C͟a͟n͟ ͟y͟o͟u͟ ͟b͟u͟y͟ ͟m͟u͟l͟t͟i͟p͟l͟e͟ ͟h͟o͟u͟s͟e͟s͟ ͟w͟i͟t͟h͟ ͟a͟ ͟5͟%͟ ͟d͟o͟w͟n͟ ͟p͟a͟y͟m͟e͟n͟t͟?͟ ͟Y͟e͟s͟!͟ Anytime you move into a house you can get a CMHC mortgage and invest only 5% as a downpayment. Some people don’t like paying CMHC fees, myself though, I’d rather get 4 houses with 5% down each, than 1 house with 20% down to avoid CHMC fees especially while interest rates are so low.
Recently, a past client called us wanting to sell their home because they wanted to downsize. Instead, we helped them refinance their home and r͟e͟d͟u͟c͟e͟ ͟t͟h͟e͟i͟r͟ ͟m͟o͟n͟t͟h͟l͟y͟ ͟p͟a͟y͟m͟e͟n͟t͟ ͟b͟y͟ ͟$͟1͟,͟0͟0͟0͟!͟ We always consider ways to help you keep your real estate rather than selling it if it’s in your best interest!
Bryce:
I’ve gotten a lot of 𝐟𝐫𝐞𝐞 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞. 𝐈 𝐛𝐨𝐮𝐠𝐡𝐭 𝐦𝐲 𝐟𝐢𝐫𝐬𝐭 𝐡𝐨𝐮𝐬𝐞 𝐰𝐡𝐞𝐧 𝐈 𝐰𝐚𝐬 𝟏𝟑 because someone passed away and we used the inheritance as a downpayment. Then, my dad helped me buy a house when I was 18. When my Dad passed away I bought 3 more houses.
🅽🅴🆇🆃, I partnered on a 7-unit apartment building, using none of my own money and I own 25% of it. Every month, my net worth goes up because my mortgages get paid down. Every month I get cashflow and every month my mortgage gets closer to being paid off completely. 𝐈 𝐜𝐨𝐥𝐥𝐞𝐜𝐭 𝐚𝐛𝐨𝐮𝐭 $𝟏𝟎,𝟎𝟎𝟎 𝐢𝐧 𝐫𝐞𝐧𝐭 𝐞𝐯𝐞𝐫𝐲 𝐦𝐨𝐧𝐭𝐡! Just imagine when the mortgages are paid off and consider what that rental income will be like with inflation calculated.
𝐌𝐲 𝐦𝐨𝐦 𝐚𝐥𝐰𝐚𝐲𝐬 𝐬𝐚𝐲𝐬 “𝐒𝐨𝐦𝐞 𝐠𝐢𝐫𝐥𝐬 𝐜𝐨𝐥𝐥𝐞𝐜𝐭 𝐬𝐡𝐨𝐞𝐬, 𝐈 𝐜𝐨𝐥𝐥𝐞𝐜𝐭 𝐡𝐨𝐮𝐬𝐞𝐬. 𝐏𝐞𝐨𝐩𝐥𝐞 𝐝𝐨𝐧’𝐭 𝐫𝐞𝐧𝐭 𝐲𝐨𝐮𝐫 𝐬𝐡𝐨𝐞𝐬.”
Penny owns an oceanfront condo in Hawaii with a 270-degree view of the ocean (she tries to get there a few months each year). She borrowed against her inheritance (a cash value life insurance policy) to purchase it. She paid $625,000 USD, it’s now worth $800,000. She also purchased it when the dollar was almost on par! WOW!
𝐈 𝐩𝐚𝐲 𝐥𝐢𝐭𝐭𝐥𝐞-𝐭𝐨-𝐧𝐨 𝐭𝐚𝐱 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐨𝐟 𝐫𝐞𝐧𝐭𝐚𝐥𝐬! You can depreciate your rentals by about 3% a year, plus you can do a depreciation schedule on your appliances and depreciate those at about 12%. As the owner of rental property you get to write off your mortgage interest, taxes, insurance, utilities, repairs, etc on your rentals. On a $300,000 rental, you’re getting a $9,000 depreciation to write off (3%) against your personal income… YOUR PERSONAL INCOME!
𝐘𝐨𝐮 𝐰𝐨𝐧’𝐭 𝐩𝐚𝐲 𝐚𝐧𝐲 𝐭𝐚𝐱 𝐨𝐧 𝐲𝐨𝐮𝐫 𝐫𝐞𝐧𝐭𝐚𝐥 𝐢𝐧𝐜𝐨𝐦𝐞 cash flow and often it carries over into your personal income, reducing the amount of taxes you’ll pay.
𝐓𝐡𝐢𝐬 𝐢𝐬 𝐛𝐞𝐭𝐭𝐞𝐫 𝐭𝐡𝐚𝐧 𝐑𝐑𝐒𝐏𝐬! Though super-funding your RRSPs is still a great idea! I know someone who borrows $10,000 on a line of credit each year right before year-end (to avoid paying unneeded taxes) and puts it into his RRSPs. He then takes the $2,000-3,000 he gets back in taxes because of the extra contributions and pays off the line of credit. He makes it a goal to pay off the line of credit before the end of the year, and repeats! Some years, when he first started, it took all year to pay off that line of credit but as time went on he was able to pay it off earlier! Now, after decades of doing it, he’s got wealth! Proverbs 13:11 “Wealth gained hastily will dwindle (like GME stock), but whoever gathers little by little will increase it.”
𝗪𝗵𝗲𝗻 𝘄𝗲 𝘁𝗮𝗹𝗸 𝗮𝗯𝗼𝘂𝘁 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲, 𝗶𝘁’𝘀 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝘄𝗲 𝗯𝗲𝗹𝗶𝗲𝘃𝗲 𝘄𝗲 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝗻𝗲𝘁 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗺𝗼𝗻𝗲𝘆, 𝗴𝗲𝘁 𝗶𝘁 𝗮𝘀 𝗾𝘂𝗶𝗰𝗸𝗹𝘆 𝗮𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲, 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗳𝗲𝘄𝗲𝘀𝘁 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲, 𝘄𝗵𝗶𝗰𝗵 𝗶𝘀 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁, 𝗶𝘀𝗻’𝘁 𝗶𝘁?
Bryce/Penny Kander
Realty Executives Alberta Elite
403-896-9592
