Category: Investment

Brampton is the ninth-largest city with an estimated population of about 500,000 people. However, the population is expected to significantly increase over the next couple of years, thus making it a viable property investment option. According to Maclean’s Magazine, Brampton has been ranked among the top fifteen Canadian cities to live in. So, now is the time, if you are looking for houses for sale in Brampton, to invest in.

A diverse community

One of the factors that make the city of Brampton great is the diversity of the community. The city has opened its arms to several nationalities and religious groups. The climate of the city is also continental, meaning its summers and winters are temperate without much rainfall throughout the year. Irrespective of wherever you are, once you move to Brampton, it would not take long for you to settle down, as you will find people from your home country already residing here.

Why should one invest in Brampton real estate?

Over the last few years, sales of homes have lowered everywhere in the country, which has dented the real estate market, but at the same time kept potential investors at bay. However, Brampton was one of the few cities that survived this crisis and has gained a reputation in recent times for creating a bustling community that is not only safe, but also has all the amenities and transport system making it a great city to invest in real estate. The bustling community has also gained a solid reputation from the World Health Organization (WHO) as an internationally safe community. This has led to the city getting in investments from all over the world adding to its development. In the coming years, the property market is projected to increase. So, now is the time to invest if you are looking for homes for sale in Brampton.

A great future investment strategic city

Over the past ten years or so, the city of Brampton has seen steady economic growth making it a great future investment strategic city. From semi-independent houses to apartments and condos and villas, there are plenty of homes for sale in Brampton that is guaranteed to meet one’s budget and needs. From opulent properties to more budget-friendly properties, Brampton is one of those cities where you can get a glimpse of the diverse cultural values of residents that come from various ends of the world. The city of Brampton is on the rise in terms of real estate, as it has a wide range of complete amenities, including well-established schools, reputable dining establishments, shopping and health centres, and several recreational facilities like art galleries, theme parks and much more. The neighbourhoods are well-maintained and planned which makes this city an ideal choice to invest in real estate. Even though the city of Brampton has a lot to offer, there is still huge development potential. With the Toronto real estate market being crowded, many people are looking at other property markets like the one in Brampton to make a sound financial decision.

Reliable public transportation system

What separates Brampton from other cities is its public transportation system. It is one of the best in the country, as it makes it easily accessible for its residents to commute to other surrounding major towns. The affordable property prices are the cherry on top of the cake that can help you save a whole deal of money. All you need to do is be more time conscious and plan well to take care of your day-to-day activities. You cannot go wrong in investing in Brampton real estate as it has a very bright future of guaranteed maximum returns on your investment.

One of the fastest-growing cities in the country

Brampton is one of the fastest-growing cities in Canada, offering a multitude of conveniences and properties at affordable prices when compared to other major Canadian cities. The range of stunning properties adds a certain charm making potential property investors fall in love with the city. An important factor one should keep in mind when investing in Brampton real estate is that they should take into account the development potential of the city and the future housing demand, which the city meets both these criteria.

What the city of Brampton has to offer?

One of the major advantages is that the city of Brampton is near Toronto, and one can get there in thirty minutes by car. Additionally, commuters in Brampton can also rely on the well-planned public transport network to help them commute without any stress. It is also located close to Toronto Pearson International Airport. With the city being a multicultural hub, it is home to individuals from various parts of the world making it a cosmopolitan city. It was only in the 1970s that Brampton officially became a city, but unlike other cities, it advanced very quickly. So, invest in property today by taking a look at the various houses for sale in Brampton. If you are an outdoorsy person, the city has plenty of parks and trails that cater to sportsmen and nature lovers. Additionally, the city is also pedestrian-friendly, which allows its residents to take a walk, a run or ride.

Homes for sale in Brampton at affordable prices

Brampton has proven to be a city that is not only diverse, but also has the amenities and transportation system to help residents commute with ease and enjoy the perks of the city. So, investing in Brampton real estate is a no-brainer. The more you delay, the costlier it will get.

Do you have a detached spare space on your property? If yes, then it is the right time to utilize it now! You would gradually think of investment in granny flats are all worth it once you get into the process. A granny flat is like your house, loaded with all the features and amenities like a living area, attached washroom, and a room. If you have got enough space, then investing in granny flats can turn out to be fruitful all the time.Let’s Find Out How!

Can Investing In Granny Flats Be Fruitful?

Specific investments in life can bring you a lot of money or satisfaction at the end of the day. Investment in granny flats is one of those kinds of investments. It is useless to leave a vast space in the backyard on your plot when you can make it to a granny flat. You must be thinking by now, what can be the possible reasons behind such a decision.

You Can Keep An Eye On The Following To Find Out Now:

Create Separate Space For The Elderly:

Accommodating the older adults comfortably in the house can sometimes become difficult because of the special care and attention that they need. To make their life simpler, you can give the elderly some private space in the granny flats. Investment in granny flats can provide you with room for the elderly to relax when they want.

Good Source Of Income As Rental:

Investment in granny flats can turn out to be an excellent source of income at ease. Several people are looking for rental spaces for various purposes like students to stay on rent for studies, bachelors for rental rooms for office purposes, small businesses to develop, etc. It is better to give your granny flats for rent instead of leaving them void for much longer.

Increases Property Value:

One of the most significant advantages of investing in granny flats is that it increases the property value. If you ever think of giving away your place for sale, then you can get a return of more than you can ever expect. And all because of the granny flats available in the extra space of your property.

A Space For The Young:

When you have a neutral family with kids, investment in granny flats can turn out to be great. When the children or the younger family members grow up, they require a separate room for privacy concerns. Like every other person needs some space, the younger members also do after a certain age. Indeed, the house plan does not stay satisfactory considering the space for the younger members. But eventually, you can utilize the extra space at once!

How To Make Investments In Granny Flats?

Before you can fly to any conclusion regarding the investment in granny flats, you need to be conscious of a few points at first. Before investing, you need to consider a few points first, and granny flats are no different. Here are a few points which you would not regret considering before investing in granny flats:

You should build the granny flat in your backyard only if you have enough space. Any extra investment in a small backyard building a fancy granny flat can make your property look clumsy.

You should not keep the design of granny flats too much congested as it might drive away tenants having privacy concerns from your family. You must think of a spacious and yet fancy interior design for your granny flats.

One of the most significant factors is investment. There are umpteen options of granny flats, but when it comes to settling down with the one, you must consider the costing, facilities, and amenities.

Conclusion

The above discussion highlights the detail of why investing in a granny flat is a good option. So, if you have extra space available and want to make the best use of it, constructing a granny flat can be a great option.

Investing is the act of putting money into an investment to receive a return.

You can do this by buying shares or other types of securities, or it can also be done indirectly with bought funds. Investors need to consider the type of assets they are looking at investing in and their time horizon before deciding how long to hold their investments. For those interested in making investments through trading, there are now options available online where you can use copy trading.

Copy trading is simply replicating trades made by other traders. These could be professional traders or simply someone who already has lots of experience and success. There isn’t much difference between copy trading and other forms of investments. You are looking to follow the market trends, but instead of making your own decisions, you are copying another person’s moves.

By using this trading method, it becomes much easier to make profits. You don’t have to worry about the research or gains because these will be made by other people who know how to work the markets. Many novice investors also see huge benefits from using copy trading as they can learn something from professionals without in-depth study. It allows for them to become more experienced with less risk involved. The concept works well online where exchanges manage everything automatically so that there isn’t any conflict between users’ trades.

Copy trading benefits

Using copy trading, both beginners and experts alike can enjoy various benefits.

Less time spent studying the market

Less time spent studying the market is required when you have someone else to do that for you. Traditional forms of investments require a lot of reading into what is going on to make informed decisions. In contrast, copy trading takes away these considerations and allows for more free time in other pursuits.

Money management

In terms of money management, it becomes easier with copy trading because trades are made quickly, with exchanges managing this automatically. It means less effort has to go into monitoring your accounts too. By getting rid of most of these responsibilities, an investor can experience a higher level of success. As mentioned before, many beginner investors fail because they don’t know how to handle the pressure of investing.

Lower risks are also achieved with copy trading because exchanges make gains automatically. There is no need to worry about losses because these will be handled by professional traders who know what they’re doing. It means you can focus on the aspects of investments that interest you while still participating in the process without additional stress or effort.

Beneficial for beginners

Copy trading is especially beneficial for beginners. By copying an experienced trader, novice investors don’t have to spend much time learning how to make their own decisions but instead can learn from someone else’s knowledge and success. It allows them to become more involved without having too much at risk or making bad decisions. It gives them a sort of safety net which they could not achieve otherwise. Even when copying trades it’s important to maintain a strong psychological balance when trading.

Copy-trading disadvantages

However, copy trading does have its disadvantages. For example, it can cost money to use this service, so you will need funds to do so, which you may not have if you are starting. It also means that there is little benefit in using these services if you aren’t willing to part with your money. Also, because many exchanges charge monthly fees or even percentage-based fees for providing these types of trades, that means potential investors could be losing out on money they would typically get investing directly by themselves instead.

In conclusion

While copy trading comes with several advantages, it’s essential to understand the costs to make the most informed decision possible when preparing for investment and success.

Stock trading is an exciting, fast-paced way for many to make profitable investments. However, like any investment, it also comes with its risks. These include, but are not limited to, making a terrible investment decision, a market crash, and the emergence of a strong competitor in your industry. These risks make it crucial for every investor to develop an effective risk management strategy.

Investing in the stock market is challenging enough on its own, but it becomes even more challenging when you do not know the risks. It is imperative to be knowledgeable about your industry and watch out for any possible dangers that lie ahead. There are three main strategies to help minimize your risks when trading stock in Hong Kong.

Diversification

Diversifying your portfolio is a highly effective way to reduce the volatility of your investments. If you invest in only one industry and become unsuccessful, you will lose all of your money, and you will not have anything to fall back on. It is best to spread out your resources across multiple types of industries and companies to prevent this. It ensures that if something happens in one area with a particular company, there are still other places where you can turn for support.

Lump-Sum Investment / Dollar-Cost Averaging

Dollar-cost averaging is an investment strategy in which you divide the amount of money you want to invest in stock over some time instead of investing everything at once. This can help minimize your risk because if one day turns out to be bad for the market, then you will not have lost as much money that day compared to if it had been invested all at once on that particular day. More frequently, investing in lower amounts also works well for new investors who may not want to put all their eggs in one basket.

Sell When Your Investment Hits Your Target Price

If you are confident enough about the company or industry behind your choice, it is best to set a target price for when you plan to sell the stock. It will minimize your losses and allow you to walk away with a profitable investment. It may be challenging to pinpoint an exact date, but setting a general time limit will still work just as well.

Why is risk management critical when trading stocks?

It helps you avoid making bad decisions

If you practise risk management, you can avoid making bad decisions when trading stocks, as you will know how to limit your risks and use the right strategies.

It helps you form a solid strategy

If you manage your risk, you can develop a sound business strategy. You’ll be able to stay aware of all the strengths and weaknesses in your company so that if something happens, it won’t come as such a surprise.

It keeps losses at bay

By managing risks, you help prevent unexpected declines in stock prices that could cause significant financial losses for your business. Through effective risk management and diversification, you can mitigate any potential damages and minimize the effect on overall profits instead of letting it run rampant, which might incur additional costs down the road. Risk management allows individuals and businesses to make calculated decisions.

It helps you grow your money

Managing risks help you gain more and more profits, and it helps you safeguard your investments. It allows companies and individuals to take calculated steps not just to earn profits but also to safeguard against any potential damages that may occur due to bad decisions or market crashes.

It helps you avoid losing opportunities

When there is a risk management strategy in place, an individual or business can make critical strategic moves without having to worry about every little thing going wrong, as it keeps everyone on their toes. Also, if something terrible happens, the effects won’t be as damaging. Making certain businesses thrive because they know how to handle anything that comes their way efficiently and carefully since a solid foundation has been set.

In recent years, the Canadian real estate market has been booming. While the property market in cities like Vancouver and Toronto continue to progress, there are other cities that have in recent times given individuals the opportunity to invest in. The returns in investing in property in the country have seen individuals get immense returns. Investing in property is an ideal way to place your capital and watch it grow. Additionally, it is also a great way to create an income-generating source. Many Canadians nowadays hesitate to invest in real estate as the reason being is a lack of proper understanding and due diligence. However, as mentioned earlier, this is a field that many investors are getting into in 2022. Below-mentioned is some of the best real estate markets to watch out for this year:

#1 Toronto

The real estate market in the Greater Toronto Area is one of the most notable property markets in the country. From housing to industrial assets, the city’s economy has thrived solely because of Toronto real estate. Because of the e-commerce boom in recent times, there has been a significant need for warehousing. There seem to be no signs of the Toronto real estate market slowing down. The demand for property is so strong that it is common to see multiple tenants competing for the same property, in certain instances, it can even lead to a bidding war. A question that most people ask themselves is, is Toronto an affordable alternative for a single-family? As recent trends like hybrid and remote working spaces have gained notoriety, the need for more single-family rental spaces have become a more reasonable alternative for many instead of buying a detached home. Many people in the real estate sector predict this investment to gather more popularity in the following months.

#2 Mississauga

The city of Mississauga has immense potential in real estate for both the investor and end-user. There are chances for high growth in the future for certain neighbourhoods such as the city centre and the surrounding areas. It is a vibrant community buoyed by the large presence of fantastic public transportation and host to many major companies. This area will make many people flock to and invest in Mississauga real estate because of the downtown lifestyle and affordable options. Additionally, it is not just the property market downtown that will thrive and benefit, but also the surrounding neighbourhoods as well, as the market is virtually untapped and has major potential to grow in the years to come.

#3 Brampton

Located northwest of the city of Toronto, Brampton is one of the Greater Toronto Area’s fastest-growing suburbs. In recent times, there has been a rise in educational institutions to innovation hubs, and even transportation infrastructure. Nevertheless, we predict many more additional property developments to bolster Brampton real estate in 2022 and the future years. As new real estate developments rise in the city, more investors are looking to cash in and reap the rewards. The most recent property development has been uptown and northside condominiums. You can invest in these properties at such low prices. When it comes to housing prices in Toronto, Brampton’s housing prices are far more affordable. The average home price in Brampton is CAD 790,000. It is easier to buy a home in Brampton than in Toronto.

#4 Vaughan

In recent years, Vaughan real estate market has been one of the most sought-after markets for investors, including one of the best places for many people to live in the Greater Toronto Area. The main reason is the city’s rapid population growth which has resulted in an increase in both demand and supply of residential units. The urbanization rate is perfect. The newly constructed subway station has provided many commuters with a direct route into the city. Additionally, the city is also surrounded by numerous luxury office buildings that draw investors from all around the country to Vaughan. In the near future, Vaughan is likely to become a major cosmopolitan hub which will ultimately increase property values. Having said that; now is the right time to invest in Vaughan real estate. The more you wait, the more you will end up spending when it comes time to buy a house.

#5 Markham

Located in the north of Toronto, the city of Markham has a population of over 350,000 people. It is home to hundreds of corporate offices, innovation companies, and other science-related businesses that are located in this suburb. In recent years, it has earned a reputation for excellence in urban development and technology innovation which has attracted a larger number of individuals to invest in Markham real estate. The city’s close proximity to Toronto makes it a fantastic location for home buyers. By using the Unionville GO train or driving along the 404 highway, you can reach Toronto in about forty minutes. Most people that work in Toronto reside in Markham. If you are looking for a property market in the suburb that is rapidly growing, look to invest in Markham real estate. The marketing is booming as many property developers are constructing luxury condominium units to meet the growing demand.

#6 Durham region

East of Toronto, in recent years, the Durham region has seen a lot of growth in the property market. This real estate market in this region is expected to grow significantly in the next five years. It is hard to ignore when you see such positive growth in the real estate industry. The average price for a home in the Durham region is about CAD 570,000. Many people claimed to not invest in Durham region real estate as there is no growth, and you will not receive a significant return on your investment, but that is not true. In the past year, the rates for homes have shot up by almost 33% and looking at the trajectory, will continue to do so. So, now is the right time to invest in Durham region real estate. If you looking at long-term property investment, there is a lot of potential in the Durham region.

#7 Hamilton region

Investors are still thriving on the success in the Hamilton region real estate market. As the city continues to evolve and grow, it is a fantastic place to buy or rent. In the last decade, the city of Hamilton has seen a drastic change in the type of jobs that have come to the city. Most of the employment opportunities have been in the healthcare and the construction sector. The city bounced back from a large slump in unemployment in 2010 by opening up new businesses to cater to the needs of the residents. In recent years, the city is back on track and has seen substantial growth, and will continue to do so in the years to come. While it is much higher to rent a property, it is also nice cash flow for investors. Student rentals near colleges like McMaster University and Mohawk College have done well. With schools shut in recent years due to the pandemic, there was little to no impact on the student housing market in the Hamilton region.

#8 Waterloo region

One of the best places to invest in Canada in 2022 is the Waterloo region real estate market. It has undergone a tech boom in recent years which has bought in a lot of people and investment. With significant growth in the tech sector, the Waterloo region is attracting a lot of well-educated people. Out of the GTA, the Waterloo region has the largest population. Keep in mind, to purchase real estate in the Waterloo region, one must have rental licensing. The process is simple and straightforward with just the person needing to submit a few documents. The average house price in the Waterloo region is CAD 825,000

#9 Richmond Hill

Richmond Hill is one of the country’s urban growth centres and mobility hubs. There has been a boom in both the commercial and residential Richmond Hill real estate market. From finance to management, there has a large percentage of employment in the business field. The average household income in the Richmond Hill region exceeds CAD 100,000 which is good. A recent increase in the suburban housing market has seen a demand for Richmond Hill real estate. The city is home to a diverse population of approximately 190,000 people. Because the city offers multiple employment opportunities, including housing, it has been named as one of the best places to live in the country. The city is home to some of the finest educational institutions, recreational facilities, as well as a wide selection of property types to suit your budget and lifestyle. Residents can opt for public transport or drive to Toronto in less than an hour by using the 404 and 407 highways.

Invest today to reap the benefits of tomorrow

Over the last couple of years, the real estate market in the country has become popular. Many people realize that they can earn a profit from investing in property. However, it is imperative that you educate yourself on the city’s real estate market before going all gung-ho. The above-mentioned information should give you a fair idea of where to invest property at. Also, contact real estate brokers to get a much better understanding of the property market.

There are 2 basic ways to earn money: Passive and active income. Active income is where you sell your time for money – this is your regular everyday jobs. Passive income is the money you earn through alternate sources, as opposed to the active method through which you earn money by selling your time. The most common definition of passive income is this: Income that you earn without being actively involved.

You can earn passive income. Melvyn Mangion argues that one does not need to find time to generate a passive income. One can just invest his or her money or time and then sit back, relax and reap the profits from the investment. The best part is that one can keep his or her day job. One can continue to do the work one wants to do, while in the background the passive income machine generates revenue for you.

Passive income is a beauty, we all want to create additional revenue source yet we are time-bound, we have only 24 hours a day to work on. Passive income machinery works even while you sleep in the night. That’s why passive income is much loved.

Melvyn Mangion suggests that investing in dividend-paying stocks (or mutual funds) is a great way to generate passive income. If you buy quality stocks, the dividend is almost guaranteed. The rate of dividend quite often outranks the interest rate you earn on deposits. Also, the stock price gain is yours to keep when you sell the stock.

Real estate investing is a very common way to earn passive income. I have many friends who invested in rental or commercial real estate. There’s no limit to your income as you basically use other people’s money to earn passive income. Your bank lends you money to buy a rental property. You pay them off with the rent you get. The surplus amount after home tax and insurance is your passive income.

Initially, it requires a lot of effort in buying a property that can easily be rented out and as many times as needed. After that initial effort, the income from it becomes really passive. You get automated rent check and you pay out automated mortgage payments.

Already have something you are ridiculously good at and you actually know how to transfer your knowledge and teach the topic? You are halfway there to becoming a course writer for some very popular websites. Online courses have become a real hit and have taken off in sense of popularity lately, as people are starting to understand more and more that it’s not always about diplomas and which school you went to.

A true passive online income would be through a website which you create and upload content once and then it can continue to earn money for you from the advertisements you put up.

Writing a book might also raise you passive income. Easier said than done, I admit. If you love writing then you need to put effort for a few months to create a book and market it to publishers. Then, once you’re published, you pretty much don’t do anything else than counting the royalty payment. eBooks also go hand in hand with creating and online course as you can sell your eBook to people who take your course as an additional resource for learning. This increases the chances of your eBook becoming more popular if the word of mouth start spreading, which can later interest some new blog readers into taking up your course.

Many personal finance bloggers have written eBooks and published them through Amazon. They earn $1 to $10 for each book sale, depending on the price of the book.

In a world in which most of the population of countries in which selling photos is a real thing, almost everyone has a smartphone with a decent enough camera. A little learning of the principles of photography, some knowledge of how light works and how shadows are made, a couple good landscapes and you will be set to become a semi-pro photographer.

To generate passive income through apps, you should possess a quality very few does. You should have an innovative idea for an app. You then need to know the coding part or need to know someone who will develop the app for you. Then it’s all about marketing.

When we talk of investment, the sole reason that comes into mind is to get returns. And there is no second opinion. Similar is the case with real estate investment. You invest in real estate today and get returns (rental amount, sales proceeds, etc.) tomorrow.

Luckily, real estate investment is more than just giving big returns. This single industry is more powerful than many out there. And holds more reasons than just making profits for yourself.

This post will outline the top seven reasons to invest in real estate to support my earlier statement that real estate is more than just making bug returns.

Top Reasons to Invest in Real Investment

Safe and Real Investments

It is common sense that we believe in things we see. This statement also fits well when we compare real estate investment with stock investment.

Stocks are intangibles assets; you own them but do not possess the power to see them or make renovations.

Unlike stocks, real estate is a tangible asset. You could see it, feel it, and renovate it as you like.

Let me clear it further with an example. Imagine if you had invested $1,000 in stocks. It is expected that it would go up, at least in the longer run. And it did go up. But the value of the stock was not in your control. You could never increase or decrease its value by making some changes (only if you directly influence it).

While on the other hand, if you had invested $500,000 in real estate with an expectation, it would go up. And it did. But in this case of holding a physical asset, you have the power to control its value. You could renovate it, upgrade it, rebuild a house (or whatever) and further increase the property’s value.

Being a tangible asset gives you an edge in investing in real estate as it is real and much safer than intangible assets.

Real Estate is Always Appreciating

I will not say that stock always is a bad investment option. Rather they are one of the best investments you could ever make. And they too appreciate in the long run (with some exceptions). But they are relatively riskier than real estate.

On the other hand, real estate is always on the move ahead. Even if it drops down dead, you always had an opportunity to make some other use of it and uplift its value.

To further support how real estate is always appreciating, let us look into Canada’s real estate market trends back in 2020 when COVID-19 hit the world. The market shrunk to its worst. But just a few months later, it grew back with full force and made the year quite happening for the entire market.

And today, experts say that 2021 will be a profitable year for Canada’s real estate, including the residential market. According to some real estate trends for 2021, it is expected that the residential properties will witness an average raise of 6%.

Bungalows for sale in Burlington alone is expecting a growth of 7% this year. This means if you buy a bungalow in Burlington today for $1,000,000, you could expect a sales proceed of $1,070,000 a year later, giving you a profit of $70,000 within just a year.

Upgrading to Further Enhance the Value

Have you ever heard of flipping properties? A flipping property (houses here) is when you buy a house for less than its market value, renovate it, put it for sale, and receive higher returns from the sales proceeds.

Imagine you acquire a bungalow for less than its market value (as it required some renovations). You upgrade it (rework the floorings, roof, upgrade appliances, or add a pool). These are all tangible improvements, and anyone can compare the before and after-results of the house. You did to uplift its value and then sell it at a profit margin. This is flipping a property.

This could be a reason to invest in real estate, and it could also become a challenge if you did not take wise steps.

The challenge with flipping houses comes when you unnecessarily spend too much on renovations and elevations. And ask for a price that may not justify the market value. People may decline your offer as they could get the same house for less and then upgrade it according to their needs and wants.

If you are ready to take the risk and invest in flipping properties, make sure, you make the right moves. When upgrading a house (or any property), keep in mind what buyers may buy in the future. Would they prefer a house with modern appliances, or would they bring their own?

Equity Building with Real Estate Investment

Besides the returns you expect from investing in real estate, you are actually building your equity. Even when it is still on the mortgage, the part that you own is your equity. And as you keep on paying the mortgage, the entire property would ultimately become your sole equity.

Imagine a situation where you could acquire multiple properties, and with time they all become your equity. In time, you could either sell them, rent them out, or pass them on to your children as your legacy. Sounds amazing, right?

This leads us to the next reason for investing in real estate; they become your legacy.

Real Estate as Legacy for Your Children

There is no doubt that when everyone is earning in times like these, it is not enough to buy a piece of property. If you dare to invest in real estate to increase your assets, you could also imagine passing it on to your children so that they do not face the financial constraints as you did.

It reminds me of a story I read on the internet. Bernie and Marion, a couple living in Northern Ohio, acquired s a piece of land in the 1980s for $10,000. Besides dreaming of building a house on it, they could never transform their dream into reality. And today (by the time I heard about them), that piece of land worth over $1,000,000. They now intend to pass on this land as their legacy to their children. And their children, who are fully grown up, could invest a little more, build a house on it, and pass it on as their legacy.

This legacy could go on forever, and yet that piece of land is not going to vanish. Though, the house could start decaying over time. But not the land. If needed, that house could be demolished sold out to someone else, or the owner could rebuild a new house on the land. And continue their legacy.

Real Estate Investment as Tax Relief

In the US, you could deduct mortgage interest from your taxable income.

For investment properties, you even get an opportunity to deduct operating expenses and costs, insurance, property taxes, and maintenance.

In the US, taxes on capital gains range between 15% and 20%. These are usually lower than personal taxes and could become an advantage over other kinds of investments.

Offering tax benefits, in the US, if you acquire another property from the first property’s sales proceeds, you are not taxed at all.

These rules are typically applied in the US and may differ in other countries. Do consider talking to your real estate agent when you plan to acquire a new property from the first property’s proceeds to take tax benefits.

Real Estate as a Mode of Livelihood

To make it a continuous mode of income, you need big investments. If you have this kind of money, you could invest more and more in real estate and start renting them out. The rental income could become your permanent source of income.

Or, if you are willing to take risks, you could sell the house, gain profits, reinvest to acquire another house, and resell it for a profit. This could go on forever.

As said earlier, the bungalows for sale in Burlington today are expected to sell for as high as 7% within just a year. So if you buy a bungalow today, rent it out for a year, and then resale it, you would not only gain a profit from the sales proceeds but would have received rental income spread over the year.

These are two easy ways to convert your investment into a permanent source of income. There are tons more options like these.

What is Your Reason to Invest in Real Estate?

The chances are high that you already had plans of investing in real estate when you landed this blog. You just needed a little more convincing to make it easier for you to make your move.

I have tried to share some of the top reasons for investing in real estate this year. There could be more. But these are enough for you to invest and get all the benefits from this single investment.

Share in comments the most convincing reason you found to invest in real estate.

If you’re like me, you’re a Millennial who’s been pretty good at saving. Unfortunately, if you’re like me, you’ve also been holding onto that money in a bank account or under your mattress, instead of making that money work for you.

Investing is an intimidating idea for many, especially if they lived through the havoc wreaked by the 2008 recession. In fact, according to a Harris poll from last year, 80 percent of Millennials aren’t invested in the stock market at all. The one thing Millennials have been good at putting money into? Their 401(k) plans, according to a study by Vanguard.

Nevertheless, Millennials are beginning to enter their prime earning years, and if the only thing stopping them from investing is fear of the unknown, they’re making a potentially expensive mistake.

Here are the top 5 personal finance rules for Millennial investors.

Learn the Lingo

This advice holds true for whatever unknown you’re getting into. If you don’t know how to talk about investments, how will you ever be able to actually invest? Here are a couple of terms for you to start off with:

Assets and Asset Allocation:

An asset is simply something that has the potential to earn you money. Assets can include cash (usually in the form of certificates of deposit, treasury bills, or money market accounts), stocks, bonds, commodities, or real estates. Asset allocation is simply how you’ve divided your assets, or your investment strategy. By choosing investments in different sectors, industries, and geographic locations, you’ll build up a diversified portfolio where your risk is spread out.

Ask and Bid:

An “ask” is the lowest price that an owner of an asset is willing to sell it for. A “bid” is the highest price a buyer is willing to lay down on an investment. Nowadays, these asks and bids are often matched up on electronic platforms and exchanges.

Bull and Bear Market:

A bull market is a market that is trending up, and that your investments are likely to grow in. If you are “bullish” or considered “a bull” that means you think the stock price will rise. A bear market is the opposite, when the market is trending downward, and a “bear” or “bearish” person is somebody who believes stock prices will drop.

Capital Gains and Losses:

Capital gains or losses are the difference between what you buy an investment for and what you sell it for. If you incur a capital gain, you’ll be subject to taxation, while capital losses can be written off. Most investments mature over a long period of time, and long-term investments are subject to different capital gains taxes than short-term investments–more information on that here.

Dividends:

In some cases, a company will offer some of its income to be divided amongst shareholders. Dividends are oftentimes paid regularly–monthly, quarterly, semi-annually, or annually–but sometimes are offered as a one-time incentive.

Exchange:

An exchange is a place where investments and assets are traded, bought, and sold. Some of the more famous stock exchanges are the New York Stock Exchange (NYSE) and the NASDAQ. Exchanges aren’t necessarily located in physical locations nowadays, as many exist online.

Yield:

Yield is the ratio between stock prices and the dividends paid on those stocks. So let’s say you buy a certain amount of stock at $100 per share, with a dividend that ends up netting you $10 extra per year. This would amount to a 10 percent yield.

For even more beginner terms, you can check out this post by Miranda Marquit.

Learn the Principles

According to Benjamin Graham, the mentor to one of the most successful investors of all time, Warren Buffett, there are tactics and principles to investing that one should follow. His ideas are recorded in his books “Security Analysis” (1934) and “The Intelligent Investor” (1949), and have been distilled by Investopedia into three principles.

• Principle #1: Always Invest With a Margin of Safety – The idea of a “margin of safety” boils down to purchasing an asset at a significant discount to its intrinsic value. This allows you to make fewer risky investments but still enjoy higher returns.
• Principle #2: Expect Volatility and Profit From It – Every market is volatile to some degree, and you may be hesitant to hold on to assets that seem to be tanking in value. However, the investor who lets their emotions (instead of their logic) control their actions is begging to lose money. Graham’s strategies for mitigating the unwanted effects of volatility are dollar-cost averaging and making investments in stocks and bonds.
• Principle #3: Know What Kind of Investor You Are – You need to decide whether you’ll be an active or a passive investor (or “enterprising” vs “defensive” investor). The only difference is how involved you want to be with asset selection. If you do decide to be active, you might want to decide between “speculating” vs. “investing”.

Drop Your Bad Financial Habits

Beginning to invest represents adopting good financial habits, but it doesn’t necessarily indicate that you’ve dropped the old, bad ones. At the very least you have some money to invest–but are you maximizing your financial potential? Chelsy Meyer writing for Fiscal Tiger mentions that five of the most common bad habits are:

1. Paying Bills Late
2. Ignoring Debt
3. Overspending
4. Spending Incorrectly
5. Not Saving

This is obviously not an extensive list of bad financial habits, but all or a mixture of any of these are correctable and will benefit you in the long run. Nobody is perfect, and some people might miss a credit card payment here or there–but realize that these bad habits snowball. Nip them in the bud and your future self will thank you for it later.

Learn to Take Risks

This goes along with the principle of expecting volatility. Think of it this way: every time you get on a plane, you take a calculated risk. You realize that there’s a certain degree of danger and excitement, but the first sign of turbulence doesn’t make us jump out with a parachute, does it? No, we wait out the ride because we need to get where we’re going. Or here’s another one: many of us lived through the real estate crash in 2008. Does that mean that none of us are going to buy homes, or invest in real estate ever again? No–especially after you realize that real estate investing doesn’t actually require as much money to get into as you think.

Sure, it’s important to be cautious. Some people have bet the farm and lost. However, with the right asset diversification, information, and education, you can learn how to weather those risks and end up on the other side profitable. In fact, Arielle O’Shea’s article “5 Essential Investing Moves for Millennials” published via Forbes lists “say hello to risk” as its second move. “Risk is kind of like that friend who regularly cancels plans but always comes through in a pinch,” she writes. “There might be heartache in the day-to-day, but in the long run, you’ll be glad you stuck it out.”

It’s OK to Invest With Your Head AND Your Heart

Millennials simply think about personal finance differently. Writing for LendKey, Dave Rathmanner mentions that Millennials are characterized by a desire to make ethical financial decisions–not just profitable ones.

“In a recent survey on ethical investing, over 85 percent of millennials said that they were interested in engaging in this type of investing,” he writes, referring to the latest, annual U.S. Trust Insights on Wealth and Worth Survey. “That means that millennials would rather prioritize investing in companies that do good and are socially responsible than those that focus solely on creating the largest return for investors.”

Wall Street is beginning to cater to this trend in a bid to court more Millennial investors. Stick to your moral guns, and remember: a bed made of silk and gold is worthless if you can’t sleep at night.

These are the top five rules for Millennial investors, but they’re definitely not the only ones. If you think we forgot something or have an interesting tip to add yourself, mention it in the comments below.