 floors or higher?

• Which direction is it facing?

• Do I have 20% down payment?

• Is it beside a gas station?

• Is parking included?

• Does it have a swimming pool (higher maintenance fees)?

• Is it near a hospital (noise) or a fire hall?

• Are there any rental restrictions?

• Are there any pet restrictions?

• How old is it?

• Does the property have any lawsuits?

• Does it have a hardwood flooring or carpet?

• Did the owner have a pet?

• Is it near a train railway?

• When is the subject removal date?

• How much are the property transfer tax fees?

• How much are the deposit fees?

• How much are the real estate agent fees?

• Is my real estate agent available to process my case?

• Is my mortgage broker available to process my case?

• Is my home inspector available to process my case?

• Is my lawyer available to process my case?

• What are the interest rate of my mortgage (5 years fixed?)?

• How long is the amortization period of my mortgage?

• How much is the prepayment penalty charge?