Why Real Estate Is Essential for Your Portfolio

picture of Michael Huber mortgage broker kelowna slocan british columbia, mountains in background, okanagan lake

At Huber Mortgage, we understand the importance of building a robust investment portfolio that aligns with your long-term financial goals.

While traditional registered accounts like RESPs and RRSPs have been the go-to for many Canadians, their limitations may leave you searching for alternative avenues to secure your financial future.

That’s where real estate investments shine and help diversify your investment portfolio.

Let’s delve into why owning rental real estate is a game-changer and how it can complement your savings strategy.

Overcoming the Limitations of Registered Accounts

  • While RESPs and RRSPs offer tax advantages and disciplined savings, they come with constraints that may hinder your ability to fully fund your future needs
  • RESPs have contribution limits that can quickly max out, leaving you with insufficient savings to cover rising education costs
  • Additionally, RRSPs impose contribution limits, and taxable withdrawals at retirement age may deplete your savings sooner than expected.

Benefits of Owning Rental Real Estate

  • Investing in rental real estate offers unparalleled growth potential and a steady stream of income
  • Unlike registered accounts, there are no contribution limits or age restrictions with real estate investments
  • Properties appreciate in value over time, providing a hedge against inflation, while rental income adds a reliable cash flow to your portfolio
  • Moreover, rental properties allow you to build equity and access funds when needed, offering flexibility and control over your investments

Finding Great Tenants

  • One key to successful real estate investing is finding great tenants
  • Screening potential tenants thoroughly can minimize risks associated with property management
  • Look for tenants with stable incomes, good credit histories, and a track record of responsible tenancy
  • By selecting reliable tenants, you can ensure consistent rental income and preserve the value of your investment

Establishing a Rental Property Budget

  • To ensure positive cash flow from your rental property, it’s essential to establish a comprehensive budget
  • Factor in mortgage payments, property taxes, insurance, maintenance costs, and vacancies when calculating your expenses
  • Aim for a rental income that exceeds your expenses, creating a buffer for unforeseen circumstances and ensuring profitability in the long run

Qualifying for Rental Real Estate Mortgages

  • At Huber Mortgage, we specialize in self-employed mortgages and rental real estate financing
  • Whether you’re a seasoned investor or a first-time buyer, we can help you navigate the complexities of securing financing for your rental property
  • With flexible loan options and personalized guidance, we’ll work with you to find a mortgage solution that fits your needs and investment goals

Conclusions and Further Thoughts

Ready to Dive into Real Estate Investing?

Don’t limit yourself to traditional savings vehicles when you can leverage the power of real estate to achieve financial freedom. By blending registered accounts with rental real estate investments, you can create a diversified portfolio that maximizes your savings potential and provides the flexibility to meet your long-term financial objectives.

Contact us today to learn more about how real estate investments can complement your existing savings strategy and set you on the path to a brighter financial future. Let’s embark on this journey together and unlock the full potential of your investments.

Contact Huber Mortgage to talk through your options!    Over 50% of my clients are self-employed! Contact HERE.

Sincerely,

Michael

PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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