The recent shock to the economy has had many Canadians thinking seriously about what their life might look like after their paychecks stop. Even if you have a workplace pension plan to look forward to, you may find it falls short of the income you’d like to live on. Is it possible to take your pension into your own hands and create sustainable long-term income?
An investment property has the potential to provide a monthly income and grow your wealth over time. Property values have a good track record of appreciation, and often outperform stocks and bonds over the long term. This wealth-building strategy is within reach of ordinary Canadians:
So, what kind of down payment will you need?
If you will be living in one of the units, then the property is considered “owner-occupied.” If you’re not living there yourself, you’ll need a larger down payment.
Another option if you already have equity in your primary residence is to refinance your home to generate the cash for the investment property.
Ideally, you want it to be cash-flow positive right from the start, so be sure to think about closing costs, needed repairs, and whether you can cover the costs for this and your property.
Give the ShopMortgages.ca team a call, we would be glad to help build a successful plan for your future “real-estate pension portfolio”.