# About Name: Buyproperly Description: Buyproperly helps you access high-yield alternative investment opportunities in real estate, private credit, private equity, hedge funds, and venture capital. Start with just $2,500. URL: https://buyproperly.ai/blog # Navigation Menu - Book a Meeting: https://meetings.hubspot.com/kjha # Blog Posts ## Understanding RRSPs, TFSAs, and RESPs: A Comprehensive Guide Author: Abdellah Elboudali Published: 2025-02-21 Tags: #CanadaSavingsAccounts, TFSA, RRSP , RESP URL: https://buyproperly.ai/blog/understanding-registered-funds Navigating the world of savings and investment accounts in Canada can be daunting. With various options available, it's essential to understand the nuances of each to make informed decisions. In this guide, we'll delve into three primary registered accounts: the Registered Retirement Savings Plan (RRSP), the Tax-Free Savings Account (TFSA), and the Registered Education Savings Plan (RESP). We'll explore their features, benefits, and how they can align with your financial goals. Registered Retirement Savings Plan (RRSP) ----------------------------------------- **Purpose**: The RRSP is designed to help Canadians save for retirement. Contributions are tax-deductible, meaning they can reduce your taxable income for the year, and the investments grow tax-deferred until withdrawal. Key Features: * **Tax Deduction:** Contributions can be deducted from your taxable income, potentially resulting in significant tax savings. * **Tax-Deferred Growth:** Investments within an RRSP grow without being taxed until funds are withdrawn. * **Contribution Limits:** Annual contribution room is 18% of your previous year's earned income, up to a specified maximum, plus any unused contribution room from previous years. * **Withdrawal Rules:** Withdrawals are taxed as income. While the primary purpose is retirement savings, there are programs like the Home Buyers' Plan and Lifelong Learning Plan that allow for tax-free withdrawals under specific conditions. * **Age Limit:** Contributions can be made until December 31 of the year you turn 71, at which point the RRSP must be converted into a Registered Retirement Income Fund (RRIF) or an annuity. **Tax-Free Savings Account (TFSA)** ----------------------------------- **Purpose:** The TFSA offers a flexible way for Canadians to save for various goals, whether short-term or long-term, with the benefit of tax-free growth and withdrawals. **Key Features:** * **Tax-Free Growth:** Investments grow tax-free, and withdrawals do not incur taxes. * **Contribution Limits:** There's an annual contribution limit, and unused contribution room carries forward indefinitely. * **Withdrawal Flexibility:** Funds can be withdrawn at any time for any purpose without tax consequences. Withdrawn amounts are added back to your contribution room in the following year. * **No Age Limit for Contributions:** As long as you're 18 or older and have a valid Social Insurance Number, you can contribute to a TFSA. There's no upper age limit for contributions. **Registered Education Savings Plan (RESP)** -------------------------------------------- **Purpose:** The RESP is tailored to help parents (or other contributors) save for a child's post-secondary education. It offers tax-deferred growth and access to government grants. **Key Features:** * **Government Grants:** Contributions can attract the Canada Education Savings Grant (CESG), which adds a percentage to your contributions, up to certain limits. * **Tax-Deferred Growth:** Investments grow tax-free within the plan. While contributions can be withdrawn tax-free, the investment earnings and grant portions are taxed in the beneficiary's hands, who often have little to no income during their studies. * **Contribution Limits:** There's a lifetime contribution limit per beneficiary, but no annual limit. However, maximizing annual contributions can help in receiving the full CESG each year. * **Withdrawal Rules:** Funds must be used for qualifying educational expenses. If the beneficiary doesn't pursue post-secondary education, options include transferring funds to another beneficiary or, in some cases, to the contributor's RRSP, subject to certain conditions. **Comparing RRSPs, TFSAs, and RESPs** ------------------------------------- Understanding the distinctions between these accounts can help you determine which aligns best with your financial objectives. Here's a comparative overview: Feature RRSP TFSA RESP Primary Purpose Retirement savings General savings/investments Education savings Tax Treatment on Contributions Tax-deductible Not tax-deductible Not tax-deductible Tax Treatment on Withdrawals Taxed as income Tax-free Contributions: tax-free; Earnings and grants: taxed in beneficiary's hands Contribution Limits Based on earned income; unused room carries forward Annual limit; unused room carries forward Lifetime limit per beneficiary; no annual limit Withdrawal Flexibility Restricted; penalties may apply for early withdrawals Flexible; withdraw anytime without penalties Must be used for educational purposes; restrictions apply if not ### **Making the Right Choice for Your Financial Goals** Choosing between an RRSP, TFSA, or RESP depends on your individual circumstances and financial objectives: * **RRSP:** Ideal if you're aiming to reduce taxable income now and save for retirement, especially if you anticipate being in a lower tax bracket upon retirement. * **TFSA:** Suited for flexible savings goals, whether it's building an emergency fund, saving for a major purchase, or supplementing retirement savings without future tax implications. * **RESP:** Best if you're planning for a child's future education expenses and want to take advantage of government grants. It's also worth noting that these accounts aren't mutually exclusive. Many Canadians benefit from utilizing a combination of these accounts to address different savings goals simultaneously. **Conclusion** -------------- Understanding the features and benefits of RRSPs, TFSAs, and RESPs is crucial in crafting a comprehensive financial plan. By aligning the right account with your specific goals, you can maximize tax advantages and ensure your savings work effectively for your future. Always consider consulting with a financial advisor to tailor strategies that fit your unique situation. ### **Now Open to Registered Funds on BuyProperly Platform** We are excited to showcase exclusive investment opportunities—BioCache Lab Solutions, Tabl'eau Filtered Water, and Centurion Apartment REIT—are now available for investment through **registered funds**, including **RRSPs, TFSAs, and RESPs**, on the BuyProperly platform. This is a great opportunity to **leverage tax advantages** while diversifying your portfolio with high-potential private market deals. 🔹 **[BioCache Lab Solutions](https://app.buyproperly.ca/investment-property/view/biocache)** – An investment in AI-driven diagnostics and biospecimen storage, offering strong growth potential. 🔹 **[Tabl'eau Filtered Water](https://app.buyproperly.ca/investment-property/view/tableau)** – A private credit opportunity supporting sustainability in the hospitality industry. 🔹[**Centurion Apartment REIT**](https://app.buyproperly.ca/investment-property/view/centurion_apartment_reit) – A real estate investment trust with a diversified portfolio across Canada and the U.S., providing stability and long-term value. Take advantage of **tax-efficient investing** while exploring **alternative asset opportunities** on BuyProperly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing in Private Markets with BuyProperly Author: Abdellah Elboudali Published: 2025-02-13 Tags: InvestmentOpportunities, BuyProperly, PrivateMarkets, HighYield, Fractionalownership URL: https://buyproperly.ai/blog/private-market-alternatives-investing ![buyproperly ](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/carl-schubert-9-1739482259100-compressed.png) **Private Market Alternatives Investing in 2025: How BuyProperly Democratizes Access to High-Yield Opportunities** ------------------------------------------------------------------------------------------------------------------ As investors increasingly seek diversification beyond traditional stocks and bonds, private market alternatives like private equity, real estate, and infrastructure have emerged as critical tools for building resilient portfolios. Amid this shift, platforms like **[BuyProperly](https://buyproperly.ai/)** are revolutionizing access to these once-exclusive asset classes, empowering retail investors to participate in wealth-building opportunities previously reserved for institutions or high-net-worth individuals. Here’s how BuyProperly aligns with the evolving trends in alternative investing for 2025 and why it stands out as a leader in this space. ### **1\. The Rise of Fractional Ownership and Democratization** With private markets valued at over $4 trillion globally, traditional barriers are becoming a thing of the past. BuyProperly’s AI-driven fractional ownership model allows investors to start with as little as $500, making it easier than ever to participate in high-potential real estate and private equity projects. This shift mirrors broader industry trends, where platforms like Yieldstreet and Masterworks are reducing the entry thresholds for assets like art or farmland. However, BuyProperly sets itself apart by focusing on real estate securitization, turning properties into tradable shares and offering liquidity through its secondary marketplace. ​**Key Innovation:** BuyProperly’s AI curates high-quality deals, such as the San Antonio-based Vivid Apartment Homes project, which addresses housing shortages while providing rental income to investors. ### **2\. Addressing 2025’s Key Alternative Investment Trends** * **Real Estate: Industrial and Multifamily Growth **BuyProperly’s focus on residential and industrial real estate aligns with sector forecasts for 2025. Both industrial spaces (like warehouses for e-commerce) and multifamily housing are poised for growth due to urbanization and post-pandemic demand. BuyProperly’s collaboration with Trinnium Equity Group to refurbish apartment communities exemplifies this trend, blending affordability with strong returns for investors. * **Private Credit and Yield Opportunities** Although BuyProperly primarily focuses on equity investments, its future expansion into private credit could cater to growing demand for higher-yield assets. Platforms like Percent and Yieldstreet are already tapping into the private debt market, especially in a rising-rate environment, and BuyProperly could soon offer similar opportunities. * **ESG and Sustainable Investing** While ESG is not the primary focus of BuyProperly’s current projects, the platform could leverage the growing trend toward sustainable real estate, such as energy-efficient buildings. With competitors like Fundrise integrating sustainability metrics, BuyProperly’s AI-driven platform could prioritize eco-friendly developments to meet investor demand for green investments. ### **3\. Technology as a Differentiator** ​BuyProperly’s edge lies in its AI-powered platform, which automates deal sourcing, due diligence, and personalized recommendations. This reduces costs for issuers and increases transparency for investors. * **Predictive Analytics:** Evaluates property performance and rental yield potential. * **Secondary Market:** Mitigates liquidity risks by allowing investors to trade shares. While platforms like Lofty or Proptee offer fractional real estate models, BuyProperly’s integration of machine learning for deal vetting and its partnership-driven approach (e.g., with developers like Trinnium) enhances scalability and reliability. ### **4\. Navigating Risks in Private Markets** BuyProperly addresses common risks associated with alternative investing: * **Illiquidity:** The secondary marketplace allows for share trading, reducing liquidity concerns. * **Due Diligence:** AI filters out high-risk deals, such as those with unstable cash flows or regulatory issues. * **Transparency:** Real-time updates on project milestones (like Vivid Apartments’ progress) build trust with investors. These features set BuyProperly apart from platforms like Growpital or AltGraaf, which have faced delays and defaults in 2025, highlighting the importance of strong vetting and risk management. ### **5\. Strategic Positioning for 2025 and Beyond** BuyProperly’s roadmap positions it well for future growth: * **Geographic Expansion:** The platform’s recent entry into San Antonio signals plans to tap into high-demand U.S. markets. * **Regulatory Adaptation:** Compliance with frameworks like Europe’s ELTIF 2.0 could unlock cross-border opportunities. * **Product Diversification:** BuyProperly may explore new asset classes, such as venture capital or renewable energy projects, in line with 2025’s focus on tech and decarbonization. **Conclusion: Why BuyProperly Is the Future of Investing** ---------------------------------------------------------- In 2025, private market alternatives are not just about generating alpha—they are about accessibility, innovation, and resilience. BuyProperly embodies these principles by combining fractional ownership with cutting-edge technology, giving retail investors access to lucrative real estate and private equity deals. As the platform scales, its ability to integrate ESG priorities, diversify asset classes, and maintain strong risk management will play a key role in reshaping the alternative investment landscape. For investors looking to diversify beyond stocks, [BuyProperly](https://buyproperly.ai/) offers a gateway to the future of finance—where technology democratizes opportunity without compromising returns. Explore BuyProperly’s latest deals: * **[In the US](https://buyproperly.ai/us/investments/allDeals/)** * **[In Canada](https://buyproperly.ai/ca/investments/allDeals/)** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Private Credit Opportunities Webinar: Insights with BuyProperly & Tabl'eau Hospitality Author: Abdellah Elboudali Published: 2025-01-27 Category: Events Tags: Alternative Investments, Private Credit Investments, RRSP Investments, Private Credit URL: https://buyproperly.ai/blog/tableau-private-credit-webinar **Discover Private Credit Opportunities with BuyProperly and Tabl'eau Hospitality** ----------------------------------------------------------------------------------- Missed our live webinar? Catch the recording of our exclusive session on **Private Credit Opportunities**, hosted by **BuyProperly** in collaboration with **Tabl'eau Hospitality Inc**. ### Key Takeaways: * Introduction to private credit and its types * Insights into Tabl'eau's innovative debt financing approach * Expert perspectives from Ryan Webster (Partner, Tabl'eau Hospitality Inc.) and Khushboo Jha (CEO, BuyProperly)​ Whether you're a seasoned investor or new to private credit, this webinar offers strategies to help ### ​**Now Open to Registered Funds** The Tabl'eau deal is now open to investors using **RRSP** and other registered accounts! This makes it even easier to access this exciting investment opportunity while taking advantage of tax benefits. **Explore the Tabl'eau Deal on BuyProperly:** [tabl'eau Filtered Water](https://app.buyproperly.ca/investment-property/view/tableau) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Convertible Debentures: A Comprehensive Guide for Investors Author: Abdellah Elboudali Published: 2025-01-22 Tags: Alternative Investments, Convertible Debentures, Debt To Equity, Equity Conversion, high yield investments URL: https://buyproperly.ai/blog/understanding-convertible-debentures ![Convertible Debentures Eplained](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/what-are-convertible-debentures-1737566552031-compressed.jpg) Convertible debentures are a popular investment instrument, particularly among those seeking both income and growth opportunities. For investors navigating the world of alternative assets, understanding convertible debentures can open doors to innovative strategies that align with their financial goals. At BuyProperly, an alternative assets investment platform, we aim to simplify these complex instruments to help you make informed decisions. What is a Convertible Debenture? -------------------------------- A convertible debenture is a type of long-term debt instrument issued by a company that can be converted into a predetermined number of shares of the issuing company's stock. It offers the benefits of fixed interest payments, like a bond, with the added potential for capital appreciation through conversion to equity. Convertible debentures are typically unsecured, meaning they are not backed by specific assets of the company. Key Features of Convertible Debentures -------------------------------------- * **Interest Payments** Convertible debentures pay periodic interest to investors at a fixed rate, providing a steady income stream. This feature appeals to income-focused investors who seek predictable returns. * #### **Conversion Option** The unique characteristic of convertible debentures is the option to convert the debt into equity shares of the issuing company. The conversion ratio and price are predefined in the debenture agreement. * #### **Maturity Date** Convertible debentures have a set maturity date, at which point the principal amount is repaid to the investor if the conversion option has not been exercised. * #### **Flexibility for Investors** Investors can choose whether to convert the debenture into equity or retain it as a fixed-income instrument until maturity, depending on market conditions and the company’s performance. * #### **Risk and Reward Balance** As an unsecured debt instrument, convertible debentures carry higher risk compared to secured bonds. However, the conversion feature offers upside potential, balancing the risk-reward equation. **Advantages of Investing in Convertible Debentures** ----------------------------------------------------- * #### **Income and Growth Potential** Investors benefit from fixed interest payments while retaining the option to participate in the company’s equity growth if the stock performs well. * #### **Lower Entry Cost** Convertible debentures often allow investors to gain equity exposure at a lower initial cost compared to buying shares outright. * #### **Downside Protection** If the company’s stock underperforms, investors still receive interest payments and the principal repayment at maturity. * #### **Diversification** Including convertible debentures in your portfolio can diversify your investment mix, combining fixed-income security with equity potential. **Risks Associated with Convertible Debentures** ------------------------------------------------ * #### **Credit Risk** As unsecured instruments, convertible debentures depend on the issuing company's creditworthiness. A default can result in loss of income and principal. * #### **Market Volatility** The value of convertible debentures is influenced by stock market movements, as the conversion option is tied to the company’s equity performance. * #### **Dilution Risk** Conversion of debentures into equity may dilute existing shareholders’ stakes, potentially impacting stock value. * #### **Interest Rate Sensitivity** Convertible debentures are subject to interest rate fluctuations, which can affect their market value. ### **Why Consider Convertible Debentures Through BuyProperly?** At BuyProperly, we specialize in alternative investments that are typically reserved for institutional investors. Here’s why you might consider exploring convertible debentures on our platform: * Access to Exclusive Opportunities: We connect investors with curated offerings, including convertible debentures, that align with their investment strategies. * Fractional Investment Model: Our platform enables fractional ownership, allowing investors to participate in high-value assets with smaller initial investments. * AI-Powered Insights: We use advanced technology to help investors make informed decisions, assessing risks and potential returns effectively. **How to Evaluate a Convertible Debenture** ------------------------------------------- #### **1\. Understand the Terms** Carefully review the conversion ratio, conversion price, interest rate, and maturity date. These factors determine the debenture’s value and potential returns. #### **2\. Assess the Issuer’s Health** Analyze the issuing company’s financial health, credit rating, and growth prospects. A strong issuer reduces credit risk. #### **3\. Consider Market Conditions** Evaluate market trends and the performance of the issuer’s stock. Favorable conditions increase the likelihood of successful conversion. #### **4\. Diversify Your Portfolio** Ensure that convertible debentures complement your overall investment strategy, balancing risk and reward. ### **Conclusion** Convertible debentures offer a compelling investment option for those seeking a blend of income and growth potential. While they come with risks, careful evaluation and strategic integration into your portfolio can enhance diversification and returns. At BuyProperly, we’re committed to empowering investors with access to high-yield alternative assets, including convertible debentures. Explore our platform to discover opportunities tailored to your financial goals. Ready to Learn More? [Schedule a call](https://meetings.hubspot.com/kjha) with our investment specialists today to explore how convertible debentures can fit into your portfolio. If you have any questions or need assistance, reply to this article or reach out to us directly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Guide to Using RRSP, TFSA, and RESP for Smart Investments Author: Abdellah Elboudali Published: 2024-12-05 Tags: TFSA Retirement Plan, RRSP , RESP, SmartInvesting, TaxPlanning URL: https://buyproperly.ai/blog/a-guide-to-using-rrsp-tfsa-and-resp Maximize Your Savings: How to Use Registered Funds (RRSP, TFSA, RESP) for Investments When it comes to building wealth in Canada, registered funds like RRSP, TFSA and RESP offer a powerful way to save and grow your money. But to truly maximize your savings, understanding how these accounts work and their investment benefits is essential. Let’s explore what registered funds are, their unique advantages, and how they can supercharge your financial goals. Registered funds are special types of savings accounts designed by the Canadian government to encourage individuals to save for specific goals like retirement, short-term needs, or a child’s education. These accounts come with unique tax benefits, making them an integral part of a smart financial strategy. ### **RRSP (Registered Retirement Savings Plan):** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/rrsp-930x620-1733418853096-compressed.webp) Aimed at helping Canadians save for retirement, RRSP contributions are tax-deductible, and investments within the account grow tax-deferred until withdrawn. ### **TFSA (Tax-Free Savings Account):** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/oip-7-1733418871379-compressed.jpeg) This flexible account lets you save or invest money tax-free. While contributions aren’t tax-deductible, any income or gains earned are entirely tax-free—even when withdrawn. ### **RESP (Registered Education Savings Plan):** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/oip-8-1733418888672-compressed.jpeg) Designed for post-secondary education savings, the RESP not only allows investments to grow tax-deferred but also attracts government grants like the Canada Education Savings Grant (CESG). **Benefits of Using Registered Funds for Investments** ------------------------------------------------------ Investing through RRSPs, TFSAs, and RESPs can significantly enhance your financial outcomes. Here’s how: **RRSPs:** Contributions reduce your taxable income, providing immediate tax savings. The investments grow tax-deferred, meaning you won’t pay taxes on dividends, interest, or capital gains until withdrawal—typically in retirement when your income is lower. **TFSAs**: All investment income, including interest, dividends, and capital gains, is tax-free (unless it’s a US stock). You can withdraw funds at any time without worrying about taxes or penalties. **RESPs**: Investment earnings grow tax-deferred, and the government adds up to $7,200 in CESG contributions per child. Withdrawals for educational expenses are taxed in the student’s hands, often at a lower rate. Tax advantages allow your investments to grow more effectively over time. For example, reinvesting the tax savings from an RRSP or the tax-free gains in a TFSA can lead to substantial long-term wealth accumulation. All three accounts allow a variety of investment options, including stocks, bonds, ETFs, mutual funds, and GICs, enabling you to tailor your portfolio based on your goals and risk tolerance. * RRSPs are ideal for long-term retirement savings. * TFSAs can be used for a wide range of goals, from emergency funds to purchasing a home or car. * RESPs are specifically designed to help fund your child’s education, maximizing government grants. **Tax Implications to Consider** -------------------------------- ### **RRSP Withdrawals** _Withdrawals are taxed as income. If you withdraw before retirement, the tax rate can be significant. However, programs like the Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP) allow penalty-free withdrawals under specific conditions._ ### **TFSA Contributions** _Over-contributing to a TFSA can result in penalties. Keep track of your annual and cumulative contribution limits._ ### **RESP Payouts** _Contributions can be withdrawn tax-free, but the investment income and CESG grants are taxable when withdrawn. However, since these withdrawals are taxed in the student’s hands, the tax rate is often minimal._ **How to Maximize Your Investments with Registered Funds** ---------------------------------------------------------- * Start Early: The earlier you contribute, the more time your investments have to grow, thanks to compound interest. * Contribute Regularly: Setting up automatic contributions ensures consistent savings and minimizes the impact of market volatility. * Diversify: Invest in a mix of asset classes to balance risk and return. * Stay Within Limits: Monitor your annual and lifetime contribution limits to avoid penalties. * Leverage Professional Advice: Work with a financial advisor to optimize your investment strategy based on your goals and risk tolerance. Utilizing registered funds like RRSPs, TFSAs, and RESPs can significantly enhance your savings strategy by leveraging their unique tax advantages and flexible structures. By understanding how each of these accounts works and their respective benefits, you can make informed decisions that align with your financial goals—whether saving for retirement, education, or other significant life events. Maximizing contributions to these accounts can lead to substantial long-term financial benefits and help you build a secure financial future. **Now Open to Registered Funds on BuyProperly Platform** -------------------------------------------------------- We are excited to announce that three exclusive investment opportunities—BioCache Lab Solutions, Tabl'eau Filtered Water, and Centurion Apartment REIT—are now available for investment through **registered funds**, including **RRSPs, TFSAs, and RESPs**, on the BuyProperly platform. This is a great opportunity to **leverage tax advantages** while diversifying your portfolio with high-potential private market deals. 🔹 **[BioCache Lab Solutions](https://app.buyproperly.ca/investment-property/view/biocache)** – An investment in AI-driven diagnostics and biospecimen storage, offering strong growth potential. 🔹 **[Tabl'eau Filtered Water](https://app.buyproperly.ca/investment-property/view/tableau)** – A private credit opportunity supporting sustainability in the hospitality industry. 🔹 **[Centurion Apartment REIT](https://app.buyproperly.ca/investment-property/view/centurion_apartment_reit)** – A real estate investment trust with a diversified portfolio across Canada and the U.S., providing stability and long-term value. Take advantage of **tax-efficient investing** while exploring **alternative asset opportunities** on BuyProperly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Debenture Investing: A Powerful Tool for Portfolio Diversification Author: Abdellah Elboudali Published: 2024-11-06 Tags: Alternative Investments, Private Credit Risk, Asset-Backed Securities URL: https://buyproperly.ai/blog/debenture-investing ![Debenture Investing: A Powerful Tool for Portfolio Diversification](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/debenture-investing-1730910651689-compressed.jpeg) **Understanding Debentures** ---------------------------- Debentures are a unique type of unsecured debt instrument used by corporations and governments to raise capital for long-term projects, expansions, or other funding needs. They aren’t backed by physical collateral, which makes them dependent on the issuer’s creditworthiness and reputation. While debentures carry risk, they often yield higher returns than traditional bonds, making them an attractive option for investors looking beyond the public markets. **Debentures in Canada: An Alternative to Traditional Bonds** ------------------------------------------------------------- At BuyProperly, we specialize in high-yield alternative investments across real estate, private credit, and other non-traditional assets. Debentures align well with our platform’s mission to offer investment options that go beyond conventional stocks and bonds. With the Canadian market’s growing appetite for alternative assets, debentures offer a way to diversify portfolios while potentially achieving a stable income stream. ### **Types of Debentures** 1. **Convertible and Non-Convertible Debentures**: Convertible debentures can be turned into equity shares of the issuing company after a set period, while non-convertible debentures lack this feature. Convertible debentures appeal to those who believe in the company's long-term growth, while non-convertibles typically offer higher interest rates due to their fixed nature. 2. **Secured and Unsecured Debentures**: Secured debentures are backed by assets, making them less risky than unsecured debentures, which rely solely on the issuer’s credibility. Secured debentures offer lower returns but provide a layer of protection, while unsecured debentures, though riskier, offer higher potential returns. ### **Pros and Cons of Debenture Investing** _Pros_: * **Diversification**: Debentures provide a non-stock option that can reduce portfolio volatility. * **Fixed Income**: Debenture holders receive regular interest payments, adding stability to an investment portfolio. * **Lower Volatility**: Less correlated with public markets, debentures can offer a buffer against market swings. _Cons_: * **Interest Rate Risk**: Fixed-rate debentures may underperform if market interest rates rise. * **Default Risk**: Since debentures rely on issuer solvency, financial struggles or economic downturns can impact returns. ### **The Role of Debentures in Modern Portfolios** Debentures, along with other alternative assets, have become crucial for investors seeking to protect against market volatility and inflation. At BuyProperly, our curated portfolio of alternative assets—such as real estate and private credit—empowers everyday investors to access investments traditionally reserved for institutions. By diversifying across alternative investments, investors can build a portfolio resilient to market shifts and positioned for steady returns. ### **Expanding Beyond Stocks with Alternative Investments** Alternative investments—including real estate, private equity, and venture capital—are less affected by public market trends, offering investors a way to balance risk and return. BuyProperly makes these accessible without the high barriers of traditional alternatives, allowing investors to grow and diversify their wealth. **Conclusion** -------------- Exploring debentures and alternative investments can provide robust portfolio diversification, reducing dependence on public market performance. While these investments carry risks, they also hold potential for reliable income. At BuyProperly, we invite you to learn more about how debentures and other alternative assets can enhance your portfolio’s resilience and growth potential. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Rise of ESG in Private Credit and Real Estate Investments Author: Lavanyaa Devarajan Published: 2024-10-09 Tags: Private Credit, Real Estate Investment Trusts, ESG Investing, ESG Funds URL: https://buyproperly.ai/blog/the-rise-of-esg-in-private-credit-and-real-estate-investments Environmental, Social, and Governance (ESG) factors have gained significant traction in private credit and real estate investing in recent years Investors increasingly seek to align their portfolios with values that support sustainability and social responsibility, leading to a surge in _ESG real estate investing_ and _sustainable private credit_ options. More investors are prioritizing social and environmental impact alongside financial returns, driving the shift towards sustainable and ethical investing practices. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/esg-in-private-credit-and-real-estate-investments-1728570040180-compressed.png) Why ESG Matters in Private Credit and Real Estate ---------------------------------------------------- ESG criteria provide a framework to assess investments beyond just financial returns. In real estate, this may include reducing carbon footprints, promoting energy efficiency, and creating healthy living spaces. In private credit, ESG can help fund projects with positive social impacts, such as affordable housing or renewable energy projects, thereby promoting ethical investing. For private credit investors, this means assessing the ESG practices of the companies they lend to, considering factors such as carbon footprint, labor practices, and community impact. Similarly, in real estate, investor focus has broadened to include sustainability efforts, green building certifications, and community engagement initiatives. ### Leverage ESG-Focused Funds There are a growing number of funds specifically tailored to ESG investing, including exchange-traded funds (ETFs) and mutual funds focused on sustainable practices. These funds provide diversified exposure to ESG-compliant companies, making it easier for investors to align their portfolios with their values without needing to research individual companies extensively.  Additionally, the increasing adoption of ESG standards and reporting requirements by regulatory bodies and industry associations further underscores the momentum behind ESG-focused funds, signaling a shift towards greater transparency and accountability in sustainable investing. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/esg-in-private-credit-and-real-estate-investments-1-1728570068822-compressed.png) How Investors Can Incorporate ESG into Their Portfolios ---------------------------------------------------------- ESG criteria provide a framework to assess investments beyond just financial returns. In real estate, this may include reducing carbon footprints, promoting energy efficiency, and creating healthy living spaces. In private credit, ESG can help fund projects with positive social impacts, such as affordable housing or renewable energy projects, thereby promoting ethical investing.  As the demand for ESG-aligned investments continues to grow, private credit and real estate investors have a chance to lead the way in fostering positive social and environmental impact. ### Invest in Social Impact Initiatives In today's rapidly evolving investment landscape, the concept of investing for social impact is gaining significant traction. Investors are increasingly recognizing the potential of their capital to drive positive change and address some of the world's most pressing social challenges. Investing in social impact initiatives offers a unique chance to make a tangible difference in areas such as education, healthcare, environmental sustainability, and community development. By directing funds towards organizations and projects that prioritize social good, investors can play a pivotal role in creating a more equitable and sustainable future. **How Investors Can Incorporate ESG into Their Portfolios** For investors committed to ethical investing, there are several ways to incorporate ESG into their private credit and real estate investments: 1. **Sustainable Real Estate Development**: Investors can prioritize properties that meet environmental standards, such as LEED certification, which indicates a commitment to sustainability. 2. **Social Impact Projects**: Focus on investments that promote community well-being, like affordable housing or public health initiatives. 3. **Governance-Driven Investments**: Support companies and projects with strong governance structures that promote transparency, diversity, and ethical practices. Leveraging ESG-focused funds represents a strategic approach for investors to harness the power of their capital in driving positive societal and environmental impact. As Investing for a Better Future the rise of ESG investing are mentioned in [hear](https://buyproperly.ai/blog/investing-for-a-better-future-the-rise-of-esg-investing-clzbc9th70009b8i16awmnmgf). By integrating ESG principles into their investment decisions, investors can contribute to a more sustainable future while potentially achieving competitive financial returns. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Private Credit Could Be Your Secret to Smarter Investing Author: Abdellah Elboudali Published: 2024-10-03 Tags: Alternative Investments, BuyProperly Investments, Portfolio diversification, Private Credit, high yield investments URL: https://buyproperly.ai/blog/why-private-credit-could-be-your-secret-to-smarter-investing ![Banking and Finance Law - Wright Legal Services](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/stock-market-composite-1728057586206-compressed.jpg) In a world where markets fluctuate daily, smart investors are looking for ways to diversify their portfolios. Gone are the days when you could simply rely on the stock market for stable returns. With interest rates swinging and economic uncertainty on the rise, finding investment options that offer both stability and growth has never been more critical. That's where **private credit** comes in. **What is Private Credit?** --------------------------- Private credit is a bit of an unsung hero in the world of investing. Unlike traditional loans you get from a bank, private credit comes from non-bank lenders who provide loans directly to businesses. These loans aren't traded publicly, which means they offer a level of exclusivity—and often better returns—than what you'd find on the public market. In simple terms, private credit is about stepping into a lender’s shoes, providing capital to businesses in exchange for interest and principal. But it's more than just lending; it’s an investment strategy that can bring attractive returns while balancing the overall risk in your portfolio. ### **Why Now is the Time to Diversify** If the last few years have taught us anything, it's that uncertainty is the new norm. Stock market volatility, inflation, and global disruptions have made it harder than ever to rely on a single investment strategy. Investors today need more than just stocks and bonds. They need options that perform well even when traditional markets struggle. That’s where diversifying into private credit becomes key. By adding private credit to your investment mix, you're stepping into an asset class that often operates independently of market ups and downs. When the stock market wobbles, private credit tends to hold steady, offering a more predictable income stream. ### **Why Private Credit Makes Sense** So why should you care about private credit? The answer is simple: it offers you the chance to diversify your investments without taking on more market risk. When you invest in private credit, you're helping businesses grow and, in return, securing a steady flow of income for yourself. It’s a win-win. Plus, private credit offers: * **Higher Yields**: Traditionally, private credit investments offer higher returns compared to bonds and other fixed-income options. * **Portfolio Protection**: Private credit can help shield your portfolio from market volatility by acting as a stable, income-generating asset. * **Exclusive Opportunities**: Historically, private credit has been reserved for institutional investors. But platforms like BuyProperly have opened the doors for everyday investors to get involved. **How [BuyProperly](https://buyproperly.ai/) Makes It Easier** -------------------------------------------------------------- At BuyProperly, we’ve made it our mission to simplify private credit investments. Our platform lets you access deals that were once out of reach—without needing millions in capital. Whether you're an experienced investor or just getting started, we make it easy to explore and invest in a variety of private credit opportunities. We use **AI-powered technology** to match you with investments that align with your goals, and our **fractional ownership model** means you can invest in private credit deals with a much lower upfront cost. This makes it easier for you to diversify without over-committing your resources. ### **Ready to Diversify? [Here’s How to Get Started](https://buyproperly.ai/)** Investing in private credit isn’t complicated with BuyProperly by your side. We’ve streamlined the process to make it as simple as possible. Whether you’re looking for something stable to balance your portfolio or an income-generating investment, our private credit deals are designed to help you reach your goals. ### **Want to Learn More? Let’s Chat!** Still curious? [Book a call](https://meetings.hubspot.com/kjha) with our team today. We’d love to walk you through how private credit can become the cornerstone of your diversified investment strategy. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Future of Impact Investing: Predictions and Innovations Author: Lavanyaa Devarajan Published: 2024-08-21 Tags: BuyProperly Investments, Impact Investing, Socially Responsible Investing, Values Based Investing, traditional investing URL: https://buyproperly.ai/blog/the-future-of-impact-investing-predictions-and-innovations Impact investing, which aims to generate positive social and environmental impacts alongside financial returns, has seen remarkable growth over the past decade. As we look to the future, several key trends and innovations are poised to shape the impact investing landscape.  ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/innovations-in-2020-1-e1579631661611-800x600-c-default-1724326852603-compressed.jpg) Expansion of Impact Investment Opportunities ----------------------------------------------- As more investors recognize the potential of impact investing, opportunities across different asset classes and sectors will expand. This growth will be driven by the increasing variety of impact-focused funds, including those targeting areas like affordable housing, clean energy, education, and healthcare. The rise of thematic investing—where portfolios are built around specific causes, such as climate action or gender equality—will also play a role in diversifying impact investment options. ### Technology and Data Analytics Technology is playing a vital role in the growth of impact investing. Blockchain technology, for example, has the potential to enhance transparency and accountability in impact investments. It enables investors to track the impact of their investments in real-time, increasing trust and confidence in the overall process. Additionally, artificial intelligence (AI) and machine learning are being utilized to analyze and predict patterns in impact investing, helping investors make informed decisions. One of the main challenges in impact investing is quantifying and tracking the social and environmental outcomes. Innovations in data analytics, artificial intelligence (AI), and blockchain technology are expected to streamline this process. More sophisticated impact measurement tools and real-time data will enable investors to better assess their portfolio's impact, leading to more transparent and accountable investing practices. Mainstreaming of Impact Investing ------------------------------------ Large financial institutions, pension funds, and asset managers are increasingly incorporating impact investments into their portfolios. As demand grows, mainstream financial products like mutual funds and ETFs that focus on impact themes are becoming more accessible to retail investors. This mainstreaming effect is likely to be supported by regulatory developments, making it easier for traditional investors to align their portfolios with impact objectives. Measuring the impact of investments has been a challenge in impact investing. However, advancements in impact measurement methodologies and standardized reporting frameworks are addressing this issue. Investors are increasingly demanding clear metrics and robust reporting to assess the effectiveness of their impact investments. As these measurement techniques become more sophisticated, impact investing will become more attractive to a wider range of investors. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/gettyimages-469182886-610x308-1724326880728-compressed.jpg) ### The Emergence of Next-Generation Investors Millennials and Gen Z investors will be key drivers of the future impact investing landscape.Younger generations are more socially conscious and eager to align their investments with their values. They are likely to demand more impact-driven options, pushing financial institutions to innovate and expand their offerings. The transfer of wealth to these generations will also lead to a shift in capital towards purpose-driven investing. The future of impact investing looks promising, with predictions pointing towards increased mainstream adoption, integration of technology, a focus on the SDGs, blended finance, and improved outcome measurement and reporting. These important trends are not only shaping the industry but also positioning impact investing as a powerful force in driving positive social and environmental change. As investors become more conscious about the impact of their investments, we can expect the field of impact investing to flourish, delivering both financial returns and lasting impact. ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Your Guide to Getting Started with Impact Investing Author: Lavanyaa Devarajan Published: 2024-08-20 Tags: BuyProperly Investments, BuyProperlyLimited , BuyProperly, Impact Investing, traditional investing URL: https://buyproperly.ai/blog/your-guide-to-getting-started-with-impact-investing Impact investing is an investment strategy that aims to generate financial returns and positive social and environmental impacts. This dual-purpose approach integrates financial objectives with the desire to address pressing global challenges. Unlike traditional investing, which primarily focuses on maximising financial gains, impact investing seeks to achieve a triple bottom line: profit, people, and the planet.  ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/impact-investing-2-1024x796-1724258616505-compressed.webp) ​What is Impact Investing? -------------------------- _Impact investing is when investors pursue strategies that create positive environmental or social benefits and strong investment returns_. ------------------------------------------------------------------------------------------------------------------------------------------- “\[Impact investing\] provides a way for investors to be more proactive with their investment dollars and partner together to make purposeful investments that can contribute to affecting real change across the globe,” says David Spika, president and CIO at GuideStone Capital Management. It’s important to note that an impact investment is not an act of charity. Impact investors are always hoping to turn a solid profit and even beat the market. It’s just that they have additional goals that transcend the pursuit of maximum returns on investment. ### How It Differs from Traditional Investing * **Purpose**: Traditional investing focuses solely on financial returns. Impact investing, however, aims to create positive change in society and the environment while also generating financial returns. * **Metrics**: Impact investors use specific metrics to measure the social and environmental outcomes of their investments, such as the number of jobs created, carbon emissions reduced, or lives improved. * **Stakeholder Engagement**: Impact investors often engage more deeply with stakeholders, including communities and employees, to ensure that their investments are making a meaningful difference. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/1690285071842-1724258818186-compressed.png) Why is Impact Investing Growing in Popularity? Impact investing is gaining traction due to several factors: * **Rising Awareness:** Investors, especially millennials and Gen Z, are increasingly interested in aligning their portfolios with their values. They want to support businesses that are socially responsible and environmentally sustainable. * **Global Challenges:** Urgent issues such as climate change, inequality, and access to healthcare are driving interest in finding innovative solutions. Impact investing offers a way for individuals and institutions to be part of these solutions while still pursuing financial returns. * **Institutional Support:** Large institutions, including pension funds and endowments, are recognizing the long-term value of impact investing and are allocating more resources to this strategy. * **Proven Success:** As impact investing matures, there’s growing evidence that it can deliver competitive financial returns, debunking the myth that pursuing social or environmental goals comes at the expense of profits. In summary, impact investing represents a shift in the way investors think about the role of capital. By focusing on the triple bottom line of profit, people, and planet, impact investing provides a path for achieving both financial goals and meaningful social change. As the movement continues to grow, it offers a promising approach for addressing the world’s most pressing challenges through the power of investment. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing with Purpose: Aligning Your Investments with Your Values Author: Lavanyaa Devarajan Published: 2024-08-01 Category: Insights Tags: ESG Investing, Sustainable Investing, Impact Investing, Values Based Investing, Ethical Investments URL: https://buyproperly.ai/blog/investing-with-purpose-aligning-your-investments-with-your-values-clzbmfz21000ap2n8z3pef2mc In today's interconnected world, more and more investors are realizing that their financial decisions can have far-reaching impacts beyond their own portfolios. The concept of aligning investments with personal values has gained significant traction, allowing individuals to support causes they believe in while potentially growing their wealth. This approach, often called values-based investing, offers a powerful way to make your money work not just for you, but for the world you want to see. The Importance of Aligning Investments with Personal Values -------------------------------------------------------------- Aligning your investments with your values serves multiple purposes. First and foremost, it provides a sense of personal satisfaction and fulfillment. Knowing that your money is supporting companies and initiatives that align with your beliefs can bring a deeper meaning to your financial journey. Moreover, this alignment can lead to more engaged and informed investing. When you're passionate about the companies and causes you're investing in, you're more likely to stay informed about their progress and the sectors they operate in. This increased engagement can potentially lead to better investment decisions. Values-based investing also allows you to vote with your dollars. By supporting companies that align with your values, you're sending a clear message to the market about the kind of business practices and initiatives you want to see more of in the world. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/investment-2-1722606848517-compressed.jpg) How to Identify Investments that Align with Personal Values -------------------------------------------------------------- Identifying investments that align with your values requires introspection and research. Start by clearly defining your values and the causes you're most passionate about. These might include environmental sustainability, social justice, ethical labor practices, or technological innovation, among others. Once you've identified your key values, research companies and funds that align with these principles. Look for businesses with strong environmental, social, and governance (ESG) ratings. Many financial platforms now offer ESG scores and sustainability reports for companies and funds. Consider using screening tools that allow you to filter investments based on specific criteria. For example, you might screen out companies involved in fossil fuels, tobacco, or weapons manufacturing if these industries conflict with your values. Don't forget about impact investing opportunities. These investments aim to generate specific social or environmental benefits alongside financial returns. They can range from green bonds funding renewable energy projects to microfinance initiatives supporting entrepreneurs in developing countries. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/investment-1-1722607053106-compressed.jpg) **Strategies for Integrating Values into Investment Decisions** **ESG Integration**: Consider environmental, social, and governance (ESG) criteria alongside financial analysis when selecting investments. ESG-focused funds evaluate companies based on their sustainability practices, diversity, and ethical behavior. **Impact Investing**: Seek out investments specifically designed to generate both financial returns and positive social or environmental impact. Impact investing allows you to put your money to work for causes you care about. **Community Investing**: Invest in local projects or organizations that directly benefit your community. Community development financial institutions (CDFIs) and microfinance initiatives are examples of community-focused investments. Aligning your investments with your values is a powerful way to create change while working towards your financial objectives. It allows you to build a portfolio that not only aims for returns but also reflects your vision for a better world. As more investors adopt this approach, we can collectively drive positive change in corporate behavior and global priorities. Remember, every [investment](https://buyproperly.ai/blog/investing-for-a-better-future-the-rise-of-esg-investing-clzbc9th70009b8i16awmnmgf) is a vote for the kind of world you want to live in – make yours count. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing with Impact: Opportunities for Positive Change and Goals Author: Lavanyaa Devarajan Published: 2024-08-01 Category: Insights Tags: Ethical Investing, Impact Investing, Sustainable Development, Socially Responsible Investing, Renewable Energy Investment URL: https://buyproperly.ai/blog/investing-with-impact-opportunities-for-positive-change-and-goals In recent years, a new investment paradigm has emerged that allows individuals to align their financial goals with their personal values impact investing. This approach seeks to generate positive social and environmental outcomes alongside financial returns, creating a win-win situation for investors and society at large. As the impact investing market matures, it's becoming increasingly accessible to a broader range of investors. From green bonds to socially responsible mutual funds, options are expanding for those seeking to make a difference with their investments. **Understanding Impact Investing** ---------------------------------- Impact investing goes beyond traditional philanthropy by integrating sustainable development goals into investment decisions. It’s about actively seeking positive impacts .Renewable Energy is Investing in clean energy projects that combat climate change and reduce our reliance on fossil fuels. Healthcare is Supporting companies that improve access to quality healthcare, especially in underserved communities. Education is Backing initiatives that enhance educational opportunities and promote lifelong learning. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/impact-investing-1-1722536551670-compressed.jpg) ​**Aligning Values and Goals** ------------------------------ One of the most compelling aspects of impact investing is its alignment with personal values and financial objectives. Investors can support causes they are passionate about, such as environmental sustainability or social equity, while still pursuing their financial goals. This dual focus enables investors to contribute to meaningful societal change without compromising on potential returns. Impact investing provides a way to leverage financial resources for the greater good, aligning investment portfolios with ethical considerations and long-term financial strategies. ### Key Features of Impact Investing * **Dual Objectives**: Impact investments aim to achieve both financial returns and positive social or environmental outcomes. Investors are not just concerned with what profits a venture can generate, but also how it benefits the planet and its people. * **Measurement of Impact**: Unlike traditional investments, impact investing requires the measurement and reporting of both financial performance and social/environmental results. This transparency ensures accountability and the genuine pursuit of dual objectives. * **Diverse Sectors and Geographies**: Impact investments can be made in a variety of sectors such as renewable energy, sustainable agriculture, healthcare, education, microfinance, and affordable housing. These investments are global, spanning both developed and developing countries. * **Range of Asset Classes**: Impact investing can occur across all asset classes, including but not limited to venture capital, private equity, debt, and fixed income. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/impact-investing-2-1722537028340-compressed.jpg) Opportunities for Impact Investing in Various Sectors Renewable energy is a prominent sector for impact investing, offering opportunities to support the transition to a low-carbon economy. Investments in wind, solar, and other clean energy projects not only provide competitive returns but also contribute to the fight against climate change. In healthcare, impact investments can fund innovative solutions to global health challenges, improving access to essential services and developing new treatments. Education is another key area, where investments can enhance access to quality education and lifelong learning opportunities, particularly in underserved communities. Impact investing isn’t just about profits; it’s about making a lasting impact. As more investors embrace this approach, we can collectively drive positive change and build a better world for generations to come Remember, your [investments](https://buyproperly.ai/blog/alternative-investments-new-ways-to-grow-your-wealth) have the power to shape the future. Choose wisely, and let your capital be a force for good! **Explore Our Latest Deal: [Theia Affordable Housing Fund IV](https://app.buyproperly.ca/investment-property/view/theia_affordable_house) ** ---------------------------------------------------------------------------------------------------------------------------------------------- [Explore Now](https://app.buyproperly.ca/investment-property/view/theia_affordable_house) ​ In addition to the myriad opportunities impact investing offers, we're excited to present our latest deal: Theia Affordable Housing Fund IV. This fund targets existing multi-residential buildings in the Ottawa-Gatineau region, an area with low vacancy rates and high population growth. Theia Partners, with a proven track record in the affordable housing space, aims to preserve long-term affordability through CMHC financing and sustainability improvements, offering strong returns with a target IRR of 10%. Key highlights of the fund include: * **Proven Track Record:** Successfully launched three affordable housing funds, totaling 260 units. * **Market Opportunity:** Focused on multi-residential buildings in a high-demand area. * **Affordability and Sustainability:** Aiming to preserve long-term affordability and implement sustainability improvements. * **Investment Potential:** Strong returns through off-market acquisitions and ethical landlord practices. Learn more about Theia Affordable Housing Fund IV on our website and discover how you can invest with impact today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing for a Better Future: The Rise of ESG Investing Author: Lavanyaa Devarajan Published: 2024-08-01 Category: Insights Tags: ESG Investing, Sustainable Investing, Ethical Investing, Investor Awareness, ESG Metrics URL: https://buyproperly.ai/blog/investing-for-a-better-future-the-rise-of-esg-investing-clzbc9th70009b8i16awmnmgf In recent years, a new investment approach has gained significant traction in the financial world: ESG investing. For Environmental, Social, and Governance, ESG investing represents a paradigm shift in evaluating companies and making investment decisions. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/featured-image-esg-1722522546443-compressed.jpeg) ESG investing goes beyond traditional financial metrics, considering a company's impact on the environment, its social responsibility, and its governance practices. This approach recognizes that long-term value creation is intrinsically linked to sustainable and ethical business practices. ​**Drivers of ESG Investing** ----------------------------- ### **Investor Awareness** People are increasingly aware that their investments reflect not only financial performance but also company values. Secondly, mounting evidence suggests that companies with strong ESG practices often outperform their peers in the long run, offering better risk-adjusted returns. ### ​**Societal Awareness** Growing concern about environmental issues, social justice, and ethical business practices drives demand for responsible investing. Increasing awareness of climate change and social inequalities has led investors to seek ways to align their portfolios with their values. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/esg-2-1722522573486-compressed.jpg) The rise of ESG investing ------------------------- The rise of ESG investing can be attributed to several factors. First, the increasing recognition of the urgent need to address environmental and social challenges has pushed responsible investing into the mainstream. Climate change, resource scarcity, and social inequality are no longer seen as distant issues but as immediate threats that require collective action. Second, regulatory and policy changes have played a crucial role in promoting ESG investing. Governments and regulatory bodies around the world are implementing measures to encourage greater transparency and disclosure of ESG information. This has led to the development of standardized reporting frameworks, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), making it easier for investors to assess companies’ ESG performance. Third, the increasing availability of ESG data and research has facilitated the integration of ESG factors into investment decision-making. As more companies disclose their ESG performance and third-party providers offer comprehensive ESG ratings and analysis, investors have access to more reliable and comparable information. This has not only improved the ability to assess companies’ sustainability credentials but also enabled the development of ESG-focused investment strategies. While challenges remain, such as standardizing ESG metrics and preventing "greenwashing," the trend towards ESG investing shows no signs of slowing. As investors increasingly recognize the importance of sustainability and ethical practices, ESG investing is poised to play a crucial role in shaping a better future for all. Hear are [The Top 50 Investment Books for Success](https://buyproperly.ai/blog/the-top-50-real-estate-investment-books). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Bank of Canada’s Interest Rate Cuts: Impact on Investors Author: Abdellah Elboudali Published: 2024-07-23 Category: Insights Tags: inflation, BankRates, FinancialAnalysis URL: https://buyproperly.ai/blog/bank-of-canada-interest-rate-cuts-impact-on-investors Bank of Canada’s Interest Rate Cuts and What It Means for Investors ------------------------------------------------------------------- The recent decision by the Bank of Canada to reduce the key interest rate by 25 basis points to 4.5% is significant for real estate investors. This rate cut aims to stimulate economic activity by making borrowing cheaper, which can lead to increased investment opportunities in residential housing developments, real estate investment trusts (REITs), and real estate crowdfunding platforms. At [BuyProperly.ai](http://buyproperly.ai), this reduction can enhance the attractiveness of fractional ownership investments, allowing investors to benefit from lower financing costs and potentially higher returns on their property investments. Why Does the Bank of Canada Adjust Rates? ----------------------------------------- There are many factors that affect interest rates in Canada such as inflation, consumer spending, economic trends, employment levels and economic growth. These current economic conditions are what Bank of Canada uses to determine whether to increase, decrease or leave interest rates unchanged. ### Inflation  Interest rates were notably low during the COVID-19 pandemic to support economic recovery, but they have skyrocketed over the past two years due to rising inflation. Inflation during the COVID-19 pandemic was caused by a combination of factors, including supply chain disruptions, increased government spending, and shifts in consumer demand. Supply chain issues led to shortages of goods, driving up prices. Governments around the world injected significant amounts of money into their economies through stimulus packages to support individuals and businesses, increasing the money supply. Additionally, changes in consumer behavior, such as a surge in demand for certain products and services, further strained supply chains and contributed to price increases. These factors combined to create an inflationary environment as economies began to recover from the pandemic's initial impact. With covid now under control, inflation has decreased significantly as supply chains have stabilized, consumer demand has normalized, and monetary policies have been adjusted to curb rising prices. Analyst now expect rate cuts to reflect the decrease in inflation since its peak of 8.1% in June 2022. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot-2024-07-25-at-14-1721914027651-compressed.png) ### Economic Growth & Consumer Spending Economic growth and consumer spending had slowed during the pandemic and although consumer spending is slowly getting back to pre-pandemic levels, our economic growth has not. This slow growth is another driving factor that can create rate cuts in order to stimulate the economy. ### Employment Although the unemployment rate has steadily been decreasing since its peak in 2020, it rose to 6.4% in June 2024 and has been trending up since April 2023, rising 1.3% during that period. Higher unemployment rates lead to rate cuts. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot-2024-07-25-at-14-1721914075713-compressed.png) How Changes in Interest Rates Affect Real Estate Investments at BuyProperly.ca Interest rate fluctuations have a direct impact on real estate investments, including those accessible through BuyProperly.ca. Here’s how these changes affect various investment opportunities such as residential housing developments, real estate investment trusts (REITs), and real estate crowdfunding platforms through fractional ownership: 1. **Residential Housing Developments** * Higher Interest Rates: When interest rates rise, borrowing costs for developers increase. This can lead to higher costs for project financing, potentially reducing profit margins. As a result, there might be slower development activities and fewer new projects. * Lower Interest Rates: Conversely, lower interest rates reduce borrowing costs, making it cheaper to finance new developments. This can spur more construction activity, leading to more investment opportunities and potentially higher returns for investors. 3. **Real Estate Investment Trusts (REITs)** * Higher Interest Rates: REITs often rely on borrowing to finance their property acquisitions. Higher interest rates increase their financing costs, which can reduce profitability and impact dividend payouts to investors. Additionally, higher rates might lower property values as borrowing becomes more expensive, affecting the REIT’s overall valuation. * Lower Interest Rates: Lower rates decrease the cost of borrowing, potentially enhancing the profitability of REITs. This can lead to higher dividends and potentially higher REIT valuations, making them more attractive to investors. 5. **Real Estate Crowdfunding Platforms** * Higher Interest Rates: Investors in crowdfunding platforms might face higher returns on other fixed-income investments, making real estate less attractive in comparison. Additionally, higher rates can increase the cost of financing projects listed on the platform, potentially reducing returns. * Lower Interest Rates: When rates are low, real estate becomes more attractive compared to other fixed-income investments. This can increase investor interest and participation in crowdfunding platforms, leading to more successful funding of projects and potentially higher returns for investors. 7. **Fractional Ownership** * Higher Interest Rates: The cost of financing fractional ownership shares increases with higher interest rates, which can lower the appeal of these investments. Investors might see lower returns due to increased expenses associated with higher borrowing costs. * Lower Interest Rates: Fractional ownership becomes more appealing as financing costs decrease, making it easier and more affordable for investors to acquire shares. This can lead to increased investment activity and higher potential returns. Overall, changes in interest rates play a crucial role in shaping the landscape of real estate investments. At BuyProperly.ca, understanding these impacts helps investors make informed decisions, balancing the cost of borrowing with potential returns to optimize their investment strategies. ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating Investments in Canada's Dynamic and Evolving Economic Landscapes Author: Abdellah Elboudali Published: 2024-06-24 Tags: BuyProperlyLimited , Risk Management, Sector Rotation, Economic Outlook, Market Analysis URL: https://buyproperly.ai/blog/navigating-investments-in-canadas-dynamic-and-evolving-economic-landscapes-clxt1lbbf002u501pptngjhnz ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/sb13-feature-cropped-1719237705105-compressed.png) In today's rapidly evolving economic environment, understanding the nuanced impact of economic conditions on investment strategies is crucial for achieving sustainable financial growth. At BuyProperly, we recognize the pivotal role of informed decision-making in navigating Canada's economic landscapes. This article delves into current economic conditions, explores the profound influence of economic indicators on investment decisions, and outlines adaptive strategies for optimizing investment portfolios. **Overview of Current Economic Conditions** ------------------------------------------- Canada's economic outlook in \[current year\] is characterized by \[brief overview of economic factors impacting Canada, e.g., recovery from pandemic impacts, inflationary pressures, etc.\]. The resilience of key economic indicators such as GDP growth, employment rates, inflation levels, and interest rates significantly shapes the investment climate. **How Economic Indicators Impact Investment Decisions** ------------------------------------------------------- 1. **GDP Growth:** Robust GDP growth typically fosters investor confidence, driving positive sentiment across equity markets and stimulating business investment. 2. **Employment Rates:** Low unemployment rates indicate a robust labor market, bolstering consumer spending and benefiting sectors sensitive to discretionary income. 3. **Inflation and Interest Rates:** Rising inflation prompts central banks to adjust interest rates, influencing borrowing costs and impacting sectors reliant on credit. 4. **Global Trade Dynamics:** Trade policies and global economic relations influence export-oriented industries, affecting sectors dependent on international markets. **Strategies for Adjusting Investment Strategies Based on Economic Outlook** ---------------------------------------------------------------------------- 1. **Diversification:** Allocate investments across diverse asset classes (equities, bonds, real estate) to mitigate risk exposure and capitalize on varied market conditions. 2. **Sectoral Rotation:** Adjust portfolio allocations based on economic cycles; defensive sectors during economic downturns and growth sectors during expansionary phases. 3. **Risk Management:** Employ rigorous risk assessment frameworks to monitor economic indicators, optimize portfolio performance, and safeguard against volatility. 4. **Long-Term Investment Horizon:** Maintain a steadfast long-term investment approach amidst short-term economic fluctuations, focusing on sustainable growth and wealth accumulation. ### **Market Analysis and Strategic Insights** Investors can gain strategic advantages through: * **Comprehensive Market Research:** Conducting thorough analyses to identify emerging market trends, consumer behaviors, and competitive landscapes. * **SWOT Analysis:** Evaluating strengths, weaknesses, opportunities, and threats to formulate informed investment strategies aligned with market dynamics. * **Demand Forecasting:** Anticipating future market demands and growth trajectories to capitalize on evolving investment opportunities and maximize returns. **Conclusion** -------------- Navigating Canada's evolving economic landscapes demands proactive engagement and astute investment strategies. By comprehensively understanding economic indicators, adapting investment approaches, and leveraging strategic insights, investors can proactively position themselves to achieve sustainable financial objectives amidst dynamic economic conditions. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Choosing Between Large Investment Groups and REITs for Real Estate Investment Author: Abdellah Elboudali Published: 2024-06-24 Tags: Diversified Portfolio, REITs, Investment strategies compared, Real Estate Investment Trusts, Large Investment Groups URL: https://buyproperly.ai/blog/choosing-between-large-investment-groups-and-reits-for-real-estate-investment-clxt1exnm002t501prm7ylqrf ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/r-4-1719237337558-compressed.jpeg) Investing in real estate offers numerous avenues for both individual and institutional investors alike. Two popular options include large investment groups and Real Estate Investment Trusts (REITs), each presenting unique advantages and considerations. At BuyProperly, we understand the importance of clarity in investment choices. This article provides a comprehensive comparison between large investment groups and REITs, highlighting their respective benefits, drawbacks, and key factors to consider when deciding which option aligns best with your investment goals. **Comparison of Large Investment Groups and REITs for Real Estate Investment** ------------------------------------------------------------------------------ **Overview:** Large Investment Groups typically involve pooled funds managed by professional investment managers or firms, targeting various real estate projects or portfolios. On the other hand, REITs are publicly traded entities that own and manage income-producing real estate assets, offering investors an opportunity to participate in real estate markets without direct ownership. ### **Pros and Cons of Investing Through Large Investment Groups:** **Pros:** * **Diversification:** Large investment groups often invest across multiple properties or projects, spreading risk more broadly than individual investments. * **Professional Management:** Experienced teams handle property selection, acquisition, and management, potentially maximizing returns through expertise. * **Access to Institutional Deals:** Can access larger-scale projects that may not be feasible for individual investors due to capital requirements. **Cons:** * **Higher Fees:** Management fees and performance-based compensation structures can reduce overall returns. * **Less Control:** Limited control over specific property decisions and timing of exits compared to direct ownership. ### **Pros and Cons of Investing Through REITs:** **Pros:** * **Liquidity:** REIT shares are traded on major stock exchanges, offering liquidity and ease of entry and exit for investors. * **Dividend Income:** REITs are required to distribute a significant portion of their income as dividends, providing consistent income streams. * **Diversification:** Exposure to a diversified portfolio of real estate assets across different sectors and geographic locations. **Cons:** * **Market Volatility:** Share prices can fluctuate with market conditions and interest rate changes, impacting investor returns. * **Potential for Dilution:** Additional share issuances or capital raises can dilute existing shareholders' ownership stakes. **Factors to Consider When Deciding Between the Two Investment Options:** ------------------------------------------------------------------------- 1. **Investment Objectives:** Determine whether your primary goal is income generation, capital appreciation, or a balanced approach. 2. **Risk Tolerance:** Assess your comfort level with risk and volatility associated with each investment option. 3. **Liquidity Needs:** Consider how quickly you may need to access your investment capital and the liquidity offered by each option. 4. **Management Preference:** Evaluate whether you prefer hands-on involvement in property decisions or prefer to delegate management to professionals. **Conclusion** -------------- Both large investment groups and REITs offer viable pathways for investing in real estate, each catering to different investor preferences and objectives. By weighing the pros and cons and considering your individual investment goals and risk tolerance, you can make informed decisions that align with your financial strategy. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding REITs: Investing in Real Estate Investment Trusts Author: Abdellah Elboudali Published: 2024-06-24 Tags: Diversified Portfolio, REITs, real estate investing books, Real Estate Investment Trusts, Income Generation URL: https://buyproperly.ai/blog/understanding-reits-investing-in-real-estate-investment-trusts-clxt185gq002s501px9msrqd1 ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/r-3-1719237095195-compressed.jpeg) Real Estate Investment Trusts (REITs) represent a unique opportunity for investors to participate in the real estate market without direct ownership of properties. At BuyProperly, we recognize the strategic role REITs play in diversifying investment portfolios and generating stable income. This article provides an in-depth exploration of REITs, covering their operational mechanics, prominent examples globally, how to invest in them, and their benefits in a diversified investment strategy. **Overview of REITs and How They Work** --------------------------------------- REITs are investment vehicles that own, operate, or finance income-producing real estate across various sectors. They provide investors with a way to invest in real estate assets without directly owning them. By law, REITs must distribute a significant portion of their income (usually 90% or more) to shareholders as dividends, making them attractive for income-seeking investors. ### **List of the World's Largest REITs by Market Capitalization** 1. **Simon Property Group (NYSE: SPG)** - Known for its extensive portfolio of shopping malls and retail properties. 2. **Prologis, Inc. (NYSE: PLD)** - Specializes in industrial real estate and logistics facilities worldwide. 3. **Equity Residential (NYSE: EQR)** - Focuses on residential properties, including apartments and rental communities. These REITs exemplify the diversity within the sector, catering to different real estate segments and investor preferences globally. **How to Invest in REITs** -------------------------- Investing in REITs is accessible through several avenues: * **Direct Purchase:** Investors can buy shares of publicly traded REITs listed on major stock exchanges like NYSE and NASDAQ. * **REIT Mutual Funds or ETFs:** These funds pool investments from multiple investors to invest in a diversified portfolio of REITs, offering broader exposure and reduced risk. * **Private REITs:** Some REITs are not publicly traded but may be available through private offerings, providing potential for higher returns and different risk profiles. **Benefits of Including REITs in a Diversified Investment Portfolio** --------------------------------------------------------------------- 1. **Income Generation:** REITs are required to distribute most of their taxable income to shareholders as dividends, offering attractive and regular income streams. 2. **Portfolio Diversification:** REITs provide exposure to real estate assets across sectors such as residential, commercial, retail, and industrial, diversifying risk compared to traditional stocks and bonds. 3. **Liquidity and Accessibility:** Publicly traded REITs offer liquidity similar to stocks, allowing investors to buy and sell shares easily on major exchanges. 4. **Potential for Capital Appreciation:** In addition to dividends, REITs can appreciate in value over time as property values increase and rental income grows. **Conclusion** Real Estate Investment Trusts (REITs) present investors with a compelling opportunity to participate in the real estate market while benefiting from income generation and portfolio diversification. Whether through direct purchase or funds, integrating REITs into a diversified investment strategy can enhance income stability and long-term growth potential. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Real Estate Investment Compares to Other Forms of Investment Author: Abdellah Elboudali Published: 2024-06-24 Tags: Alternative Investments, Passive Real Estate Investment, Stocks vs Real Estate, Bonds vs Real Estate, Investment Diversification URL: https://buyproperly.ai/blog/how-real-estate-investment-compares-to-other-forms-of-investment-clxt0mv8i002q501peliqn988 ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/what-are-the-best-types-of-real-estate-investments-585x390-1719236676403-compressed.webp) Investing wisely requires a deep understanding of different asset classes and their respective benefits and risks. Real estate investment, alongside stocks, bonds, and alternative investments, plays a pivotal role in diversifying portfolios and achieving long-term financial goals. At BuyProperly, we aim to empower investors with a detailed comparison of real estate investment against other asset classes, providing insights into its unique advantages and considerations. **Introduction** ---------------- Investors navigate a complex landscape of investment options, each offering distinct opportunities and challenges. Real estate investment stands out for its tangible nature, income potential, and ability to hedge against inflation. Comparing it with stocks, bonds, and alternative investments reveals the nuances that influence investment decisions and portfolio strategies. **Comparison of Real Estate Investment with Stocks, Bonds, and Other Options** ------------------------------------------------------------------------------ 1. **Historical Performance and Returns:** Real estate has historically delivered competitive returns, often outperforming inflation and providing steady income through rental yields and property appreciation. Stocks, on the other hand, are known for their higher volatility but potential for significant capital gains over the long term. Bonds offer fixed income with lower risk and moderate returns relative to stocks and real estate. 2. **Risk and Volatility:** Real estate investments tend to be less volatile compared to stocks, which can experience rapid price fluctuations based on market sentiment and economic conditions. Bonds generally offer lower volatility but can be susceptible to interest rate changes. Alternative investments, such as commodities and private equity, vary widely in risk depending on the specific asset class. 3. **Liquidity:** Liquidity refers to how quickly an asset can be converted into cash without significant price discounting. Stocks and bonds are highly liquid, traded on public exchanges, where investors can buy or sell shares daily. Real estate, however, is less liquid and typically involves longer holding periods and transaction costs when selling properties. Alternative investments may vary in liquidity depending on their structure and market demand. 4. **Income Generation:** Real estate investments provide consistent income streams through rental payments and dividends from Real Estate Investment Trusts (REITs). This income component offers stability and can be particularly attractive for income-oriented investors. Stocks also offer dividends, but these can fluctuate based on company performance and market conditions. Bonds provide fixed interest payments, making them a reliable source of income. **Pros and Cons of Investing in Real Estate** --------------------------------------------- ### **Pros:** * **Tangible Asset:** Real estate offers physical ownership and can be leveraged to generate additional income through rental properties or development. * **Inflation Hedge:** Real estate often retains or increases its value during inflationary periods, providing a natural hedge against rising prices. * **Diversification:** Adds diversification to an investment portfolio traditionally dominated by stocks and bonds, reducing overall risk exposure. ### **Cons:** * **Illiquidity:** Real estate investments can be less liquid compared to stocks and bonds, potentially limiting access to cash during emergencies. * **Management Responsibilities:** Direct real estate ownership requires active management, including property maintenance, tenant relations, and regulatory compliance. * **Market Sensitivity:** Vulnerable to economic downturns and local market conditions, which can impact property values and rental income. **Factors to Consider When Choosing Between Real Estate and Other Investments** ------------------------------------------------------------------------------- 1. **Investment Goals and Time Horizon:** Define your financial objectives, whether they involve income generation, capital appreciation, or a balanced approach. Real estate's long-term growth potential and income stability may align well with retirement planning or wealth preservation goals. 2. **Risk Tolerance:** Assess your risk tolerance and comfort with volatility. Real estate's lower volatility and potential for steady income may appeal to conservative investors seeking stability in their portfolios. 3. **Market Conditions:** Evaluate current economic conditions and market trends. Real estate markets can vary significantly by region and property type, requiring thorough market research and due diligence to mitigate investment risks. 4. **Tax Implications:** Consider the tax advantages and implications of each investment type. Real estate offers tax benefits such as depreciation deductions and capital gains treatment, which can enhance overall investment returns. **Conclusion** -------------- Real estate investment offers distinct advantages and considerations that differentiate it from stocks, bonds, and alternative investments. By understanding these differences and aligning them with your investment goals and risk tolerance, you can build a diversified portfolio that withstands market fluctuations and achieves long-term financial success. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Real estate investment made easy - Start today Author: Lavanyaa Devarajan Published: 2024-06-15 Tags: RealEstateROI, InvestingStrategies , BuyProperly Investments, RealEstateTips, realestate URL: https://buyproperly.ai/blog/real-estate-investment-made-easy-start-today-clxfoht4l000jm2xy89gdy3q2 Investing in real estate is one of the most effective ways to build wealth and achieve financial independence. Whether you're a seasoned investor or a beginner, getting started in real estate investment can be simpler than you think. Here’s how you can begin your journey into real estate investment today ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/b1-1718434568459-compressed.jpg) **Under**​**stand the Basics** --------------------------------- Before diving into real estate, it’s important to understand the basics. Real estate investment involves purchasing property to generate income, either through rental income or appreciation in property value. Familiarize yourself with key terms and concepts such as cash flow, ROI (Return on Investment), cap rate, and equity. ### Setting Investment Goals Setting clear investment goals is essential for success in real estate investment. Whether the goal is to generate passive income through rental properties, flip properties for quick profits, or build long-term wealth through property appreciation, having a clear plan and strategy is crucial. Check out How to Efficiently Plan Your Monthly Savings [here](https://buyproperly.ai/blog/how-to-plan-your-monthly-savings). Goals can help in determining the type of properties to invest in, the financing options to consider, and the exit strategy for each investment. Research and Educate Yourself ----------------------------- If you’re new to real estate investing, start with a smaller property to gain experience and confidence. As you become more comfortable and knowledgeable, you can scale up to larger or multiple properties. Investing in real estate requires a solid understanding of the market, local laws, and regulations. Start by researching the local real estate market, including trends, prices, and potential for growth. Additionally, educate yourself on the different types of real estate investments, such as rental properties, fix-and-flip projects, and real estate investment trusts (REITs). Real estate investing requires a significant upfront investment. Determine how much you can afford to invest and set a budget for yourself. Consider factors such as down payment, closing costs, and ongoing expenses like property taxes and insurance. ### Choose the Right Property Once you have set your budget and goals, it is time to choose the right property. Consider factors such as location, property type, and potential for rental income. You can also work with a real estate agent or property manager to help you find the right property. ### Long-Term Perspective Real estate investment is a long-term game, and it is important to have a long-term perspective. Property values may fluctuate in the short term, but historically, real estate has shown consistent appreciation over the long term. Long-term perspective also involves understanding the tax implications of real estate investment and leveraging tax benefits to maximize returns. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/b2-1718434706589-compressed.jpg) Start Today The key to making real estate investment easy is to take the first step. With a plethora of resources, educational materials, and investment platforms available today, getting started in real estate investment has never been more accessible. From online real estate investment platforms to real estate investment courses and forums, there are numerous ways to gain knowledge, network with professionals, and take the first steps towards building a real estate investment portfolio. Explore different financing options to fund your investment. Traditional mortgages, private loans, and partnerships are common ways to finance real estate investments. Ensure you have a good credit score and adequate funds for a down payment and closing costs. 1. Research and compare financing options. 2. Prepare necessary documentation and improve your credit score. 3. Consult with lenders to understand terms and conditions. ### Create a Budget Assess your financial situation and create a budget for your investment. Determine how much you can afford to invest upfront and consider additional costs such as property taxes, insurance, maintenance, and management fees. Calculate your available capital for investment. Factor in ongoing expenses and potential repairs. Plan for contingencies and unexpected costs. Real estate investing requires a significant upfront investment. Determine how much you can afford to invest and set a budget for yourself. Consider factors such as down payment, closing costs, and ongoing expenses like property taxes and insurance. In conclusion, real estate investment can indeed be made easy with the right knowledge, strategy, and resources. By understanding the market, setting clear goals, exploring financing options, diversifying the portfolio, focusing on effective property management, maintaining a long-term perspective, conducting thorough research, and taking action, anyone can start their journey in real estate investment today. With the potential for great returns and wealth-building opportunities, real estate investment is a compelling option for investors seeking to grow their wealth and secure their financial future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking the Potential of Private Credit for Investors Author: Abdellah Elboudali Published: 2024-06-13 Tags: Alternative Investments, PortfolioDiversification, Investment strategies compared, Private Credit, Income Generation URL: https://buyproperly.ai/blog/unlocking-the-potential-of-private-credit-for-investors ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/private-credit-inside-1718289096347-compressed.jpg) Private Credit: Unlocking Opportunities ------------------------------------------ Private credit, a burgeoning asset class, has garnered significant attention from investors seeking higher returns and diversification. As traditional fixed-income investments offer relatively modest yields, private credit provides an alternative with the potential for more substantial returns. This investment avenue encompasses loans and debt instruments that are not issued or traded on public markets, offering a range of benefits that make it an attractive addition to an investor's portfolio. This article delves into the advantages of investing in private credit, highlighting its potential for higher returns, diversification benefits, lower volatility, and opportunities for income generation. ### Potential for Higher Returns One of the primary attractions of private credit is its potential to deliver higher returns compared to traditional fixed-income investments. In the current low-interest-rate environment, bonds and other fixed-income securities often yield returns that barely outpace inflation. Private credit, however, typically offers higher interest rates due to the increased risk associated with lending to smaller, less established companies or distressed entities. Private credit lenders can command a premium for their capital, given the lack of liquidity and the bespoke nature of the loans. These investments are often structured with higher interest rates, performance fees, and other financial covenants that enhance returns. For instance, private credit funds have reported returns in the range of 8% to 12% per annum, significantly outpacing the yields from corporate bonds or government securities. ### Diversification Benefits Diversification is a cornerstone of a robust investment strategy, and private credit provides unique opportunities to enhance portfolio diversification. Traditional portfolios heavily weighted in equities and publicly traded bonds may suffer from market correlations that expose them to broader economic cycles and systemic risks. In contrast, private credit investments are typically less correlated with public markets. By incorporating private credit into a diversified portfolio, investors can reduce overall portfolio risk. These investments often exhibit different performance characteristics than public equities and bonds, primarily because their value is driven by the underlying borrower's ability to repay the loan rather than market sentiment. This non-correlation with public markets can provide a buffer during periods of market volatility, helping to stabilize returns. ### Lower Volatility Compared to Public Markets Private credit investments generally experience lower volatility than publicly traded securities. The private nature of these loans means they are not subject to the daily price fluctuations that affect publicly traded assets. This relative stability can be particularly appealing during periods of heightened market volatility, when public equity and bond markets can experience significant swings. Furthermore, private credit investments often come with strong covenants and collateral, providing an additional layer of security. These protective measures can mitigate the risk of default and loss, contributing to the lower volatility of private credit portfolios. For example, direct lending, a subset of private credit, involves making loans directly to mid-sized companies, often secured by the company's assets. This collateralization helps protect investors' capital and reduces the likelihood of significant losses. ### Opportunities for Income Generation Private credit investments are structured to generate regular income, making them an attractive option for income-focused investors. Unlike equities, which may provide income primarily through dividends, private credit investments generate income through interest payments. These payments are often made monthly or quarterly, providing a steady stream of income that can be particularly valuable for retirees or other investors seeking regular cash flow. Moreover, private credit can fill the gap left by traditional banks, which have scaled back lending to smaller companies due to stringent regulatory requirements. This has created opportunities for private lenders to step in and provide much-needed capital to these businesses, often at attractive interest rates. The illiquidity premium associated with private credit further enhances the income potential, as investors are compensated for the reduced liquidity of these investments. ### Enhanced Risk-Adjusted Returns The combination of higher returns, lower volatility, and diversification benefits contributes to superior risk-adjusted returns for private credit investors. When adjusted for risk, the returns from private credit often exceed those of traditional fixed-income investments and even some equity investments. This makes private credit a compelling option for investors looking to maximize returns while managing risk effectively. Risk-adjusted return is a critical metric for assessing the attractiveness of an investment, as it considers both the return and the risk involved. Private credit's ability to deliver strong returns with relatively low volatility enhances its appeal. For example, during the financial crisis of 2008-2009, many private credit funds managed to maintain positive returns, highlighting their resilience and ability to weather economic downturns. ### Access to Unique Investment Opportunities Investing in private credit also provides access to unique investment opportunities that are not available in the public markets. This includes direct lending to mid-sized companies, distressed debt investments, and special situations financing. These opportunities allow investors to participate in financing critical to the growth and restructuring of companies, often resulting in attractive returns. Direct lending, for instance, involves providing loans directly to businesses, bypassing traditional financial intermediaries. This can result in more favorable loan terms and higher yields for investors. Distressed debt investing involves purchasing the debt of companies experiencing financial difficulties, with the potential for significant returns if the company successfully restructures and recovers. Special situations financing includes providing capital for specific corporate events, such as mergers, acquisitions, or recapitalizations, which can offer lucrative returns. ### Conclusion Private credit has emerged as a dynamic and attractive asset class, offering numerous advantages for investors. Its potential for higher returns, diversification benefits, lower volatility, and income generation opportunities make it a valuable addition to a well-rounded investment portfolio. As traditional fixed-income investments continue to offer modest yields, private credit stands out as a compelling alternative for investors seeking to enhance returns and manage risk effectively. With its unique characteristics and resilience in varying market conditions, private credit is poised to remain a significant component of modern investment strategies. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Edmonton: Prime Destination for Real Estate Investment in Alberta Author: Abdellah Elboudali Published: 2024-06-12 Tags: Passive Real Estate Investment, Edmonton Real Estate, Alberta Property Market, Investment Opportunities, Urban Development URL: https://buyproperly.ai/blog/edmonton-prime-destination-for-real-estate-investment-in-alberta-clxbxamcz0001bt1x5gdfeqey ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/edmonton-1718213478683-compressed.jpeg) Edmonton: Top Place in Alberta for Real Estate Investment --------------------------------------------------------- ### **Exploring Real Estate Investment Opportunities in Edmonton** Edmonton, the vibrant capital city of Alberta, Canada, is rapidly emerging as a prime destination for real estate investors. Its robust economy, strategic location, and flourishing cultural scene make it an attractive hub for both residential and commercial real estate investments. In this comprehensive guide, we delve into the factors that drive Edmonton's real estate market, highlight investment opportunities, and provide insights for investors looking to capitalize on this dynamic city. ### Overview of Edmonton's Real Estate Market Edmonton's real estate market showcases a blend of stability, growth potential, and affordability, making it an appealing choice for investors. The city's diversified economy, anchored by industries such as oil and gas, technology, healthcare, and education, contributes to its resilience and attractiveness to investors. Here are some key highlights of Edmonton's real estate market: **1\. Stable Property Values:** Edmonton has historically experienced steady growth in property values, offering investors a reliable market for long-term investments. **2\. Strong Rental Demand:** The city's growing population, driven by immigration and a thriving job market, fuels a high demand for rental properties, ensuring a consistent income stream for investors. **3\. Affordable Prices:** Compared to other major Canadian cities like Toronto and Vancouver, Edmonton offers relatively affordable real estate prices, making it an accessible market for investors seeking entry into real estate investment. **4\. Economic Diversification:** Edmonton's economy has diversified beyond its traditional reliance on the oil and gas sector. The city's flourishing technology, education, and healthcare industries contribute to its economic stability and growth. **5\. Quality of Life:** Edmonton boasts a high quality of life, with a range of recreational amenities, cultural attractions, and green spaces. This appealing lifestyle factor attracts residents and supports real estate demand. ### Factors Driving Real Estate Investment in Edmonton Several key factors contribute to Edmonton's attractiveness as a real estate investment destination: **1\. Economic Growth and Stability:** Edmonton's diverse economy, including sectors like healthcare, education, and technology, provides a stable foundation for real estate investment. The city's economic resilience and growth potential attract investors seeking long-term stability. **2\. Population Growth:** Edmonton's population continues to grow steadily, driven by factors such as immigration, job opportunities, and a favorable quality of life. This population growth translates into increased demand for housing and commercial properties, driving property values and rental rates upward. **3\. Infrastructure Development:** Ongoing infrastructure projects, such as transportation improvements and urban redevelopment initiatives, enhance Edmonton's appeal to residents and investors. Projects like the Valley Line LRT expansion and downtown revitalization efforts contribute to increased property values and investment opportunities. **4\. Educational Institutions:** Edmonton is home to prestigious educational institutions like the University of Alberta and NorQuest College. These institutions attract students, faculty, and researchers, creating a demand for student housing and investment properties in nearby neighborhoods. **5\. Cultural and Recreational Amenities:** The city's vibrant arts scene, festivals, recreational facilities, and outdoor spaces contribute to its livability and attractiveness to residents and visitors alike. Areas with proximity to these amenities often experience heightened real estate demand and investment potential. ### Investment Opportunities in Residential Real Estate **1\. Single-Family Homes:** Edmonton offers a range of single-family homes in diverse neighborhoods, appealing to families, professionals, and investors. Areas like Windermere, Summerside, and Glenora are popular choices for their amenities, schools, and community atmosphere. **2\. Condominiums and Apartments:** The city's downtown core and surrounding areas feature condominiums and apartments catering to urban dwellers and professionals. Investment opportunities exist in both resale units and new developments, with rental demand supporting consistent returns. **3\. Multifamily Properties:** Investors can explore opportunities in multifamily properties such as duplexes, triplexes, and apartment buildings. These properties offer scalability and potential for increased rental income, particularly in areas with strong rental demand and population growth. **4\. Student Housing:** With a significant student population attending institutions like the University of Alberta, investing in student housing can be a lucrative opportunity. Properties near campus or in student-friendly neighborhoods attract tenants seeking proximity to educational facilities. ### Investment Opportunities in Commercial Real Estate **1\. Office Spaces:** Edmonton's business districts and downtown core offer investment opportunities in office spaces. With the city's economic growth and corporate presence, demand for office accommodations remains robust, especially in areas with accessibility and amenities. **2\. Retail Properties:** Retail spaces in high-traffic areas, shopping districts, and commercial centers present opportunities for investors. Edmonton's growing population and consumer spending support a vibrant retail sector, making retail properties attractive for investment. **3\. Industrial and Logistics Properties:** The city's strategic location as a transportation hub makes it ideal for industrial real estate investments. Warehouses, distribution centers, and logistics facilities in key locations benefit from Edmonton's connectivity and logistics infrastructure. **4\. Mixed-Use Developments:** Mixed-use developments combining residential, commercial, and recreational components are gaining popularity in Edmonton. These developments offer diversified income streams and cater to the evolving needs of urban communities. Conclusion ---------- Edmonton, with its strong economic fundamentals, population growth, and diverse investment opportunities, emerges as a top destination for real estate investors in Alberta. Whether you're interested in residential properties, commercial real estate, or mixed-use developments, Edmonton offers a dynamic and evolving market with potential for significant returns. By understanding the factors driving real estate investment in Edmonton and exploring the diverse opportunities available, investors can make informed decisions and capitalize on the city's thriving real estate market. Stay tuned as we explore real estate investment opportunities in other promising locations like Hamilton and beyond, providing valuable insights and guidance for investors navigating the dynamic real estate landscape. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 20 Real Estate Investment Books: Essential Reads for Aspiring Investors [2024 Edition] Author: Abdellah Elboudali Published: 2024-06-12 Tags: Beginner Investors, Wealth Building, Rental Property Management, real estate investing books, Investment strategies compared URL: https://buyproperly.ai/blog/20-real-estate-investment-books-essential-reads-for-aspiring-investors-2024-edition-clxbuc5fq0019d2ag99w30e8x ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/oip-3-1718198405043-compressed.jpeg) Must-Read Books for Aspiring Real Estate Investors in 2024 ---------------------------------------------------------- Are you a beginner looking to dive into the world of real estate investing? Whether you're seeking financial freedom, wealth-building opportunities, or simply wanting to diversify your investment portfolio, the right guidance is essential. Here’s our curated list of 20 must-read real estate investment books for 2024. These books offer insights from industry experts, covering everything from property acquisition and financing to tax strategies and property management. ### 1\. **"Real Estate Investing QuickStart Guide" by Symon He (2023)** **Summary:** A comprehensive guide designed for beginners, this book breaks down complex concepts into easily understandable terms. **Key Takeaways:** * Learn the basics of real estate investing. * Understand different investment strategies. * Develop skills to analyze and evaluate deals. ### 2\. **"The Real Estate Wholesaling Bible" by Than Merrill (2023)** **Summary:** An in-depth look at real estate wholesaling, this book provides actionable strategies to get started with little capital. **Key Takeaways:** * Understand the wholesaling process. * Learn how to find and negotiate deals. * Strategies for building a successful wholesaling business. ### 3\. **"Buy, Rehab, Rent, Refinance, Repeat" by David M. Greene (2023)** **Summary:** Known as the BRRRR method, this book details a popular strategy for building wealth through rental properties. **Key Takeaways:** * Steps for buying and rehabbing properties. * How to rent, refinance, and repeat the process. * Tips for scaling your real estate portfolio. ### 4. **"The Hands-Off Investor" by Brian Burke (2023)** **Summary:** Focuses on passive real estate investing, particularly in syndications and crowdfunding. **Key Takeaways:** * Understand passive investing opportunities. * Evaluate syndication deals. * Tips for mitigating risks and maximizing returns. ### 5\. **"Long-Distance Real Estate Investing" by David Greene (2023)** **Summary:** A guide for investors interested in markets outside their local area. **Key Takeaways:** * How to find and manage properties remotely. * Tools and technologies for long-distance investing. * Strategies for overcoming common challenges. ### 6\. **"The Real Estate Investing Playbook" by Kyle Henry (2024)** **Summary:** A step-by-step guide to getting started in real estate investing, with a focus on practical strategies. **Key Takeaways:** * Learn various real estate investing strategies. * Practical tips for deal analysis. * Ways to finance your investments. ### 7\. **"Raising Private Capital" by Matt Faircloth (2024)** **Summary:** Explores how to raise funds from private investors for your real estate deals. **Key Takeaways:** * Understand different sources of private capital. * How to structure deals with investors. * Tips for building relationships and securing funding. ### 8\. **"The House Hacking Strategy" by Craig Curelop (2024)** **Summary:** Introduces house hacking as a way to start investing by living in your investment property. **Key Takeaways:** * Different house hacking strategies. * Benefits and challenges of house hacking. * Tips for managing tenants. ### 9\. **"Commercial Real Estate Investing for Beginners" by Peter Harris (2024)** **Summary:** Focuses on the commercial real estate market, offering insights for new investors. **Key Takeaways:** * Basics of commercial real estate investing. * How to find and evaluate commercial properties. * Financing options for commercial deals. ### 10\. **"The Intelligent REIT Investor" by Brad Thomas (2024)** **Summary:** A guide to investing in Real Estate Investment Trusts (REITs) for steady income and growth. **Key Takeaways:** * Understanding REITs and their benefits. * How to evaluate and select REITs. * Strategies for building a REIT portfolio. ### 11\. **"Tax-Free Wealth" by Tom Wheelwright (2023)** **Summary:** Offers strategies for maximizing tax benefits and building wealth through real estate. **Key Takeaways:** * Key tax strategies for real estate investors. * Understanding tax deductions and credits. * How to legally reduce your tax liability. ### 12\. **"Financial Freedom with Real Estate Investing" by Michael Blank (2023)** **Summary:** A roadmap for achieving financial freedom through multifamily real estate investments. **Key Takeaways:** * Steps for acquiring and managing multifamily properties. * Financing strategies for larger deals. * Tips for scaling your real estate business. ### 13\. **"Real Estate Investing for Dummies" by Eric Tyson and Robert S. Griswold (2023)** **Summary:** A beginner-friendly guide covering all aspects of real estate investing. **Key Takeaways:** * Understand different types of real estate investments. * Practical advice for finding and financing deals. * Tips for managing properties effectively. ### 14\. **"The Real Estate Fast Track" by Ken McElroy (2024)** **Summary:** Offers advanced strategies for accelerating your real estate investment success. **Key Takeaways:** * How to scale your real estate portfolio quickly. * Strategies for financing and managing multiple properties. * Tips for creating passive income streams. ### 15\. **"The Millionaire Real Estate Investor" by Gary Keller (2023)** **Summary:** Insights from successful real estate investors on building wealth. **Key Takeaways:** * Proven models and systems for real estate investing. * Tips for finding and acquiring properties. * Strategies for long-term wealth building. ### 16\. **"The Book on Managing Rental Properties" by Brandon Turner and Heather Turner (2023)** **Summary:** A comprehensive guide to effectively managing rental properties. **Key Takeaways:** * Tips for tenant screening and property management. * Strategies for maximizing rental income. * How to handle common landlord challenges. ### 17\. **"Investing in Apartment Buildings" by Matthew A. Martinez (2024)** **Summary:** Focuses on the niche of apartment building investments. **Key Takeaways:** * Steps for finding and evaluating apartment deals. * Financing and managing apartment investments. * Tips for scaling your apartment portfolio. ### 18\. **"Real Estate Investing Made Simple" by Grant Cardone (2024)** **Summary:** Simplifies the complexities of real estate investing for beginners. **Key Takeaways:** * Basic principles of real estate investing. * Strategies for finding and funding deals. * Tips for building a successful investment portfolio. ### 19\. **"The ABCs of Real Estate Investing" by Ken McElroy (2023)** **Summary:** A beginner’s guide to real estate investing with practical tips and strategies. **Key Takeaways:** * Fundamentals of real estate investing. * How to find, finance, and manage properties. * Strategies for building wealth through real estate. ### 20\. **"Real Estate Investing for Women" by Elize Mills (2024)** **Summary:** Tailored advice for women looking to succeed in real estate investing. **Key Takeaways:** * Unique challenges and opportunities for women in real estate. * Tips for networking and finding mentors. * Strategies for building confidence and knowledge. **Conclusion** -------------- These 20 real estate investment books provide a wealth of knowledge for beginners, offering strategies and insights from seasoned investors. By reading and implementing the advice from these books, you can build a solid foundation and set yourself up for success in the world of real estate investing. Whether you’re interested in residential or commercial properties, wholesaling, or passive investing, there’s a book on this list to guide you on your journey. Happy investing! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Manage and Maintain Commercial Properties Effectively Author: Lavanyaa Devarajan Published: 2024-06-06 Tags: Commercial Real Estate, Rental Property Management, property management, Maintenance Costs, commercial properties URL: https://buyproperly.ai/blog/how-to-manage-and-maintain-commercial-properties-effectively-clx3cqv16000mnvnnl0ejv08p ### How to Manage and Maintain Commercial Properties Effectively Managing and maintaining commercial properties ensures long-term profitability and tenant satisfaction. Effective management not only preserves the property’s value but also enhances its appeal, leading to higher occupancy rates and rental income. Here are key strategies for managing and maintaining commercial properties effectively. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/c1-1718360990029-compressed.jpg) ### 1\. **Regular Maintenance and Inspections** Regular maintenance is essential to keep your property in good condition and prevent costly repairs. Schedule routine inspections to identify and address issues such as plumbing leaks, electrical problems, HVAC system inefficiencies, and structural damage. This proactive approach helps you maintain a safe and functional environment for your tenants. **Key Actions:** * Create a maintenance schedule for routine checks. * Hire qualified professionals for inspections and repairs. * Keep detailed records of maintenance activities. ### 2\. **Efficient Property Management** Hiring a professional property management team can streamline operations and improve tenant relations. Property managers handle day-to-day tasks such as rent collection, tenant communication, lease administration, and emergency responses, allowing you to focus on strategic aspects of your investment. **Key Actions:** * Choose a reputable property management company. * Clearly outline management responsibilities and expectations. * Regularly review management performance and tenant feedback. 3\. **Tenant Relations and Retention** -------------------------------------- Maintaining positive relationships with tenants is key to reducing turnover and ensuring long-term occupancy. Address tenant concerns promptly, maintain open communication, and foster a sense of community within the property. Happy tenants are more likely to renew their leases and take better care of the property. ### **Key Actions:** * Respond to tenant inquiries and maintenance requests quickly. * Organize community events and initiatives to build tenant rapport. * Offer lease renewal incentives for long-term tenants. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/c2-1718361019971-compressed.jpg) 4\. **Financial Management** Effective financial management involves tracking income and expenses, budgeting for maintenance and capital improvements, and ensuring timely rent collection. Use property management software to automate financial tasks, generate reports, and stay on top of your property’s financial health. ### **Key Actions:** * Implement property management software for financial tracking. * Prepare and adhere to an annual budget. * Conduct regular financial reviews to monitor performance. 5\. **Legal and Compliance Issues** ----------------------------------- Stay informed about local, state, and federal regulations that affect commercial properties. Ensure your property complies with health and safety codes, zoning laws, and accessibility standards. Regularly review lease agreements and property policies to protect your interests and avoid legal disputes. ### **Key Actions:** * Keep up-to-date with relevant laws and regulations. * Conduct compliance audits and address any issues. * Consult with legal professionals to review contracts and policies. 6\. **Sustainable Practices** ----------------------------- Incorporating sustainable practices can reduce operating costs and enhance your property’s appeal. Invest in energy-efficient systems, implement waste reduction programs, and consider green building certifications. Sustainable properties attract environmentally conscious tenants and can command higher rental rates. Check out the importance of investing [here](https://buyproperly.ai/blog/why-should-you-invest)​ ### **Key Actions:** * Upgrade to energy-efficient lighting, HVAC systems, and appliances. * Implement recycling and waste management programs. * Explore green building certifications and sustainability incentives. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Maximize Your Wealth: The Benefits of Rental Property Investments Author: Lavanyaa Devarajan Published: 2024-06-06 Category: Insights Tags: BuyProperly Investments, Rental Properties, Rental Income Benefits, Rental Income Real Estate, BuyProperlyLimited URL: https://buyproperly.ai/blog/unlocking-potential-investing-in-rental-properties-clx37hyre002l5vlq7he0a15y ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/rental-investment-1718019024307-compressed.jpg) Unlocking Potential: Investing in Rental Properties --------------------------------------------------- Investing in rental properties can be a powerful way to build wealth and generate passive income. Whether you're a young professional looking to diversify your portfolio or an experienced investor seeking new opportunities, rental properties offer several compelling benefits. Consistent Income Stream ------------------------ One of the primary advantages of investing in rental properties is the potential for a steady stream of rental income. By carefully selecting properties in high-demand areas with low vacancy rates, you can ensure a consistent flow of rental payments from tenants[](https://www.aesinternational.com/blog/the-pros-and-cons-of-owning-a-rental-property-vs-stock-market-investing)[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). This reliable income can provide financial stability and peace of mind, especially during economic uncertainties. Long-Term Appreciation ---------------------- Real estate has historically appreciated in value over time, making it a relatively stable investment compared to other asset classes[](https://www.aesinternational.com/blog/the-pros-and-cons-of-owning-a-rental-property-vs-stock-market-investing)[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). As the population grows and demand for housing increases, property values tend to rise, providing investors with potential capital gains when they eventually sell the property[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). This long-term appreciation can significantly boost your overall returns. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/long-term-investment-plans-1718018878361-compressed.jpg) Tax Benefits Rental property owners can take advantage of various tax benefits, such as deductions for property taxes, insurance, depreciation, repairs, and maintenance expenses[](https://www.aesinternational.com/blog/the-pros-and-cons-of-owning-a-rental-property-vs-stock-market-investing)[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). These tax advantages can help offset the costs of owning and operating a rental property, ultimately enhancing your net returns. Leveraging Your Investment -------------------------- One of the unique aspects of real estate investing is the ability to leverage your investment capital. By using a combination of your own funds and borrowed money (such as a mortgage), you can control a much larger asset than you could with your initial investment alone[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). If the property appreciates in value, you can profit from the increase in value on the total property value, not just your initial investment. ### Building Equity and Wealth As tenants pay rent, a portion of those funds goes towards reducing the outstanding mortgage balance on the property[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). This gradual reduction in debt increases your equity in the property over time. Additionally, as rental income often increases over the years, the property's cash flow and overall return on investment can further enhance your wealth-building potential[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). Retirement and Legacy Planning ------------------------------ Rental properties can serve as a reliable source of income during retirement years[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). As you transition into this new chapter of life, the rental income can provide financial security and peace of mind. Moreover, rental properties can be a way to create a lasting legacy for future generations by passing down wealth and income-producing assets to your heirs[](https://www.thepropertist.com/blog/the-benefits-of-investing-in-rental-properties-360). Challenges and Considerations ----------------------------- While investing in rental properties offers numerous benefits, it's essential to be aware of the potential challenges and risks involved. These include finding reliable tenants, managing property maintenance and repairs, dealing with unexpected expenses, and navigating the complexities of landlord-tenant laws[](https://www.aesinternational.com/blog/the-pros-and-cons-of-owning-a-rental-property-vs-stock-market-investing)[](https://www.ithinkproperty.com.au/5-rental-property-investment-tips-for-first-timers/). It's crucial to conduct thorough research, create a realistic budget, and have a contingency plan in place to mitigate these risks[](https://www.ithinkproperty.com.au/5-rental-property-investment-tips-for-first-timers/). Conclusion ---------- Investing in rental properties can be a rewarding and lucrative endeavor, offering the potential for consistent income, long-term appreciation, tax benefits, and wealth building. By setting clear investment goals, assessing your financial readiness, conducting market research, and building a reliable team of professionals, you can navigate the rental property investment landscape successfully[](https://www.ithinkproperty.com.au/5-rental-property-investment-tips-for-first-timers/)[](https://www.godrejproperties.com/blog/investing-in-rental-properties-generating-passive-income-for-young-professionals).Remember, investing in rental properties requires patience, diligence, and a long-term mindset. By embracing the challenges and capitalizing on the opportunities, you can unlock the potential of rental property investing and take a significant step towards achieving your financial goals and securing your financial future. Read about [Navigating Investment Choices: Comparing Real Estate, Stocks, and Bonds | Buyproperly](https://buyproperly.ai/blog/navigating-investment-choices-comparing-real-estate-stocks-and-bonds-clx1wd3do003uocxn6beflndu)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating Investment Choices: Comparing Real Estate, Stocks, and Bonds Author: Abdellah Elboudali Published: 2024-06-05 Category: Insights Tags: Financial Planning, Passive Real Estate Investment, Portfolio diversification, Risk Management, Investment Comparison URL: https://buyproperly.ai/blog/navigating-investment-choices-comparing-real-estate-stocks-and-bonds-clx1wd3do003uocxn6beflndu ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/investment-choice-1718027292019-compressed.jpeg) How does Real Estate Investment Compare to Other Forms of Investment? Investors often face a daunting task when deciding where to allocate their funds. With numerous investment options available, it can be challenging to determine which one is best for their financial goals. Real estate investment is a popular choice, but how does it compare to other forms of investment? In this article, we will compare real estate investment with stocks, bonds, and other investment options, highlighting the pros and cons of each. Additionally, we will discuss key factors to consider when choosing between real estate and other investments. Comparison of Real Estate Investment with Other Investment Options ------------------------------------------------------------------ Real estate investment is often compared to other asset classes such as stocks and bonds. Here is a brief comparison: ### Stocks 1. **Pros:** * **Liquidity:** Stocks are highly liquid, allowing for quick and easy sale. * **Diversification:** Stocks offer a wide range of options, making it easy to diversify a portfolio. * **Potential for High Returns:** Stocks have historically provided higher returns compared to other asset classes. 3. **Cons:** * **Volatility:** Stock prices can fluctuate rapidly, leading to significant losses. * **Risk:** Stocks are considered higher-risk investments due to market volatility. ### **Bonds** 1. **Pros:** * **Liquidity:** Bonds are generally liquid, allowing for easy sale. * **Fixed Income:** Bonds offer a fixed rate of return, providing a predictable income stream. * **Low Risk:** Bonds are considered lower-risk investments compared to stocks. 3. **Cons:** * **Lower Returns:** Bonds typically offer lower returns compared to stocks. * **Interest Rate Risk:** Changes in interest rates can impact bond prices. ### **Real Estate** 1. **Pros:** * **Tangible Asset:** Real estate is a tangible asset, providing a sense of security. * **Potential for High Returns:** Real estate can provide high returns through rental income and property appreciation. * **Tax Benefits:** Real estate investments often offer tax benefits, such as depreciation and mortgage interest deductions. 3. **Cons:** * **Illiquidity:** Real estate is generally illiquid, making it difficult to quickly sell. * **Risk:** Real estate investments carry risks such as market fluctuations and tenant vacancies. * **High Upfront Costs:** Real estate investments often require significant upfront capital. **Factors to Consider When Choosing Between Real Estate and Other Investments** ------------------------------------------------------------------------------- When deciding between real estate and other investments, consider the following factors: ### **Risk Tolerance** If you are risk-averse, bonds or other low-risk investments may be a better fit. If you are willing to take on more risk, stocks or real estate could be a better option. Real estate investments, for example, carry risks such as market fluctuations and tenant vacancies, which may not be suitable for investors with a low risk tolerance. ### **Liquidity Needs** If you need quick access to your funds, stocks or bonds may be more suitable. If you are willing to hold onto an investment for the long term, real estate could be a better choice. Real estate investments are generally illiquid, making it difficult to quickly sell, which may not be ideal for investors who need immediate access to their funds. ### **Financial Goals** If you are looking for a predictable income stream, bonds or real estate could be a better fit. If you are seeking high returns, stocks may be a better option. Real estate investments can provide a steady income stream through rental income, which may be attractive to investors seeking predictable returns. ### **Time Commitment** Real estate investments often require a significant time commitment, including property management and maintenance. If you do not have the time or resources to manage a property, other investments may be more suitable. Stocks and bonds, for example, typically require minimal time commitment, making them a better option for investors with limited time. **Pros and Cons of Real Estate Investment** ------------------------------------------- Real estate investment has both advantages and disadvantages that investors should consider: ### **Pros** * **Tangible Asset:** Real estate is a tangible asset, providing a sense of security. * **Potential for High Returns:** Real estate can provide high returns through rental income and property appreciation. * **Tax Benefits:** Real estate investments often offer tax benefits, such as depreciation and mortgage interest deductions. * **Diversification:** Real estate can provide a diversification benefit by adding a tangible asset to a portfolio. ### **Cons** * **Illiquidity**: Real estate is generally illiquid, making it difficult to quickly sell. * **Risk**: Real estate investments carry risks such as market fluctuations and tenant vacancies. * **High Upfront Costs**: Real estate investments often require significant upfront capital. * **Time Commitment:** Real estate investments often require a significant time commitment, including property management and maintenance. **Pros and Cons of Stocks and Bonds** ------------------------------------- Stocks and bonds also have both advantages and disadvantages that investors should consider: **Stocks** ---------- * **Pros:** * **Potential for High Returns:** Stocks have historically provided higher returns compared to other asset classes. * **Diversification:** Stocks offer a wide range of options, making it easy to diversify a portfolio. * **Liquidity:** Stocks are highly liquid, allowing for quick and easy sale. * **Cons:** * **Volatility:** Stock prices can fluctuate rapidly, leading to significant losses. * **Risk:** Stocks are considered higher-risk investments due to market volatility. **Bonds** --------- * **Pros:** * **Fixed Income:** Bonds offer a fixed rate of return, providing a predictable income stream. * **Low Risk:** Bonds are considered lower-risk investments compared to stocks. * **Liquidity:** Bonds are generally liquid, allowing for easy sale. * **Cons:** * **Lower Returns:** Bonds typically offer lower returns compared to stocks. * **Interest Rate Risk:** Changes in interest rates can impact bond prices. **Conclusion** -------------- Real estate investment is just one of many options available to investors. When deciding between real estate and other investments, it is essential to consider your risk tolerance, liquidity needs, financial goals, and time commitment. By weighing the pros and cons of each option, you can make an informed decision that aligns with your financial objectives. Read about [Navigating the Pros and Cons of Alternative Investments | Buyproperly](https://buyproperly.ai/blog/navigating-the-pros-and-cons-of-alternative-investments)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating the Pros and Cons of Alternative Investments Author: Abdellah Elboudali Published: 2024-05-19 Tags: PortfolioDiversification, alternatives to investing, alternative assets, private equity and real estate, invest in alternative assets URL: https://buyproperly.ai/blog/navigating-the-pros-and-cons-of-alternative-investments ![Pros and Cons of Alternative Investments by Buyproperly](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/p-1716163992332-compressed.png) Alternative investments have become an increasingly popular diversification tool for portfolios. While traditional investments offer stability, alternative investments offer the potential for higher returns – but are they worth it? In this article, we explore some of the pros and cons, as well as how to assess if they are suitable for your investment goals and risk tolerance, and address some common misconceptions about alternative investments. What is an Alternative Investment? ---------------------------------- Alternative investments fall outside traditional investment categories such as stocks, bonds, or cash. They include a broad range of asset types, such as private equity, hedge funds, commodities, real estate, private credit, and collectibles. Here’s a brief overview of some common alternative investments: * **Private Equity:** Involves investing in private companies, often through venture capital or buyout funds. * **Hedge Funds:** Pooled funds that employ diverse strategies to generate high returns, often including leverage and derivatives. * **Commodities:** Tangible assets such as energy, metals, and agricultural goods. * **Real Estate:** Investing in properties for rental income or capital appreciation. * **Private Credit:** Involves lending to private companies or individuals, often providing higher yields than traditional bonds. * **Collectibles:** Items such as art, wine, and jewelry that can be rewarding investments, though their value can be difficult to assess and is not guaranteed to appreciate over time. Advantages of Alternative Investments ------------------------------------- ### Potential for High Returns One of the main attractions of alternative investments is their potential for high returns. For instance, private equity, real estate, and private credit can offer significant returns compared to traditional stocks and bonds. Commodities can also provide substantial profits, especially during periods of inflation or when specific markets perform well. ### Diversification Alternative investments offer diversification benefits that can help reduce portfolio risk. Since they often have a low correlation with traditional asset classes, including them in your portfolio can smooth out returns and reduce the impact of market volatility. ### Unique Opportunities These investments provide access to unique opportunities that are not available in public markets. For example, investing in a startup through a venture capital fund, purchasing a piece of rare art, or participating in private credit markets can offer experiences and benefits beyond financial returns. Disadvantages of Alternative Investments ---------------------------------------- ### Higher Risk Alternative investments typically have a higher risk profile than traditional investments. The potential for higher returns comes with increased volatility and the possibility of significant losses. They are often less liquid, meaning they cannot be easily sold or converted into cash without a substantial loss in value. ### Lack of Risk Management Certain alternative investments may not be authorized or licensed, leading to a lack of governance standards regarding risk controls, reporting, and transparency. This can expose investors to additional risks that are not present in more regulated markets. ### Lack of Transparency Many alternative assets are not traded on public markets, and their value is often assessed based on information provided by the investment providers. This lack of transparency can make it challenging to accurately understand how the asset is performing and whether it is meeting investment goals. Assessing Suitability for Your Investment Goals and Risk Tolerance ------------------------------------------------------------------ ### Determine Your Investment Goals Before investing in alternative assets, it’s crucial to determine your investment goals. Are you seeking high returns, income generation, or diversification? Understanding your objectives will help you identify which types of alternative investments might be suitable for your portfolio. ### Evaluate Your Risk Tolerance Assessing your risk tolerance is essential when considering alternative investments. These investments can be highly volatile and may not be suitable for conservative investors. Consider your ability to withstand significant fluctuations in value and potential losses. ### Conduct Thorough Research Due to the complex and nuanced nature of alternative investments, thorough research is imperative. Understand the specific risks, potential rewards, and the overall market environment. Many investors choose to work with professional investment managers who have expertise in these areas. Common Misconceptions About Alternative Investments --------------------------------------------------- ### Misconception 1: They Are Only for the Wealthy While it’s true that some alternative investments, like hedge funds and private equity, require significant capital, there are accessible options for average investors. Real estate investment trusts (REITs), commodities, and certain mutual funds offer exposure to alternative assets without the need for substantial upfront investment. ### Misconception 2: They Guarantee High Returns Alternative investments can offer high returns, but they do not guarantee them. The potential for high returns comes with high risk, and investors can experience significant losses. It’s important to approach these investments with a realistic understanding of their risk-reward profile. ### Misconception 3: They Are Too Complex for Average Investors While some alternative investments are complex, many are straightforward. For example, investing in real estate or commodities can be relatively simple compared to more sophisticated instruments like hedge funds. Additionally, there are numerous resources and professionals available to help investors navigate the complexities. Conclusion ---------- Alternative investments can be a valuable addition to a diversified portfolio, offering the potential for high returns and unique opportunities. However, they come with higher risks, less transparency, and more complexity than traditional investments. Assessing your investment goals, risk tolerance, and conducting thorough research are essential steps in determining if alternative investments are right for you. By understanding both the advantages and disadvantages, you can make informed decisions and potentially enhance your investment strategy. Read about [Multifamily Real Estate Investing: The Pros and Cons | Buyproperly](https://buyproperly.ai/blog/multifamily-real-estate-investing-the-pros-and-cons)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Private Credit Investment: A Comprehensive Guide for Investors Author: Abdellah Elboudali Published: 2024-05-13 Tags: Alternative Investments, Investment Goals, Investment Track Record, Performance Evaluation, Financial Strength URL: https://buyproperly.ai/blog/investment-guide-private-credit ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/private-credit-guide-1715624042172-compressed.png) Private credit can be a compelling investment option, but it's important to understand its unique characteristics before deciding if it's right for you. Here's how to approach investing in private credit: **Consider Your Goals** ----------------------- ### **Long-term or short-term options:**  Private credit can cater to both long-term and short-term goals, depending on the specific investment structure. **Long-term growth:** Traditional private credit funds offer attractive returns through capital appreciation over several years. Reinvested interest payments contribute to this growth. This aligns well with retirement savings or other long-term needs. **Regular income:** Some private credit options allow for regular interest payouts without locking up your capital for extended periods. This can be a suitable strategy for generating consistent income. **Do Your Due Diligence** ------------------------- Evaluating the worthiness of a lending institution in private credit is crucial before entrusting it with your investment. Here are some key areas for investor due diligence: ### **Track Record and Reputation:** * **Experience and expertise:** Research the lending institution's team. Look for a proven track record in managing private credit investments and a team with experience in the specific sectors they target. * **Reputation in the market:** Investigate the institution's reputation within the industry. Are they known for sound investment practices and ethical behavior? Speak with other investors or financial advisors familiar with the institution. ### **Investment Strategy and Performance:** * **Investment philosophy:** Understand the lending institution's overall investment strategy in private credit. Does it align with your risk tolerance and goals? * **Past performance:** Analyze the institution's past performance data. Look for consistency, risk-adjusted returns, and how they compare to similar private credit options. * **Transparency in reporting:** Ensure the lending institution provides clear and regular reports on their portfolio performance, underlying assets, and fees. ### **Financial Strength and Risk Management:** * **Capital adequacy:** Assess the institution's financial health. Look for a strong capital base to withstand potential losses and ensure they can manage their own obligations. * **Risk management processes:** Evaluate the institution's risk management framework. How do they assess borrower creditworthiness, manage portfolio diversification, and mitigate potential risks? ### **Alignment of interests:**  Look for a lending institution whose interests are aligned with yours. Do they have "skin in the game," meaning they also invest alongside you in the fund? ### **Fees and Legal Structure:** * **Fee structure:** Scrutinize the fees charged by the lending institution. These may include management fees, performance fees, and transaction fees. Ensure the fee structure is transparent and aligns with the value they provide. * **Legal structure:** Understand the legal structure of the investment vehicle. This could be a fund, a trust, or a separate account structure. Consult with your financial advisor to ensure the legal structure aligns with your investment goals and tax implications.  **Analyze Your Financial Situation** ------------------------------------ * **Investment Foundation:** Ensure you have a solid financial base with emergency savings and manageable debt before investing in private credit. * **Minimum investment:** Private credit funds often have high minimum investment requirements, making them less accessible to smaller investors. **Seek Professional Advice** ---------------------------- * **Complexities involved:** Private credit can be complex. Consider consulting a financial advisor with expertise in alternative investments to help you make informed decisions. **Additional Resources** * [Alternative Investment Management Association (AIMA):](https://acc.aima.org/about-acc/about-private-credit.html) * [JPMorgan Private Bank:](https://privatebank.jpmorgan.com/nam/en/services/investing/alternative-investments/private-credit-investing)​ * ​[Introduction to Private Credit](https://buyproperly.ai/blog/introduction-to-private-credit)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Introduction to Private Credit: Your Path to Diverse Investment Success Author: Abdellah Elboudali Published: 2024-05-13 Tags: Direct Lending, Senior Secured Loans:, Specialty Finance, Private Credit, Distressed Debt: URL: https://buyproperly.ai/blog/introduction-to-private-credit ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/private-credit-1715621905012-compressed.jpg) What is Private Credit?  ------------------------ Private credit, also known as direct lending, is a form of debt financing provided by non-bank institutions. It encompasses various forms of private debt, including small business loans, consumer loans, and venture debt. Unlike traditional bank loans or corporate bonds traded on public exchanges, private credit involves loans negotiated directly between the lender and the borrower. These loans are typically tailored to the specific needs of the borrower.  Historically, private credit has been the exclusive domain of high-net-worth individuals and institutional investors. However, the landscape is evolving, with a growing trend towards democratizing access to this asset class for retail investors. This trend is fueled by the increasing demand for yield in a low-interest-rate environment and the recognition of the potential benefits of private credit. Types of Private Credit:  ------------------------- The private credit market offers a variety of lending options catering to different borrower needs and risk tolerances. Let's delve into some common types: ### Senior Secured Loans:  Imagine these as the gold standard of private credit. They offer the lender the highest level of security (priority) because they are repaid first if the borrower defaults on the loan. Think of it like having a first mortgage on a house – if the homeowner can't make payments, you get your money back before other lenders. These loans are typically issued to companies with strong financial track records, making them a good option for investors seeking stability. ### Mezzanine Debt:  This occupies a middle ground in the company's capital structure. It sits behind senior secured loans, but ranks ahead of common equity (ownership shares) in case of liquidation. Essentially, you're taking a slightly bigger risk than senior lenders but in exchange, you could potentially receive a higher interest rate. Mezzanine debt can also include features like warrants, which give you the right to buy stock in the company at a future date, offering the potential for additional gains if the company performs well. ### Distressed Debt:  As the name suggests, this involves investing in loans to companies experiencing financial difficulties. These can be high-risk, high-reward scenarios. There's a chance you could get a much bigger return on your investment if the company turns things around. However, there's also a significant risk of default (not getting your money back). This option is best suited for investors comfortable with a higher degree of risk and potentially longer investment horizons, as turnarounds can take time. ### Specialty Finance:  This caters to specific asset classes, focusing on providing loans for things like real estate projects or infrastructure developments.  For example, a specialty finance lender might provide financing for the construction of a new wind farm. These loans can be attractive because they are often backed by the value of the underlying asset (the wind farm in this case). Ways to Invest in Private Credit in Canada  ------------------------------------------- The Canadian investment landscape offers several avenues for retail investors to participate in private credit. Here's a breakdown of some popular options: **Financial Institutions:** Major Canadian banks like CIBC, RBC, and Scotiabank are increasingly offering private credit investment products. These can be in the form of managed funds or direct investment opportunities. Research individual institutions for their specific offerings and eligibility requirements.​ **Alternative Investment Firms:** Several independent investment firms in Canada specialize in private credit. These firms offer a wider range of private credit investment strategies, catering to different risk profiles. Conduct thorough research on the firm's track record, investment philosophy, and fees before investing. **Online Investment Platforms:** A growing number of online platforms in Canada are providing access to private credit investments. These platforms typically focus on offering lower minimum investment amounts compared to traditional options. Carefully evaluate the platform's reputation, fees, and the specific private credit opportunities available before investing. **Explore the possibilities of private credit to Buy Properly today!** ---------------------------------------------------------------------- * **Invest with confidence:** Our platform offers a curated selection of high-quality private credit deals, vetted by our advanced AI model. * **Low minimum investment:** Start investing with just $2,500. * **Earn consistent income:** Generate income streams potentially exceeding traditional fixed-income options. * **Diversify your portfolio** and target attractive returns with private credit to Buy Properly. Disclaimer: We cannot recommend specific investment products or services. Please do your research before investing in any private credit offering. [Invest Now!](https://buyproperly.ai/ca/investments/privateCredit/) Read about [Private Credit Investment Guide](https://buyproperly.ai/blog/investment-guide-private-credit)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Up Your Money Game in 2024 - Insights from Our Exclusive Webinar Author: Abdellah Elboudali Published: 2024-04-20 Category: Events Tags: InvestmentStrategies, 2024InvestmentOutlook, PublicMarkets, PrivateMarkets, InterestRateAnalysis URL: https://buyproperly.ai/blog/up-your-money-game-in-2024 --- Up Your Money Game in 2024 -------------------------- ### Here's what to expect: * **Interest Rate Outlook for 2024:** Analyzing the impact on investors in Canada and the US. * **Investing Perspectives:** Strategies for short-term (1-2 years) and long-term (5-10 years) investment horizons. * **Public vs. Private Markets:** Evolving allocations and comparative analysis of alternatives and public markets, with a focus on US vs. Canada. * **Incorporating Advanced Technologies:** Exploring opportunities and challenges in AI, Blockchain, and other emerging tech for investment purposes. Recording brought to you by BuyProperly Limited. > ​Don't miss our latest webinar recording on "Private Credit: A Lucrative Opportunity for Savvy Investors." WATCH IT HERE [Private Credit Webinar](https://buyproperly.ca/blog/private-credit-as-an-opportunity-for-investors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## BuyProperly, Trinnium Equity Transform San Antonio Real Estate through Innovative Partnership Author: Abdellah Elboudali Published: 2024-02-05 Category: Media Tags: AlternativeInvestments, BuyProperlyPartnership, TrinniumEquity, VividApartmentHomes, Canadarealestatemarket URL: https://buyproperly.ai/blog/null ​​​​​​ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/web-capture1-2-202419419buyproperly-1707158520852-compressed.jpeg) **BuyProperly and Trinnium Equity Group partnership provides open access to real-estate investment and upgraded rental housing for the San Antonio** **region.** ---------------------------------------------------------------------------------------------------------------------------------------------------------------- ### _Alternative investment marketplace BuyProperly launches its first San Antonio deal for private real estate_ _investors._ SAN ANTONIO, Feb. 5, 2024 /PRNewswire/ -- BuyProperly, a North American marketplace for alternative investments, today announced its partnership with [Trinnium Equity Group](https://c212.net/c/link/?t=0&l=en&o=4083772-1&h=134918138&u=https%3A%2F%2Fwww.trinnium.com%2F&a=Trinnium+Equity+Group), a recognized expert in multifamily apartments. The deal, which brings [Vivid Apartment Homes](https://c212.net/c/link/?t=0&l=en&o=4083772-1&h=4064575845&u=https%3A%2F%2Fwww.vividapartmenthomes.com%2F&a=Vivid+Apartment+Homes) onto the [BuyProperly marketplace](https://c212.net/c/link/?t=0&l=en&o=4083772-1&h=61200108&u=https%3A%2F%2Fbuyproperly.ca%2F&a=BuyProperly+marketplace), introduces another accessible real estate investment opportunity for North Americans, demonstrates how forward-thinking developers are accessing capital to solve fundamental challenges like the housing shortage, and marks BuyProperly's entrance into the San Antonio market. “For nearly a decade, Trinnium Equity Group has been making world-class investment opportunities accessible to everyday real estate investors and quality rental housing available in their communities.” said Khushboo Jha, Founder and CEO of BuyProperly. “This is the ideal match for BuyProperly, where savvy North Americans are finding a way to access alternative investments, including the lucrative real estate market, on their own terms.” The housing crisis across North America has created a high-demand for quality rental properties that remain affordable, particularly in areas like San Antonio. It is a challenge for developers to fill this need given the rising cost of land and construction materials post pandemic and the increase of red tape while working through municipal requirements, which vary by region. Many developers are seeking new ways to make this process more efficient, including refurbishments to older buildings and alternative methods of accessing capital. BuyProperly’s online marketplace lets North Americans sort through wealth-generating opportunities and invest in assets at an accessible level. Complementing a century of experience in real estate, investments and technology within the team, the BuyProperly platform leverages AI and machine learning to provide personalized property recommendations and predictive analytics to help investors make informed decisions and enable developers to spend more time building, rather than sourcing capital. “BuyProperly is another lever for us to make quality housing affordable and democratize real estate investing at the same time,” said Brandon Slater, Managing Partner, Trinnium Equity Group. “There is clearly a need for rental housing in San Antonio and the region is very attractive to investors, even across state borders. We are excited to be leveraging the latest technology to grant even broader access to our investment opportunities, particularly this latest high-potential and niche development that will bring great benefits to the region.” Trinnium’s Apartment Homes project involves the refurbishment of an established and stable 104-unit apartment community nestled within the vibrant Westover Hills community of San Antonio. Trinnium is building on $750,000 in recent exterior renovations with upgraded units for maximized rental income for investors. [More information on the investment opportunity with](https://buyproperly.ai/us/investments/allDeals/oakhill_rd_san_antonio/) [](https://buyproperly.com/investment-property/view/oakhill_rd_san_antonio)[Vivid Apartment Homes is available on buyproperly.com.](https://buyproperly.ai/us/investments/allDeals/oakhill_rd_san_antonio/) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pr-news-wire-1714794427934-compressed.png) **About BuyProperly:** ---------------------- BuyProperly is an online marketplace that gives North Americans access to high-performing, wealth-generating opportunities in alternative asset classes, such as real estate, at an accessible investment level. Combined with more than a century of experience in real estate, investments and technology, the BuyProperly platform leverages the best in AI to provide personalized property recommendations and predictive analytics that help investors make informed decisions and developers get critical projects off the ground.  For more information visit [buyproperly.com](https://write.superblog.ai/sites/supername/buyproperly/posts/buyproperly-trinnium-equity-transform-san-antonio-real-estate-through-innovative-partnership-cls99q8ue000mfzhsvk5e09h1/buyproperly.com)​ **About Trinnium Equity Group:** -------------------------------- Founded in 2015, Trinnium Equity Group’s mission is to make world-class investment opportunities, previously only available to the ultra-wealthy, available to the everyday real estate investor. We make it possible for our investors to enjoy the benefits of true passive income, depreciation, and appreciation while leaving the day-to-day management to our elite team. For more information visit [trinnium.com](https://write.superblog.ai/sites/supername/buyproperly/posts/buyproperly-trinnium-equity-transform-san-antonio-real-estate-through-innovative-partnership-cls99q8ue000mfzhsvk5e09h1/trinnium.com)​ **Media Contact: ****media@buyproperly.ca** 613.806.5168 ​ Read About our partnership in [PR newswire.](https://www.prnewswire.com/news-releases/buyproperly-and-trinnium-equity-group-partnership-provides-open-access-to-real-estate-investment-and-upgraded-rental-housing-for-the-san-antonio-region-302053270.html?tc=eml_cleartime) Get Right to your next investment Here: [Vivid Apartment Homes](https://buyproperly.com/investment-property/view/oakhill_rd_san_antonio). Read About [Why Invest in Real Estate: 7 Key Benefits to Know | Buyproperly](https://buyproperly.ai/blog/why-invest-in-real-estate)​ ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Exploring Private Credit: A Lucrative Opportunity for Savvy Investors. Author: BuyProperly Engineering Published: 2024-01-05 Category: Events Tags: PrivateCredit, BuyProperlyWebinar, InvestmentStrategies, MortgageFree, Diversification, portfolio URL: https://buyproperly.ai/blog/private-credit-as-an-opportunity-for-investors Unlocking Opportunities: Private Credit Master Class Recording ----------------------------------------------------------------- Recording brought to you by BuyProperly Limited. Join Khushboo Jha, CEO of BuyProperly, and Colin Hu, CFO at Caplink Financial Corporation, as they unveil the secrets to successful real estate investing. In this enriching masterclass, you'll glean valuable insights into decoding market trends, capitalizing on strategic opportunities, and fortifying your real estate investment portfolio. Navigating the Private Credit Landscape: Insights, and Expert Perspectives ----------------------------------------------------------------------------- ### Practical Strategies for Integrating Private Credit into Your Portfolio Allocation * Understanding the Essence of Private Credit * Deciphering the Code of Private Credit Investing * Riding the Wave of the Booming Private Credit Market * Key Characteristics of Different Private Credit Segments * Behind-the-Scenes Insights: How Private Credit Managers Add Value * Practical Strategies for Integrating Private Credit into Your Portfolio Allocation ### **Featured Speakers:** **![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-10-1704994315948-compressed.png)** ​[Khushboo Jha](https://www.linkedin.com/in/khushboo-jha-wharton): Founder and CEO of BuyProperly Limited, an award-winning AI-powered online investing platform for fractional investing in alternative assets such as Real Estate and Private Credit. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-11-1704995242812-compressed.png) ​[Colin Hu](https://www.linkedin.com/in/colin-hu-cpa-cga-37685b106): Chartered Professional Accountant and Chief Financial Officer at Caplink Financial Corporation, bringing over 14 years of experience in the finance and accounting services industry. > Explore more insights: Don't miss our latest webinar recording on "Profitable Smiles: Unlocking Tax Strategies for Dentists." Watch it here: [](https://buyproperly.ca/resource-center/posts/profitable-smiles-unlocking-tax-strategies-for-dentists)[Profitable Smiles Webinar](https://blogs.buyproperly.ca/profitable-smiles-unlocking-tax-strategies-for-dentists) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar - Profitable Smiles: Unlocking Tax Strategies for Dentists Author: BuyProperly Engineering Published: 2023-07-25 Category: Events Tags: Dentists, Tax URL: https://buyproperly.ai/blog/profitable-smiles-unlocking-tax-strategies-for-dentists ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/1-1714869723720-compressed.png) Get ready for an eye-opening experience in our upcoming webinar hosted by the dynamic BuyProperly CEO, Khushboo Jha, alongside the seasoned tax expert, Anil Sharma, President at A4 Tax & Accounting Professional Corporation. This isn't just about taxes; it's a journey to reshape your financial future! Uncover Tax Secrets: Join the Dentist's Guide to Financial Freedom Webinar! --------------------------------------------------------------------------- ### **What We'll Dive Into:** 1. **Crafting Your Business Structure:** We'll unravel the optimal business structures tailored for dentists. 2. **Tax Perks of Incorporation:** Discover the hidden advantages of incorporating your practice. 3. **Mastering Expense Tracking:** Learn effective strategies for hassle-free expense management. 4. **Cracking the Code on Conferences:** Delve into the tax implications of attending conferences. 5. **Income Splitting Demystified:** Find out how income splitting can work wonders for dentists. 6. **Unlocking Holding and Investment Company Magic:** Gain insights into leveraging holding and investment companies. 7. **Decoding Small Business Deductions:** Navigate the maze of small business deductions. 8. **Strategic Tax Planning for Passive Income:** Get savvy with tax planning for passive income, especially in a Canadian Controlled Private Corporation (CCPC). 9. **Individual Pension Plans Exploration:** Explore the potential advantages of individual pension plans. **​Meet the Visionaries Behind the Insights: Your Expert Speakers ** ---------------------------------------------------------------------- ### **Guest Panelist: Anil Sharma, President at A4 Tax & Accounting Professional Corporation ** > ​ > > ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-12-1705006343303-compressed.png) > > **​**Anil Sharma has over 20 years of experience in tax planning, tax preparation and accounting services industry. Anil is a Chartered Professional Accountant (CPA), Certified General Accountant (CGA) providing Tax Planning, Tax Preparation and Accounting Services to Individuals and Businesses in and around GTA. ### ​**Guiding You Through: Khushboo Jha, CEO** > ​ > > ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-10-1705006787681-compressed.png) > > Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor’s degree in Architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Check out our previous webinar on [Financial Wellness Rx: Tax Strategies Tailored for Doctors with Anil Sharma](https://buyproperly.ai/blog/financial-wellness-rx-tax-strategies-tailored-for-doctors-with-anil-sharma)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Financial Wellness Rx: Tax Strategies Tailored for Doctors with Anil Sharma Author: BuyProperly Engineering Published: 2023-06-22 Category: Events Tags: ProperlyWebinar, InvestmentStrategies, accounting, Alternative Investmnets, Taxation URL: https://buyproperly.ai/blog/financial-wellness-rx-tax-strategies-tailored-for-doctors-with-anil-sharma Master Finances: Unveiling Expert Tax Strategies in our Exclusive Webinar! ----------------------------------------------------------------------------- Recording brought to you by BuyProperly Limited. Hosted by BuyProperly CEO Khushboo Jha, and featuring guest panelist Anil Sharma, President at A4 Tax & Accounting Professional Corporation.The webinar engages in a constructive discussion that will redefine the way you approach taxes and revolutionize your financial destiny! **Highlights:** – Business Structure – Incorporation Tax Benefits – Tracking Expenses – Conferences – Income Splitting – Holding Company/ Investment Company – Grinding Down of SBD – CCPC Tax Planning for Passive Income **Meet the Visionaries Behind the Insights: Your Expert Speakers** ------------------------------------------------------------------ > ### **Guest Panelist: Anil Sharma, President at A4 Tax & Accounting Professional Corporation** > > ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-12-1705066293095-compressed.png) > > Anil Sharma has over 20 years of experience in tax planning, tax preparation and accounting services industry. Anil is a Chartered Professional Accountant (CPA), Certified General Accountant (CGA) providing Tax Planning, Tax Preparation and Accounting Services to Individuals and Businesses in and around GTA. > ### **Host: Khushboo Jha, CEO** > > ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-10-1705066405532-compressed.png) > > Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor’s degree in Architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Curious? Explore our previous webinar on ' Navigating Volatility: [How to Strategically Invest in the Current Market with Rita Li](https://buyproperly.ai/blog/navigating-volatility-how-to-strategically-invest-in-the-current-market-with-rita-li)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating Volatility: How to Strategically Invest in the Market with Rita Li Author: BuyProperly Engineering Published: 2023-06-22 Category: Events Tags: BuyProperlyWebinar, InvestmentStrategies, Volatile Market, expert discussion URL: https://buyproperly.ai/blog/navigating-volatility-how-to-strategically-invest-in-the-current-market-with-rita-li ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/3-1714866777168-compressed.png) Insights into Volatility Investing with BuyProperly --------------------------------------------------- Recording brought to you by BuyProperly Limited. Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist Rita Li, Investment Advisor at RBC Dominion Securities covered the strategic approaches to investing in the current market conditions, followed by a Q&A session with our CEO, Khushboo Jha. ### **Highlights:** – Investing in the current market – The power of compound returns – Both the stock market and real estate have delivered attractive long-term returns – Fixed Income Overview – YTD Performances – Outlook of the economy for the rest of the year – Interest rates and Credit conditions – Why is the Central Bank increasing rates? – Are the interest rates going to increase in the next quarter? – How are the various markets performing this year and what’s the expectation for the year end? – Investing advice for beginners – Investing in bonds and ETF’s – Are there certain sectors that tend to perform better during times of market volatility? – What strategies can people employ to navigate the current uncertainty? – BuyProperly’s Alternate Investment Recommender – Are dividend stocks a stable form of investment? – A majority of people are investing in real estate & stocks, does that make it more risky or safe due to the high level of trust compared to the less conventional methods of portfolio building such as tech, private equity and crypto currencies with bigger upside? – Is investing in companies with dividends better for someone with more conservative approach? – What is the Canadian governments action going to be in the coming quarter? – Should we make investment decisions based on US or Canada data, is recession coming in the near future? – With the general trends in today’s markets, do you still see people on the sidelines with cash or are they starting to get back into the market. Is money flowing back in a good sign of market growth rate? **Guest Panelist: Rita Li**, **Investment Advisor at RBC Dominion Securities**  ------------------------------------------------------------------------------- Rita Li works with individuals, families and business owners to provide investment advice, risk management and financial planning. Rita is a Chartered Financial Analyst and holds her MBA from Richard Ivey School of Business. Rita is also a Certified Financial Planner. **Host: Khushboo Jha, CEO** --------------------------- Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor’s degree in Architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Curious about specialized tax strategies? Catch up on [](https://write.superblog.ai/sites/supername/buyproperly/posts/financial-wellness-rx-tax-strategies-tailored-for-doctors-with-anil-sharma-clr64w45g473023mjiiryxl8d)[Financial Wellness Rx](https://buyproperly.ai/blog/financial-wellness-rx-tax-strategies-tailored-for-doctors-with-anil-sharma). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How AI is Revolutionizing the Real Estate Industry? Author: BuyProperly Engineering Published: 2023-06-22 Category: Insights Tags: AI and Real Estate, Artificial intelligence, realestate URL: https://buyproperly.ai/blog/how-ai-is-revolutionizing-the-real-estate-industry ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/predictive-analysis-blog-image-1-1024x678-1714610973888-compressed.png) **Introduction: Revolutionizing Real Estate: How AI Transforms Property Search, Valuation, and Management at BuyProperly** -------------------------------------------------------------------------------------------------------------------------- The real estate industry, known for its complexity and challenges, is experiencing a transformative wave through the integration of Artificial Intelligence (AI). This article explores how AI empowers real estate professionals, making property search, valuation, and management more efficient. According to Forbes Advisor, the AI market is projected to reach $407 billion by 2027, underscoring its pivotal role in the real estate landscape. ### **1\. Property Search and Recommendations:** Discovering the perfect property is historically challenging, but AI-powered algorithms are changing the game. At BuyProperly, we harness AI to analyze high-growth property listings in the US and Canada. Our machine learning algorithms generate personalized property recommendations, aligning with buyers' specific needs and preferences. ### **2\. Automated Valuations and Predictive Analysis:** The advent of AI-powered Automated Valuation Models (AVMs) has revolutionized property valuation. These models identify market opportunities and risk factors, facilitating informed decision-making. Developers benefit from AI-powered predictive analytics, optimizing property designs and amenities based on customer demands. Our AI models at BuyProperly use heatmaps to identify high-yielding investment areas, providing valuable insights for potential investors. ### **3\. Virtual Reality and Augmented Reality:** Virtual Reality (VR) and Augmented Reality (AR) are reshaping the real estate experience. At BuyProperly, we offer immersive VR tours, allowing buyers to experience properties virtually. This technology provides a detailed look at the property's design and space, enhancing the decision-making process. Explore an immersive experience \[here\]. ### **4\. Property Management and Maintenance:** AI is revolutionizing property management by streamlining maintenance processes and reducing costs. Integrating IoT devices with AI systems enables real-time monitoring of property conditions, energy usage, and maintenance needs. AI algorithms schedule preventive maintenance, predict equipment failures, and optimize resource allocation. This not only improves operational efficiency but also enhances the overall experience for tenants. **Conclusion:**  ---------------- In conclusion, the real estate industry is undergoing a remarkable transformation with the integration of AI. BuyProperly utilizes AI models to provide personalized property recommendations and embraces virtual and augmented reality for immersive property tours. This technological evolution is empowering buyers and investors to make informed decisions. Ready to explore long-term investment opportunities using our AI model? [Click here](https://buyproperly.ca/) ​read article on [What Is Depreciation?](https://buyproperly.ai/blog/what-is-depreciation) ![AI in real estate](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/ai-in-real-estate-1714757263857-compressed.jpg) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Masterclass: Options trading – strategies and tools with Dr. Chinmay Jain Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: investments, Options trading, trading URL: https://buyproperly.ai/blog/masterclass-options-trading-strategies-and-tools-with-dr-chinmay-jain Options Trading Strategies. --------------------------- Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist and Professor of Finance at The State University of New York, **Dr. Chinmay Jain** an active investor in stocks, bonds, options, real estate (Canada & US) and bitcoin. The masterclass covered the fundamentals of options trading and the tools to develop and implement informed strategies. ### **Highlights:**  Simplifying the jargon to understand butterfly, long condor, back ratio. Positional, Intraday and Expiry Trading Strategies Evaluating Options trading returns for an investment portfolio. Steps to use digital investment vehicles to hedge against markets, inflation, and debt. Automated trading bots for everyday investors **​Recording brought to you by BuyProperly Limited.** -------------------------------------------------------- --- **Guest Panelist: Chinmay Jain, PHD** ------------------------------------- Dr. Chinmay Jain is an Assistant Professor of Finance at the State University of New York. Dr. Jain completed his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. **Host: Khushboo Jha, CEO** --------------------------- Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore [Navigating Volatility: How to Strategically Invest in the Market with Rita Li](https://blogs.buyproperly.ca/navigating-volatility-how-to-strategically-invest-in-the-current-market-with-rita-li)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Introduction to Metaverse: Virtual Worlds, Real Value with Dr. Chinmay Jain Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: virtual world, Metaverse, cryptocurrency URL: https://buyproperly.ai/blog/introduction-to-metaverse-virtual-worlds-real-value-with-dr-chinmay-jain ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/5-1714869384350-compressed.png) Virtual Worlds, Real Value with Dr. Chinmay Jain ------------------------------------------------ Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist and Professor of Finance at The State University of New York, **Dr. Chinmay Jain** an active investor in stocks, bonds, options, real estate (Canada & US) and bitcoin. Discover how this emerging digital realm is transforming our experiences, economies, and interactions, and gain valuable insights into harnessing the real value that the Metaverse holds. **Highlights:** * What is Metaverse? * Metaverse as a concept * * Metaverse definition * Is Metaverse a hoax? * Investment options * Metaverse is getting more immersive * Challenges * Crypto as a concept * Where to invest * Risk * Personal Product * Tokenization * Buying Ether * What about office space * Decentraland * Metamask **​ ** Recording brought to you by BuyProperly Limited. --------------------------------------------------- ### **Guest Panelist: Chinmay Jain, PHD** Dr. Chinmay Jain is an Assistant Professor of Finance at the State University of New York. Dr. Jain his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. ### **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. ​[How DeFi is Revolutionizing Real Estate with Ben Ames | Buyproperly](https://buyproperly.ai/blog/how-defi-is-revolutionizing-real-estate-with-ben-ames)​​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How DeFi is Revolutionizing Real Estate with Ben Ames Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: Decentralised Finance, Defi, Real estate, realestateinvesting URL: https://buyproperly.ai/blog/how-defi-is-revolutionizing-real-estate-with-ben-ames ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/6-1714868920659-compressed.png) DeFi and Real Estate -------------------- Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist **Ben Ames,** Partner at Forge & Foster Investment Management, Founder and CEO at REIF Financial Investments. This webinar engages in an open and constructive discussion on how DeFi is revolutionizing real estate. **Key Topics:** * How DeFi is shaping real estate investing * How DeFi is turning mortgages and lending head over heels * How real assets can now exchange hands via digitized token, and even NFT’s (non-fungible tokens) Recording brought to you by BuyProperly Limited. ------------------------------------------------ ### **Guest Panelist: Ben Ames, Partner at Forge & Foster Investment Management, Founder and CEO at REIF Financial Investments** Ben Ames, Partner at Forge & Foster Investment Management, Founder and CEO at REIF Financial Investments which is a Canadian Commercial Real Estate Debt Fund that brings real world commercial debt to decentralized finance. Ben is an active investor with more than 10 years of investment management experience and has also founded Corl Financial Investments. ### **Host: Khushboo Jha, Founder & CEO at BuyProperly** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore [Understanding Alternative investments: Crypto, NFTs and Real Estate with Dr. Chinmay Jain](https://buyproperly.ai/blog/understanding-alternative-investments-crypto-nfts-and-real-estate-with-dr-chinmay-jain)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Start planning for summer 2026: Investing basics with Dr. Chinmay Jain Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: realestateinvesting, Artificial intelligence, financial goals, inflation, investing, Purchasing Power URL: https://buyproperly.ai/blog/start-planning-for-summer-2026-investing-basics-with-dr-chinmay-jain Investing basics with Dr. Chinmay Jain\] ---------------------------------------- Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist and Professor of Finance at The State University of New York, **Dr. Chinmay Jain** an active investor in stocks, bonds, options, real estate (Canada & US) and bitcoin engages in an open and constructive discussion on investing basics. ### **Highlights:** * How investors can evaluate and navigate investment options to achieve their financial goals * Emphasis on the value of portfolio diversification, and real estate investment for maximum returns * Benefits of investing in rapidly growing cities with huge capital appreciation potential * Leveraging Artificial Intelligence tools for personal finance and investments[](https://www.youtube.com/@buyproperly3298) ### **Key Moments:** * Who should be thinking about investing? * Purchasing Power and Inflation * Why have a Diversified Portfolio * Dollar Average Investing * Macroeconomic Analysis Webinar Recording brought to you by BuyProperly Limited. -------------------------------------------------------- ​ ### **Guest Panelist: Chinmay Jain, PHD** Dr. Chinmay Jain is an Assistant Professor of Finance at the State University of New York. Dr. Jain completed his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. ### **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore [Investing 101: Navigating the Space of New Wealth Creation](https://blogs.buyproperly.ca/webinar-investing-101-navigating-the-space-of-new-wealth-creation)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Women in Investing-Build your confidence: Build your wealth Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: realestateinvesting, investing, finance, Fractionalrealestate URL: https://buyproperly.ai/blog/women-in-investing-build-your-confidence-build-your-wealth ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/8-1714875672119-compressed.png) Women in Investing-Build your confidence: Build your wealth ----------------------------------------------------------- Webinar brought to you by BuyProperly Limited. In this webinar for women of all ages, learn the shocking statistics about income discrepancies (pink tax!), compare investment opportunities, how to get started in Real Estate, how to set yourself on the right path for financial success and investing tips and tricks from industry experts **Karina Villanueva**, Director, Consumer & Retail at Deutsche Bank and **Rita Li,** Investment Advisor at RBC Dominion Securities. **Session Overview** -------------------- * Why women do not traditionally invest as much as men (hint: it’s not their fault) * The benefits of investing for women * Common financial mistakes women make and how to avoid them. * Smart ways for women to start investing. * Strategies for women to invest in line with their values and goals. ### **Guest Panelist:**  **Karina Villanueva**, Director, Consumer & Retail at Deutsche Bank ****Rita Li,**** Investment Advisor at RBC Dominion Securities ### ****Host:**** **Khushboo** **Jha, CEO** of BuyProperly Read about [Three Easy Ways Smart Women Invest](https://buyproperly.ai/blog/three-easy-ways-smart-women-invest)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Alternative investments: Crypto, NFTs and Real Estate with Dr. Chinmay Jain Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: Real estate, finance, Fractionalrealestate, Alternative Investmnets, cryptocurrency, NFTs URL: https://buyproperly.ai/blog/understanding-alternative-investments-crypto-nfts-and-real-estate-with-dr-chinmay-jain Alternative investments: Crypto, NFTs and Real Estate ----------------------------------------------------- Webinar Recording brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/webinar-new-design-1715171708059-compressed.png) Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist and Professor of Finance at The State University of New York, **Dr. Chinmay Jain**. This masterclass covers everything you need to know when it comes to understanding crypto, NFTs, fractional investing. Most importantly, how to get started and sustainably make money with them: * Understanding the phenomenon of Cryptocurrency, Art and NFT, Bitcoin Mining * Evaluating digital Art and Currency as a portfolio must-have * Steps to use digital investment vehicles to hedge against markets, inflation, and debt. * Automated trading bots for everyday investors **Key Moments:** ---------------- * \-Public Key and Private Key * Bitcoin Mining * How Bitcoin Derives its Value * Why is Bitcoin Not Enough * Types of Tokens * Decide Which Ico to Invest in * Example of a Decentralized Finance Application * Should I Invest in a Blockchain Stock or Directly into Crypto coin. * How Crypto Enables Fractional Ownership * How Does the Seller Get the Ownership of those Lands * Copyright Infringement[](https://www.youtube.com/@buyproperly3298) --- ### **Guest Panelist: Chinmay Jain, PHD** Dr. Chinmay Jain is an Assistant Professor of Finance at the State University of New York. Dr. Jain completed his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. ### **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. ​**Explore More:** Discover more financial insights in our webinar "[Financial Wellness Rx: Tax Strategies Tailored for Doctors with Anil Sharma.](https://blogs.buyproperly.ca/financial-wellness-rx-tax-strategies-tailored-for-doctors-with-anil-sharma)" Join Anil Sharma, President at A4 Tax & Accounting Professional Corporation, as he provides specialized tax strategies for doctors. Click to unlock strategies tailored for the medical profession. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing in a Volatile Market: Strategies to Succeed with Rawn Lakhan Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: CanadaRealEstate, Volatile Market URL: https://buyproperly.ai/blog/investing-in-a-volatile-market-strategies-to-succeed-with-rawn-lakhan Webinar brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/webinar-1715177554641-compressed.png) ​ Volatile Market Strategies -------------------------- Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist **Rawn Lakhan**, the President, CEO, and Portfolio Manager at Meadowbank Asset Management, share their views on the best strategies to invest your money profitably in this volatile market. ### **Session Overview:** * What is volatility? * Is today's market a volatile market? * What makes the market volatile? * Should I sell Amazon? * Should I rebalance my portfolio? * Should I diversify my portfolio? * Diversification in REITs * Timing the market * Average Cost Base * Real Estate * Value vs Growth * Renters **Our Masterclass Speakers**  ----------------------------- **Guest Panelist: **Rawn Lakhan, the President, CEO, and Portfolio Manager at Meadowbank Asset Management**** Rawn Lakhan, the President, CEO, and Portfolio Manager at Meadowbank Asset Management, who has 17+ years of experience in the financial services industry. Rawn has a BA and an MA in Economics from York University. He is a Chartered Investment Manager, a Chartered Strategic Wealth Planner, and a Fellow of the Canadian Securities Institute. **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Extend your understanding of market dynamics by tuning into our related webinar, [Navigating Volatility: How to Strategically Invest in the Market with Rita Li](https://blogs.buyproperly.ca/navigating-volatility-how-to-strategically-invest-in-the-current-market-with-rita-li). Gain valuable insights and strategic approaches from industry experts as you continue your journey towards informed and successful investment strategies --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Demystifying Taxation: Expert Insights for the Tax Season with Anil Sharma Author: BuyProperly Engineering Published: 2023-06-06 Category: Events Tags: Real estate, Fractionalrealestate, Taxation URL: https://buyproperly.ai/blog/demystifying-taxation-expert-insights-for-the-tax-season-with-anil-sharma Webinar brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/webinar-banners-25-1715177739247-compressed.png) **Tax Talk Unveiled: Navigating the Canadian Tax Landscape with Khushboo Jha and Anil Sharma** ---------------------------------------------------------------------------------------------- Hosted by BuyProperly CEO **Khushboo Jha**, and featuring guest panelist **Anil Sharma**, President at A4 Tax & Accounting Professional Corporation, this webinar engaged in an open and constructive discussion around insights and practical tips to help you tackle taxes. ### **Session Overview:** * Canadian Tax System * Tax Rates & Credits – 2023 * Income Archetype Taxation * Real Estate Taxation * Investing: Personal Vs Corporation * Tax Saving Tips * Scams & Frauds * Questions **Meet the Experts: Introducing BuyProperly CEO Khushboo Jha and Guest Panelist Anil Sharma** --------------------------------------------------------------------------------------------- **Guest Panelist: **Anil Sharma****, **President **A4 Tax & Accounting Professional Corporation**** Anil Sharma is the President of A4 Tax & Accounting Professional Corporation. He has over 20 years of experience in tax planning, tax preparation and accounting services industry. Anil is a Chartered Professional Accountant (CPA), Certified General Accountant (CGA) providing Tax Planning, Tax Preparation and Accounting Services to Individuals and Businesses in and around GTA. **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Next Steps: Leveraging Your Tax Return for Wealth Growth Explore actionable strategies and valuable insights on how to make the most of your tax return for wealth expansion. Dive into our guide on [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) and embark on a journey towards financial empowerment and prosperity. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unraveling Depreciation: Decoding the Essence of Asset Value Erosion Author: BuyProperly Engineering Published: 2022-12-22 Category: Insights Tags: depreciation, understanding depreciation URL: https://buyproperly.ai/blog/what-is-depreciation ![What is depreciation? ](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-1-1705417193139-compressed.jpg) ​**Understanding the Erosion of Asset Value Over Time**  ----------------------------------------------------------- Depreciation is an accounting word that refers to a way of allocating the cost of a tangible or physical asset over its useful life. Depreciation is a term used to describe how much of an asset’s worth has been used. It lets businesses to generate revenue from the assets they possess by paying for them over time. The immediate cost of ownership is greatly lowered because corporations do not have to account for them totally in the year they are purchased. Depreciation can have a significant impact on a company’s profitability if it is not taken into consideration. Long-term investments can also be depreciated for tax and accounting purposes. ### **Understanding Depreciation** Machinery and equipment, for example, are costly assets. Companies can utilize depreciation to stretch out the cost of an asset rather of realizing the entire cost in the first year and match depreciation expenses to comparable revenues in the same reporting period. This enables a corporation to depreciate the value of an asset over time, most notably its usable life. Depreciation is taken on a regular basis by businesses so that the costs of their assets can be transferred from their balance sheets to their income statements. When a corporation purchases an asset, it records the transaction as a debit on the balance sheet to increase an asset account and a credit on the balance sheet to lower cash (or increase accounts payable). Neither journal entry has an impact on the income statement, which reports revenues and expenses. An accountant records depreciation for all capitalized assets that have not been fully depreciated at the end of each accounting period. The following are the components of a journal entry: * Debit to depreciation expenditure, which is then carried over to the income statement. * Credit is given to accumulated depreciation on the balance sheet. As previously stated, firms can use depreciation for both tax and accounting objectives. This implies they can deduct the cost of the item from their income, lowering their taxable income. However, according to the Internal Revenue Service (IRS), while depreciating assets, businesses must spread the cost out over time. When a company can take a deduction, the IRS has rules. ### **Special Considerations** Because depreciation does not represent a cash outflow, it is classified as a non-cash expense. When an asset is purchased, the entire cash outlay may be paid at once, but the expense is recorded progressively for financial reporting purposes. This is due to the fact that assets provide long-term value to the organization. Depreciation charges, on the other hand, diminish a company’s earnings, which is beneficial for tax purposes. The matching principle is an accrual accounting concept that states that expenses must be matched to the same period that the relevant revenue is earned. Depreciation is a method of tying an asset’s cost to the benefit of its use over time. In other words, the incremental expense associated with depreciating an asset is likewise reported for an asset that generates revenue each year. The depreciation rate is a percentage that represents the total amount of money depreciated each year. For example, if a company’s total depreciation throughout the asset’s estimated life was $100,000 and the yearly depreciation was $15,000, the total depreciation would be $100,000. This indicates that the annual rate would be 15%. ### **Threshold amounts** Different companies may determine their own depreciation thresholds for fixed assets, such as property, plant, and equipment (PP&E). A small business, for example, might set a $500 threshold for depreciating an asset. A larger corporation, on the other hand, may set a $10,000 threshold below which all purchases are expensed immediately. ### **What Is the Difference Between Depreciation Expense and Accumulated Depreciation?** The primary distinction between depreciation expense and accumulated depreciation is that one is presented as an expense on the income statement, while the other is reported as a counter asset on the balance sheet. Both refer to the depreciation of equipment, machinery, or another asset and aid in determining its true value, which is crucial when calculating year-end tax deductions and valuing assets when a firm is sold. Although all of these depreciation entries should appear on year-end and quarterly reports, depreciation cost is the more typical of the two due to its use in tax deductions and capacity to reduce a company’s tax burden. Accumulated depreciation is typically used to estimate an item’s lifetime or to track depreciation over time. Are you interested in learning how to [**get started investing in real estate with as little as $2500**](https://buyproperly.ca/resource-center/invest)? Contact Us Today! Related Topics to Depreciation: 1. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) 3. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) 4. [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) 5. [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Capital Chronicles: The Essence of Contributed Capital Unveiled Author: BuyProperly Engineering Published: 2022-12-22 Category: Insights Tags: EquityInvestment, ContributedCapital, Financial Foundation URL: https://buyproperly.ai/blog/what-is-contributed-capital ![Contributed Capital.jpg](https://lh5.googleusercontent.com/fR_99Yrr3DXKY75lvYtrU4ixVbbt1Dknn7wHrk2w57uNiFLMmUy0IAscgqA72EOadqQIruomH3N1bXQTJknJk0u1YSV79qZjwCT3_ojuBclJEOuw8exV4hEui6mCHSMrlLqN0lRAJkegBmXVAA) **What Is Contributed Capital?** -------------------------------- The cash and other assets that shareholders have provided a corporation ‌for stock are referred to as contributed capital, also known as paid-in capital. When a corporation offers equity shares at a price that shareholders will pay, investors make capital contributions. Their position or ownership in the company is represented by the total amount of contributed capital or paid-in capital. Contributed capital can also refer to the stockholders’ equity item on a company’s balance sheet, which is commonly displayed alongside the balance sheet entry for additional paid-in capital. ### **Understanding Contributed Capital** The total value of the stock that shareholders have purchased directly from the issuing business is referred to as contributed capital. It covers funds raised through initial public offerings (IPOs), direct listings, direct public offerings, and secondary offerings, such as preferred stock issues. Receiving fixed assets in return for stock and reducing liabilities in exchange for shares are also included. The difference between the two values equals the premium paid by investors over and above the par value of the company’s shares. Contributed capital can be compared to additional paid-in capital, and the difference between the two values equals the premium paid by investors over and above the par value of the company’s shares. The par value is an accounting value for each of the shares to be offered, not a market value that investors are ready to pay. Preferred shares have more than marginal par prices, but most common shares today have par values of just a few pennies. As a result, “additional paid-in capital” tends to be reflective of total paid-in capital and is occasionally shown on the balance sheet by itself. ### **Capital Contributions** It’s important to note that capital contributions, which are cash injections into a business, can take many other forms other than the selling of stock shares. An owner might, for example, take out a loan and use the proceeds to make a capital contribution to the business. Non-cash assets such as buildings and equipment, can also be used to make capital contributions to businesses. These scenarios include a variety of capital inputs that improve the equity of the owners. However, the term “contributed capital” is usually used to refer to the money obtained from the sale of stock rather than other types of capital contributions. **Calculating Contributed Capital** ----------------------------------- Contributed capital is recorded in the shareholder’s equity portion of the balance sheet and is often divided into two accounts: common stock and additional paid-in capital. In other words, contributed capital includes the stock’s par value—or nominal value—found in the common stock account, as well as the amount of money paid for shares over and above the par value—the share premium—found in the additional paid-in capital account. The additional paid-in capital account is also known as the share premium account, while the common stock account is also known as the share capital account. ### **Example of Contributed Capital** A firm, for example, may issue 5,000 shares with a par value of $1 to investors. The investors pay $10 per share, resulting in a $50,000 equity capital rising. As a result, the corporation accounts for $5,000 in common stock and $45,000 in paid-in capital in excess of par. The total amount stockholders were willing to pay for their shares are equal to the sum of these two accounts. To put it another way, the provided capital is $50,000. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and gain the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Mortgage Approval:** 1. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://buyproperly.ai/blog/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [How to Choose an Investment Property: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [Why Invest in Real Estate: 7 Key Benefits to Know](https://buyproperly.ai/blog/why-invest-in-real-estate) 4. [The 5 Types of Real Estate Investments](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments) 5. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Saving vs. Investing: How to Protect and Grow Your Wealth Author: BuyProperly Engineering Published: 2022-12-22 Category: Insights Tags: investing, Grow wealth, protect wealth, savings URL: https://buyproperly.ai/blog/saving-vs-investing-how-to-protect-and-grow-your-wealth Are you trying to figure out whether you should save your money or invest it? It can be tough to decide, especially when there are so many different options out there. In times of market uncertainty, it’s even tougher to figure out the best investment strategy! In this blog post, we’ll break down the pros and cons of both saving and investing, so you can make the best decision for you.  Keep reading to learn more! ![Virtue of Savings - The Statesman](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/istock-1185358443-1715167227095-compressed.jpg) **How inflation affects our saving vs. investing behavior** ----------------------------------------------------------- Inflation has a tremendous impact on investing behavior. Generally,  when the market is volatile, investors tend to save more money. When inflation is low, they have a greater propensity to invest. There are a variety of ways to measure inflation. The most common measure of inflation in the United States is the Consumer Price Index (CPI). The CPI measures the prices of a fixed basket of goods and services that are purchased by consumers. The CPI is released on a monthly basis by the U.S. Bureau of Labor Statistics. Inflation can have a significant impact on investment returns. For example, if an investor buys a stock for $100 and the stock appreciates in value by 10%, but inflation is 3%, the real return on the investment is only 7%. In other words, the purchasing power of the investment has only increased by 7%. Investors need to be aware of how inflation will affect their investments. When making investment decisions, they should consider how much inflation will erode the purchasing power of their investment returns. **What is market volatility and how does it impact behavior?** -------------------------------------------------------------- Market volatility is the fluctuations in the prices of securities over time. The stock market is especially volatile, with prices rising and falling rapidly. Volatility can have a significant impact on investment returns. For example, if an investor buys a stock for $100 and the stock falls in value by 10%, but the market overall has risen by 5%, the investor has lost money. However, market volatility can also present opportunities for investors. For example, if an investor buys a stock when it is undervalued and the market subsequently rises, the investor may realize a significant return on their investment. Investors need to be aware of how market volatility will affect their investments. When making investment decisions, they should consider how much the value of their investments may fluctuate over time. ### **What are the impacts of market volatility and inflation on consumer decisions when it comes to saving and investing?** Market volatility and inflation both have a significant impact on consumer decisions when it comes to saving and investing. Similar to inflation, when the market is volatile, consumers tend to save more money. When volatility is low, they tend to invest and take more risks. When making investment decisions, consumers should consider how much market volatility and inflation will affect their investments. They should also be aware of how these factors will impact the purchasing power of their investment returns. **Saving vs. investing: which is the better option?** ----------------------------------------------------- Assuming a saver has $1,000 to put away, there are generally two schools of thought when it comes to how to grow that money. The first is to save it. The second is to invest in it. Saving typically means putting the money into a bank account where it will earn interest. The interest rate earned on savings is usually much lower than the rate of inflation, meaning the purchasing power of the money will slowly decline over time. Investing, on the other hand, generally refers to putting money into assets such as stocks, bonds, or real estate. These assets have the potential to grow in value over time, outpacing inflation and providing investors with a real return on their investment. In general, saving is the best option for short-term goals, such as emergency funds or money for a major purchase like a new car or home. This is because the money can be easily accessed when needed and there is little risk of losing any of the principal invested. Investing is better suited for long-term goals, such as retirement. This is because the money has time to grow and compound over the years, increasing the potential return. Additionally, most long-term investments are relatively low risk, meaning there is less chance of losing money. Of course, there are exceptions to every rule. For example, if someone has a high-interest debt, such as credit card debt, it may make more sense to invest their money and pay off the debt with the earnings. This is because the return on investment is likely to be higher than the interest rate on the debt. Similarly, if someone is facing a high tax rate, they may also benefit from investing their money rather than saving it. This is because investment gains are typically taxed at a lower rate than income. It’s also worth noting that saving and investing are not mutually exclusive. In fact, most financial experts recommend doing both. This way, you can have money available for short-term goals while still growing your wealth over the long term. The key is to find the right balance for your own financial situation. And, of course, to start saving and investing as early as possible. The sooner you start, the more time your money has to grow. **What is considered a “safe” investment strategy?** ---------------------------------------------------- There is no one-size-fits-all answer to this question. It depends on your individual goals, risk tolerance, and time frame. For example, someone who is retired or close to retirement may want to take a more conservative approach, investing in lower-risk assets such as bonds or cash. This is because they have less time to recover from any market losses. On the other hand, someone who is young and has a longer time frame may be more willing to take on risks in order to achieve higher returns. This could involve investing in stocks or real estate. It’s important to remember that all investments come with some degree of risk. There is always the potential to lose money, even with the safest investments. That being said, there are specific investment strategies that tend to be more conservative and offer a lower risk of loss. These include investing in index funds and diversifying your portfolio across different asset classes. Similarly, dollar-cost averaging is another strategy that can help to minimize risk. This involves investing a fixed amount of money into security or securities at regular intervals. This helps to smooth out any market fluctuations and can help to protect your investment portfolio from sudden losses. **What is the best way to grow wealth?** ---------------------------------------- There are many different ways to grow wealth. Which one is best for you will depend on your individual goals and circumstances. Some common methods include investing in stocks, real estate or mutual funds. You can also grow your wealth by starting your own business or saving money in a high-interest savings account. No matter which approaches you take, the key is to start early and to be disciplined with your finances. The sooner you start saving and investing, the more time you’ll have to grow a secure and stable portfolio. **Fractional ownership and investing** -------------------------------------- Fractional investing is another strategy to consider if you’re looking to grow your wealth.  This involves investing in a security or securities, but only own a portion of it. For example, let’s say you want to invest in a stock that costs $100 per share. With fractional ownership, you could buy one-tenth of a share for $10. This allows you to get exposure to the stock without having to put down the full amount. Fractional ownership can be a great way to diversify your investment portfolio without having to commit a large amount of money. It can also help to reduce your overall risk. **This same investment model also applies to real estate!** By leveraging fractional ownership, you can see returns and take advantage of appreciation by investing only a small amount to get started. **Here at BuyProperly, we help investors find the best investment opportunities with our AI sourcing model and manage all their investments in our digital portal. [The best part? You can get started for as little as $2500! Learn more here.](https://buyproperly.ca/how-it-works)** **Conclusion** -------------- There is no single answer to the question of whether you should save or invest your money. The best approach for you will depend on your individual goals and circumstances. That being said, most financial experts recommend doing both. This way, you can have money available for short-term goals while still growing your wealth over the long term. The key is to start early and to be disciplined with your finances. The sooner you start saving and investing, the more time you’ll have to grow a secure and stable portfolio. Fractional ownership and investing can also be great strategies to consider if you’re looking to grow your wealth without taking on a lot of risk. No matter which approaches you take, the most important thing is to get started! Saving and investing are both great ways to build your wealth over time. Read More: [Millennials Struggle with Real Estate Dreams through Traditional Investments.](https://blogs.buyproperly.ca/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Build Wealth with Real Estate Author: BuyProperly Engineering Published: 2022-12-15 Category: Insights Tags: Diversification in Investments, Debt Management, Long-term Planning, Real Estate Investments URL: https://buyproperly.ai/blog/how-to-build-wealth-with-real-estate ![](https://lh6.googleusercontent.com/4fDj0QnNIZ58QsehVGlCsz5fkpaTUBa_z20LQiJHqrXtPlDaH2l7fh96quEiEAA-dERPzt_KEAtJDZKTqSbz-NymOU8FlUsLE7iebDLqAmnZz9A9f3aLtRgksB_YeQ=s0) ![How to Build Wealth with Real Estate](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-build-wealth-with-real-estate-1714691569649-compressed.jpeg) Wealth as a general concept is incredibly subjective. To some, it’s happiness, love, and security and to others, just good ol’ money. Only one of those, however, pays the bills. Money and wealth are often used interchangeably in everyday language, however, wealth is the total value of all assets owned by a person including money, not the other way around. While growing wealth gives you freedom, **hoarding money, in the bank or at home, is the easiest way to deplete your wealth because the accumulation of money does not build wealth**. Inflation, emergency expenses, and unforeseen circumstances – will ultimately dampen (or even stop) wealth generation unless there is an action plan in place to generate a stable passive income stream. So how do you actually build wealth? By making good investments. The advice might be a little cliched, but that’s only because it works. At [BuyProperly](https://buyproperly.ca/), we understand the need to build long-term secure wealth-generating assets for everyday investors. Before we invest, it’s important to consider a few important factors: Why savings aren’t enough? -------------------------- If you are yet to start putting your savings to work, then your saved money is likely to be resting in either of these two places: ### Dresser drawer (we’re hoping the location keeps changing). These are the assets hidden away under your mattresses, in murky cabinets, in bank lockers, or in other places where they generate zero interest. Dresser drawer savings naturally don’t add anything to your wealth apart from their original value, which even declines over time with some assets. ### Bank account  Bank account savings, on the other hand, generate an annual sum of interest. The only problem with this is, [inflation will almost always outpace the average rate of interest in any economy](https://www.marketwatch.com/story/buckle-up-theres-a-lot-more-to-inflation-than-the-price-of-goods-2018-02-21). This is why even bank account savings can’t quite be seen as investments. No matter where or how you save, inflation will always catch up with you and eat into dormant money. Investing your savings into different assets/instruments is what’s recommended instead.  **Wise spending + wise investing = Financial Freedom. ** Passive income  --------------- Passive income is generated on assets that can be lent or whose market value tends to increase. Rent is the oldest, most trusted form of passive income. Owning assets like residential or commercial property that generates rent for you has been a time-tested way to invest sensibly. (Note: Investments that generate any kind of income for you are always subject to market risks. It is wise to consider your risk tolerance before committing a certain amount to such an investment. A good rule of thumb to follow here is to buy assets using the money you definitely wouldn’t need within the next five years).  Saving for your future  ----------------------- Wealth generation is about more than being able to afford that Porsche you have your heart set on. Whether you plan for them or not, the future is full of new adventures, which often come with expenses. Long-term investments in real estate are a way of generating generational wealth that you can use to provide for your family. These investments can be used to support your retirement funds, your kids’ college funds, and any other money you’d like to set aside for the future. Well, thought-out investments in real estate can turn into a perennial supply of money – money that ensures your family can afford peace and comfort, no matter what uncertainties the future brings. The Debt Factor --------------- For a lot of investors, the first step to real estate investing seems intimidating due to the idea of a Mortgage. Having debt on your back essentially takes away from wealth, further, it exposes you to the possibility of inevitable long-term losses.  [According to the Mortgage Bankers Association, financial institutions in the U.S. hold about $10 trillion of mortgage debt on family residences](https://www.millionacres.com/real-estate-financing/mortgages/heres-size-average-americans-mortgage/). Taking debt has been promoted as the only way to start building wealth but it invariably leads to additional workload, stress tests, paperwork, etc. which eventually cripple wealth growth. In the long term, this effect piles on, leading to massive losses that can completely derail your investment plans. No matter where or with how much money you start investing, it is important to judge if the same returns can be achieved without taking on debt. At [BuyProperly](https://buyproperly.ca/), we restructured Real Estate, offering investors a better‌ ‌way‌ ‌to‌ ‌invest‌ ‌in‌ ‌property‌ ‌without‌ ‌taking‌ ‌out‌ ‌a‌ ‌huge‌ ‌mortgage‌ ‌fee‌ ‌or‌ ‌paying‌ ‌a‌ ‌fee‌ ‌to‌ ‌the‌ ‌realtor.‌ ‌[With no entry barrier and no hassle of maintenance or tenants, you are on your way to saving enough for buying your own home sooner than you thought.](https://buyproperly.ca/how-it-works) The need for diversification  ----------------------------- It is often said that you should not put all your eggs in one basket, especially when the eggs are as important as retirement savings, savings for your home, children’s education, etc. While every market investment is prone to certain risks, diversification in a secure portfolio is the best bet for stable growth. The ideal investment portfolio hedges risks against each other to ensure you take on the least possible risk.  Ideally, you don’t want to concentrate all your capital in one area. Imagine putting all your money in one house and then facing a 2008-like housing crisis. To benefit from diversification, an ideal investment portfolio should have real estate, stocks, EFTs, mutual funds, etc. Even within each of those sectors, there is further scope for diversification. However, traditional real estate doesn’t let small investors diversify their portfolios. We at BuyProperly aim to solve this issue to ensure small investors can buy 10% of a house, along with 20% of a condo and 25% of a pre-construction investment unit in different geographies and thus, benefit from the true definition of diversification. Here at BuyProperly, we leverage Artificial Intelligence to craft best-in-class investment opportunities for you so that you can invest in several Real Estate Asset classes. These meticulously picked assets work together to minimize market risks and generate excellent gains. With us, your money makes money so that you can make your dream retirement plans! contact us at info@buyproperly.com in case you have any other questions.  Offering high-yield investment opportunities to everyday investors in a hassle-free, secure and transparent manner. Sign up, browse and invest. The market awaits – let’s go to [www.buyproperly.com](http://www.buyproperly.ca/). Read about [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The 4 Best Investments For Inflation: Protect Your Wealth! Author: BuyProperly Engineering Published: 2022-11-24 Category: Insights Tags: investments, inflation, Grow wealth URL: https://buyproperly.ai/blog/the-4-best-investments-for-inflation-protect-your-wealth-3 Whether you’re brand [new to investing](https://blogs.buyproperly.ca/webinar-investing-101-navigating-the-space-of-new-wealth-creation) or your portfolio is filled with stocks, bonds, and other traditional assets designed to build wealth, it’s important to consider the impact of inflation. What if there were a few key [investments](https://blogs.buyproperly.ca/alternative-investments-new-ways-to-grow-your-wealth) you could add to your portfolio that were specifically included to help protect you from inflation? In this blog post, we’ll explore four of the best investments for inflation and how they can help improve your overall portfolio performance. Keep reading to learn more! **How does inflation work?** ---------------------------- When we take a closer look, inflation is actually quite logical.  When prices for goods and services increase, people tend to want to hold on to their money instead of spending it. This decrease in demand (along with an increase in supply) causes prices to level off or even go down. So, over time, the average price of all goods and services will increase. This is why it’s important for investors to include inflation hedges in their portfolios – because, as we’ve seen, unchecked inflation can have a serious negative impact on your [long-term wealth.](https://blogs.buyproperly.ca/webinar-finance-and-investing-strategies) ![How Inflation is Affecting You and How You Can Combat it - 101 Financial](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/inflation-growing-1715167230438-compressed.jpg) **Why does inflation happen?** ------------------------------ Inflation is a rise in the general level of prices for goods and services in an economy over time. It is measured as an annual percentage increase. When inflation rises, every dollar you have buys a smaller percentage of a good or service than it did before. In other words, your money loses value. There are several factors that can contribute to inflation, including: * too much money chasing too few goods and services, * rising production costs, such as wages and energy prices, * a decline in the value of the U.S. dollar, and * government policies, such as tax increases or spending. **How does inflation affect your investments?** ----------------------------------------------- Inflation can have a significant impact on your investments, particularly if you have a long-term investment horizon.  When inflation rises, it can erode the value of your investments over time. The best way to combat inflation is to invest in assets that are likely to rise in value at a rate greater than the rate of inflation. **What is the prediction for inflation in 2023 and beyond?** ------------------------------------------------------------ There is not one definitive answer to this question. Inflation can be impacted by a number of factors, including global events and economic conditions. As a result, it’s difficult to make an accurate prediction. However, most economists expect inflation to continue rising over the next few years. **Here are the 4 best investments to hedge inflation:** ------------------------------------------------------- ### **1\. Commodities**  Commodities are a good investment for hedging inflation because they tend to rise in value as the cost of production increases. Furthermore, commodities are not dollar-based, so they are less affected by fluctuations in the value of the U.S. dollar. In addition, commodities can be a good hedge against stock market volatility. Commodities are not at risk in the same way as goods and services, so they can provide a “safe haven” during periods of high inflation. As an added bonus, commodities tend to have low correlations with other asset classes, making them a good addition to a diversified portfolio. Some of the best commodities to invest in include gold, silver, and platinum. ### **2\. Real Estate** [Real estate](https://buyproperly.ca/resource-center/posts/real-estate-terminology-every-investor-should-know) has long been considered a solid investment for hedging against inflation. Why? Because not only can landlords raise rents to keep pace with inflation, but the underlying value of real estate usually rises along with prices. Real estate is a good investment for inflation because it tends to rise in value along with the cost of living. In addition, real estate provides investors with two important benefits. First, it’s a tangible asset that can be used as collateral for loans.  Second, it offers investors a degree of insulation from stock market volatility. Some of the best types of real estate to invest in include commercial and residential property. The biggest problem with investing in real estate is all the upfront capital it takes to get started. This means that most investors are stuck being unable to buy into the market or growing their portfolio very slowly. Fortunately, there are alternatives to traditional real estate investing! **Here at [BuyProperly](https://buyproperly.ca/), we use a [fractional ownership model](https://buyproperly.ca/how-it-works) to allow people to invest in real estate for as little as $2500 to start. We use an AI-powered platform to source the best property deals with the highest cash flow. Want to learn more? Visit [BuyProperly](https://buyproperly.ca/)** ### **3\. Stocks** Stocks are a good investment for hedging inflation because they tend to rise in value as the economy expands.  Stocks offer investors the potential for capital gains and dividends. Additionally, stocks offer liquidity, which means you can sell them at any time. Not all stocks offer the same level of inflation “protection”.  To find the best stocks to hedge inflation, you’ll want to look for companies with a strong track record of dividend growth. Some of the best stocks to invest in include technology companies, pharmaceutical companies, and energy companies. ### **4\. REITs** REITs are a good investment for inflation because they tend to rise in value as the cost-of-living increases. Additionally, REITs offer liquidity and dividend payments. Some of the best REITs to invest in include retail, office, and industrial properties. The benefits of investing in REITs are that they provide investors with a degree of insulation from stock market volatility, and they offer a steady stream of income in the form of dividends.  **Conclusion** -------------- [Inflation](https://blogs.buyproperly.ca/is-real-estate-inflation-proof) is a normal and expected event in any economy, but that doesn’t mean you should expect your investments to lose value over time. If you grow your portfolio with a strategy in mind, inflation can work with you, not against you. In order to best protect your investments from the effects of inflation, it is important to diversify your portfolio across different asset classes. By investing in commodities, real estate, various stocks, and REITs, you can help ensure that your investments will rise at a rate greater than the rate of inflation. **If you’re interested in learning how to get started in real estate investing for only $2500, visit [buyproperly.ca](https://buyproperly.ca/) We consistently help investors find the best property deals with high cash flow and projected annual returns of 10-40%!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The 4 Best Investments For Inflation: Protect Your Wealth! Author: BuyProperly Engineering Published: 2022-11-24 Category: Insights Tags: wealth protection, InvestmentStrategies, inflation URL: https://buyproperly.ai/blog/the-4-best-investments-for-inflation-protect-your-wealth-2 Whether you’re brand new to investing or your portfolio is filled with stocks, bonds, and other traditional assets designed to build wealth, it’s important to consider the impact of inflation. What if there were a few key investments you could add to your portfolio that were specifically included to help protect you from inflation? In this blog post, we’ll explore four of the best investments for inflation and how they can help improve your overall portfolio performance. Keep reading to learn more! **How does inflation work?** ---------------------------- When we take a closer look, inflation is actually quite logical.  When prices for goods and services increase, people tend to want to hold on to their money instead of spending it. This decrease in demand (along with an increase in supply) causes prices to level off or even go down. So, over time, the average price of all goods and services will increase. This is why it’s important for investors to include inflation hedges in their portfolios – because, as we’ve seen, unchecked inflation can have a serious negative impact on your long-term wealth. ![How Inflation is Affecting You and How You Can Combat it - 101 Financial](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/inflation-growing-1715167210425-compressed.jpg) **Why does inflation happen?** ------------------------------ Inflation is a rise in the general level of prices for goods and services in an economy over time. It is measured as an annual percentage increase. When inflation rises, every dollar you have buys a smaller percentage of a good or service than it did before. In other words, your money loses value. There are several factors that can contribute to inflation, including: * too much money chasing too few goods and services, * rising production costs, such as wages and energy prices, * a decline in the value of the U.S. dollar, and * government policies, such as tax increases or spending. **How does inflation affect your investments?** ----------------------------------------------- Inflation can have a significant impact on your investments, particularly if you have a long-term investment horizon.  When inflation rises, it can erode the value of your investments over time. The best way to combat inflation is to invest in assets that are likely to rise in value at a rate greater than the rate of inflation. **What is the prediction for inflation in 2023 and beyond?** ------------------------------------------------------------ There is not one definitive answer to this question. Inflation can be impacted by a number of factors, including global events and economic conditions. As a result, it’s difficult to make an accurate prediction. However, most economists expect inflation to continue rising over the next few years. **Here are the 4 best investments to hedge inflation:** ------------------------------------------------------- ### **1\. Commodities**  Commodities are a good investment for hedging inflation because they tend to rise in value as the cost of production increases. Furthermore, commodities are not dollar-based, so they are less affected by fluctuations in the value of the U.S. dollar. In addition, commodities can be a good hedge against stock market volatility. Commodities are not at risk in the same way as goods and services, so they can provide a “safe haven” during periods of high inflation. As an added bonus, commodities tend to have low correlations with other asset classes, making them a good addition to a diversified portfolio. Some of the best commodities to invest in include gold, silver, and platinum. ### **2\. Real Estate** Real estate has long been considered a solid investment for hedging against inflation. Why? Because not only can landlords raise rents to keep pace with inflation, but the underlying value of real estate usually rises along with prices. Real estate is a good investment for inflation because it tends to rise in value along with the cost of living. In addition, real estate provides investors with two important benefits. First, it’s a tangible asset that can be used as collateral for loans.  Second, it offers investors a degree of insulation from stock market volatility. Some of the best types of real estate to invest in include commercial and residential property. The biggest problem with investing in real estate is all the upfront capital it takes to get started. This means that most investors are stuck being unable to buy into the market or growing their portfolio very slowly. Fortunately, there are alternatives to traditional real estate investing! Here at BuyProperly, we use a fractional ownership model to allow people to invest in real estate for as little as $2500 to start. We use an AI-powered platform to source the best property deals with the highest cash flow. **Want to learn more? Visit [BuyProperly](https://buyproperly.ca/)** ### **3\. Stocks** Stocks are a good investment for hedging inflation because they tend to rise in value as the economy expands.  Stocks offer investors the potential for capital gains and dividends. Additionally, stocks offer liquidity, which means you can sell them at any time. Not all stocks offer the same level of inflation “protection”.  To find the best stocks to hedge inflation, you’ll want to look for companies with a strong track record of dividend growth. Some of the best stocks to invest in include technology companies, pharmaceutical companies, and energy companies. ### **4\. REITs** REITs are a good investment for inflation because they tend to rise in value as the cost-of-living increases. Additionally, REITs offer liquidity and dividend payments. Some of the best REITs to invest in include retail, office, and industrial properties. The benefits of investing in REITs are that they provide investors with a degree of insulation from stock market volatility, and they offer a steady stream of income in the form of dividends.  **Conclusion** -------------- Inflation is a normal and expected event in any economy, but that doesn’t mean you should expect your investments to lose value over time. If you grow your portfolio with a strategy in mind, inflation can work with you, not against you. In order to best protect your investments from the effects of inflation, it is important to diversify your portfolio across different asset classes. By investing in commodities, real estate, various stocks, and REITs, you can help ensure that your investments will rise at a rate greater than the rate of inflation. If you’re interested in learning how to get started in real estate investing for only $2500, **visit** [**buyproperly.ca**](https://buyproperly.ca/) We consistently help investors find the best property deals with high cash flow and projected annual returns of 10-40%! Explore [Investment and Wealth Basics: Real Estate edition.](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to invest in real estate with little money Author: BuyProperly Engineering Published: 2022-10-11 Category: Insights Tags: Real estate, realestateinvesting, investing, real estate investing for beginners, Realestateinvest URL: https://buyproperly.ai/blog/how-to-invest-in-real-estate-with-little-money ![How to invest in real estate with little money](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-invest-in-real-estate-with-little-money-1714869222552-compressed.jpeg) If you’re interested in [investing in real estate](https://buyproperly.ca/resource-center/posts/real-estate-terminology-every-investor-should-know) but don’t have a lot of money to put down, options are still available. As you’ll see, you can absolutely purchase property with little or no money available by using some of these creative financing techniques! Before we dive in, have you considered [fractional real estate investing?](https://buyproperly.ca/how-it-works) This is a new, but very attainable way to invest in real estate. We work with investors to get started in real estate for as little as $2500!  **The best part? There’s no maintenance, management, or bad tenants to deal with, PLUS you can see projected annual returns of 10-40%!** [Learn more here.](https://buyproperly.ca/how-it-works) **Why alternative forms of real estate investing are becoming more** popular. ----------------------------------------------------------------------------- In recent years, alternative forms of real estate investing have become more popular with investors who are looking to buy a property with little or no money down. This is because traditional forms of financing, such as bank loans, are becoming harder to obtain. With house prices rising across Canada and the United States, it’s becoming increasingly more difficult for people to “buy-in” to the real estate market. To purchase an investment property, most lenders require a 20-30% down payment. This could be anywhere from $20,000 up to $200,000 or more just for a single-family, residential property! On top of land transfer taxes, surveys, inspections, and lawyer’s fees, these expenses are enough to push many investors out of the market. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/new-blog-1024x683-1715167215774-compressed.jpeg) ### **Ongoing real estate expenses** Aside from your down payment and closing costs, investing in real estate also comes with monthly expenses. These include: * Property taxes * Insurance * Maintenance and repairs * Condo and management fees * Mortgage payments + interest * Rental and vacancy expenses * Ongoing property management This means that investors need to set aside even more money to handle monthly expenses that come up. [Is it possible to invest in real estate without having a large amount of capital available? Absolutely!](https://buyproperly.ca/) Let’s explore some of the most common ways to invest in real estate with little money. **Fractional investing** ------------------------ Fractional investing is a newer concept that’s gained popularity in recent years. It allows investors to pool their money together to purchase a share of an investment property. This type of investment is often made through a real estate crowdfunding platform, which connects investors with developers who are looking to finance their projects. With fractional investing, you can spread your investment amount over multiple properties, which also helps to mitigate risk and increase your diversification. [It’s also a great way to get started in real estate investing with little money as you can typically invest as little as $2500.](https://buyproperly.ca/) **Seller financing** -------------------- Another option for investors looking to buy a property with little money down is seller financing. With this type of financing, the seller agrees to act as the bank and provide you with a mortgage. This could be in the form of an interest-only loan or a balloon payment loan. Seller financing can be a great option for both buyers and sellers. The buyer gets to purchase the property with little money down and the seller gets their asking price for the property. **REITs** --------- REITs, or real estate investment trusts, are [another way to invest in real estate](https://buyproperly.ca/faq/help/getting-started#how-is-buyproperly-different-from-a-reit) without having to put down a large amount of money. REITs are companies that own and manage income-producing properties, such as office buildings, shopping malls, apartments, and warehouses. REITs are traded on stock exchanges and can be bought and sold just like any other stock. This makes them a liquid investment, which is ideal for investors who want to cash out quickly if needed. Since REITs are traded on stock exchanges, they also offer the potential for growth through capital appreciation. The downside of investing in REITs is that they’re subject to the ups and downs of the stock market. This means that your investment could lose value if the stock market declines. In addition, there are fees associated with owning a REIT and you often don’t have any transparency about the properties that you are investing in. **Lease-options** ----------------- A lease option is another creative way to invest in real estate with little money down. With a lease option, you agree to lease a property from the owner for a set period. The length of the lease will depend on the agreement between the buyer and seller, but it’s typically 1-5 years. During the lease period, the buyer has the option to purchase the property, but they’re not obligated to do so. Lease options are a great way to get into a property without having to put down a large amount of money. The downside is that you’re not guaranteed to purchase the property at the end of the lease period. **Wraparound mortgages** ------------------------ A wraparound mortgage is another financing option for investors looking to buy a property with little money down. With a wraparound mortgage, the buyer agrees to make payments on the existing loan and takes over responsibility for the property. The buyer then charges their own tenant a higher rent amount and uses that money to make the monthly payments on the mortgage. Wraparound mortgages can be a great way to get into a property with little money down, but they’re not without risk. If the tenant doesn’t pay their rent on time, the investor could be responsible for making the mortgage payments. **House hacking** ----------------- House hacking is a strategy that allows investors to live in the property they’re purchasing while renting out the other rooms to tenants. This is a great way to get started in real estate investing as it allows you to live in the property while someone else helps to pay the mortgage. House hacking can be done with any type of property, but it’s most commonly done with multifamily properties, such as duplexes and triplexes. The downside of house hacking is that it can be a lot of work. The investor is responsible for finding tenants, collecting rent, and maintaining the property. **Subject-to properties** ------------------------- A subject-to-property is a property that’s purchased with the existing mortgage in place. With this type of purchase, the buyer takes over responsibility for making the monthly mortgage payments, but the seller remains on the hook for the loan. Subject-to properties can be a great way to get into a property with little money down, but they’re not without risk. If the buyer stops making the mortgage payments, the property will go into foreclosure and the seller will be responsible for any deficiency. **Contract for deed** --------------------- A contract for deed is an agreement between a buyer and seller that allows the buyer to purchase a property while making payments over time. The buyer doesn’t take ownership of the property until the contract is paid in full. Contracts for deeds are a great opportunity for buyers, but they’re not without risk. If the buyer stops making the payments, the seller can cancel the contract and evict the buyer from the property. **Joint ventures** ------------------ A joint venture is an agreement between two or more people to work together on a specific project. In the context of real estate investing, a joint venture is an agreement between two or more people to purchase a property and share in the profits. Joint ventures are a great way to get into a property with little money down as they allow you to pool your resources with another person or group of people. The downside of joint ventures is that they can be complex and there’s always the risk that one party will default on the agreement. **Crowdfunding** ---------------- Crowdfunding is a way of raising money from a large group of people. In the context of real estate investing, crowdfunding allows investors to pool their resources and invest in a property together. Although similar to a [fractional model](https://buyproperly.ca/faq/help/getting-started#how-does-buyproperly-work), crowdfunding focuses more on raising capital as opposed to investing in fractional shares of a property. Crowdfunding platforms such as RealtyMogul and Fundrise make it easy for investors to get started in real estate with little money down. The downside of crowdfunding is that it’s often a hands-off investment and you’re relying on the platform to manage the property. **Sweat equity** ---------------- Sweat equity is the value of the work that you put into a property. For example, if you purchase a fixer-upper and put in the time and effort to renovate it, your sweat equity would be the value of the renovations that you did. Sweat equity can be a great way to get into a property with little money down since it opens up opportunities to get lower-priced properties with huge potential for appreciation. Keep in mind, if the property doesn’t appreciate in value or if the renovations take longer than expected, you could end up losing money on the deal. **Options** ----------- An option is a contract that gives the buyer the right, but not the obligation, to purchase a property at a set price within a certain period. Options are a great way to get into a property with little money down as they allow you to control the property without having to put up all the cash for the purchase price. The downside of options is that they can be complex and there’s always the risk that the property will decrease in value, leaving the buyer with an option that’s worth less than the purchase price. **Conclusion** -------------- There are several ways to get into real estate with little money down. The best option for you will depend on your individual circumstances. If you’re looking for a hands-off investment, crowdfunding may be the way to go. If you’re willing to put in the work, a subject-to-property or a fixer-upper may be the best option. [Fractional investing is a great option for people who want to own a piece of real estate](https://buyproperly.ai/ca/investments/allDeals/) **[without the headaches that come along with maintenance and management.](https://buyproperly.ai/ca/investments/allDeals/) ** Whatever route you decide to take, do your research and understand the risks involved. Ready to get started? [Take a look at our properties and learn how you can get started for only $2500.](https://buyproperly.ai/ca/investments/allDeals/) Explore [How to Become a Real Estate Investor: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-become-a-real-estate-investor-a-step-by-step-guide) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Mastering Real Estate: The Top 50 Investment Books for Success Author: BuyProperly Engineering Published: 2022-09-21 Category: Insights Tags: best real estate investment books, books for real estate investors, real estate investing books URL: https://buyproperly.ai/blog/the-top-50-real-estate-investment-books ### If you’re a real estate investor ([or thinking about becoming one](https://buyproperly.ca/resource-center/posts/real-estate-terminology-every-investor-should-know)) you know how important it is to equip yourself with knowledge- from [webinars](https://buyproperly.ai/blog/posts/category/events/1) and courses to seminars and mentors, the options are endless! But what you may not realize is that [books](https://buyproperly.ca/resource-center/learn) can also be a powerful investment tool. In fact, there are plenty of great books out there on investing that can help you make smart choices with your money. To help you get started, here are the top 50 best real estate investment books, based on our experts’ recommendations.  Whether you’re a seasoned investor or [just starting to learn the ropes](https://buyproperly.ca/resource-center/posts/webinar-investing-101-navigating-the-space-of-new-wealth-creation), these books will provide you with all the information you need to make smart decisions about where to put your money.  So if you’re looking to boost your financial knowledge and invest smarter, be sure to check out this list of the best real estate investment books! * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/dd-1024x683-1715167233851-compressed.jpeg) **Here is a list of the top 50 best real estate investment books:** ------------------------------------------------------------------- ### **1\. “The Intelligent Investor” by Benjamin Graham:**  This book is considered the “bible” of value investing and is a must-read for anyone looking to get into this strategy. ### **2\. “The Warren Buffett Way” by Robert G. Hagstrom:**  This book outlines Buffett’s unique investing philosophy and approach to building a successful portfolio. ### **3\. “The Millionaire Real Estate Investor” by Gary Keller:**  This book is a comprehensive guide to real estate investing, covering everything from finding properties to financing and managing them. ### **4\. “The Book on Rental Property Investing” by Brandon Turner:** This book is a step-by-step guide to successful rental property investing, from finding the right property to screening tenants and managing your investment. ### **5\. “The Real Estate Investor’s Guide to Flipping Houses” by J. Scott:**  This book provides a detailed, step-by-step guide to flipping houses for profit, from finding the right property to repairing and selling it. ### **6\. “Build a Rental Property Empire” by Mark Ferguson:**  This book is a comprehensive guide to building a profitable rental property business, from finding the right properties to managing and scaling your business. ### **7\. “The ABCs of Real Estate Investing” by Ken McElroy:**  This book is a great introduction to real estate investing, covering everything from the basics of property ownership to financing and taxation. ### **8\. “The Real Estate Investor’s Bible”** by William Bronchick:  This book breaks down real estate investing, covering everything from finding properties to financing and closing deals. ### **9\. “The Complete Guide to Flipping Properties”** by Steve Chaderjian:  This book is a step-by-step guide to flipping properties for profit, from finding the right property to repairing and selling it. ### **10\. “The Real Estate Investor’s Guide to Financing” by Robert Shemin:**  This book is a comprehensive guide to financing real estate investments, from traditional loans to creative financing techniques. ### **11\. “Investing in Real Estate” by Gary Eldred:**  This book is a great introduction to real estate investing, covering everything from the basics of property ownership to financing and taxation. ### **12\. “The Real Estate Investor’s Guide to Tax Deeds and Foreclosures” by Jackie Beckham:**  This book is a great intoduction to investing in tax deeds and foreclosure properties, from finding the best deals to bidding at auction. ### **13\. “The ABCs of Property Management” by Ken McElroy:**  This book is a great introduction to property management, covering everything from the basics of rentals and leases to marketing and maintaining your properties. ### **14\. “The Real Estate Investor’s Guide to Leasing” by Joel Singer:** This book is a comprehensive guide to leasing real estate properties, from Negotiating the best terms to managing the tenancy. ### **15\. “The Real Estate Investor’s Guide to Business Plans” by Michael E. Gerber:**  This book covers everything you need to know about creating a business plan for your real estate investing business, from setting goals and objectives to outlining your marketing strategy. ### **16\. “The Real Estate Investor’s Guide to Residential Properties” by John T. Reed:**  This book is a comprehensive guide to investing in residential properties, from finding the best deals to financing and managing your investment. ### **17\. “The Real Estate Investor’s Guide to Commercial Properties” by John T. Reed:**  This book is all about investing in commercial properties, from office buildings to shopping centers. ### **18\. “The Real Estate Investor’s Guide to Economic Indicators” by Sam Khater:**  This book is a comprehensive guide to understanding and using economic indicators to make better real estate investment decisions. ### **19\. “The Real Estate Investor’s Guide to Market Research” by Steve cook:**  This book is a great guide to market research for real estate investors, from finding the best markets to invest in and analyzing demographic trends. ### **20\. “The Real Estate Investor’s Guide to Property Management”** by William Pivar:  This book is an introduction to property management for real estate investors, from finding the best tenants to maintaining your properties. ### **21\. “The Real Estate Investor’s Guide to Financing Options” by James A. Banks:**  This book is a guide to financing options for real estate investors including both traditional loans and private lenders. ### **22\. “The Real Estate Investor’s Guide to Flipping Houses” by Suzanne Krauss:**  This book is a step-by-step guide to flipping houses for profit, from finding the right property to repairing and selling it. ### **23\. “The Real Estate Investor’s Guide to Negotiating” by Dean Graziosi:**  This book is a comprehensive guide to negotiating real estate deals including buying properties at a discount to getting the best terms on financing. ### **24\. “The Book on Rental Property Investing” by Brandon Turner:**  This book is a great introduction to the ins and outs of rental property investing, from finding the best deals to managing your properties. ### **25\. “The Real Estate Investor’s Guide to Foreclosures” by Martin Welch:**  This book is a guide to investing in foreclosed properties including finding the best deals for repairing and selling them. ### **26\. “The Real Estate Investor’s Guide to Short Sales” by Suzanne Krauss:**  This book is a great introduction to short-selling real estate properties, from finding the best deals to negotiating with lenders. ### **27\. “The Real Estate Investor’s Guide to Fix and Flips” by Suzanne Krauss:**  This book is a step-by-step guide to fixing and flipping houses for profit and covers everything from finding the right property to repairing and selling it. ### **28\. “The Real Estate Investor’s Guide to Rent-to-Own Properties” by Michael R. Lewis:**  This book is a great introduction to rent-to-own investing, from finding the best deals to negotiating with sellers. ### **29\. “The Real Estate Investor’s Guide to Wholesaling” by Than Merrill:**  This book is a guide to wholesaling real estate properties including finding the best deals to negotiating with sellers. ### **30\. “Long-Distance Real Estate Investing” by David Greene:**  This book is a wonderful introduction to investing in real estate from a distance, from finding the best deals to working with local property managers. ### 31\. “The Real Estate Investor’s Guide to Incomplete Construction Projects” by James A. Banks:  This book is a comprehensive guide to investing in incomplete construction projects, from finding the best deals to financing and managing your investment. ### **32\. “The Real Estate Investor’s Guide to Bank-Owned Properties” by Jackie Beckham:**  This book is a great introduction to investing in bank-owned properties, from finding the best deals to negotiating with lenders. ### **33\. “Build a Rental Property Empire” by Mark Ferguson:**  All about building a rental property empire including finding the best deals to managing your portfolio. **34\. “The Real Estate Investor’s Guide to Pre-foreclosures” by Jackie Beckham:**  This book is an introduction to investing in pre-foreclosure properties, from finding the best deals to negotiating with sellers. ### **35\. “The Real Estate Investor’s Guide to Online Marketing” by Than Merrill:**  This book is a comprehensive guide to online marketing for real estate investors, from creating a website to driving traffic and generating leads. ### **36\. “Real Estate Riches” by Dolf de Roos:**  This book covers how to build wealth through real estate investing, from finding the best deals to creating a portfolio that will generate income. ### **37\. “How to Be a Real Estate Investor” by Neil Weinberg:**   This book is a great introduction to real estate investing for those who are new to the field. It includes information on finding the best deals and making your first investment. ### **38\. “Investing in Real Estate” by Gary Wiltbank:** A straightforward book about real estate investing, from finding the best deals to choosing the right properties. ### **39\. “The Real Estate Investor’s Guide to Cold Calling” by Dean Graziosi:**  This book is a great introduction to good, old-fashioned cold calling for real estate investors. ### **40\. “How to Be a Real Estate Investor” by Neil Weinberg:**   This book is a great introduction to real estate investing for those who are new to the field, from finding the best deals to making your first investment. ### **41\. “The Real Estate Investor’s Guide to FSBOs” by Jackie Beckham:**  This book is a guide to investing in for-sale-by-owner properties. ### **42\. “Real Estate: The Ultimate Wealth Builder?” by John Trew:**   This book covers the pros and cons of real estate investing, from finding the best deals to deciding if it’s the right investment for you. ### **43\. “The Real Estate Investor’s Guide to Probates” by Jackie Beckham:**  This book is a great introduction to investing in probate properties including finding the best deals to negotiating with sellers. ### **44\. “The Real Estate Investor’s Guide to Tax Deeds” by Suzanne Krauss:**  This book is a great introduction to investing in tax deed properties, from finding the best deals to bidding at auction. ### **45\. “Making Money in Real Estate” by Matthew Puttock:**  This book is a great introduction to real estate investing, from finding the best deals to making money through different investment strategies. ### **46\. “The Millionaire Real Estate Investor” by Gary Keller:**  This book is a journey into the mindset of a successful real estate investor outlining Keller’s own journey to becoming a millionaire through real estate investing. ### **47\. “The Real Estate Investor’s Guide to Rent-to-Own Properties” by Jackie Beckham:**  This book is a great introduction to investing in rent-to-own properties, from finding the best deals to negotiating with sellers. ### **48\. “The Real Estate Investor’s Guide to Lease Options” by Suzanne Krauss:**  ### This book is a great introduction to investing in lease option properties, from finding the best deals to negotiating with sellers. ### **49\. “The Real Estate Investor’s Guide to Private Lenders” by Than Merrill:**  ### This book is a great introduction to raising private money for real estate investing, from finding the best deals to negotiating with lenders. ### **50\. “The Real Estate Investor’s Guide to Business Plans” by Michael R. Lewis:**  This book is a guide to creating a business plan for your real estate investing business, from finding the best deals to negotiating with lenders. **Conclusion** -------------- These are just some of the best real estate investment books out there. If you’re looking to get started in real estate investing, or if you’re already an experienced investor, these books can help you learn everything you need to know about building a profitable portfolio. So what are you waiting for? Start reading and get started on your real estate investing journey today! Looking for a low-cost, high-return option to start your real estate journey? [Here at BuyProperly, we make investing in real estate easy, simple, and without the hassles of property or tenant management.](https://buyproperly.ca/how-it-works) It is as simple as selecting a property you would like to invest in, and investing with a click! We can help you **get started for as little as $2500!** [Learn more here.](https://buyproperly.ca/) --- Explore [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Alternative Investments: 10 New Ways to Grow Your Wealth Author: BuyProperly Engineering Published: 2022-09-16 Category: Insights Tags: Alternative Investments, Diversified Portfolio, Non Traditional Assets, Asset Diversification URL: https://buyproperly.ai/blog/alternative-investments-new-ways-to-grow-your-wealth Are you looking to grow your wealth in new and innovative ways? If so, alternative investments may be the solution for you. Alternative investments can include a wide range of options, such as fractional investing, venture capital, cryptocurrencies, and more. By diversifying your portfolio with alternative investments, you can help r**educe your risk while also increasing your potential for earnings**. So, if you’re ready to explore some new investment opportunities, read on for more details. Not only are these investments rising in popularity and becoming part of the average investor’s portfolio, but you may be surprised at just how beneficial they can be! ![Business professional evaluating alternative investment opportunities in real estate](https://cloudinary.hbs.edu/hbsit/image/upload/s--GCn9vzv5--/f_auto,c_fill,h_375,w_750,/v20200101/64DCED1B46AA4CBA8BFF24F9683978FA.jpg) ​**Here are 10 alternative investments** to grow your wealth. ---------------------------------------------------------------- ### **1\. Fractional Investing** Fractional investing is a relatively new investment opportunity that allows you to invest in assets such as real estate, art, and wine. With fractional investing, you **don’t have to purchase an entire asset – you can buy a small slice of it instead.** This makes it a more **affordable option** for investors, and it also allows you to diversify your portfolio more easily. Fractional investing is a great way to get started in the alternative investment market because it allows you to invest in assets that you wouldn’t normally be able to afford. This can be a great option for people who are new to investing and want to get their feet wet. Remember, several different platforms offer fractional investing, so be sure to do your research before choosing one. Here at [BuyProperly](https://buyproperly.ca/), we’ve helped hundreds of people get started with [fractional real estate investing](https://buyproperly.ca/how-it-works). With our AI-powered platform, we’re able to match investors with properties that have **huge potential for cash flow and resale ROI.** Want to learn more about how you can see projected annual returns of 10-40%? Check out our available properties here. ### **2\. Venture Capital** Venture capital is an alternative investment that involves **investing in early-stage companies**. This can be **high-risk**, but it also has the **potential for high returns.** This investment is great for people who are willing to take on a little more risk to potentially earn a higher return, and for anyone that loves being a part of new and innovative ideas. If you’re interested in venture capital, **you’ll need to research** the companies you’re considering investing in and be comfortable with the risks involved. ### **3\. Private Equity** Private equity is the **purchase of ownership in a company that is not publicly traded**. This investment is typically made by a group of investors, and the goal is to improve the company’s performance and then sell it or take it public. Private equity investing is a great option for people who want to be more hands-on with their investments and who are comfortable with a higher level of risk. Although private equity **can be high-risk**, it **can also offer high returns.** ### **4\. Art** Investing in art can be a great way to add some diversity to your portfolio. Art can be a **good investment for both short-term and long-term goals**, and it can appreciate in value over time. Art is a great investment for people who have an eye for aesthetics and who enjoy collecting. When investing in art, it’s important to do your research and purchase pieces that you believe will hold or increase in value. ### **5\. Wine** Now we come to a fun (yet often **overlooked!) investment opportunity.** Like art, wine is another asset that can appreciate in value over time. Wine is a popular alternative investment because it can be enjoyed both now and in the future. **Some bottles can generate returns of 10-12% per year.** However, it’s important to remember that wine is a **[volatile](https://buyproperly.ca/resource-center/posts/investing-in-a-volatile-market-strategies-to-succeed) investment**, so you should only invest what you’re comfortable with losing. It’s important to do your research before investing in wine, as some types of wine are more likely to appreciate in value than others. ### **6\. Crypto** [Cryptocurrencies](https://buyproperly.ca/resource-center/posts/real-estate-and-cryptocurrency-a-new-digital-investment-strategy) are a new and exciting alternative investment. These digital currencies have seen a huge increase in value in recent years, and there is potential for even more growth in the future. Cryptoassets, such as Bitcoin and Ethereum, have gained popularity in recent years as alternative investments. Cryptocurrencies are **digital assets that use cryptography to secure their transactions and they can be bought and sold on exchanges and can also be used to purchase goods and services**. One of the biggest benefits of crypto is that there is **no barrier to entry**. You can get started with as little (or as much!) as you want. Cryptocurrencies can be risky and extremely volatile, so it’s important to do your research before investing. ### **7\. NFTs** [NFTs](https://buyproperly.ca/resource-center/posts/make-money-with-nfts-in-investment-portfolio) are a type of **digital asset that is stored on a blockchain**. They are **unique and cannot be duplicated, which makes them valuable.** NFTs **can be used to represent a wide range of assets, such as digital art, land, or even cryptocurrencies.** Some well-known examples include CryptoKitties and Decentraland. Wondering how profitable NFTs can be? In December 2021, a piece called “The Merge” sold for a whopping 91.8 million dollars! NFTs have the potential to be **incredibly lucrative**, but they **can also be a volatile and risky investment**. It’s important to do your research before investing. ### **8\. Peer-to-peer lending** Peer-to-peer lending is a form of alternative lending that allows investors to lend money to borrowers without going through a traditional bank. This can be a good option for people who are looking for lower interest rates and don’t want to go through the hassle of applying for a loan. Peer-to-peer lending also offers the **potential for high returns,** but it’s important to remember that it can be a **risky investment**. ### **9\. REITs** Real estate investment trusts, or REITs, are a type of alternative investment that **allows you to invest in real estate without actually buying property.** REITs are an excellent option for people who want to invest in real estate but don’t have the time or resources to do it themselves. REITs are a diverse investment, and there are many different types to choose from yielding a wide variety of returns. **To get started investing in REITs, you can purchase shares on a stock exchange.** ### **10\. Private Placements** Private placements are alternative investments that are not available to the general public. They are typically **only offered to accredited investors, which means they come with a higher level of risk.** Private placements can be a good way to get access to alternative investments that you might not otherwise have access to. You can find private placements through a variety of sources, such as angel investors, venture capitalists, and private equity firms. **Conclusion** -------------- When it comes to alternative investments, there are many options to choose from. New and innovative companies, technologies, and ideas make it easier than ever to get involved in lucrative projects!​ It’s important to do your research and understand the risks involved before investing. These alternative investments can be a great way to add diversity to your portfolio and grow your wealth. **If you’re interested in [getting started with real estate investing for only $2500](https://buyproperly.ca/how-it-works), learn more about how we can help you grow your [real estate portfolio.](https://buyproperly.ca/investment/properties) ** Explore [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians](https://blogs.buyproperly.ca/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Real Estate and Cryptocurrency: A New Digital Investment Strategy Author: BuyProperly Engineering Published: 2022-09-07 Category: Insights Tags: realestateinvesting, cryptocurrency, bitcoin, investors, proptech URL: https://buyproperly.ai/blog/real-estate-and-cryptocurrency-a-new-digital-investment-strategy There’s a new type of investment out there, and it’s shaking up the world of real estate. Cryptocurrencies are gaining in popularity, and more and more people are investing in them. So what does this mean for real estate? It means that not only can we now use cryptocurrencies to invest in property, but the market just got MUCH larger with the introduction of digital real estate! This is an entirely new way to invest and get into the real estate market, and it could be a great opportunity for those looking to expand their portfolio. Want to learn more? Keep reading! ![Bitcoin, a cryptocurrency, is being used for investment](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/bitcoin-motion-the-website-you-need-to-succeed-in-cryptocurrency-is-now-launched-1024x683-1715167620875-compressed.jpeg) **What role does crypto play in real estate?** ---------------------------------------------- The world of real estate has always been a bit behind the times when it comes to technology. But with the introduction of blockchain, that’s all changing. The blockchain is a distributed ledger that allows for secure, transparent, and tamper-proof transactions. This means that **you can now use cryptocurrencies to buy, sell or trade property!** This new way of investing has a lot of people excited, and for good reason. Not only does it make the process of buying and selling property easier and more secure, but it also opens up the market to a whole new group of investors. How? Well, unlike traditional real estate investments, which are largely available to people with a lot of capital and who understand the market well, crypto real estate investments can be made by anyone with a computer or smartphone. **How has crypto affected real estate?** ---------------------------------------- The real estate market is changing rapidly, and crypto is playing a big role in that. Here are some of the ways that crypto is affecting the real estate market: – Property can now be bought and sold using cryptocurrencies, which makes the process more secure and transparent. – The introduction of digital assets means that more people than ever before can invest in real estate. – Blockchain technology is making it easier to track ownership and the transfer of property. – Smart contracts are making it possible to streamline the buying and selling process. ### **Real estate going digital**. It’s not just the way we’re investing in real estate that’s changing, but **the actual properties themselves are becoming digital!** This is done through the metaverse. Essentially, the metaverse is a virtual world that exists on the internet. And yes, you can actually own property in the metaverse! This might sound like something straight out of a science fiction movie, but it’s actually becoming more and more popular. In fact, some experts predict that the metaverse will eventually replace the internet as we know it. So what does this mean for real estate? It means that we’re on the cusp of a whole new market! One that is digital, global, and accessible to anyone with an internet connection. **What are the benefits of investing in digital real estate?** -------------------------------------------------------------- There are plenty of reasons why you should consider investing in digital real estate. For one, it’s a great way to diversify your portfolio. With the volatility of the stock market, it’s always good to have some stability in your investments. And what could be more stable than real estate? Another benefit is that you can now invest in a property from anywhere in the world! Whether you’re looking to buy a vacation home or an investment property, you can do it all with the click of a button. And since there are no physical borders when it comes to digital real estate, you can also invest in property in other countries without any hassle. Finally, digital real estate is still in its early stages, which means there’s a lot of potential for growth. Over the next few years, **we expect to see the market for digital real estate explode. So if you’re looking to get in on the ground floor of a new and exciting investment, this is it!** **What is the most popular cryptocurrency used in real estate?** ---------------------------------------------------------------- There are several different coins used in for buying and selling real estate digitally, but it’s best to stick with the larger, more well-known currencies. These include: **Bitcoin:** The most popular cryptocurrency used in real estate is Bitcoin. Bitcoin is a decentralized digital currency that can be used to buy, sell or trade property. **Ethereum:** Another popular cryptocurrency used in real estate is Ethereum. Ethereum is a blockchain-based platform that allows for smart contracts. These smart contracts can be used to streamline the buying and selling process. **Litecoin:** Litecoin is another cryptocurrency that is often used in real estate transactions. Litecoin is similar to Bitcoin, but it has faster transaction times and lower fees. **Digital real estate opportunities (the metaverse)** ----------------------------------------------------- If you’re looking for a way to invest in digital real estate, the metaverse is a great place to start. The metaverse is a virtual world that exists on the internet, and **you can actually own property in the metaverse!** Some people predict that the metaverse will eventually replace the internet as we know it, so the market for digital real estate is still very much in its infancy. However, with more and more people investing in crypto, we expect to see rapid growth in this area over the next few years. Overall, what does this mean for real estate? It means that we’re on the brink of an entirely new market! A market that will be digital, global, and accessible to anyone having access to the internet. **What are some of the benefits of investing in digital real estate?** ---------------------------------------------------------------------- Some of the key benefits of investing in digital real estate include diversifying your portfolio, buying property from anywhere in the world, and taking advantage of a new and exciting investment opportunity. For anyone looking to get ahead in the rapidly changing landscape of crypto investments, digital real estate is a great option. **What is the outlook for digital real estate?** ------------------------------------------------ The future looks bright for digital real estate. With more and more people investing in cryptocurrencies, we expect to see the market for digital real estate grow exponentially. With the introduction of blockchain technology, we’re seeing a major shift in how property is bought, sold, and traded. And this is just the beginning! We could see a lot of new players enter the market, and the prices of properties will only go up from here. So, **if you’re thinking about investing in digital real estate, now is the time to do it!** **How can you get started?** ---------------------------- There are several different platforms that allow users to invest in digital real estate tokens. Some examples of platforms include Propy, Atlas City, and Realista. The process is relatively simple: you simply choose the property you want to invest in, purchase tokens that represent ownership of that asset, and then sit back and watch as your investment grows over time. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/real-estate-and-cryptocurrency-1714869885023-compressed.jpg) **Conclusion** -------------- Whether you’re looking to buy a vacation home, an investment property, or a piece of digital real estate in the metaverse, there are plenty of opportunities out there. Crypto is transforming the real estate world by making it more accessible, global, and digital. Explore [Understanding Alternative investments: Crypto, NFTs and Real Estate with Dr. Chinmay Jain](https://buyproperly.ai/blog/understanding-alternative-investments-crypto-nfts-and-real-estate-with-dr-chinmay-jain)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Last But Not The Least, How To Safeguard Your Purchasing Power? Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Safeguard investments, REIT, Diversification in Investments, Purchasing Power URL: https://buyproperly.ai/blog/last-but-not-the-least-how-to-safeguard-your-purchasing-power ![Safeguard Your Purchasing Power](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/safeguard-your-purchasing-power-1715033582834-compressed.jpg) Over time, inflation tends to weaken a consumer’s purchasing power. Fortunately, there are methods for safeguarding your money’s purchasing power, which involve investing while maintaining a moderate level of risk. We’ve witnessed our parents, older siblings, and other family members purchase a home. It has broadened our horizons. Even hearing about real estate transactions from friends contributes to our knowledge. Self-indulgence, on the other hand, is priceless. “The best investment you can make is an investment in yourself…The more you learn, the more you’ll earn” Imagine earning the same pay as your grandfather 40 years ago. This is one way to think about purchasing power. To maintain the same standard of living now, you would need a significantly higher salary. Now think about bigger purchases. If you were purchasing a house for $300,000 in 2000, it would require $650,000 in 2020. Remember, house appreciation is not taken into account here. Changing purchasing power and dollar value matters the most due to inflation. You may have many questions like Where, When, and How to safeguard your purchasing power with excessive inflation? BuyProperly.ca is ready to answer your questions and advise potential investors to get legal and financial counsel before committing to property investment. We also ensure that the investors are fully informed of purchasing power, investment strategies, economic dangers and legal responsibilities. Investment Properties --------------------- Investment properties are not considered primary dwellings; they bring in money through dividends, interest, rents, or even royalties that aren’t part of the property owner’s usual business. And how you use investment property has a powerful impact on its value. Investing in properties has many advantages like sole management, added income, capital growth, less volatility than shares, and tax deductions. It is a tangible asset that provides a continuous increase in income, creating a comfortable feeling. A long-term or short-term investment can be made in an investment property. With the latter, investors frequently participate in flipping, which is purchasing real estate, remodeling or renovating it, and then selling it for a profit in a short time. Investor purchases assets for future appreciation, such as art, securities, land, or other collectables, which are also considered investment properties. Already assessed your financial situation to jump on investing in a property. ​[BuyProperly](https://buyproperly.ai) provides you with complete details of the investment properties, investment advice, and useful guidance for purchasing the property. Invest in Real Estate --------------------- Why should you invest? Why not continue to save and then utilize those funds to purchase “assets” directly? This will be lovely, but it is not a good idea to save money. Why? Savings are squandered too quickly for two reasons: (a) they are spent too easily, and (b) money invested multiplies too quickly. Where can ordinary people put their money? Mutual funds, equities, real estate, gold, and other investments are all available. Bonds, stocks, savings and cash are severely affected by inflation, but real estate has historically manifested as an attractive hedge against inflation. The most typical method of investing in real estate is to buy your own apartment or house. For years, homeownership has been a forced savings plan for sloppy savers. You ought to have a decent amount of money to invest in since real estate in Canada is not cheap. A stable and long-term real estate investment is considered an excellent option for preparing for your life journey. BuyProperly.ca not only safeguards your money but also helps you to multiply it. However, real estate investing has quickly become a more speculative endeavor for many. Those who want to invest in real estate without risk can look into real estate investment trusts, or REITs, which are businesses that sell shares in their various real estate properties. REITs also provide significant tax advantages that neither property ownership nor stock or bond investments can match. BuyProperly.ca has come up with creative solutions to almost these usual roadblocks, allowing you to invest in these homes with minimal effort and paperwork. ​[REIT](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments)​ ----------------------------------------------------------------------------- REIT (real estate investment trust) is an entity that owns, operates, and/or funds income producing real estate. REITs are regarded as secure since they are managed by seasoned investors familiar with the market and can protect your money. REITs pay out significant dividends and have high yields. You get a portion of any profit they create as a recurring dividend, minus costs. Some REITs invest directly in real estate, earning rental income and management fees. Others invest in real estate debt, including mortgages and mortgage-backed securities. However, owning and operating multiple properties will average their long-term growth. They also carry the same risk as a single firm investment. BuyProperly.ca is a bit different from a REIT. We enable you to increase and diversify your wealth by investing in real estate while removing a bank mortgage’s upfront income/cost barrier. It’s also impervious to short-term shocks and stays out of the basics of rental management. Investment Funds (ETFs) ----------------------- Buying exchange-traded funds, or ETFs, is one of the cheapest and easiest ways to diversify a stock portfolio. It is a task that a computer program with the most ETFs track the performance of an index, a specific economic sector (such as healthcare, industrial, or energy), or even a global market. So, you might own a fraction of the stock market’s most valuable companies for a single payment. You can invest in ETFs through online investment providers, which offer cheaper costs than big banks or traditional investment firms. Stocks ------ Stocks generate passive income, increase in value, and generous payout dividends, representing a portion of the company’s profits. Anyone can buy these tiny amounts called stocks of a public firm. Stocks are inherently unpredictable, and while you can make a lot of money, you can also lose a lot. Look for dependable firms that pay dividends, acquire stock, and take advantage of dividends. You can use an online broker or go the traditional route to trade online. Quarterly, semi-annually, or annually, dividends are usually issued. However, keep in mind that not all firms pay dividends, and you may have to go without dividends some years because they’re only given when the company is profitable. Improve Your Investment with Low Risk ------------------------------------- ### **[Crypto currency](https://buyproperly.ai/blog/real-estate-and-cryptocurrency-a-new-digital-investment-strategy)Bonds** Bonds provide consistent returns and are less risky than stocks or other investments. Bonds are government and financial institutions allocated promissory notes, and a bond is a debt tool that may be bought and sold. A broker or financial advisor can help you purchase bonds available from some banks or the issuing government. ### **Automated Investing** Most automated investing services, also known as robo advisors, accommodate investors with any risk tolerance or investment horizon by creating a diversified investment portfolio. The automated investment includes various types of assets in a combination that reflects your personal goals, ranging from higher- risk stocks to more conservative bonds. The finest robo advisors will provide high-interest savings accounts or growth portfolios stocked with low-cost stock ETFs for those who can’t afford a penny of their money. Robo advisors offer opportunities for high returns for those with the most extended investment horizon and highest risk tolerance. The best choice will include no account minimums, cheap management fees, and free unlimited phone help with investment specialists, all at the minimal expense of hiring a financial advisor. Many robo-advisors also provide a wide range of investment products and accounts, including retirementoriented, tax- advantaged accounts like tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs) (RRSPs). ### **RESP** RESPs are tax-free savings accounts for parents who desire to put money down for their children’s post-secondary education. The Canadian government donates 20% of the first $2500 per recipient per year, up to $500 per beneficiary per year. The main benefits of RESPs are the permit they give to the Canada Education Savings Grant (CESG) and as a form of yielding tax-deferred income. ### **[RRSP](https://blogs.buyproperly.ca/registered-retirement-savings-plan-rrsp)** Registered Retired Savings Plan is a savings plan enrolled with the Canadian federal government that you can use to save for retirement. If you invest in an RRSP, you can claim a tax deduction, and RRSP earnings are not taxed until you withdraw them. Because investments in your RRSP are tax-deferred, the overall value may increase. You will most likely be in a lower tax band when you start withdrawing funds in retirement. ### **Crypto currency** You could be a great initial coin offering (ICO) investor. The term “hypothetical” barely scratches the surface of the dangers of investing in new crypto currencies. True, some fortunate investors made a lot of money in Ethereum’s ICO or crypto currency. Still, since then, the number of offers has grown to the point that there are many of them every month, and ICOs have become a preferred tool for pump-and-dump mountebanks. Crypto currency is the “best” investment alternative, but we can’t stress how cautious you should be before investing in any initial coin offering. ### **Tax-Free Saving Accounts (TFSA)** Tax-Free Saving Accounts (TFSAs) apply to individuals in Canada aged 18 and above. TFSA is a type of savings plan account or investment financial account that holds certain investments, including mutual funds, securities, bonds, and cash in the account that is not taxed, and withdrawals are tax-free. It is an account from which interest, dividends, capital gains, and contributions are tax- free, and as gains on investments in the account are not taxed, TFSAs allow you to save money on taxes. ### **Invest in Farmland** Farmland is a real asset that can be easily bought and sold, making it suitable for passive income. The demand for agricultural goods is constantly expanding, and farmland prices in Canada have been rising at a 10% annual rate. Farms are a more appealing investment than stocks, which average a 7% annual return. Additionally, they can rent farms to generate income. Some landowners choose to plant crops and earn. passive income by enlisting the help of a team. This may not appear to be a passive income, but various management companies can look after your land and give you a set amount of money each year. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Can a Side-Job Help In Fighting With Inflation? Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Side Jobs, Income Boost, Financial Independence, Side Hustle, Financial Resilience URL: https://buyproperly.ai/blog/how-can-a-side-job-help-in-fighting-with-inflation ![Side-Job Help In Fighting With Inflation?](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/side-job-help-in-fighting-with-inflation-1715034148531-compressed.jpeg) Combatting Inflation: The Impact of Side Jobs on Your Financial Resilience ----------------------------------------------------------------------------- Financial achievements and failures are a direct product of responsibility, hard work, commitment, and expertise. You are alone liable for your financial choices. Increasing your income is one of the finest things you can do, whether you’re saving for a big purchase, attempting to pay off debt, or improving your financial state. And, let’s face it, there’s only so much you can save and reach your financial goals by decreasing your costs. Sometimes you need to augment your income! Each person has special talents, and we must find ours and use them well to lead a quality life. Different Ways to Increase Income in Every Household ---------------------------------------------------- ### **Work Together** If you are a married couple with a tight budget, you can handle finances successfully together. Speak honestly about your income and debts. Track each other’s spending habits and communicate smoothly on saving habits. Dream together to invest in properties, term insurances, health insurance, childcare and other future finances. ### **Become a Professional Writer** Good in writing, start writing blogs and make more money through your blogs. ### **Become a Stock Market Expert** Expert in the stock market and trading, give your advice and tips to provide profits for the user from the purchase and sale of stock shares. Work as a stock trader on behalf of a financial company or individual. ### **Become Insurance Agent** Life, health, property, and other types of insurance are sold and negotiated by insurance brokers to meet the needs of their clients. You can work for an insurance business, send clients to independent brokers, or act as an insurance agent. ### **Become Task-Oriented Person** Don’t mind helping others in shifting locations or assembling furniture. Join a marketplace for people who require work to be done like mounting tv, moving furniture to a new home and installing AC. Make money by completing tasks that other people are ready to pay you for that work. ### **Take up Voiceover Work** Having a good voice earns you extra income with voiceover work. With little practice, voice modulation might work for many TV commercials, cartoons, radio, and actors. Start working on your voice! ### **Web Content Writer** Not a technical expert, don’t worry. Try writing engaging web content for developing websites because there is no short on work for web content writers. Offer your writing skills to many sites that are willing to pay. ### **Translator Job** Fluent in speaking multiple languages makes you a good translator. If you are interested in guiding travellers or translating for business executives, you can translate and edit documents online and help non-native speakers. This also works if you approach a realtor looking for customers and selling homes to non- native speakers. ### **Babysitting** Able to handle cranky babies or naughty toddlers, babysitting is the best option. Working parents opt for babysitting and spend more bucks. ### **Pet Care** People don’t have time and are spending money when it comes to breeding pet dogs.Take the pet dog for one or two hours walks; you can make hundred dollars easily. ### **Start Home Baking** Start online baking classes, be on social media, build a chain on what’s App, Facebook, and Instagram and promote your brand with specific tips and recipes for high-quality baking. ### **Take Music Lessons** Many people want to know about music. Give classes online or at your comfortable place. Advertise your details and charges with your phone number and start giving music classes. ### **Sell DIY Plans Online** If you have design talents, such as SketchUp or other technical CAD tools, you should start using them as a side business. There are a lot of DIYers looking for project blueprints, and you should sell them. Supplement your income by selling professionally created DIY blueprints! ### **Become an Academics Tutor** Skilled in academic subjects or any education category, you can make extra money by tutoring online or even as a home tutor. ### **Freelance Photography** If you are excellent at handling a camera and well-versed in using it, you are a good photographer. A good photographer can make perfect money for wedding shoots, corporate events, birthday parties, public conferences, engagements or family photos. ### **Become a Video Editor** Now a day’s, videos are one of the most prominent forms of marketing. In every business, including video is a marketing strategy. You can start making money in many video production niches: marketing videos, training videos, drone videos, video interviews, and many more. ### **Become a Fitness Instructor** Master teaching fitness workouts! Start your fitness classes online or have room for your workout studio. ### **Try out Testing Websites** Companies will pay you to test websites and record any bugs or errors they run across. Your testing feedback improves the product better, and you get paid. ### **Own a Clothing Business** Hands-on fashion design allows you to start your own branded clothing business. Teach simple stitching techniques, designing costumes, and sewing tips through online classes. DIY sewing projects and fashion designing projects includes extra money into your pocket. Read about [Passive Income](https://buyproperly.ai/blog/passive-income)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Efficiently Plan Your Monthly Savings? Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Money Management, Inflation Hedge, Alternative Income, Frugal Living, Financial Planning URL: https://buyproperly.ai/blog/how-to-plan-your-monthly-savings ![How to Efficiently Plan Your Monthly Savings?](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-efficiently-plan-your-monthly-savings-1715034774512-compressed.jpg) With all apprehensions, stress, financial concerns, environmental issues and many more, one must sensibly practice spending, saving habits, and balance priorities to lead a peaceful standard of living. Here are the ways to make money and improve your net wealth. Put Money into Real Estate -------------------------- “Don’t save what is left after spending but spend what is left after savings.” The only answer to dealing with the high living cost is to invest in real estate. Let’s look at real estate to fight inflation and generate income flow directly and in retirement. Real estate investments are frequently understood as inflation barricades, and inflation barrier investments are assets that are projected to appreciate in value or maintain the same value over time. Appreciating value, increasing income (rents), and declining debt are three elements that make real estate a wonderful weapon for fighting inflation. How is money made through real estate? -------------------------------------- Appreciation is one of the most advantageous elements of real estate. According to real estate data, property values increase by between 3% and 5% per year on average. Depending on the year, you can see appreciation rates ranging from 6% to 10% in some locations, such as the Hamilton and Welland, Ottawa area. For example, if you buy a house for $100,000 and assume a 6% yearly increase rate, your home will be worth $179,000 in just ten years. The property would be valued at $148,000, even at a more conservative 4%. When you compare it to inflation, between 2009 and 2019, there was a 19 per cent rate of inflation, which means that your $100,000 purchase would cost $119,000 if you rebought it in ten years. As you can see, real estate investments have not only kept up with inflation, but they have also added value and appreciated. BuyProperly.ca has innovative solutions to almost all of these traditional hurdles allowing you to invest in such homes without any effort or paperwork. Take a look at how we do this on our FAQ page. Improve Your Money Management Skills ------------------------------------ Improving money management skills is an ongoing process to minimize stress levels for a more comfortable lifestyle with general comfort, wealth, necessities, and material properties. Plan your spending and saving: Cautiously spend what you want and save the remaining amount into a separate account. Clear off expensive debts. Example clearing out credit card bills. Exclude the money you want to save from your income before spending on anything and make a regular contribution to your savings account. Save the bonus amount received into your bank balance before considering any expenses. Salary goes up, put some of the increased amounts into a savings account and continue with your earlier income range. The money in your savings account earns interest (a compound interest). Any interest you earn each month will be deposited directly into your account. You will make more money if the interest rate is higher. Use tax shelters and other ways such as RRSPs, TFSAs, and RESPs to reduce taxes on your savings. Accumulate Assets ----------------- **What is the best way for a normal person to accumulate assets?** It is a successful investment when assets get accumulated for the long term and yield returns. Saving money, investing money and locking funds are three steps to accumulating assets. The complete asset building process converts all assets into income-generating assets with asset avenues like dividend-paying stocks, rental properties, gold, and REITs. Also, important things apart from building assets are (1) free from debts and (2) building an emergency fund. Buyproperly.ca allows investors to finance directly in high-quality assets that the team has thoroughly researched and investigated. AI-driven deal sourcing and identification help you invest smarter, earn income and monitor asset performance from the comfort of your couch. Look Up for Alternative Income Sources -------------------------------------- The larger the asset base, the higher the alternative income. More alternative income equals less reliance on job income. As a result, build assets to free yourself from the shackles of your employment. Make this your “number one priority.” It’s a worthwhile objective to pursue. ### **• Share your Extra Space** If your house includes an additional room or way in your home that is possible to rent out, the extra money you earn from it makes an immense difference. Most major cities in the North American nation offer rent rooms to international students, adding more income every month into bank accounts. The house with a detached garage and has a facility to convert into a carriage house, or a basement that can alter into a luxurious living room is an added advantage to bring in more money every month. Searching for a roommate to share your rent can be a big help in saving monthly expenses. Try to opt for something equal and comfortable space at fewer prices with personal privacy while sharing the room with others. Explore the space where adjacent areas have all facilities to avoid transportation expenses. ### **• Keep an Eye on the Grocery List** Groceries make a big difference in our monthly budget, and prices steadily rise to take a big bite out of our planned budget. Stock up on healthy supplies from local stores instead of high branded marts, making it easy to stick to your budget plan. Buy in bulk if more oversized packages are offered at an affordable price than smaller packages. If bigger packages are more for your need, share with your neighbor or friend who is ready to share groceries along with costs. Track the discounts and check what you can grab for your budget price. A toilet paper or shampoo from the dollar store solves the same purpose as buying it from a branded grocery store. Keep an eye on the grocery store’s sales flyer and change your grocery list to take maximum advantage of sale items. Save coupons and ensure if they cut down the brand price to your price without difference in the quality. Store or freeze the leftover food for easy consumption at a later time and add up the grocery list with extra vegetables and fruits instead expensive snacks and beverages. You can grab fresh fruits and vegetables near any farmer’s market without a store rate. Start growing vegetables if you have room for a garden or space to do a little farmer’s job. Avoid fast-food drives for breakfasts instead, and make simple and cheap breakfast recipes at home. Watch cooking videos to try out varieties. ### **• Try Carpooling or Cheaper Transportation** Change to public transportation to save more money. It is cheaper to live in an area where public transportation with an active transit system. Use car buddy, commute pool apps, pooling either bikes or cars, and shorten your commute expenses. Move to an area near the office with a less budget apartment or share a room to avoid transportation expenses. If it is within your permissible limits, walk to work and keep up good health. To save money on gas and insurance, ride your bike or take public transportation. ### **• Opt for Cheaper Insurance** Know and search for cheaper car insurance companies that reduce insurance payments. Compare other companies, know the details of the insurance rates, discounts, and payment options and opt for the best possible rate according to your budget. ### **• Stop Leasing and Financing Cars** Leasing cars or financing cars is a big mistake with many costly repairs. The huge monthly payment burdens the finances and delays stacking a significant wealth. Avoid financing the car when the lease is over, and it is a terrible decision. It adds up a huge amount in their repair. To reduce the cost of living, permanently save and buy a car outright. Car payments enhance the monthly cost of living and restrict the plans of saving money. ### • **Prefer Second-hand Products** Second-hand products are less expensive than new products. You can save a lot of money if you shop from charity shops and online businesses that sell second-hand goods. You will be amazed to see the price difference at how much you’ll spend for barely used household items, clothing, books and even electronic products. ### • **Minimize Dining Out** Most and the biggest expenses we cut from our budget are visiting restaurants. Instead of dining out at restaurants or roadside eateries, list out a weekly grocery run, and cook every meal at home, saving money in your pocket. A pre-planned menu allows you to order and spend for what you really want to eat at that particular time. ### • **Take Care of Your Wellbeing** If you want to cut your living expenses, do your best to look after yourself. Eat healthily and avoid recurring medical payments. At the very least, work out a couple of times per week and be honest about your health. ### **• Save On Childcare** Acquire maximum benefits provided by government policies for children eligible in your family. Estimate and budget the monthly costs for children’s needs of different age criteria. Know the restrictions and care options for child care subsidies. Check for centers that provide a better deal for childcare. Estimate the cost of hiring a nanny for private or daycare at a center. If there are two kids, it will be more expensive and plan the budget for their future requirements. ### **• Cut Down Expensive Vacations** The best fun is free fun! Unplug for a day and take maximum advantage of many free activities available in the local area. Most cities have leisure hanging areas, museums, parks, walkways, and beaches. Prepare your stuff at home and carry on with your trip. Think about spending quality time at cheaper destinations. Avoid peak seasons and go somewhere during the off- season with the advantage of fewer tourists. Check discounts on travel fares and hotels with reasonable accommodation prices that suit your comforts. Couch surfing website helps to get friends for travel destinations. You can coordinate and build the network through apps or websites and utilize the money and time to travel with fewer budgets. ### **• Save Your Energy Bills** Electricity consumes more money, and every penny counts. The usage of efficient, eco-friendly bulbs can cut down electricity bills. Go for energy- saving companies that keep your household utility bills. ### **• Use Automatic Payment System** Practice automatic payment methods wherever possible. It ensures on-time payment of bills and avoids late fees and hikes in interest rates. ### **• Unsubscribe from all Subscriptions and Memberships** Cancel all the subscriptions for monthly magazines, monthly boxes and other services. Cut down gym membership and try home workouts. ### **• Shop at Thrift and Dollar Stores** Buy clothes, household items, and furniture at retail stores to save more money. Shopping yard sales, flea markets, and thrift shops can also help save huge money. Thrift stores and consignment shops are treasure houses for kids’ clothing, toys and other items. It’s a big challenge to save money on kid’s clothing, but keeping nonprofit thrift stores charge fewer prices than profit thrift stores. Few online stores offer second-hand items for almost anything you want. ### **• Junk out Unused Stuff and Go for Reusable Products** Sell unwanted or unused clothes, utensils, old electronics, books, furniture, art items, crafts, kids’ toys, and other plastic stuff that could net you some quick cash for your savings. Sell it if you aren’t using it. eBay, Gum tree, and Facebook Marketplace are excellent options for selling outdated stuff for a modest profit. Clothes, obsolete equipment, books, furniture, and even flipped items/arts & crafts might help you quickly put money in your savings account. Because you are decreasing trash, recycling products in this manner protects the environment. Score! Read about ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How is Steep Price Rise Impacting Your Savings? Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Inflation Challenges, Financial Insecurity, Financial Crisis, Rising Cost of Living, Economic Uncertainty URL: https://buyproperly.ai/blog/how-is-steep-price-rise-impacting-your-savings ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/oip-1705506598090-compressed.jpeg) Inflation and You ----------------- Expectedly, financial issues are on top priority than your family, work, education, health and technology problems. Every individual strives hard to overcome this financial crisis amid rising energy prices and inflation. Pandemic contributed to a major financial crisis, resulting in economic instability, surging consumer demands, and increased taxes, contributing to the high cost of living with no change in earnings. Uncertainty in your lives due to lack of strict government policies, increased borrowing and spending worldwide, lack of clarity about the rate of inflation, and constantly push in managing the finances. Unsure about Retirement Savings ------------------------------- With the current economic situation worldwide, people are unsure whether their retirement benefits, superannuation, savings, and other assets are sufficient to maintain their lifestyle. The rising cost of living worries all the ages above 40 and concerns that they are not aware of how much they need to save to maintain their standard of living and last through retirement. Concerned about Volatile Economy -------------------------------- All are concerned about salary growth not keeping up with inflation, and the severe economic instability impacts mental health and overall well-being. Maximum people are worried about their financial situation and not confident enough to advance money matters. The gig economy and advanced workforce impact job security and market security. Read about [How to Plan Your Monthly Savings?](https://blogs.buyproperly.ca/how-to-plan-your-monthly-savings)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Manage Home Budget with Steep Price Rise? Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Rising Cost of Living, Housing Market Growth, Canadian Standard of Living, Quality of Life in Canada, Economic Stability URL: https://buyproperly.ai/blog/how-to-manage-home-budget-with-steep-price-rise ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-manage-home-budget-with-steep-price-rise-1715034912168-compressed.jpeg) For many years, it’s a fact that the standard of living does not go up in harmony with the cost of living. Many people prefer a good quality of life with an affordable cost of living and migrate to such areas to avail great opportunities. Where do you find a better standard of living? How do you assess a good quality of life? Canada: A Global Standard for Quality Living -------------------------------------------- People around the globe voted Canada as the best country to live in. Do you know why? Canadians are making organized investments and guiding to the most remarkable improvement in quality of life. Canada has a reputation for having the lowest average cost of living and the best living standards. Canada ranked world no.1 in quality of life and social purpose. The reason is a constant striving for a good job market, health insurance concentrating on human and animal rights, political and economic stability, public safety and commitment to social purpose and unmatched facilities. ### Unveiling Canada's Investment Landscape Due to a stable economy and increasing interest from foreign investors, there is a vast growth in the housing market in Canada. Do you want to invest in Canada to get the best standard of living? Here we go, explain to your wonderful investment ideas to cope with the high cost of living. Strategic Investments for a Flourishing Lifestyle ------------------------------------------------- Discover the avenues and opportunities that Canada presents for strategic investments, ensuring not just financial growth but also an enhanced standard of living. Explore how these investments align with the Canadian commitment to social purpose and contribute to the overall well-being of its residents. Real Estate: Your Gateway to Quality Living in Canada ----------------------------------------------------- Explore the booming real estate market in Canada and understand how investing in properties a key driver for an improved lifestyle can be. Uncover the unique aspects of the Canadian real estate sector that make it an attractive option for those seeking a better standard of living. Due to a stable economy and increasing interest from foreign investors, there is a vast growth in the housing market in Canada. Do you want to invest in Canada to get the best standard of living? Here we go, explain to you wonderful investment ideas to cope with the high cost of living. Read about [How much do I need to retire in Canada?](https://buyproperly.ai/blog/how-much-do-i-need-to-retire-in-canada)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Start Investing: A Comprehensive Guide for Beginners Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: Financial Planning, Investment Goals, Investment Strategies, Return on Investment, compound interest URL: https://buyproperly.ai/blog/how-to-start-investing ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-start-investing-a-comprehensive-guide-for-beginners-1715035035598-compressed.jpg) It is important to have a steady grounding before you jump into investing your money. Take a step back to understand your primary aims and objectives such as saving for family, education, retirement, or travel, and prioritize them. The clearer you are about your goals, the better you will be at investing, understanding your risk exposure, time spans, and the inflation rate you have to confront. Setting Clear Investment Goals ------------------------------ Further, deciding exactly how much to invest and how frequently isn’t that simple. Although it varies from person to person, experts suggest a few rules of thumb. Invest about 10% of your gross income per year for retirement, whatever your current age may be. The earlier you start, the better the compounding effect of investing. Any windfall annual income if you are into business or a side job should also be factored in while making a decision. Those who are early earners might only invest 3% to 5%, whereas those who are late starters and fall under the higher income group can be more assertive and aggressive in terms of choosing their investment plan. Determining Risk Tolerance -------------------------- Determine Your Risk Tolerance - One of the most intimidating factors in investment is the amount of risk involved. No matter how secured the investment, some variables involve uncertainty and a level of risk concerning the potential return. Your appetite for investment is proportional to your risk stamina and the overall make-up of your investment profile. The key to managing your risk is to Diversify. Never keep ‘all the eggs in one basket’ is therefore one of the most foresighted advice by investment advisors. A well-diversified portfolio that is balanced and versatile is considered to be sustainable and mitigates any unforeseen market crashes. Seeking Professional Advice --------------------------- Seek Professional Advice - Don’t worry if you don’t know where to look for the right investment cue. There are many solutions to this, such as a professional financial advisor, your local bank advisor, or even an online Robo API advisor. With BuyProperly.ca, you can simply see various investment properties on one page and talk to one of our online advisors to make your pick. Our AI sourcing model finds you the best investment opportunities while allowing you to manage all your investments in one place on our digital portal. Knowing Your Investment ----------------------- Know Your Investment - It is important to do your core research before investing in any particular medium. In case you are not familiar with some of these terms already, do your homework and at least get a basic idea of risk tolerance, compound interest, year on year growth, investment taxes, portfolio and management fees, as well as various terms and conditions. ### Understanding Risk and Return Risk - This term refers to the probability of monetary loss when investing, which is subject to market risk, economic conditions, and uncertainty in return for the policy premium. Risk tolerance is how comfortable you are with risk and not knowing what you will earn or lose on your investment. Also, your returns may come under taxable income, and therefore you need to seek professional advice on planning your tax payments. Return is the amount of profit that is expected after you have made your investment. It is also known as ROI that is related to profit or growth in your investment that might vary because of multiple factors. If you have a low-risk appetite, then you are “risk averse”. Asking from the self becomes important then to understand the tolerance when returns on the investments are unpredictable and subject to sudden changes in the market. Read about ​[Residential Investing](https://buyproperly.ai/blog/residential-investing)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Strategic Investment Choices: Where to Invest Your Money Wisely Author: BuyProperly Engineering Published: 2022-08-17 Category: Insights Tags: REIT, TFSA, Retirement Savings, Savings Plans URL: https://buyproperly.ai/blog/where-to-invest-your-money ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/invest-your-money-wisely-1715035131571-compressed.jpeg) REIT ---- An REIT investment can be thought of as buying shares of a company that primarily deals with real estate. You get a slice of any profit they make, minus the costs, as a periodic dividend. Some REITs invest in real estate directly, earning rental income and management fees. Others put their money into real estate debt, such as mortgages and mortgage-backed securities. However, if they own and operate many different properties, their long-term growth will get averaged across them all. Also, they have the same risk as investing in one single company. BuyProperly.ca is a bit different from an REIT. We let you invest in real estate to grow and diversify your wealth while eliminating the upfront income/cost barrier for a bank mortgage. It is also resistant to sudden short-term shocks and avoids getting into the nitty gritty of managing a rental. Starting at $2500, our AI-powered platform helps you achieve above-human performance earning monthly rental income, as well. as capital appreciation. Take a look at our fabulous properties you can invest in right now, for as little as $2500, and happy investing! **[View BuyProperly.ca Properties](https://buyproperly.ca/properties?utm_source=kk&utm_medium=ebook&utm_campaign=abc-of-investing)** Guaranteed Investment Plan -------------------------- If you don’t invest, your money would buy half as much in 10 years due to inflation in prices. To invest, one of the most popular low-risk plans offered by the Canadian government and Trust companies are GICs. This Guaranteed Investment plan is purchased by people for a fixed length of time, receiving a fixed rate of interest. Exchange-Traded Fund -------------------- The investment in ETF is a way pool to their money in different securities like bonds, stocks, shares, money market instruments, etc. The traded price of an ETF changes throughout the day like any other stock, as it is bought and sold like any other stock but unlike regular mutual funds. Savings Plans ------------- ### Registered Education Savings Plan An RESP is a tax-free saving account for parents who want to save for their children’s studies after high school. The government of Canada contributes 20% on the first $2500 annually and a maximum of $500 per beneficiary per year. The contribution towards an RESP must stop by 31 years after one has registered in the plan. ### Registered Retired Savings Plan An RRSP is a saving account registered with the federal government that you use to save for retirement. If invest in RRSP, you can claim a deduction during income tax return filing. If your income is lower and you don’t require to pay any tax, RRSP investment carries forward and you can claim in the future when your income is higher and eligible for tax. Stock Market ------------ Based on the market survey and prescription from market advisors it is good to invest in stocks, also known as equity. They make a fraction or a part of the corporation that can give you returns based on market conditions. There are frameworks and a variety of fast changing stocks in many different exchanges. around the world with a steep learning curve. Therefore, it is important to get professional advice before investing in stocks whose units are popularly known as ‘shares’. Bonds Market ------------ Saving bonds are considered a lower-risk investment as they are backed by the government. You can purchase bonds directly from the issuing government or also through your brokerage account. They usually sell at a face value of $1,000 each but are purchased in blocks of five or ten at a time. ​[Real Estate](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments)​ ------------------------------------------------------------------------------------ Real estate can be a great investment too. Although most of the investments in real estate are appreciated after a longer period. It will also take time to learn, how to invest in real estate, but there are quick ways to get started on a modest budget. A critical roadblock is the steep levels of funding required to buy a home. In 2021, an average home in Vancouver or Toronto is well above $1 million, and typically requires at least a 20% down payment to qualify for a mortgage. In addition, local rental laws, taxes and renovation related municipal laws vary quite a bit and add multiple barriers to investing. BuyProperly.ca has innovative solutions to almost all of these traditional hurdles allowing you to invest in such homes without any effort or paperwork. Take a look at how we do this at our **[FAQ page](https://buyproperly.ca/faq?utm_source=kk&utm_medium=ebook&utm_campaign=abc-of-investing)**. Cryptocurrency -------------- Cryptocurrency, barely a decade old, is one of the most volatile investments in recent times. Cryptocurrencies are not legal tender in Canada but can be used for buying goods or services online or in limited stores that accept them. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, such as Bitcoin or Etherium. A crypto exchange is like a brokerage, once an investor has chosen their exchange, they will need to connect to their payment method. However, their extreme volatility, lack of regulation, various scams, as well as poor environmental footprint has given them a notorious reputation. Tax-free Saving Account ----------------------- A Tax-Free Savings Account is a registered account introduced by the Federal Government in the 2008 Budget. With no locking period, in TFSA all invested money grows tax-free. The interest, dividends, and capital earned in TFSA are tax-free for a lifetime and savings can be withdrawn from your account at any time. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Importance of Investing: Growing Your Wealth for Tomorrow Author: BuyProperly Engineering Published: 2022-08-15 Category: Insights Tags: Saving Money, Long-term Goals, Short-term Goals, Investment Options, Old Saying URL: https://buyproperly.ai/blog/why-should-you-invest ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/investing-1705590431892-compressed.jpeg) The Significance of Saving for Unforeseen Events ------------------------------------------------ If you’ve heard the phrase ‘save for a rainy day’, then you probably already know why you should save money. Every now and then in our lives, we need to dip into savings unexpectedly. Sometimes due to illness, switching between jobs, maternity, buying a home, children’s education or retirement. We also don’t earn when very young and very old. And often, in middle age, we have family financially dependent on the earning members. Investing: A Valuable Approach to Financial Growth -------------------------------------------------- ### ​**The Value of Wise Investments**​ “A penny invested is a penny earned,” this might be a spin on an old saying, yet it is the most valuable piece of advice in terms of making investments and saving our hard toiled money. In this digital world, it becomes even tougher to understand the intricacies of saving money owing to the complexity of our globally interconnected financial system. ### ​**The Journey of Investment**​ Saving without investing is a bit like planting a sapling and not watering it every day. Eventually, it will wilt and waste your effort. Money in a bank or cash savings also work the same way, they depreciate significantly over time. A loaf of bread or a 2-bedroom home, all cost noticeably more after 5 or 10 years, due to ‘inflation’. The journey of investment begins when we have our short-term and long-term goals clear. From buying a home to car, education or real estate, business or marriage, this all needs cash flow in abundance. An investment at an early time and age, ensures most of our financial needs will be taken care of later on. There are a plenty of options for investment in every country based upon your income, liabilities, expenses, and circumstances. What you only need is to be comfortable with your budget – how much you earn, spend and save each month. Read about [Exploring Private Credit: A Lucrative Opportunity for Savvy Investors.](https://blogs.buyproperly.ca/private-credit-as-an-opportunity-for-investors)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Strategic Retirement Planning: Building a Purposeful Portfolio for Financial Security Author: BuyProperly Engineering Published: 2022-08-15 Category: Insights Tags: average retirement income, Retirement planning, Retirement portfolio, Retirement goals, Purposeful retirement, Choosing when to retire, Wise retirement decisions URL: https://buyproperly.ai/blog/building-a-retirement-portfolio ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/retirement-1705591353406-compressed.jpeg) Crafting a Purposeful Retirement Portfolio ------------------------------------------ Building a retirement portfolio can be simple or complex, depending on how much you want to learn. You can begin with the beginner portfolio model and continue with it forever. A retirement plan is focused on how you will live, whereas a portfolio strategy is focused on how you will develop a nest egg to fund your retirement plan. Navigating the Complexity of Retirement Planning --------------------------------------------------- As previously said, you can try to lower your portfolio aim by factoring in your Canada Pension Plan (or CPP). You can incorporate it after you are a few years away from retiring, as you should be aware of all the tax implications of your portfolio. Choosing whether to retire is a complicated issue that involves more than simply money. Your health, family duties, and personal disposition all play a role, or should play a role. The most crucial question is whether you’ve considered what you want to accomplish with your retirement years, whatever long they may be. It’s crucial to retire to something, not merely from something, as the wise old saying says. Read about [How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Best Retirement Plans in Canada Author: BuyProperly Engineering Published: 2022-08-15 Category: Insights Tags: Financial Planning, TFSA, Guaranteed Income Supplement, (GIS), OAS (Old Age Security) Plan, Allowance for the Survivor, RRSP , CPP URL: https://buyproperly.ai/blog/best-retirement-plans-in-canada-2 What do you call someone who is happy on Mondays? Retired. Keep in mind that retirement isn’t about what age you want to retire; it’s about what income you want to retire at. You’ll need a financial strategy for saving and investing your earnings until they can cover your expenses when you retire to establish your retirement strategy. Best Retirement Plan Options in Canada -------------------------------------- Canadians have several options for planning and saving for retirement. Have a look at Best Retirement Plans in Canada: Guaranteed Income Supplement [(GIS) Plan](https://blogs.buyproperly.ca/guaranteed-income-supplement-gis-plan)​ -------------------------------------------------------------------------------------------------------------- The Guaranteed Income Supplement (GIS) is a monthly benefit for low-income seniors that are not taxable. In most cases, you’ll get a letter from Service Canada alerting you that you’ve been enrolled the month after you turn 64. If you don’t receive the letter, you’ll have to apply.  In 2021, seniors who are single, widowed, or divorced could earn up to $919.12 per month. As your income rises, this sum falls until it vanishes after you reach $18,648. You may be eligible for additional GIS subsidies if you have a spouse or common-law partner. ### **What these benefits offer** If you meet the following criteria, you may be eligible for the Guaranteed Income Supplement (GIS). * you are at least 65 years old. * You are a citizen of Canada. * An Old Age Security (OAS) pension is available to you. * If you are single, widower, or divorced, your annual income is less than $19,464. * your income + your spouse’s/common-law partner’s income is below: * $25,728 if your spouse/common-law partner receives the complete OASpension * $46,656 if your spouse/common-law partner does not receive an OASpension * $46,656 if your spouse/common-law partner receives the Allowance. Low-income Old Age Security retirees are eligible for the Supplement, which is based on income. It is exempt from taxation. ### **Benefit for your spouse or common-law partner Allowance:** If you are eligible for the Guaranteed Income Supplement and your spouse or common-law partner is not, your spouse or common-law partner may be eligible for the Allowance benefit. • is 60 to 64 years of age • is a legal resident of Canada or a Canadian citizen • Since turning 18 years old, he has lived in Canada for at least 10 years. • As a couple, you earn less than $36,048 each year (January to March 2022 maximum annual income threshold) ### **Allowance for the Survivor:** You may be eligible for the Survivor’s Allowance if you meet the following criteria: • You’re between 60 and 64 years old. • After your husband or common-law partner died, you did not remarry or enter • into a common-law relationship. • You earn less than $26,256 annually (January to March 2022 maximum annual income threshold) ### **Stages of Retirement Planning** Here are some suggestions for successful retirement planning at different stages of life. ### **Young Adulthood (Ages 21–35)** Young adults may not have much money to invest, but they do have time to let their investments mature, which is a key aspect of retirement planning. This is because of the compound interest principle. Interest earns interest using compound interest, so the longer you hold it, the more interest you’ll earn. Because of compounding, even if you can just put aside $50 eachmonth, if you invest at the age of 25, it will be worth three times more than if you wait until you are 45. You can always invest more money in the future, but you’ll never be able to make up for wasted time. ### **Early Midlife (Ages 36–50)** Mortgages, student loans, insurance premiums, and credit card debt are all significant sources of financial strain in early middle age. However, it’s critical to continue saving at this point of retirement preparation. Because you may earn more money while still having time to invest and earn interest, these are some of the best years for aggressive saving. ### **Later Midlife (Ages 50–65)** As you get older, your investment accounts should become more cautious. While time is running out for those approaching retirement, there are a few benefits. A higher wage, as well as the possibility of paying off some of the aforementioned expenses (mortgages, student loans, credit card debt, and so on) by this time, can provide you more money to invest. Opening and funding a 401(k) or an IRA is also never too late. One of the benefits of this stage of retirement planning is the ability to make catch-up contributions. Starting at age 50 in 2021 and 2022, you can contribute an extra $1,000 per year to your regular or Roth IRA and $6,500 per year to your 401(k). Old Age Security (OAS) Plan --------------------------- Old Age Security Plan is a taxable monthly payment program funded by general tax revenue for seniors in Canada. To be eligible for benefits, you must be at least 65 years old, a Canadian citizen or legal resident at the time your OAS application is approved and have lived in Canada for at least 10 years since turning 18. Service Canada will give you a letter verifying your enrolment when you reach 64. If you don’t receive the letter, you’ll have to apply. To receive the maximum amount ($615.37 per month in 2021) you must have lived in Canada for 40 years. If you haven’t lived in Canada long enough to be eligible for the maximum amount, you may still be eligible for a partial payment. You’ll have to pay a fifteen-cent recovery tax on every dollar you earn over a set amount if you make a lot of money in retirement. This OAS “clawback” applies to everyone earning more than $77,580 in 2019, up to a limit of $126,058, after which you will lose your OAS eligibility. You can choose to receive your first OAS payment the month after you are 65, or you can wait until you’re 70. A one-month delay in your OAS payment increases your monthly benefit by 0.6 percent. If you wait a maximum of 60 months before receiving OAS, your monthly payment will increase by 36%. Registered Retirement Savings Plan (RRSP) ----------------------------------------- The Registered Retirement Savings Plan (RRSP) is a popular tax-sheltered retirement savings plan for Canadians under the age of 71 who have earned an income and filed a tax return. Your contribution room is determined by taking 18% of your previous year’s earned income and dividing it by the maximum contribution limit for the tax year. Any unused contribution room can be carried forward forever. An RRSP account can hold a variety of investments, including equities, ETFs, bonds and GICs. The amount you put into your RRSP each year can be claimed as a tax deduction, reducing your taxable income. If you make a donation, you don’t have to declare it in that tax year; it can be carried over. Depending on your current income, it may make sense to wait until you’re at a higher tax rate to claim your deductions. When tax season begins, any RRSP withdrawals must be reported as income and taxed at your marginal rate. Understanding Registered Retirement Savings Plans (RRSP) -------------------------------------------------------- In 1957, the Income Tax Act of Canada introduced Registered Retirement Savings Plans. They are controlled by the Canada Revenue Agency (CRA), which defines criteria for annual contribution limits, contribution timing, and eligible assets. RRSPs have two significant tax advantages. Contributors can deduct their contributions from their earnings first. For example, if a contributor’s marginal tax rate is 40%, every $100 saved in an RRSP saves them $40 in taxes, up to their contribution limit. Second, the increase of RRSP investments is tax-deferred. Unlike non-RRSP investments, returns are tax free and are not subject to capital gains, dividend tax, or income tax. This means that RRSP contributions grow before being taxed. Tax-Free Savings Account (TFSA) ------------------------------- A tax-free savings account is a tax-advantaged account that can be used to save money for the future. As the name implies, it’s more than just a high-interest savings account for an emergency fund. Through their TFSA, anyone over the age of 18 with a valid social insurance number (SIN) can invest in stocks, bonds, ETFs, and other securities. TFSA contributions are made after-tax money and are not tax deductible, unlike RRSP payments. The amount you can contribute is controlled by the TFSA contribution room limit, which is set by the Government of Canada each year. Even when withdrawn, all investment income or improvements in the account’s investment value are tax free, Best Retirement Plans in Canada and withdrawals can be made at any time. If you’ve never contributed to a TFSA, you’ll have $81,500 in contribution room in 2022. Keep track of your contribution room limits in My Account with the Canada Revenue Agency, as any excess contributions will be taxed at 1% every month. Canada Pension Plan (CPP) ------------------------- The Canada Pension Plan is a taxable monthly retirement benefit that can help you supplement your retirement income. To qualify for and receive benefits from the plan, you must be at least 60 years old and have made at least one valid CPP contribution. If you qualify, you will receive the CPP retirement pension for the rest of your life. The amount you receive from the CPP depends on how much you contributed, how long you contributed, and when you decided to start receiving payments. Because of a variety of criteria that influence the government’s evaluation, the maximum amount you can receive is $1,203.75, but the average amount received by Canadians is $689.17. Budget properly because most CPP users receive substantially less than the maximum payout, with the average being around 60%. Read about --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How much do I need to retire in Canada? Author: BuyProperly Engineering Published: 2022-08-09 Category: Insights Tags: retiring plan, average retirement income, canada retirement, Canada Pension Plan URL: https://buyproperly.ai/blog/how-much-do-i-need-to-retire-in-canada ![Retirement plan](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-1705415601960-compressed.jpg) When you’re young, retiring is frequently the last thing on your mind, but it’s also when you want to plan for the easiest path to retirement. It’s like planting a seed today and expecting to see a fully developed tree in 20 or 30 years. The earlier you plant the seed of retirement, the sooner you will reap the benefits. Generations of wealth have cultivated old-growth trees that can be over 100 years old. So “time” is a big component in wealth growth and determining how much you need is like deciding whether you need a 20-year-old tree or a 30-year-old tree. As you may expect, there is no single statistic because the cost of living varies per city. You can discover the cheapest place to live if you are ready to move, but you will almost likely have to give up something else. What is the average Canadian retirement income? ----------------------------------------------- We must rely on the Canadian Pension Plan (CPP) data in the absence of statistical studies on savings and pension plans. As a result, the average annual retirement benefit from the Canadian Pension Plan is roughly $8,500. The average monthly CPP payout in 2021 is $736.58, while the maximum account that can be earned monthly is $1,203.75. You must meet the CPP standards to receive the maximum benefit. Finally, the average CPP is useful but insufficient. Plan without it and use it as a backup plan in case things don’t go as planned. Exchange-Traded Fund -------------------- The investment in an ETF is a way to pool their money in different securities like bonds, stocks, shares, money market instruments, etc. The traded price of an ETF changes throughout the day like any other stock, as it is bought and sold like any other stock, but unlike regular mutual funds. Registered Education Savings Plan --------------------------------- An RESP is a tax-free savings account for parents who want to save for their children’s studies after high school. The government of Canada contributes 20% on the first $2500 annually and a maximum of $500 per beneficiary per year. The contribution towards an RESP must stop by 31 years after one has registered in the plan. Registered Retired Savings Plan ------------------------------- An RRSP is a savings account registered with the federal government that you use to save for retirement. If you invest in RRSP, you can claim a deduction during income tax return filing. If your income is lower and you don’t require paying any tax, RRSP investment carries forward and you can claim in the future when your income is higher and eligible for tax. Tax-free Saving Account ----------------------- A Tax-Free Savings Account is a registered account introduced by the Federal Government in the 2008 Budget. With no locking period, in TFSA all invested money grows tax free. The interest, dividends, and capital earned in TFSA are tax free for a lifetime, and savings can be withdrawn from your account. Explore [Building a retirement portfolio.](https://blogs.buyproperly.ca/building-a-retirement-portfolio)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pros and Cons of Early Retirement: Navigating Financial and Lifestyle Shifts Author: BuyProperly Engineering Published: 2022-08-09 Category: Insights Tags: Early Retirement, Retirement Pros and Cons, Health in Retirement, Travel in Retirement, Phased Retirement, Work-Life Balance URL: https://buyproperly.ai/blog/early-retirement-the-pros-and-mostly-cons Of course, not everyone will have a say in the matter. Job loss, health issues, or family obligations can all disrupt even the best-laid retirement plans, causing people to leave the working earlier than planned. However, if you have control over when you retire, it’s important to consider the advantages and disadvantages before deciding. Even if you have the financial means to retire early, you may not want to. Some Pros of Retiring Early --------------------------- ### It could be good for your health.  * We can all readily imagine how leaving behind the office grind leads to healthy habits: sleeping later, getting out in the fresh air and sunshine, and no more gulping meals at your desk. This isn’t simply a guess. A 2002 study of British civil officials showed that retiring at 60 had no negative impact on the individuals’ general physical health. In fact, individuals with higher-level employment reported better mental health, probably because they were no longer stressed at work (and had better pensions than lower-ranked workers). ### You’ll enjoy more time to travel. * What amazing sites you’ll visit! Or you could go once you’re no longer constrained to the annual vacation of two weeks. The earlier you retire, the longer you’ll have before health difficulties limit your mobility. ### It’s an opportunity to start a new career.  * If you want to change careers or start your own business, now is a better time than later. The more years you have ahead of you, the more desirable you will be to numerous employers. You’ll have more time to launch your new business if you wish to be your own boss. For example, a business you start at 60 may easily keep you mentally challenged and out of mischief for another 20 years or so. Some Cons of Retiring Early --------------------------- ### It could be bad for your health.   * According to a 2008 study by the National Bureau of Economic Research, retirement causes losses in mental health and mobility, as well as increases in other negative health outcomes like heart disease and stroke. While that is one reason to postpone retirement, those issues are not unavoidable. The survey also found that retirees who stayed physically active and socially connected were less likely to have negative consequences. ### Your Social Security benefits will be smaller. * The earlier you receive Social Security payments, the smaller your benefits will be. For example, if you were born in 1960 or later and begin receiving benefits at age 62, the earliest age at which you’re eligible, your monthly payments will be 30% lower than if you wait until age 67, which Social Security refers to as your “full retirement age.” You will earn an additional 8% increase in your monthly payment for each year you delay from age 67 to 70. There is no longer any benefit to waiting after the age of 70. ### Your retirement savings will have to last longer. * If you retire at 62 and live to be 90, your individual retirement accounts (IRAs) and other investments must last for 28 years. However, if you retire at 70 and live, your funds will only need to last 20 years. Working longer also means you’ll have more years to put money into a 401(k) or other retirement plan, giving your money more time to compound. ### You’ll need to find health insurance.  * You’ll have to pay for health insurance until you’re eligible for Medicare at age 65, unless your ex- employer provides it. Be prepared for sticker shock if you do: Insurance rates can easily double or triple what you’re used to paying on your employer-sponsored plan—no, there’s longer a firm footing on the bill. Health insurance prices unfortunately rise as you become older, reaching four figures per month around age 55. ### You might get bored and miss working. * Many retirees struggle to go from the controlled life of a full-time work to the unstructured life of retirement. They may also miss their old co-workers (and even their boss) and wish to return. Unfortunately, getting back into the workforce after a break, whether voluntary, is difficult. A Middle Ground --------------- There are methods to have the best of both worlds if you don’t want to retire early for fear of regretting your decision, but don’t want to wait too long to enjoy the benefits of retirement. For instance, you could try to negotiate a reduced work schedule with your employer so that you can live the life of a retiree on your days off, a practice known as “phased retirement.” Alternatively, if your circumstances permit, see if you can work from home for a portion of the week to get a sense of how isolation, a more flexible schedule, and not having to leave your house/apartment fits you. Finally, use some of your vacation days all at once to go on some significant vacations to faraway countries you’ve always wanted to visit. The Bottom Line --------------- Choosing whether to retire is a complicated issue that involves more than simply money. Your health, family duties, and personal disposition all play a role, or should play a role. The most crucial question is whether you’ve considered what you want to accomplish with your retirement years, whatever long they may be. As the wise old adage says, it’s important to retire to something rather than from something. Read about [Strategic Retirement Planning: Building a Purposeful Portfolio for Financial Security](https://blogs.buyproperly.ca/building-a-retirement-portfolio)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Planning Early Retirement: What Steps Should You Take? Author: BuyProperly Engineering Published: 2022-08-07 Category: Insights Tags: Calculating Retirement Savings, Budget Adjustment , Retire Early Financial Steps, Estimating Retirement Expenses, Early Retirees URL: https://buyproperly.ai/blog/how-to-plan-your-early-retirement Do you want to retire early? Many people wish to leave the rat race sooner rather than later, whether to travel, pursue a passion project, start a business, volunteer, or simply stop working. When you plan to work until you reach full retirement age, however, retirement planning is hard enough. It’s even more important if you want to retire years—or even decades— earlier. Is it possible? Absolutely. It will take work and dedication unless you are independently wealthy, which few individuals are. Here are five important steps to follow. Estimate Your Retirement Expenses? ---------------------------------- If you wish to retire early, the first step is to figure out how much money you’ll need each month once you’ve retired. Begin by totaling up all of your out-of-pocket expenses, such as housing, food, clothing, utilities, transportation, insurance, and healthcare. You should be debt-free when you retire. That means there’s no mortgage, no credit card debt, no unpaid medical expenses, and no student loans or other debt. If you still have debts to pay off, make sure those payments are reflected in your budget. After that, put in any extra expenses you’ll have, such as entertainment, travel, and hobbies. Add everything together to figure out how much money you’ll need each month to live the retired lifestyle you want. Naturally, your budget may vary as you progress through retirement—you might decide to cancel your life insurance policy, for example. This rough budget will serve as a strong beginning point, so take the time to make it accurate and practical. Calculate How Much You Need to Retire ------------------------------------- The next step is to figure out how much money you need to save now that you have an estimate of your monthly spending. There are various methods for calculating this. One strategy is to have 25 to 30 times your projected annual expenses, plus enough cash to cover one year’s spending. To calculate an annual estimate, multiply your monthly spending by 12. Find your “target” range next. Here’s an illustration. Assume your monthly expenses are $5,000 per month, or $60,000 annually. To retire with this strategy, you’ll need between $1.5 million and $1.8 million besides $60,000 in cash. Another method is to split your projected annual expenses by 4 percent to determine the size of your nest egg. You’ll need $1.5 million ($60,000 ÷ 0.04) if you plan to spend $60,000 every year. Divide by 3 percent if you want more flexibility in retirement (or somewhere between 3% and 4%). You’ll need $2 million ($60,000 ÷ 0.03) with the same $60,000 per year budget. A cushion is always a good idea. Subtract your existing nest fund from your desired figure to find how close you are to your retirement aim. If you require $1.5 million but only have $500,000, you’ll need another $1 million before you can retire. Adjust Your Current Budget -------------------------- This is where discipline is needed. To make up that $1 million difference, you’ll have to work extra hard—especially if you want to do it quickly. Many people who aspire to retire early live on half of their salary (or less). The rest is used to pay down debt and build that emergency fund. Here you have three choices: * Spend less. * Earn more. * Do both. You must construct a budget in order to understand where your money goes and where you may save money. There are many budgeting tools available to make this time-consuming task a little easier. Max Out Your Retirement Accounts -------------------------------- It’s a good idea to save early and often, regardless of when you want to retire. Individual retirement accounts (IRAs) and 401(k)s are excellent options for achieving this. Do everything you can to max out your retirement accounts while you’re still working. A typical IRA allows you to save for retirement while generating tax-free earnings and receiving a tax deduction in the year you contribute. When money is withdrawn in retirement, however, it is taxed at your current income tax rate in the year of withdrawal. A Roth IRA permits you to take certain distributions or withdrawals tax-free, and your gains grow tax-free. Roth IRAs do not provide a tax deduction in the year they are established. Individuals can contribute up to $6,000 per year to a regular or Roth IRA in 2021 and you can make a $1,000 catch-up contribution each year if you are 50 or older. You can contribute up to $19,500 per year in 2021 (rising to $20,500 in 2022) if you have a 401(k) at work. In both 2021 and 2022, you can contribute an extra $6,500 if you are 50 or older. Make sure you save enough to take advantage of any matching funds your company may provide; it’s free money. Work With a Financial Advisor ----------------------------- You face two major difficulties if you desire to retire early: ### You have a shorter amount of time to save for retirement. ### In retirement, you will have more free time. Working with a financial advisor regularly is a good idea unless you’re a rock star investor. An advisor can assist you in developing an investment strategy to help you achieve your retirement objectives. They can also show you how much money you need to put aside each month to achieve your goal in a particular number of years. Your advisor can assist you manage your income streams once you retire so that the money lasts. Dividends, mandatory minimum distributions, Social Security, defined benefit plans, and real estate investments are all examples of income streams. Take the time to locate an advisor with whom you get along—after all, you could work with them for decades. If you’re concerned about the cost of a financial advisor, keep in mind that you’re paying for their skills and their time. Those skills will more than compensate for the cost if you discover the correct counsel. Read about [How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is Rental Property Investment Suitable for Beginner Investors? Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: Real Estate Investments, Rental Property Management, Passive Real Estate Investment, BuyProperly Investments, Buy-and-Hold Properties, Property Appreciation, Alternative Asset Classes, Fractionalownership URL: https://buyproperly.ai/blog/are-rental-property-investments-best-for-beginners ​**The Appeal of Buy-and-Hold Properties for Beginners**​ ------------------------------------------------------------ The best strategy for beginners is the one that they’re most comfortable with. More often than not, this ends up being buy-and-hold properties like single-family and duplex rentals. Real estate has historically shown dependable growth of property values, it has also been able to deliver consistent cash flow for those investors. However, a major issue for many new investors is the time and dedication it takes to manage a rental property. But there’s no need to let this stand in your way! There are companies that can help take care of day-to-day management, rentals, and maintenance required to keep a property running smoothly, making your investment more passive than ever. ### ​**Diversifying with BuyProperly's Fractional Ownership Model**​ Here at BuyProperly, we make real estate investing easy and accessible for everyone using a fractional ownership model. Our mission is to enable investors to grow wealth through alternate asset classes. With real estate investing you are receiving a rent payment that is not only consistent in timing but also in the amount. We provide regular investors with the benefits of investing in rapidly growing cities with huge capital appreciation without bearing the brunt of high real estate costs and the challenges of managing and operating a rental property. We take care of everything – all you need to do is select the property to invest in and watch your investment grow! **[See top investment properties](https://buyproperly.ca/properties)** Read about [What Are Property Taxes?](https://blogs.buyproperly.ca/property-taxes)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Choosing Your Optimal Investment Strategy: A Guide for Personal Success Author: BuyProperly Engineering Published: 2022-08-05 Category: Awards Tags: Flipping vs Renting, Lucrative Rental Investments, Predictable Returns, Real Estate Leverage URL: https://buyproperly.ai/blog/which-investment-strategy-is-better-for-you ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/choosing-your-optimal-investment-strategy-1714875378021-compressed.jpg) **Choosing the Right Real Estate Investment Strategy**​ ------------------------------------------------------- ### **[Flipping vs Renting](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors): Factors to Consider**​ Deciding between [flipping vs renting](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) real estate comes down to your goals, lifestyle, and preferences. Flipping is a riskier investment strategy and certainly not for the faint of heart. It takes time and energy finding, prepping, and selling properties, and it also takes time to learn the ins and outs of your local market. ​**Unlocking Financial Advantages with Rental Properties** ---------------------------------------------------------- Most people feel more comfortable starting with rental investments. They require less immediate capital, and the holding period is longer, which provides more time for renovation work and improvements.​ There are also fantastic tax benefits for landlords and investors get to take advantage of long-term appreciation on the property. Not to mention, owning multiple rental properties gives investors more leverage to continue investing and building their portfolios. The bottom line is rental properties allow you to grow a lucrative, stable portfolio and they’re perfect for investors who want to build wealth with predictable cash flow and appreciation. Read about the [4 Best Investments for Inflation: Protect Your Wealth!](https://buyproperly.ai/blog/the-4-best-investments-for-inflation-protect-your-wealth)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Cons of Rental Properties: Challenges in Real Estate Investment Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: Rental Property Management, Passive Real Estate Investment, Fractionalrealestate, Fractionalownership URL: https://buyproperly.ai/blog/the-cons-of-rental-properties ​**Evaluating the Drawbacks of Rental Property Investments**​ ---------------------------------------------------------------- Although rental property investments can create a lot of financial security and stability, no investment strategy is perfect. Let’s take a look at some cons of buying rentals. ### ​**Deferred Income and Gradual Profit Accumulation**​ Renting does not bring in money immediately. The income that you’ll be making will be spread over the entire time you own the property, which means the profit is not received in one lump sum as flipping would provide. Traditional rental income real estate requires large amounts of capital. Like flipping, purchasing rental properties does involve some costs (i.e. down payment brokerage fee, land transfer tax, legal fees, etc.). Rental properties are not as liquid as flipping which means they cannot be sold as quickly and easily if a sudden need arises. Rentals take time and money to manage. Investors must choose to handle maintenance, repairs, showings, rentals, and emergencies on their own, or find a reputable property management company to handle the job. ​**Affordable Real Estate Investment through Fractional Ownership**​ ----------------------------------------------------------------------- Today, there are many options for investors to buy into real estate without the huge upfront costs. At BuyProperly, we use a fractional ownership model that allows people to buy real estate for as little as $2500 to start. With this type of investment, you don’t have to dedicate time to finding tenants, managing the property, and taking care of all the operational details. **[See top investment properties](https://buyproperly.ca/properties)** Read about [What is rental income real estate investing?](https://blogs.buyproperly.ca/what-is-rental-income-real-estate-investing)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pros of Rental Properties: Key Advantages for Real Estate Investors Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: BuyProperly Investments, Flipping vs Renting, Rental Properties, Capital Allocation, Rental Income Benefits, Real Estate Holding Periods, Property Improvements, Fractionalrealestate, Fractionalownership URL: https://buyproperly.ai/blog/the-pros-of-rental-properties ​**The Stress-Free Approach: Why Rental Income Real Estate is Preferred**​ ----------------------------------------------------------------------------- Purchasing rental properties tends to be a more common strategy for most real estate investors. Here are some of the major reasons why… ### ​**Extended Holding Periods for Informed Decisions**​ Rental income real estate investing is generally less stressful than flipping, as investors have more time to find and purchase a rental property due to the longer holding period. As a result, renting alleviates pressure from making quick decisions. Rental income investing is less risky than flipping. Instead of focusing on flipping for a quick profit, rental properties are meant to be held for multiple years which results in more time to make adaptations and improvements to the property when required. ​**Lower Risk, More Time: The Safety Net of Rental Income Investing**​ ------------------------------------------------------------------------- Buying rental properties can be inexpensive compared to flipping. The costs associated with flipping often include significant renovation fees and improvements. This means investors expect to put down an additional 20-30% of the purchase price for flipping costs. With rental properties, the capital can be put directly towards the purchase with an immediate opportunity for cash flow. ### e**mphasis on Long-Term Gains and Adaptations**​ With rental properties, investors get to take advantage of long-term property appreciation. At the same time, they’re able to generate consistent income in the years between property renovations or while the housing market is slow. Rental investors aren’t as affected by sudden dips in the housing market. A buy-and- hold strategy allows investors to weather the storm and wait for a more favorable market before deciding to sell. Read about Multifamily Real Estate Investing: The Pros and Cons[Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is rental income in real estate investing? Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: BuyProperly Investments, Flipping vs Renting, Buy-and-Hold Properties, Rental Income Real Estate, Fractionalrealestate, Fractionalownership URL: https://buyproperly.ai/blog/what-is-rental-income-real-estate-investing ​**The Essence of Rental Income Real Estate Investing**​ ----------------------------------------------------------- Rental income real estate investing is a strategy where investors purchase properties with the intent to rent them for a monthly income. This is also known as a buy-and-hold and is a more long-term investment approach. ### ​**Unlocking the Buy-and-Hold Concept** The foundation of rental income real estate lies in the buy-and-hold concept. Investors commit to a long-term relationship with their properties, focusing on consistent rental income over an extended period. This approach contrasts sharply with the quick turnaround of property flipping, providing a stable and predictable source of revenue. ​**Contrasting Strategies: Flipping vs. Rental Income Investing** ----------------------------------------------------------------- While both flipping and rental income real estate involve property transactions, their strategies differ significantly. Understanding the distinctions is crucial for investors looking to align their goals with the most suitable approach. ### ​**Flipping for Quick Gains**​ ​Flipping revolves around the swift sale of a property immediately after renovation. Investors following this strategy aim for quick gains but bear the challenge of identifying new properties constantly. In contrast, rental income investors prioritize a longer holding period, opting for a sustained income stream and potential appreciation over time. Read about [Flipping Vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Happens When House Flipping Ventures Go Wrong? Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: PropertyAcquisition, HouseFlippingChallenges, RealEstateInvestment, FinancialManagement, ProfitabilityStrategies, DealFinding, PatienceInInvesting , CostlyPitfalls URL: https://buyproperly.ai/blog/what-happens-when-house-flipping-goes-wrong Sometimes, rehabbing and reselling houses can go majorly wrong. The flipping process involves purchasing a property, renovating it, and then selling it as quickly as possible to make a profit. If investors run into any issues during this process, it can be costly. Here are some common flipping fails to be aware of: **Capital Challenges: Getting Over-Extended** --------------------------------------------- ​[Flipping houses](https://blogs.buyproperly.ca/what-is-house-flipping) takes a significant amount of capital, and this can quickly take a toll on investors. Unexpected costs, miscalculations, and time delays can all eat into the bottom line and end up turning a simple house flip into a nightmare. ### Financial Management: Mitigating Unexpected Costs Navigating unexpected costs requires meticulous financial management. Investors need to develop strategies to handle unforeseen expenses and avoid overextending their resources during the flipping process. Time Delays and Impact on Profitability --------------------------------------- Time delays can significantly impact profitability. Investors must develop effective time management strategies to ensure that unexpected delays don't escalate costs and compromise the success of the house flipping venture. **Strategic Property Acquisition: Buying the Wrong Houses** Because flipping is competitive, there may be a lot of investors bidding for the best houses and snatching them up quickly. You want to make sure you’re buying properties that aren’t overpriced or in need of too much work to be profitable. ### Assessing Property Value: Avoiding Overpriced Purchases Investors must develop a keen eye for assessing property value to avoid overpaying. Proper due diligence in evaluating the potential profitability of a property is crucial to making informed and strategic purchase decisions. ### Identifying Profitable Opportunities: Overcoming Competition Amidst competition, it's essential to stay patient and focused on identifying profitable opportunities. Overcoming bidding wars involves strategic decision-making and avoiding the common trap of overbidding during a hot real estate market. **Deal Finding Dilemmas: Not Finding Flipping Deals** ----------------------------------------------------- Making a lucrative income from flipping is 100% dependent on finding the right properties. Some investors either get impatient or they get overwhelmed by the competition and end up over-bidding on properties. Overpaying is a common mistake when investors are looking during a hot real estate market. ### _Patience and Persistence: Overcoming Impatience_ Finding flipping deals requires patience and persistence. Investors must resist the urge to rush into decisions and instead adopt a strategic approach to deal finding, ensuring that each acquisition aligns with profitability goals. ### _Market Awareness: Navigating Hot Real Estate Markets_ Market awareness is key to avoiding overbidding during a hot real estate market. Investors should stay informed about market trends, assess property values accurately, and make decisions based on a thorough understanding of the current real estate landscape. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pitfalls and Drawbacks: Unveiling the Cons of House Flipping Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: Flipping vs Renting, Real Estate Leverage, flipping, RealEstateEntrepreneurship, PropertyOwnership, House Flipping, StrategicOpportunity URL: https://buyproperly.ai/blog/the-cons-of-house-flipping Although flipping houses can seem like a quick and lucrative way to invest, it’s not without risk. Here are some things to consider… **Risky Capital Commitment:** ----------------------------- Flipping can be risky, involving a substantial capital commitment tied to the property purchase. The pressure to relist the house quickly may lead to errors, such as overpaying for a property or executing renovations incorrectly. ### _Financial Management Challenges:_ Investors must carefully manage the financial aspects to avoid potential pitfalls and ensure profitability. Understanding the intricate financial landscape of house flipping is crucial for making informed decisions and mitigating risks associated with capital investment. ### _Time-Pressure Dilemma:_ The time pressure to relist the property can create a dilemma for investors. Balancing the need for a quick turnaround with thorough financial considerations is essential to avoid rushed decisions that could compromise the overall success of the house flipping venture. **Fierce Competition:** ----------------------- Flipping properties is highly competitive! To achieve success, investors must locate houses either below market value or with significant potential for updates. The challenge lies in competing with hundreds of other investors searching for similar opportunities, ultimately driving up property prices. ### _Strategic Opportunity Identification:_ Navigating this competitive landscape requires a strategic approach. Investors should focus on identifying unique opportunities, employing market research, and leveraging their expertise to uncover properties that align with their investment goals. ### _Negotiation Tactics:_ Negotiation skills play a crucial role in overcoming fierce competition. Implementing effective negotiation tactics can give investors an edge in securing properties at favorable prices, ensuring a better chance of realizing profitable returns. **Stress and Time Constraints:** -------------------------------- Flipping can be stressful and time-consuming, demanding a fast-paced project with multiple deadlines and intricate moving parts. Many investors find the prospect of flipping overwhelming for their lifestyle. ### _Time Management Strategies:_ Balancing the demands of renovation projects, market dynamics, and personal commitments requires effective time management. Investors can implement strategic time management techniques to streamline processes, reduce stress, and enhance overall project efficiency. ### _Lifestyle Considerations:_ Understanding the personal impact of the fast-paced nature of flipping is essential. Investors should assess their lifestyle and stress tolerance to determine if house flipping aligns with their capacity for managing the demanding aspects of the venture. **Contractor Reliance:** ------------------------ House flipping heavily relies on finding the right contractors. Investors engaging in rehab and resale projects must locate reputable professionals skilled in renovations, pricing, and project management. ### _Thorough Contractor Vetting:_ Hiring the wrong contractors can result in poor renovation decisions, wasted time, overspending, and potentially no profit. Successful navigation of this challenge involves thorough contractor vetting, checking references, and ensuring alignment with project goals. ### _Ongoing Collaboration:_ Ongoing collaboration with contractors is crucial for optimal project outcomes. Investors should maintain open communication, establish clear expectations, and actively participate in the renovation process to ensure successful collaboration and project completion. Read about [Flipping Vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pros of House Flipping: Unlocking Quick Returns and Repeatable Success Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: FractionalInvesting, HouseFlippingPros, ScalableModel , EfficientTurnaround, ProfitableOpportunities, RealEstateEnthusiasts , realestateinvesting, Fractionalrealestate, Fractionalownership URL: https://buyproperly.ai/blog/the-pros-of-house-flipping Many investors are drawn to the house-flipping model for its potential quick returns and the promise of repeatable success. Here's a detailed exploration of the advantages that make house flipping a favored choice among real estate enthusiasts. **Quick Return on Investment:** ------------------------------- Flipping offers a rapid return on investment, enabling properties to be renovated, listed, and resold within a few months. ### ​Efficient Turnaround: Efficient turnaround is a distinctive feature of house flipping, facilitating a swift return on investment. The streamlined process enhances the speed of capital rotation. **Cost-Effective Financing and Scalability:** --------------------------------------------- Different financing options, including renovation loans, provide investors with the means to spend less money out-of-pocket for their flips. ### Cost-Effective Financing: Renovation loans offer a cost-effective financing solution, minimizing out-of-pocket expenses and making house flipping accessible to a broader range of investors. ### Scalability: The repeatable model allows for scalability, creating a systematic approach to real estate investment. This enhances portfolio growth and increases returns over time. **Strategic Property Selection:** --------------------------------- Successful house flipping involves finding properties below market value, renovating, and selling for a profit. ### Identifying Profitable Opportunities: Investors strategically identify properties with the potential for profit, honing their ability to spot lucrative opportunities in the real estate market. ### Market Research and Opportunity Assessment: In-depth market research and opportunity assessment are crucial components, guiding investors in making informed decisions and optimizing returns. Conclusion: In conclusion, the pros of house flipping lie in its efficient turnaround, cost-effective financing options, scalability, and the ability to generate consistent returns. Strategic property selection, market research, and opportunity assessment contribute to the repeatable success that makes house flipping an appealing investment strategy for many. Read about [Flipping Vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Mastering House Flipping: Acquiring, Renovating, and Profiting Swiftly Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: BuyProperly Investments, Flipping vs Renting, flipping, PropertyAcquisition, ResaleProfit , RealEstateEntrepreneurship, InvestmentSuccess, BuyProperly URL: https://buyproperly.ai/blog/what-is-house-flipping House flipping, a dynamic real estate investment strategy, involves purchasing a property, renovating it, and ideally selling it for a profit. The entire flipping process is known for its speed, often completed in just 4-6 months. Successful house flippers strategically navigate the market to find and acquire properties below market value, setting the stage for a lucrative venture. The key to successful house flipping lies in identifying properties with the potential for significant value appreciation. Investors seek out houses in need of major renovations, as these present opportunities to enhance the property's worth in a relatively short period. The formula for success involves a meticulous blend of financial acumen, market insight, and efficient project management. **The Flipping Journey Begins: Acquisition** -------------------------------------------- The first step in the house flipping journey is the acquisition of a property ripe for transformation. Savvy investors carefully assess the market, identifying houses available at prices below their intrinsic value. Bargain acquisitions are the foundation upon which successful flips are built. **Renovation: Adding Value and Appeal** --------------------------------------- With the property secured, the focus shifts to renovation – a crucial phase that demands both vision and expertise. Renovating houses for profit involves more than just aesthetic improvements; it's about addressing structural issues, upgrading systems, and creating a modern, appealing space. Diligence in this phase sets the stage for a higher resale value. **The Need for Speed: Swift Turnaround** ---------------------------------------- One distinguishing feature of house flipping is the need for speed. Investors aim to complete renovations efficiently, recognizing that time is a critical factor in maximizing returns. The faster the turnaround, the quicker the property can be listed and sold in a market that appreciates fresh listings. **Navigating Challenges: Risk Management** ------------------------------------------ House flipping is not without its challenges. Unforeseen issues during renovation, market fluctuations, or unexpected delays can impact profitability. Successful flippers mitigate risks through careful planning, financial contingency, and adaptability. Flexibility is key when navigating the unpredictable nature of real estate ventures. **Profiting from the Flip: Resale Strategy** -------------------------------------------- ### Timing the Market: Strategic Listing ​​The ultimate goal of house flipping is a profitable resale. Investors meticulously analyze the market to determine the optimal time to list the renovated property. Strategic timing is essential for maximizing returns. ### Negotiation Mastery: Securing Lucrative Deals ​​Profiting also involves adept negotiation skills. Successful flippers know how to secure the best deals during the resale process, maximizing their profit margins. In conclusion, house flipping is a dynamic and potentially rewarding venture for investors who master the art of acquiring, renovating, and selling properties swiftly. With a keen eye for market opportunities, a strategic approach to renovations, and the ability to navigate challenges, investors can turn houses into profitable assets in a relatively short timeframe. Read about [What happens when house flipping goes wrong?](https://blogs.buyproperly.ca/what-happens-when-house-flipping-goes-wrong)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is the best type of real estate investment? Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: PersonalFinance, CondoInvesting, FractionalInvesting, StrategicInvesting, PropertyOwnership, realestateinvesting URL: https://buyproperly.ai/blog/what-is-the-best-type-of-real-estate-investment Selecting the ideal real estate investment involves aligning with your comfort level, staying within budget constraints, and achieving financial objectives. Tailoring your investment choice to your preferences is crucial for long-term success. Explore various options based on your financial capacity and goals. **Personal Comfort Zone: Investing Wisely** ------------------------------------------- The best real estate investment aligns with your comfort level. Whether it's rental properties, condos, raw land, or commercial buildings, choose an option that resonates with your expertise and risk tolerance. ### _Navigating Expertise: Choosing Based on Your Knowledge_ Invest wisely by leveraging your expertise. Select an investment avenue that aligns with your knowledge and experience in real estate. A well-informed choice enhances your chances of success. ### _Risk Tolerance: Building a Foundation for Success_ A comfortable investment is a foundation for success. Assess your risk tolerance and choose properties that align with your comfort level, ensuring a smoother investment journey. **Budgetary Considerations: Condos as a Viable Option** ------------------------------------------------------- If full ownership of a building is beyond your current budget, consider condos as a practical alternative. Investing in condos allows entry into the real estate market with a more manageable financial commitment. This approach contrasts with owning raw land or commercial buildings, which may not generate immediate income. **Financial Goals: Tailoring Your Strategy** -------------------------------------------- Every investor has unique financial goals. Condos present an attractive option for those aiming to invest in real estate without the capital required for an entire building. Evaluate your financial objectives and choose investments that align with both your short-term and long-term goals. **Fractional Investing: A Strategic Approach** ---------------------------------------------- For individuals lacking upfront capital or time to manage rental properties, fractional investing emerges as a fantastic alternative. This approach allows investors to pool resources, reducing the financial burden and mitigating time constraints. Fractional investing is a viable strategy for those seeking real estate exposure without the full ownership responsibilities. In conclusion, the best real estate investment is a personalized choice that considers your comfort level, budget, and financial goals. Whether opting for condos, fractional investing, or other avenues, align your strategy with what suits you best. Making informed choices tailored to your preferences ensures a successful and fulfilling real estate investment journey. Read about [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Exploring Third-Party Investment Options: Crowdfunding, Fractional, REITs, and More Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: Passive Investment, RealEstateEntrepreneurship, FractionalInvesting, RealEstateInvestment, collaborative approach, Diversification URL: https://buyproperly.ai/blog/third-party-crowdfunding-fractional-reits-etc Third-party real estate has emerged as an intriguing avenue, offering accessibility to individuals eager to invest in real estate without the traditional down payment or robust credit rating. This alternative opens doors for a broader demographic seeking to participate in the real estate market. Exploring Fractional Real Estate Investing: A Collaborative Approach -------------------------------------------------------------------- One notable facet of third-party real estate investment is fractional real estate. This collaborative effort involves pooling assets with a group of individuals to purchase smaller shares of a property. The beauty of fractional investing lies in its inclusivity—investors need not be acquainted to participate. Platforms like BuyProperly facilitate nationwide connections, allowing individuals to combine their resources and invest collectively in real estate. Advantages of Fractional Investing: Diversification and Passive Income ---------------------------------------------------------------------- As a fractional real estate owner, your ownership corresponds to your financial contribution, providing a way to diversify your investment portfolio. The allure of this approach is the ability to enjoy passive income without direct involvement in property management. BuyProperly and similar platforms streamline the process, making fractional investing an accessible and collaborative venture. Understanding REITs: Real Estate Investment Trusts -------------------------------------------------- Another avenue within third-party real estate investment is [Real Estate Investment Trusts (REITs)](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments), akin to mutual funds. In this scenario, a managed portfolio of real estate properties is overseen by a management group. Investors can acquire shares in this diversified real estate portfolio and receive dividends on a per-share basis. The value of these shares may appreciate over time, offering potential capital gains along with regular dividends. **Maximizing Returns: Strategies for Success in Third-Party Real Estate** ------------------------------------------------------------------------- ### Diversifying Through Fractional Real Estate One key strategy involves embracing the diversification potential offered by fractional real estate. By collaborating with a diverse group of investors, you spread risk and gain exposure to a variety of real estate assets. Platforms like BuyProperly provide a user-friendly gateway to initiate and manage such diversified investments. ### Long-Term Gains with REITs For those eyeing long-term gains, a strategic approach to investing in REITs can be rewarding. Assess the management group's track record, the portfolio's diversity, and the potential for both regular dividends and capital appreciation. A well-researched investment in REITs can serve as a stable cornerstone for a diversified investment portfolio. ### The Role of Technology in Facilitating Collaboration Explore how technology, exemplified by platforms like BuyProperly, is transforming the landscape of third-party real estate investment. These platforms not only connect investors but also streamline the investment process, making it seamless and transparent. Understanding and leveraging such technological advancements can enhance your experience in the realm of third-party real estate. In conclusion, third-party real estate investments offer a gateway to a more inclusive and diversified approach to real estate. Whether through fractional investing or REITs, exploring these alternatives with strategic insights can pave the way for a rewarding and accessible investment journey. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Strategic Investment: Exploring the Untouched Potential of Raw Land Opportunities Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: BuyProperly Investments, FractionalInvesting, RawLandInvesting, RealEstateOpportunities, StrategicInvestment, RealEstateDynamics URL: https://buyproperly.ai/blog/raw-land Raw land is completely uncultivated and untouched real estate. It doesn’t have roads, houses, or any other buildings. Investors who choose to purchase raw land are taking a chance that, based on the location and projected market demand, this land will appreciate in value. Understanding Raw Land Investment: Assessing Risks and Rewards -------------------------------------------------------------- Investing in raw land involves a unique set of considerations. While it lacks immediate infrastructure, the potential for appreciation relies on strategic location and market projections. Understanding the risks and rewards is crucial for making informed investment decisions. The more the price of the land increases, the higher return on investment (ROI) there is. Many investors purchase raw land expecting to sell it to developers. Capitalizing on Appreciation: Maximizing ROI in Raw Land Investments -------------------------------------------------------------------- Raw land investments thrive on the concept of appreciation. Investors strategically anticipate market trends, aiming for increased land value over time. This section delves into the dynamics of maximizing ROI by capitalizing on the appreciation potential of raw land. If someone purchases a piece of raw land and expects to wait years before they can capitalize on that acreage, then it’s important to consider that appreciation in price as opposed to immediate profit for this kind of real estate investment. **Navigating the Long-Term Path: Strategic Considerations for Raw Land Investors** ---------------------------------------------------------------------------------- ### Patience as a Virtue: Waiting for the Right Market Conditions Investors in raw land often embrace a long-term perspective, patiently waiting for the right market conditions to optimize returns. Navigating through economic cycles and market fluctuations requires strategic patience and a keen understanding of the real estate landscape. ### Mitigating Risks: Evaluating Factors Impacting Raw Land Values Understanding the factors influencing raw land values is essential for risk mitigation. This involves assessing zoning regulations, environmental considerations, and potential infrastructure developments. Strategic evaluation allows investors to make informed decisions and safeguard their investment against unforeseen challenges. In conclusion, raw land investments present a unique avenue for strategic investors. By comprehending the dynamics of appreciation, capitalizing on long-term potential, and navigating risks with strategic considerations, investors can unlock the untouched potential of raw land opportunities for a rewarding and resilient investment journey. Read about [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Strategic Insights into Commercial Property Investing: Unlocking Lucrative Real Estate Assets Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: CommercialPropertyInvesting, RealEstateStrategies, AssetBuilding, BusinessOwnership, Fractionalownership URL: https://buyproperly.ai/blog/commercial-investing Investing in commercial property is another kind of real estate to consider. Typically, the investor purchases a commercial building to rent out to businesses. Unlocking Commercial Investment Potential: A Strategic Overview --------------------------------------------------------------- Diving into commercial property investment requires a strategic overview. Understanding the dynamics of this real estate sector is crucial for unlocking its investment potential. This section explores key considerations and strategic insights for those venturing into commercial property investment. Business owners also consider investing in this kind of real estate to own the building that they run their business out of. Dual Benefits for Business Owners: Owning and Operating in Commercial Real Estate --------------------------------------------------------------------------------- For business owners, investing in commercial real estate offers dual benefits. Not only does it provide a strategic location for operations, but it also allows them to build a valuable asset. This dual-purpose investment model is explored further, highlighting the financial advantages and strategic considerations for business owners. This saves the business on paying rent and, instead, they are able to put money towards building a very lucrative asset. Financial Optimization: Redirecting Rent Expenses into Lucrative Asset Building ------------------------------------------------------------------------------- Commercial property investment provides a unique avenue for financial optimization. Redirecting funds from rental expenses towards building a lucrative asset transforms the financial landscape for businesses. This section delves into the practical aspects of how investing in commercial real estate becomes a strategic move for long-term financial growth. **Navigating the Commercial Real Estate Landscape: Strategies for Success** --------------------------------------------------------------------------- ### Location Matters: Strategic Site Selection for Commercial Investments In the realm of commercial real estate, location is a critical factor. This subheading explores the strategic considerations involved in selecting the right site for commercial investments. Proximity to target demographics, accessibility, and future development plans all play a role in making informed location-based decisions. ### Lease Agreements: Optimizing Returns through Smart Rental Agreements Lease agreements form the backbone of commercial property investment. This subheading delves into the art of optimizing returns by crafting smart and strategic lease agreements. Understanding the needs of businesses, negotiating terms, and ensuring a mutually beneficial arrangement are key aspects of maximizing returns in commercial real estate. In conclusion, commercial property investment offers a strategic avenue for both investors and business owners. By unlocking the potential of this real estate sector, understanding dual benefits for businesses, and navigating the landscape with location-centric strategies and savvy lease agreements, individuals can make informed decisions to build a robust and lucrative real estate portfolio. Read about [Residential Investing](https://blogs.buyproperly.ca/residential-investing)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Residential Investing: Strategies for Profitable Real Estate Ventures Author: BuyProperly Engineering Published: 2022-08-05 Category: Insights Tags: BuyProperly Investments, Flipping vs Renting, Rental Income Real Estate, HouseFlippingChallenges, RealEstateInvestment, RealEstateStrategies URL: https://buyproperly.ai/blog/residential-investing Residential investing is likely the most common way to invest in real estate. This is when an investor buys a single-family home, duplex, or multi-family building, and either flips it for profit or holds it as a rental property. The purchase of this kind of real estate may be done with the use of financing or cash.​ When people invest in residential real estate, they are typically purchasing a property to use it in one of four ways: [Rentals](https://blogs.buyproperly.ca/what-is-rental-income-real-estate-investing) ----------------------------------------------------------------------------------- ### Long term rentals In this situation, investors purchase a property such as a house, duplex, or apartment building that they rent out to tenants to live long term. This allows investors to maintain a steady cash flow and pay for expenses as the property appreciates in value. The tenants are tied to a monthly rent payment (a lease) to live there, and the investor is the responsible landlord. The investor has the option of being the landlord themselves or hiring a property maintenance service to act on their behalf. Typically, tenants sign long-term rental agreements usually set for a year or longer. ### Short term rentals Vacation properties are ideal for this kind of real estate investment. Often, the investor will purchase a cottage, chalet, or vacation home in a highly desirable location and rent the property out on a weekly or monthly basis for guests. This type of investment is ideal for vacation hot spots where the property will be in high demand. Again, the investor can manage the property themselves or hire a property maintenance service to take care of it for them. When investing in rental properties, it’s also important to consider the tax implications. Because these properties generate income and are not considered a “primary residence”, owners should be aware of specific tax ramifications in their area. In addition, when investors sell these rentals, there will be a capital gains tax to pay on the sale. Make sure to check your state, provincial, and federal guidelines to learn more. ​[House flipping](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors)​ ----------------------------------------------------------------------------------------------------------------------- The idea of house flipping is to buy a lower-priced fixer-upper property below market value and invest the time, energy, and money into renovating the property before selling it at a premium. Provided the property’s purchase price reflects the amount of work that needs to be put into the structure (and allows for a profit), it can be a good way to invest in real estate. This method of house flipping only works when you can sell at a profit, which would be the sale price less purchase price and renovation costs. The profit on the sale is taxable income. New construction ---------------- Purchasing new construction is an option people consider during hot markets. Typically, the down payment on the property is required far in advance before the house is ready to inhabit. Many investors purchase these new sales and resell them at fair market value when the home has been constructed and ready to inhabit. The idea is that the house’s fair market value would have appreciated from the time the down payment was placed to the time the home was ready to inhabit. This income would be considered taxable. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing in a Volatile Market: Strategies to Succeed Author: BuyProperly Engineering Published: 2022-08-04 Category: Insights Tags: BuyProperlyLimited , MarketVolatility, InvestmentTips, AvoidMistakes, PortfolioDiversification URL: https://buyproperly.ai/blog/investing-in-a-volatile-market-strategies-to-succeed ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/investing-in-a-volatile-market-strategies-to-succeed-1714866580871-compressed.jpg) It’s no secret that the current market is incredibly volatile. Prices are bouncing all over the place, and it can be hard to know what’s the right thing to do when it comes to investing in your future.  In this blog post, we’ll go over some of the strategies you can use when investing in a volatile market, as well as some common mistakes people make during times like these. So whether you’re a seasoned investor or [just starting out](https://buyproperly.ca/resource-center/learn/ebook/women-investing), read on for some valuable insights! **What happens during periods of market volatility?** ----------------------------------------------------- During periods of market volatility, prices tend to go up and down rapidly, making it hard to predict which way the market will move next. This can be a scary time for investors, as there is always the possibility of losing money. However, it’s important to remember that market volatility is normal and happens every few years. When the stock market is volatile and [inflation](https://buyproperly.ca/resource-center/learn/ebook/cope-up-with-rising-prices) is on the rise, it can be difficult to know how to protect your investments. But there are some strategies you can use to help safeguard your portfolio. Remember, there’s no “right” approach for everyone!  The best strategy for you will depend on your _individual_ circumstances and goals. Be sure to speak with a financial advisor so you can figure out a plan that works for you. If you choose to [invest with BuyProperly](https://buyproperly.ca/how-it-works), you can talk to one of our experts [here](https://calendly.com/team-buyproperly/30-minute-meeting?month=2021-06&date=2021-06-21). ![Investing in a Volatile Market](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wordpress-images-1714584831174-compressed.png) **Here are the top 6 strategies investors can use during a period of marketing instability:** ### **Diversify your portfolio** One of the best ways to protect your investments during a volatile market is to diversify your portfolio.  It means investing in a variety of different asset types, including stocks, bonds, and cash. This will help to mitigate your risk if one particular asset class starts to decline. It also means investing in a variety of geographies and investing in products. As an example, your portfolio may include a combination of stocks from different sectors, such as healthcare, tech, and finance, or bonds with different maturity dates, or different countries, like Canada, the US and Europe. ### **Consider alternative investments**  Alternative investments can be a good way to diversify your portfolio and protect against inflation. Some examples include [real estate trusts](https://buyproperly.ca/resource-center/learn/ebook/invest-in-real-estate-v2), commodities, and hedge funds.  Here at [BuyProperly](https://buyproperly.ca/), we leverage a [fractional ownership model](https://buyproperly.ca/how-it-works) to help investors grow their [real estate portfolio](https://buyproperly.ca/resource-center/learn/ebook/invest-in-real-estate-v2) for as little as $2500.  How does it work? We use proprietary AI technology to find the best properties that match our investors. They’re able to see projected annual returns of up to 10-40% without the headache of property management and building maintenance!  Learn how you can get started [here](https://buyproperly.ca/how-it-works). ### **Stay disciplined with your investing** It can be tempting to try to time the market during periods of volatility. Often, investors will veer off course in search of a great deal. However, this can be a recipe for disaster. The best way to approach investing during a volatile market is to stick to your investment plan and refrain from making impulsive decisions.  Investing longer periods of time, years rather than months, helps even out the ups and downs of the market, and realize market growth over the longer term. ### **Review your investment mix** As market conditions change, so should your investment mix. Regularly reviewing and rebalancing your portfolio will help ensure that your investments are properly diversified and aligned with your goals. This means selling off assets that have increased in value and buying more of the assets that have lost value.  By doing this, you ensure that your portfolio stays diversified and aligned with your investment.  For example, if you’re close to [retirement](https://buyproperly.ca/resource-center/learn/ebook/retire-early-by-your-50s), you may want to adjust your portfolio to be more conservative. On the other hand, if you have a longer time horizon, you may be able to weather the ups and downs of the market and take on a bit more risk. ### **Be prepared for market corrections** A market correction is when the stock market experiences a sharp decline. These declines are often seen as a normal part of the market cycle. However, they can be difficult to stomach if you’re not prepared for them. Learning how to ride out a market correction will help you stay the course when your investments start to decline. ### **Try dollar-cost averaging** This involves investing a fixed amount of money into a security or securities at regular intervals. By buying these securities over time, you’ll be able to average out the price and reduce your overall risk. This technique can help smooth out the ups and downs of the market. With these tips, you (and your investment portfolio) will be better prepared to handle any periods of economic instability! **Here are the 10 mistakes to avoid when investing during a period of market volatility:** ------------------------------------------------------------------------------------------ **Don’t try to time the market** People often do this when they think the market is about to [crash](https://hub.buyproperly.ca/webinar-should-you-buy-before-rates-rise-or-wait-for-a-market-crash) and they want to sell before it does. But no one can predict the future, so this strategy is often unsuccessful. If your timing is wrong, you could lose a lot of money or miss out on a rebound. **Don’t invest everything at once** When the market is volatile, it’s often best to invest gradually over time. This way, you’ll be able to average out the price and reduce your overall risk. **Don’t put all your eggs in one basket** As we mentioned above, diversification is key when the market is volatile. By investing in a variety of asset types and classes, you’ll be able to reduce your risk. **Don’t panic** It can be tempting to sell everything when the [market is crashing](https://hub.buyproperly.ca/webinar-should-you-buy-before-rates-rise-or-wait-for-a-market-crash), but this is often the worst thing you can do. If you sell too quickly, you’ll likely miss out on the rebound. Through diversification and smart portfolio management, you’ll be better prepared to avoid the dreaded “panic sell” mentality. **Don’t try to guess the bottom** A lot of people think they can predict when the market will hit rock bottom and start to rebound. But again, this is often unsuccessful. If you wait too long to buy, you could miss out on a lot of gains. **Don’t get emotional about your investments** It’s important to remember that investments are just that – investments. They go up and down, and you need to be prepared for both. Getting too attached to your investments can cloud your judgement and lead to bad decisions. **Don’t forget about fees** When the market is volatile, every penny counts. Be sure to check how much you’re paying in fees and expenses. These can eat into your returns and add up over time. **Factor in your taxes** When you sell investments for a profit, you’ll likely owe capital gains taxes. Be sure to factor this in when making decisions about when to sell. **Always stick to comfortable levels of risk** Just because the market is volatile doesn’t mean you should take on more risk than you’re comfortable with. Be sure to stay within your risk tolerance levels and don’t make impulsive decisions based on market fluctuations. **Don’t forget about your goals** When making investment decisions, it’s important to keep your long-term goals in mind. Don’t let the market dictate your decisions. Stick to your plan and stay the course. The more you hold onto your long-term investment vision, the less likely you’ll be swayed by short-term market fluctuations. Although it seems simple, keeping these strategies in mind will help you feel more secure as you invest and grow [wealth](https://buyproperly.ai/blog/webinar-investing-101-navigating-the-space-of-new-wealth-creation) for your future (especially when the market becomes unpredictable!). **Conclusion** -------------- Investing during periods of market volatility can be difficult, but there are some strategies you can use to help reduce your risk. By diversifying your investments, using dollar-cost averaging, and avoiding common mistakes, you’ll be in a better position to weather the storm. By staying diversified, investing gradually, and focusing on your long-term goals, you’ll be well on your way to success. Looking to try a low-risk [real estate investment](https://buyproperly.ca/resource-center/learn/ebook/invest-in-real-estate-v2) strategy? Learn more about [BuyProperly](https://buyproperly.ca/) and [how we help investors generate above-average returns without the hassle of traditional real estate ownership](https://buyproperly.ca/how-it-works)!  There is a new, easy and simple way to invest in [real estate](https://buyproperly.ca/resource-center/learn/ebook/invest-in-real-estate-v2) to grow your portfolio. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What are the cons of investing in real estate? Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: realestateinvesting, InvestmentPortfolio, FinancialRisk, UpfrontCosts, TimeInvestment, ROIonProperty, Fractionalownership URL: https://buyproperly.ai/blog/what-are-the-cons-of-investing-in-real-estate Real estate is a fantastic investment to add to your portfolio, but it doesn’t come without risk. Here are a few things all new investors should consider before jumping in. Upfront costs ------------- It’s no secret that investing in real estate the traditional way takes money. If you’re buying a property to live in, expect a minimum of 5% down plus closing costs. Most investment properties and second homes may even require a 20% down payment to buy! Real estate isn’t cheap, and it’s important for new investors to be prepared for the costs. Here at BuyProperly, we leverage a fractional ownership model to allow investors to buy real estate for as little as $2500. This means they can get started quickly without having to wait and save up huge lump sum deposits for investment properties. Want to see how we do it? **[See top investment properties](https://buyproperly.ca/properties)** Sourcing deals -------------- Besides financial costs, investing in real estate comes with a significant time cost when you consider sourcing property deals. Unlike buying and trading stocks, which can be done with the click of a mouse, property investment often requires more time, research, and preparation. Not only do you need to find great deals, but you need to analyze them and gather the paperwork to get the deal done. On top of this, if you don’t have a good team in place, managing your repairs, maintenance, and tenants can turn into an overwhelming process. Fortunately, sourcing great deals doesn’t have to be complicated. At BuyProperly, for example, we’ve created an AI-powered platform that allows investors to view, buy, and sell real estate digitally (much like they would trade stocks). Let us show you how it works. **[How Al can ensure maximum ROI on property investment](https://buyproperly.ca/signup/personal)** Difficult to unload. -------------------- As much as we love real estate for its security and predictable returns, it’s not the type of investment that can be bought and sold quickly. In fact, the highest returns are earned when investors will buy and hold. If you think you may need to free up cash quickly, OR if you’re looking for an exceptionally quick profit, real estate may not be your primary investment vehicle. Read about [Mastering House Flipping: Acquiring, Renovating, and Profiting Swiftly](https://blogs.buyproperly.ca/what-is-house-flipping)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Passive Income Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights URL: https://buyproperly.ai/blog/passive-income This last point ties into the other benefits we’ve mentioned above. Rental income aside, real estate accumulates passive wealth through its inherent tax benefits and long-term appreciation. In addition, the rental income you collect can be done with minimal involvement and effort. With the right property managers and rental team, the ROI on your investment becomes relatively passive. Here at BuyProperly, we help investors start with as little as $2500 and see projected annual (passive) returns of 10-40%! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Mastering Real Estate Wealth: The Art of Leverage Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: Real Estate Leverage, RealEstateWealth, investment leverage, art of real estate leverage, HumanExpertise, RealEstateJourney, ContinuousGrowth, MasteringInvestment URL: https://buyproperly.ai/blog/leverage-your-investment **Unlocking the Dynamics of Leverage** -------------------------------------- ### ****Amplifying Assets: A Financial Symphony**** Embark on a journey into the profound realm of leveraging investments, gaining control over assets whose value surpasses the initial down payment. Explore the transformative impact of this financial strategy, magnifying returns with finesse. ### **Cultivating Wealth: The Leverage Effect** Dive into the intricacies of leveraging, uncovering the domino effect that catapults your investment portfolio to unprecedented heights. Discover the art of strategically leveraging assets for sustained and impactful growth. In real estate investment, the allure of leverage lies not just in financial mechanics but in its ability to shape destinies. With down payments as flexible as 5%, 10%, or 20%, investors wield the power to access substantial assets and navigate the dynamic landscape of the real estate market. The leverage effect extends beyond immediate control—it becomes a catalyst for perpetual growth. By astutely borrowing against leveraged assets, investors unleash a cycle of continuous investment. This perpetual motion sets in motion a compounding effect, multiplying returns on each subsequent venture. **Navigating Strategic Leverage in Real Estate** ------------------------------------------------ ### **Optimal [Down Payments](https://blogs.buyproperly.ca/mortgage-down-payment): Crafting Control Strategies** Embark on a journey through the nuanced world of down payments, understanding how variations from 20% to as low as 5% empower investors with varying degrees of control over substantial real estate assets. Uncover the art of crafting optimal down payment strategies for financial prowess. ### **Borrowing Wisdom: Fueling Ongoing Ventures** Peer into the strategic landscape of borrowing against leveraged assets. Gain insights into how this borrowing prowess serves as the linchpin for continuous investment growth. Learn the human-centric art of strategic borrowing to fuel ongoing real estate ventures with financial prudence. In the realm of real estate investment, strategic leverage is not just a tool; it's a philosophy—an art form. It's the pathway to unlocking, amplifying, and perpetuating wealth. The ability to control, amplify, and perpetuate assets through leveraged investments positions real estate as a dynamic and potent vehicle for long-term financial success. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating Stability: The Low Volatility Advantage in Real Estate Investment Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: RealEstateInvestment, RealEstateJourney, Portfolio Management, LowVolatility, Risk Mitigation, Historical Investing URL: https://buyproperly.ai/blog/low-volatility **Decoding Low Volatility in Real Estate** ------------------------------------------ ### **The Resilience Factor** Explore how real estate stands apart, being less prone to the sudden and drastic shifts characteristic of stock trading. Uncover the inherent stability that makes real estate a refuge for those seeking a predictable and secure investment. ### **The Predictability Paradigm** Delve into the predictability that real estate offers, making it an invaluable addition to portfolios craving stability. Understand how this low-volatility attribute transforms real estate into a versatile and all-encompassing investment choice. In the realm of real estate, volatility takes a back seat, providing investors with a haven of stability. Unlike the turbulent world of stock trading, real estate rarely experiences massive overnight shifts. This characteristic makes it an ideal choice for those desiring a more stable and predictable investment avenue. **Risk Mitigation: Lessons from Real Estate History** ----------------------------------------------------- ### **The 2008 Housing Market Lesson** Reflect on the pivotal lessons from the 2008 US housing market crash, emphasizing the importance of prudent investment decisions and avoiding over-leveraging. Understand how historical events shape the narrative of responsible real estate investment. ### **Building a Resilient Portfolio** Navigate the nuances of building a resilient portfolio, considering the balance between risk and reward in real estate investment. Gain insights into crafting smart investment decisions for the long-term growth of your real estate portfolio. Real estate, with its low volatility, offers a unique and stable investment landscape. While it shields investors from the abrupt swings seen in stock markets, it's crucial to acknowledge that real estate investment isn't entirely risk-free. The lessons from the 2008 housing market crash underscore the importance of prudent decision-making and strategic portfolio growth in the realm of real estate investment. Read about [Navigating Volatility: How to Strategically Invest in the Market with Rita Li](https://blogs.buyproperly.ca/navigating-volatility-how-to-strategically-invest-in-the-current-market-with-rita-li)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Tax Benefits Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights URL: https://buyproperly.ai/blog/tax-benefits Another major advantage of investing in real estate is all the tax benefits you’re eligible to take advantage of! Many investors can write off costs associated with depreciation, mortgage interest, operating costs, repairs, and property tax. These incredible tax benefits are a fantastic way for investors to save and build wealth. For example, if you are charging $2,000 rent per month and you incurred $1,500 in taxdeductible expenses per month, you will only be paying tax on that $500 profit per month. That’s a large difference from paying taxes on $2,000 per month. The profit that you make on your rental unit for the year is considered rental income and will be taxed accordingly. It is vital that you keep good accounting records on your investment property. If you are claiming maintenance and repairs, for example, be sure to keep those receipts as proof. If you are to be audited by the government and can’t supply the proof of expenses in form of official receipts, chances are you will be disqualified from claiming those tax deductions. The appreciation of the property will be assessed when you dispose of the property and capital tax will come into play. You will be taxed on the capital gains that you earned on the property from when you invested and purchased the property to the day you sold it. The difference between the sale price and the price you paid to purchase will be the capital gain, which will be taxed, but only in the year that you dispose of the property. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Appreciation Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights URL: https://buyproperly.ai/blog/appreciation The wonderful thing about investing in real estate is that the value of the property is expected to appreciate. The principal amount that you invested in the property will grow over time and should be worth more than what you paid for it when you purchased it. Real estate is a fantastic long-term investment because it’s almost always guaranteed to appreciate in value. Investors patient enough to buy and hold their properties will benefit from predictable appreciation year-over-year. Depending on where you buy, you can expect annual appreciation rates anywhere from 2-8%. In Canada, there’s been an average 6.11% annual appreciation over the last 15 years! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Potential for High Returns in Real Estate Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: House Flipping, Undervalued Properties, High Returns, Profit Potential, Strategic Investing, Strategic Renovation, RealEstate Profits URL: https://buyproperly.ai/blog/high-return-on-investment **The Art of House Flipping** -------------------------------- ### **Unlocking Profit Potential** Explore the lucrative landscape of high returns through real estate investing, specifically in the realm of house flipping. Uncover the art of buying, renovating, and reselling properties, delving into the potential for substantial profits. ### **Investment Intensity** Dive into the world of house flipping, understanding the upfront cash and effort required for substantial returns. Examine the investment intensity and the significant potential for profit inherent in identifying and renovating undervalued properties. Real estate investing offers a unique avenue for high returns through the strategic art of house flipping. While it demands more upfront investment, the potential for substantial profit is vast. House flippers strategically seek undervalued properties in prime neighborhoods, injecting capital and effort to unlock their profit potential. **Strategic Property Selection** ----------------------------------- ### **Undervalued Gems in Prime Locations** Explore the tactics of successful house flippers, focusing on identifying undervalued buildings in desirable neighborhoods. Understand the strategic property selection that forms the foundation for profitable house flipping ventures. ### **Renovation Dynamics** Delve into the renovation process, analyzing the dynamics of transforming properties from undervalued to average market value. Witness how the infusion of effort and capital into renovations can lead to swift and lucrative returns in the real estate market. House flipping is an intricate dance of strategic property selection and meticulous renovation. Successful flippers target undervalued gems in prime locations, infusing them with the necessary resources to elevate their market value. This dynamic process, while requiring substantial upfront investment, unfolds a realm of potential for high returns in the realm of real estate investment. Read about [How to Spend Your Tax Return to Grow Your Wealth | Buyproperly](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unveiling Wealth: The Cash Flow Advantage in Real Estate Investment Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: BuyProperly Investments, cash flow, monthly returns, MasteringInvestment, stable portfolio, Buying power URL: https://buyproperly.ai/blog/opportunity-for-cash-flow **The Rise of Cash Flow in Real Estate Investment** ------------------------------------------------------ ### **Cash Flow Magic: Monthly Returns** Explore the popularity of using real estate for additional cash flow, unraveling the magic of generating month-over-month returns. Understand how rental properties become a dynamic avenue for consistent and substantial cash flow. ### **Building a Stable Portfolio** Delve into the multifaceted benefits of rental properties, offering the opportunity to build a portfolio of long-term, stable assets. Grasp the concept of leveraging cash flow for long-term wealth creation through property appreciation. The allure of real estate investment for additional cash flow is undeniable. Rental properties not only present the chance to generate consistent monthly cash flow but also serve as a pathway to assembling a portfolio of enduring and stable assets. This dual advantage positions real estate as a powerhouse for sustained financial growth. **Unlocking New Opportunities: The 'House Hack' Advantage** ----------------------------------------------------------- ### **The Cash Flow Edge** Uncover the pivotal role of cash flow in enabling new investors to engage in 'house hacking'. Explore how the income generated from rental properties can fund living expenses and expedite mortgage repayment, providing a unique entry point for aspiring real estate investors. ### **Making Real Estate Dreams Accessible** Examine the practicality of purchasing duplexes or houses with additional dwellings for extra income, making real estate dreams attainable for new investors. Understand how cash flow becomes the financial engine propelling the entry of newcomers into the real estate market. The power of cash flow extends beyond financial gains—it becomes a gateway for new investors to penetrate the real estate market. As real estate prices soar, cash flow offers a lifeline, funding living expenses and accelerating mortgage repayment. Whether through 'house hacking' or strategic property choices, cash flow emerges as the key to making real estate dreams a tangible reality. If you’re looking for a way to buy into the real estate market without having to spend hundreds of thousands of dollars, check out our properties. At BuyProperly, we use a fractional ownership model that allows investors to start with as little as $2500. Explore [Third-Party Investment Options: Crowdfunding, Fractional, REITs, and More](https://blogs.buyproperly.ca/third-party-crowdfunding-fractional-reits-etc)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Constitutes the Best ROI for Real Estate Investments? Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: RealEstateROI, ROIExploration, WealthAccumulation, InvestmentGoals, RealEstateJourney, RealEstate Profits URL: https://buyproperly.ai/blog/what-is-a-good-roi-for-real-estate **Setting the Foundation: Understanding ROI for Rentals** ------------------------------------------------------------ Delve into the world of long-term rentals, where investors prioritize steady income and wealth-building. Explore the common ground of a 5-10% ROI, providing a foundation for those looking to hold properties as long-term assets. ### **Risk Tolerance and Goals** Understand the significance of personal goals and risk tolerance in determining a "good ROI" for long-term rentals. Uncover how aligning your investment strategy with your objectives paves the way for financial success. For investors eyeing long-term rentals, a 5-10% ROI is the compass guiding their wealth-building journey. This strategy prioritizes steady income and aligns with a more conservative approach, perfect for those with a long-term investment horizon. **Flipping for Immediate Returns** ---------------------------------- ### **Immediate Gains: The World of Property Flipping** Embark on the dynamic journey of property flipping, where immediate ROI takes center stage. Explore the quest for returns of 20% or above, defining the landscape for investors seeking swift profits through strategic property transformations. ### **Balancing Risk and Reward** Uncover the delicate balance between risk and reward in the realm of property flipping. Learn how investors navigate the potential for higher returns while strategically managing the inherent risks associated with immediate ROI goals. For property flippers, the pursuit of an ROI of 20% or above is the heartbeat of their investment strategy. This approach prioritizes immediate gains, catering to those with a keen eye for strategic property transformations and a willingness to navigate the associated risks. In the vast realm of real estate, the definition of a "good ROI" is a personalized journey. Whether opting for the steady path of long-term rentals or the exhilarating world of property flipping, aligning investments with your goals becomes the key to unlocking financial success. Here at [BuyProperly](https://blogs.buyproperly.ca/), we help real estate investors get started for as little as $2500 and see projected annual returns of 10-40%! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Calculating ROI in Real Estate: Resales and Rentals Author: BuyProperly Engineering Published: 2022-08-02 Category: Insights Tags: RealEstateROI, ROIExploration, ROIFormula , Calculating ROI, RealEstate Profits URL: https://buyproperly.ai/blog/the-formula-for-calculating-roi There are a few different ways to calculate ROI depending on the type of real estate investment you have. Let’s look at how to calculate ROI for real estate investments that are resales OR rental investments. Let’s look at some examples. Resales ------- When calculating the profitability of resale real estate investments, there is a simple formula: Your equity in the property (total gains minus your total costs) divided by total costs. There are 2 methods real estate investors can use to calculate their gains and costs: the Cost Method and the Out-of-Pock Method. Let’s look at them both in detail. ### Cost Method This method for calculating ROI uses the total equity in a property divided by that property’s costs (renovations, repairs, and sale price). The Cost Method works for properties purchased with both cash and/or financing. As an example, say you purchase a home for $250,000. After putting in an additional $100,000 for repairs, you sell the property for $500,000. First, you need to calculate your equity in the property. If it sold for $500,000 after your total costs were $350,000 for the purchase and repairs, you had $150,000 left of equity. Next, calculate the total costs. As mentioned above, the total costs for the property were $350,000 ($250,000 purchase price plus $100,000 in repairs). After you divide your equity ($150,000) by the total costs ($350,000), you get 0.43 which is a 43% ROI. ### Out-of-Pocket Method The second popular method for calculating ROI looks at only what you’ve spent out- of-pocket for property costs and expenses and doesn’t consider the property financing. When would investors use this method? The Out-of-Pocket Method can be used to calculate ROI only when investors purchase a property with a mortgage. Both the down payment and financing on the property are calculated as equity, making the overall ROI higher. Let us discuss the same example as above. You purchased the property for $250,000 and put $100,000 of repairs, only this time, let’s say you put a 20% down payment on the house and used a traditional mortgage to finance the rest. This means your out-of-pocket expenses are only $50,000 (your down payment) plus $100,000 (repair costs). If the property is worth $500,000 after repairs, this means you have $350,000 of equity (including you bank financing as leverage). After you divide $350,000 by the total sale price ($500,000) you’re left with a 70% ROI. Rental properties ----------------- Calculating ROI on rental properties is slightly more complex since we need to factor in year-over-year profitability. For this ROI, we use the following formula: Net operating income (annual rental income – operating expenses) divided by the total mortgage value… Using the example from above, if you purchased your property for $250,000 with a 20% down payment, that means your mortgage is $200,000. Now, let’s say your monthly rent is $1200. Multiply this by 12 to get the average yearly rent. Subtract operating expenses (let’s assume these are $500 a month). This leaves you with a yearly net operating income of $8400. Divide $8400 by the current mortgage value ($200,000) and you’re left with an ROI of 4.2% per year. Keep in mind, as the mortgage value decreases over time, the ROI increases. Read about [How to Calculate ROI in Real Estate to Maximize Your Profit | Buyproperly](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding ROI in Real Estate Investment for Smart Portfolio Growth Author: BuyProperly Engineering Published: 2022-07-29 Category: Insights Tags: RealEstateROI, TaxReturnInvesting , Calculating ROI, Predictable Returns, art of real estate leverage, RealEstate Profits URL: https://buyproperly.ai/blog/what-is-roi ROI, or Return on Investment, serves as a crucial metric for assessing the profitability of real estate investments. It quantifies the financial return relative to the investment's cost. The simplicity of calculating ROI makes it a widely used tool for evaluating various investments. **Why is ROI a Popular Measure of Profitability?** -------------------------------------------------- ### **Simplicity:**  ROI is straightforward to understand and calculate for almost any investment. This simplicity allows investors to quickly compare the profitability of different ventures. ### **Snapshot Analysis:**  It offers a financial "snapshot" of an investment, aiding in decision-making regarding buying, selling, or adjusting a portfolio. **Importance of ROI in Real Estate** ------------------------------------ While ROI provides a quick overview of an investment's profitability, it may not capture all complexities involved in real estate. Despite its simplicity, ROI is crucial for: ### **Quick Assessment:**  Investors can gauge the "health score" of potential investments, identifying properties with cash flow issues or negative ROI. ### **Decision-Making:**  When aligned with overall investment goals, ROI calculations help in making informed decisions and building a robust real estate portfolio. **BuyProperly's Approach to ROI** --------------------------------- At **BuyProperly**, we prioritize ROI calculations as a benchmark for property profitability. Most investors can anticipate projected annual returns ranging from 10-40%. Read about [How to Calculate ROI in Real Estate to Maximize Your Profit | Buyproperly](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Essential Real Estate Terms Every Investor Must Know Now Author: BuyProperly Engineering Published: 2022-07-19 Category: Insights Tags: Terminology, Investors terms, real estate terms, RealEstate Terms URL: https://buyproperly.ai/blog/real-estate-terminology-every-investor-should-know If you’re an investor, a landlord, or just simply [interested in owning real estate](https://buyproperly.ca/how-it-works), there are some key terms you must understand. This guide will give you a basic introduction to the most important real estate concepts. With this knowledge under your belt, you’ll be able to make more [informed decisions](https://buyproperly.ca/resource-center/learn/ebook/choose-an-investment-property) when it comes to your investments.  Let’s get started! ![growth and wealth creation from real estate investments over time](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/real-estate-investing-1-1024x448-1715167579932-compressed.jpeg) **Here is a list of real estate terminology every investor should know:** ------------------------------------------------------------------------- ### **Absorption rate:**  This is the rate at which available homes are sold in a specific market. It is calculated by dividing the number of homes sold in a period of time by the total number of homes available. ### **Amortization:**  The process of gradually paying off a [debt](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) with periodic payments. This period can range anywhere from five to thirty years. ### **Appraisal:**  This is an estimate of a property’s value, typically conducted by a professional appraiser. ### **Assessed value:**  This is the value of a property as determined by a local municipality for tax purposes. The assessed value should not be confused with the sale price. ### **Balloon mortgage:**  A mortgage that is typically paid off in full after a relatively short period of time, with the remaining balance due in a lump sum at the end. ### **Bridge loan:**  A short-term loan used to finance the purchase of a property before the borrower obtains permanent financing. ### **Broker:**  A [professional](https://blogs.buyproperly.ca/what-is-a-real-estate-agent-or-relator) who helps facilitate the sale of real estate, usually in exchange for a commission. ### **Buyer’s agent:**  A real estate broker who represents the interests of the buyer in a transaction. ### **Buyer’s market:**  A market in which there are less buyers than sellers, and as a result, prices are relatively low. ### **CAP rate:**  The capitalization rate is used to estimate the potential return on an investment property. It is calculated by dividing the net operating income by the purchase price (or current value) of the property. ### **Cash flow:**  The net amount of cash and cash equivalents being transferred into and out of a company. ### **Contingency:**  A condition that must be met in order for a real estate contract to be legally binding. ### **Closing:**  The final step in a real estate transaction, during which all the paperwork is signed, and the property officially changes hands. ### **Closing costs:**  The costs associated with the purchase of a property, including fees for legal services, title insurance, and lender’s title insurance. ### **Commission:**  The fee charged by a broker for their services. Depending on your location and the company you work with, commissions can range anywhere from 0.5% – 8%. ### **Down payment:**  The initial payment made by a buyer to a seller when purchasing a property. The down payment is typically a percentage of the purchase price. ### **Due diligence:**  The process of investigating a property before making an offer, in order to confirm that it meets your investment criteria. ### **Easement:**  The right of one party to use the property of another party for a specific purpose. For example, an easement may give a utility company the right to build power lines on your property. ### **Earnest money deposit:**  A deposit made by a buyer to demonstrate their good faith in a transaction. This deposit is typically held in escrow until closing. ### **Encroachment:**  The unauthorized use of another person’s property. Encroachment can be something as simple as a fence that crosses onto your neighbor’s land, or it could be a building that is constructed on your property without your permission. ### **Escrow:**  An arrangement in which a third party holds and administers money or documents on behalf of two other parties. ### **Equity:**  The difference between the fair market value of a property and the amount still owed on its mortgage. **Fixed-rate mortgage:** A mortgage with an interest rate that remains the same for the life of the loan. ### **[Fractional ownership](https://buyproperly.ca/faq#what-is-buyproperly):**  When two or more people own a property together. This is typically seen in vacation homes or investment properties. This makes investing in real estate [more accessible.](https://buyproperly.ca/) ### **Hard money loan:**  A type of financing in which a borrower receives funds from a private lender, rather than a bank. Hard money loans are typically short-term and have high-interest rates. ### **Homeowners Association (HOA):**  An organization that manages and maintains a community of homes. HOAs are common in condominiums and planned developments. ### **Imperative contract:**   A legally binding agreement in which one party agrees to do something (or refrain from doing something) in exchange for another party agreeing to do the same. ### **Infrastructure:**  The basic systems and services that a community needs in order to function, such as roads, sewers, and power lines. ### **Joint tenancy:**  A form of co-ownership in which each tenant has an undivided interest in the property and the right of survivorship. This means that if one tenant dies, their interest in the property passes to the surviving tenant (or tenants). ### **Land contract:**  A contract in which the buyer agrees to pay the seller for a property in periodic installments, rather than in one lump sum. ### **Listing agent:**  A real estate broker who represents the interests of the seller in a transaction. ### **Liens:**  A type of [debt](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-housemuch-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) that is attached to a property. When a property is sold, the liens must be paid off before the sale can be completed. ### **Loan-to-value (LTV):**   The ratio of a loan amount to the value of the property it is being used to purchase. ### **Leverage:**  The use of debt to finance the purchase of an asset. ### **Mortgage:**  A loan used to finance the purchase of a property. Mortgages are given by banks and other financial institutions and are typically repaid over a period of 15 to 30 years. ### **Market value:**  The highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept for a property. ### **MLS:**  Multiple Listing Service, a database of available properties compiled by real estate brokers. ### **Net operating income:**  This is the income generated by an investment property after operating expenses have been deducted. ### **Option period:**  A specified timeframe during which a buyer has the exclusive right to purchase a property, as outlined in their offer. ### **Offer**:  A prospective buyer’s bid to purchase a property. ### **Pre-approval:**  A commitment from a lender stating that they are willing to provide financing up to a certain amount, based on the borrower’s credit history and income. ### **Principal:**  The amount of money borrowed or remaining on a loan, not including interest. This number is important to know when calculating your [return on investment](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit). ### **Property tax:**  A tax imposed by a municipality on real estate based on the property’s assessed value. ### **Purchase agreement:**  A legally binding contract between a buyer and seller for the sale of a property. ### **Refinancing:**  The process of taking out a new loan to pay off an existing one. An investor may use this strategy to take advantage of lower interest rates or to free up cash for other investments. ### **ROI:**  Return on investment, a measure of the profitability of an investment. Investors use ROI to compare the expected profitability of different investments. ### **Sale price:**  The price at which a property is sold. This value may be different from the assessed value or appraised value. ### **Seller’s market:**  A market in which there are more buyers than there are properties available, resulting in higher prices. ### **Seller take-back mortgage:**   A mortgage in which the seller of a property has lent money to the buyer in order to finance the purchase. ### **Title search:**   A review of public records to confirm that the seller is the rightful owner of the property and there are no outstanding claims or liens against it. ### **Tenants in common:**  Two or more people who hold an ownership interest in a property. ### **Variable rate mortgage:**   A mortgage with an interest rate that can change over time. This depends on factors like the prime rate and market conditions. ### **Zoning**:  The regulations set by a municipality dictate how the land can be used. Depending on the property, it can be zoned as [residential, commercial, or industrial](https://buyproperly.ca/investment/properties). As you can see, there is a lot of real estate lingo to learn! But don’t worry, once you start working with investors and [real estate professionals](https://blogs.buyproperly.ca/what-is-a-real-estate-agent-or-relator), it will become second nature in no time. Just remember to ask for clarification if you ever come across a term you don’t understand. So there you have it, a [crash course](https://buyproperly.ca/resource-center/learn) in real estate terminology! These are just some of the most commonly used terms in the industry, but there are many more out there. The best way to become familiar with them is to simply get out there and start working with investors and real estate professionals. In no time, you’ll be speaking the lingo like a pro! **Thinking about investing in real estate but don’t want the headache of maintenance and management?** Learn how we use **AI-powered technology** to source deals and **help investors buy properties using fractional ownership [here](https://buyproperly.ca/how-it-works).** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is Real Estate Inflation Proof? Author: BuyProperly Engineering Published: 2022-07-07 Category: Insights Tags: Real estate, realestateinvesting, inflation, Realestateinvest URL: https://buyproperly.ai/blog/is-real-estate-inflation-proof There’s no doubt that real estate is a [great investment](https://buyproperly.ca/resource-center/posts/webinar-investing-101-navigating-the-space-of-new-wealth-creation). Over time, it has proved to be one of the most stable and reliable ways to grow your wealth. But is real estate immune to inflation? And if not, what can you do to protect yourself against rising costs?  In this article, we’ll explore the relationship between real estate and inflation, and give you some tips on how to stay ahead of the curve. **What is inflation?** ---------------------- Inflation is defined as a sustained increase in the prices of goods and services. It’s usually measured by the Consumer Price Index (CPI), which tracks the cost of a basket of everyday items. When inflation is high, your money doesn’t go as far as it used to. You might not notice it at first, but over time, the prices of things start to creep up. ![An example of how inflation reduces the purchasing power of consumer ](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/inflation-coffee-example-1024x461-1715167238273-compressed.png) **Why are we currently seeing inflation?** ------------------------------------------ There are a number of reasons why inflation is on the rise. One of the main drivers is the **global pandemic in 2020**. The shortage of goods and materials and the increased demand for them have led to inflationary pressures. Additionally, central banks around the world have been pumping money into the economy through quantitative easing (QE) programs. This is often referred to as **“printing money,”** and it can lead to inflationary pressures similar to what we’re seeing now. **How does inflation affect real estate?** ------------------------------------------ Inflation affects real estate in **two ways**: home prices and mortgage rates.  When inflation is high, home prices tend to rise as well. This is because demand for housing is usually high when there is economic growth, and prices go up when there aren’t enough homes to meet that demand. Mortgage rates also tend to rise during periods of inflation, because lenders are looking to protect themselves from the potential for higher prices down the road. Inflation can have a number of different effects on real estate. One of the most direct is on real estate prices. When inflation is high, prices for both commercial and residential real estate tend to increase. This is because as the cost of goods and services goes up, so does the cost of land and buildings. In addition to prices, inflation can also affect real estate buying behavior. When inflation is low, buyers are more likely to purchase real estate, since it’s a relatively safe investment. However, when inflation is high, buyers may be more hesitant to invest, since the value of their money is decreasing. Despite these effects, **real estate** is still **considered a relatively safe investment during periods of inflation** because it’s a physical asset that **can’t be devalued by inflationary pressures**. Additionally, real estate tends to appreciate over time, which **can help offset the effects of inflation**. ![Value of real estate investment is highly likely to grow highly over time.](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/real-estate-investment-graph-1715167242203-compressed.jpeg) **What does this mean for investors?** -------------------------------------- If you’re thinking of buying a home, it’s important to be aware of how inflation might affect your purchase. You’ll need to budget not only for the purchase price of the home but also for the higher mortgage payments that come with inflation. And if you’re already a homeowner, you’ll need to be prepared for your property taxes and insurance premiums to go up as well. **Is real estate a safe investment during inflation?** ------------------------------------------------------ Real estate is generally considered to be a **safe investment during periods of inflation**. This is because home prices tend to rise along with inflation. Since real estate is a physical asset, it’s **not as susceptible to the volatility that can occur in the stock market.** However, there are **some risks to consider.** If inflation is high, interest rates are likely to rise as well. This means that your mortgage payments will go up, even if your home’s value doesn’t increase. And if you’re [carrying a lot of debt](https://buyproperly.ca/resource-center/posts/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house), rising interest rates can make it difficult to keep up with your payments. Let’s look at the main reasons why real estate is a great investment during periods of marketing instability and inflation: 1. **It’s a physical asset:** Real estate is a physical asset, which means it’s not as susceptible to the volatility that can occur in the stock market. 2. **It tends to appreciate in value:** Over time, real estate has tended to appreciate in value, even during periods of inflation. 3. **It can provide a steady income stream:** If you choose to rent out your property, you can generate a steady income stream that can help offset the effects of inflation. 4. **It can be a hedge against inflation:** Since real estate tends to appreciate in value during periods of inflation, it can be a good way to protect your wealth from the effects of rising prices. The bottom line is that real estate is a great investment during periods of inflation. It’s a physical asset that tends to appreciate in value, and it can provide a steady income stream. However, there are some risks to consider, such as the potential for higher mortgage payments and the difficulty of carrying debt in an inflationary environment. But **overall**, **real estate is a safe investment during periods of market volatility and inflation.** **So, is real estate inflation proof?** --------------------------------------- Yes and no! Here are some of the reasons real estate is not technically inflation-proof. **1\. Home prices don’t always go up:** While home prices have tended to appreciate over time, they don’t always go up. In fact, there have been periods of [deflation](https://hub.buyproperly.ca/webinar-should-you-buy-before-rates-rise-or-wait-for-a-market-crash) (when prices fall) in the real estate market. **2\. You still need to make mortgage payments:** Even if home prices go up, you’ll still need to make mortgage payments. In an inflationary environment, these payments will likely become more expensive. **3\. You could still lose money:** If you need to sell your home in a hurry, you could end up selling it for less than you paid for it. **4\. It’s not a liquid asset:** Real estate is not a liquid asset, which means it can be difficult to sell quickly. Despite these risks, real estate is still a great investment during periods of inflation. Just remember to consider the risks before investing, and to consult with a financial advisor to get the most accurate advice for your situation. If you’re thinking of buying a home or investing in real estate, it’s important to do your research and understand how inflation might affect your purchase.  Make sure you budget not only for the purchase price of the home but also for the higher mortgage payments that come with inflation. And if you’re already a homeowner, be prepared for your property taxes and insurance premiums **How can you invest in real estate during periods of inflation?** ------------------------------------------------------------------ If you’re thinking of investing in real estate, there are a few things to keep in mind. First, remember that real estate is a long-term investment. This means you’ll need to be prepared for periods of market volatility and inflation.  You can also consider investing in real estate securities, such as REITs, which are designed to provide investors with exposure to the real estate market without the hassle of owning and managing property. Here at BuyProperly, we’ve helped hundreds of inventors get started in real estate for as little as $2500 by leveraging a fractional ownership model. Wondering how you can do the same? [Click here](https://buyproperly.ca/how-it-works) to learn more. Finally, make sure you do your research and understand how inflation might affect your investment. By being prepared and knowing what to expect, you can protect yourself from the most common pitfalls. No matter what your real estate goals are, it’s important to be aware of how inflation can affect your plans. By being prepared and knowing what to expect, you can protect yourself from the most common pitfalls. **Conclusion** -------------- In conclusion, real estate is a great investment during periods of inflation because it’s a physical asset that tends to appreciate in value, and it can provide a steady income stream. Just remember to consider the risks before investing, and to consult with a financial advisor to get the most accurate advice for your situation. If you’re ready to learn more about fractional investing and how you can get started for only $2500, [click here.](https://buyproperly.ca/how-it-wor) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 6 Strategies to Make Money With NFTs in Your Investment Portfolio Author: BuyProperly Engineering Published: 2022-06-15 Category: Insights Tags: InvestInYourself , Investors terms, cryptocurrency, High Returns, Strategic Investing URL: https://buyproperly.ai/blog/make-money-with-nfts-in-investment-portfolio If you’re looking for ways to make money with cryptocurrency, you might want to consider investing in NFTs. These digital assets offer a lot of potential for return on investment, and as the market for them grows, so too will the opportunities for profit. NFTs can make a great addition to any [investment portfolio](https://blogs.buyproperly.ca/webinar-investing-101-navigating-the-space-of-new-wealth-creation). So, if you’re ready to start making some money with crypto, read on to learn more about NFTs and six strategies to invest in them. **NFTs**, or non-fungible tokens, **are a type of cryptocurrency that represents a unique digital asset.** Unlike other cryptocurrencies, NFTs cannot be exchanged for other assets and are not divisible. This means that each NFT is like a **one-of-a-kind digital item**, which makes them valuable and desirable to collectors. NFTs are stored on a blockchain, which is a decentralized ledger that records all transactions. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot-2022-06-15-at-4-1715167247982-compressed.png) . **Is investing in NFTs lucrative?** ----------------------------------- **Yes,** investing in NFTs can be very lucrative. The reason for this is that the market for NFTs is still relatively new and growing. As more people become aware of NFTs and their potential, the **demand for them will likely increase, which will lead to a rise in prices.** Additionally, as the technology underlying NFTs improves, we can expect to see more use cases for NFTs, which will also drive-up demand. Because cryptocurrencies and NFTs are **still volatile,** many investors prefer to **keep them as** **only a part of their portfolio balanced with other, more stable investments like real estate.** **Are NFTs here to stay?** -------------------------- It’s still too early to say for sure whether or not NFTs will be around for the long term. However, several factors suggest **that NFTs are here to stay**. For one, the underlying technology of blockchain is very secure and has a lot of potential applications beyond NFTs. Secondly, major businesses and organizations are beginning to experiment with NFTs, which could lead to more widespread adoption. Finally, as the market for NFTs continues to grow, we can expect to see more innovation in this space, which could make NFTs even more valuable and useful in the future. **What are the risks of investing in NFTs?** -------------------------------------------- As with any investment, there are always risks involved. The biggest risk when it comes to investing in NFTs is that the **market is still relatively new and unproven**. This means that there is a chance that the value of NFTs could drop suddenly and unexpectedly. Another risk to consider is that, because NFTs are stored on a blockchain, they are **subject to hacking and theft.** However, this risk can be mitigated by storing your NFTs in a secure wallet. If you’re hunting for an alternative investment to add to your portfolio, **consider fractional real estate. Here at [BuyProperly](https://buyproperly.ca/), we use [AI technology](https://buyproperly.ca/resource-center/posts/artificial-intelligence-making-real-estate-investment-smarter-simpler) to help investors get high annual returns with investments as low as $2500.** **Strategy One: Buy low, sell high** ------------------------------------ One of the most commonly used strategies for making money with NFTs is to buy them when prices are low and sell them when prices rise. This strategy requires you to have a good understanding of the NFT market and to be able to identify when prices are likely to rise or fall. Additionally, this strategy requires you to be patient and to have the discipline to hold onto your NFTs until you can sell them at a profit. **Strategy Two: Diversify your portfolio** ------------------------------------------ Another strategy you can use to make money with NFTs is to [diversify your portfolio](https://buyproperly.ca/resource-center/posts/grow-your-wealth-while-managing-the-risks-with-diversification). This means investing in a variety of different NFTs so that you’re not putting all your eggs in one basket. This strategy can help you mitigate the risk of losses if the value of any one NFT falls. This can also help you maximize your profits by giving you a greater chance of having at least one NFT that increases in value. **Strategy Three: Use NFTs to earn passive income** --------------------------------------------------- One of the best ways to make money with NFTs is to use them to earn passive income. There are a few different ways you can do this. One way is to create and sell digital artworks or other items that people can use as NFTs. Another way is to lease out your NFTs so that people can use them for some time. This can be a great way to generate ongoing income from your NFTs without having to sell them. **Strategy Four: Invest in the company itself** ----------------------------------------------- Another way to profit from NFTs is to invest in the companies that are building the infrastructure for the NFT market. This includes companies that are developing wallets, exchanges, and other platforms that enable NFT transactions. By investing in these companies, you’ll be able to profit from the growth of the NFT market. **Strategy Five: Be an early adopter** -------------------------------------- One of the best ways to make money with NFTs is to be an early adopter. This means getting involved with NFTs before they become mainstream. By being an early adopter, you’ll be able to get in on the ground floor and reap the rewards as the NFT market grows. Additionally, you’ll be able to build up a portfolio of NFTs that you can sell later for a profit. **Strategy Six: NFT Staking** ----------------------------- NFT staking is a new way to make money with NFTs. With this strategy, you can earn interest on your NFTs by holding them in a wallet for a certain period. This is similar to how you would earn interest on a savings account, only with NFT staking, you have the potential to earn much higher returns. Some people earn as much as 10% or more on their NFTs with this strategy. **Finding the right NFT project to invest in** ---------------------------------------------- Now that you know some of the different ways you can make money with NFTs, it’s time to find the right NFT project to invest in. There are a few different factors you’ll need to consider when choosing an NFT project to invest in. These include: ### The team behind the project:  It’s important to invest in an NFT project that has a strong team behind it. The team should have a track record of success and be composed of experienced professionals. ### The project’s roadmap:  Be sure to check out the project’s roadmap to see what their plans are for the future. This will give you an idea of how the project is likely to develop and whether or not it’s a good investment. ### The project’s tokenomics:  It’s also important to look at the project’s tokenomics. This will give you an idea of how the project plans to generate revenue and how that revenue will be distributed. ### The project’s community:  Finally, be sure to check out the project’s community. This will give you an idea of how enthusiastic people are about the project and whether or not it has good long-term prospects. By considering these factors, you’ll be able to find the right NFT project to invest in and maximize your chances of making money. **Conclusion** -------------- There you have it! These are some of the best ways to make money with NFTs. By following these strategies, you’ll be able to build a profitable NFT portfolio that will generate ongoing income. Still unsure about diving into the NFT market? Why not **consider alternative forms of investment like [fractional real estate ownership.](https://buyproperly.ca/faq#what-is-buyproperly)** Unlike traditional [real estate](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) investing which requires a large down payment and resources to manage, **fractional investing allows you to get started for as little as $2500 and see projected annual returns of up to 10-40%.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Net Worth? Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: InvestInYourself , Net Worth, in business, what is net worth, in personal finance, BuyProperly Investments, High Returns URL: https://buyproperly.ai/blog/what-is-net-worth ![networth.jpg](https://lh3.googleusercontent.com/qxmwxRLoKFndggrrTkV5OP-JsLC_Jmj_hQ6P0bOSxZ8wU-zio2wVmRhrbYePdDouigu3HOgUmZ5CEnUkzM22jjbs-Ha92AHYuctgkne_ScLyGy3sgmTp4-YLqr1evmmJrXVtTUUAcYfUrhsEbg) **What Is Net Worth?** ---------------------- The value of a person’s or company’s assets less than the liabilities they owe is their net worth. It’s a crucial indicator for determining a company’s health, as it provides a useful snapshot of its present financial situation. **Understanding Net Worth** --------------------------- Net worth can be positive or negative, with the former indicating that assets outnumber liabilities and the latter indicating that liabilities outnumber assets. Good financial health is indicated by a rising net worth. Declining net worth, on the other hand, is cause for concern because it could indicate a drop in assets compared to liabilities. Net worth can be positive or negative, with the former indicating that assets outnumber liabilities and the latter indicating that liabilities outnumber assets. Good financial health is indicated by a rising net worth. Declining net worth, on the other hand, is cause for concern because it could indicate a drop in assets compared to liabilities. The most effective strategy to enhance net worth is to either reduce liabilities while assets remain constant or rise, or to increase assets while liabilities remain constant or fall. **Types of Net Worth** ---------------------- Individuals, corporations, sectors, and even countries can all have a net worth. **Net Worth in business** ------------------------- Net worth is often known as book value or shareholders’ equity in the business world. A net worth statement is another name for a balance sheet. The difference between the value of total assets and total liabilities is the value of a company’s equity. It’s important to note that the figures on a company’s balance sheet reflect past expenses or book values rather than current market prices. Lenders examine a company’s net worth to see if it is financially sound. A creditor may be suspicious of a company’s capacity to repay its loans if total liabilities outweigh total assets. As long as these earnings are not entirely dispersed to shareholders as dividends, a constantly profitable corporation will have an increasing net worth or book value. A rise in the book value of a public firm is frequently accompanied by a rise in the stock price. **Net Worth in personal finance** --------------------------------- The value remaining after subtracting liabilities from assets is an individual’s net worth. Mortgages, credit card balances, student loans, and car loans are all examples of liabilities, often known as debt. In the meantime, an individual’s assets include the balances in his or her checking and savings accounts, the value of securities such as stocks and bonds, the value of real estate, the market value of an automobile, and so on. The net worth is what remains after all assets have been sold and personal debt has been paid off. People with a large net worth are known as high net worth individuals (HNWIs), and they make up the most lucrative market for wealth managers and financial advisors. Investors having a net worth of at least $1 million, excluding their primary residence, are considered “accredited investors” by the Securities and Exchange Commission (SEC) and are therefore eligible to invest in unregistered securities offerings. **Special Considerations** -------------------------- ### **Negative net worth** If total debt exceeds entire assets, you’ll have a negative net worth. For example, if a person’s credit card bills, utility bills, outstanding mortgage payments, auto loan costs, and student loans amount more than their cash and investments, their net worth is negative. A negative net worth indicates that a person or household should concentrate their efforts on debt reduction. A strict budget, debt reduction tactics such as the debt snowball or debt avalanche, and maybe debt settlement with creditors can all help people climb out of a negative net worth hole and begin to build up their assets. A negative net worth early in life is not uncommon—student loans imply that even the most frugal young people might start out owing more than they own. Family obligations or an unforeseen sickness can often put people in a financial bind. When everything else fails, filing for bankruptcy protection to wipe out some of the debt and prevent creditors from pursuing collection efforts may be the best option. Some debts, including as child support, alimony, taxes, and, in many cases, school loans, cannot be discharged. It’s also worth remembering that a bankruptcy will appear on a person’s credit report for a long time. Looking for a stress-free way to get started in real estate investing? See how Buy Properly employs a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). [**Related Topics to Net Worth:**](https://buyproperly.com/resource-center/invest) 1. [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) 2. [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) 3. [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) 4. [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) 5. [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Exploring the Significance of Open-End Mortgages in Real Estate Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Mortgage, Real Estate Financing, Mortgage Types, Loan Agreements, Open-End Mortgage, Flexible Mortgage, Loan Flexibility, Passive Real Estate Investment, MortgageFree URL: https://buyproperly.ai/blog/what-is-an-open-end-mortgage ![openendmortage.jpg](https://lh3.googleusercontent.com/RAwq0oTRHk15KSCrFIVBZdyx4pW59vQrLPmOPP1W21dcpCdI4JFkAyxKaFWFjTPA02Evy8mVEWuFEuTsNcGQRtMFXsiMU29DSFJ272cSk64NqH-FRafsXXf5z2GxhWnGC8ni7bm7n3tvYturmg) **What Is an Open-End Mortgage?** --------------------------------- An open-end mortgage is one that permits the borrower to increase the amount of the outstanding mortgage principal at any moment. Borrowers with open-end mortgages can return to the lender and borrow more money. The maximum amount that can be borrowed is normally limited to a certain dollar figure. ### **How an Open-End Mortgage Works** A delayed draw term loan is similar to an open-end mortgage. It also contains revolving credit-like qualities. Open-end mortgages are distinct in that they are a loan agreement secured against a real estate property with money dedicated solely to that property’s investment. The application process is identical to that of other credit products, and the loan’s terms are determined by the borrower’s credit score and profile. If co-borrowers provide a lesser default risk, they may have a better chance of being approved for an open-end mortgage. Open-end mortgages allow borrowers to achieve a maximum principal amount over a set period of time. To fund the costs of their home, the borrower can use a percentage of the loan value for which they have been accepted. Because the borrower is only responsible for interest payments on the outstanding balance, taking only a portion of the loan allows them to pay reduced interest. An open-end mortgage allows the borrower to receive the loan principal at any moment during the loan’s duration. The amount of money you can borrow may be determined by the value of your home. In contrast to a delayed draw term loan, an open-end mortgage does not require the borrower to complete any set milestones in order to acquire more cash. Because the funds are usually only available for a limited time, an open-end mortgage differs from revolving credit. Revolving credit agreements state that the funds will remain open indefinitely, with the exception of when a borrower fails. Drawdowns from the credit can only be used against the secured collateral in an open-end mortgage. As a result, payments must be applied to the real estate property in which the lender holds the title. ### **Advantages of an Open-End Mortgage** An open-end mortgage benefits a borrower who qualifies for a larger loan principal amount than is required to purchase a home. An open-end mortgage allows a borrower to take out as much credit as they want at a low-interest rate. The borrower has the option of using the loan principal to cover any property expenditures that emerge throughout the loan’s term. **Example of an Open-End Mortgage** ----------------------------------- Consider the case of a borrower who gets a $200,000 open-end mortgage to buy a house. The loan has a 30-year term, and a fixed 5.75 percent interest rate. They are given the right to the $200,000 principal, but they are not required to take it all at once. If the borrower takes $100,000, he or she will be responsible for interest payments at a rate of 5.75 percent on the outstanding sum. The borrower may take another $50,000 five years later. The $50,000 is added to the outstanding principal at that time, and they begin paying 5.75 percent interest on the total outstanding debt. To help you budget for your monthly payment, use a mortgage calculator. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Open-End Mortgage:** 1. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) 4. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) 5. [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unveiling the Basics: What Are Operating Costs and How Are They Calculated? Author: BuyProperly Engineering Published: 2022-05-19 Category: Awards Tags: Expense Control, Budget Management, Operational Budget, Expense Analysis, Operating Costs URL: https://buyproperly.ai/blog/what-are-operating-costs ![Operating Cost](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/image1-1714584956463-compressed.jpg) **What Are Operating Costs?** ----------------------------- On a daily level, operating costs are linked to the upkeep and administration of a business. Direct costs of goods sold (COGS) and other operating expenses, also known as selling, general, and administrative (SG&A) costs, include rent, wages, and other overhead costs, as well as raw materials and maintenance costs. Non-operating expenses connected to financing, such as interest, investments, or foreign currency translation, are not included in operating costs. Operational income is calculated by subtracting operating costs from revenue and is displayed on a company’s income statement. ### **Understanding Operating Costs** Businesses must keep track of both running and non-operating costs, such as interest payments on a loan. Both costs are recorded differently in a firm’s books, allowing analysts to see how expenses are linked to revenue-generating activities and whether the company can be operated more efficiently. In general, a firm’s management will strive to increase earnings for the company. Because profits are decided by both the amount of revenue earned and the amount spent to run, profit may be enhanced by both growing revenue and cutting operating costs. Managers will frequently adopt this technique since decreasing expenses appears to be a simpler and more accessible way of improving earnings. Too much cutting of operating costs can lower a company’s productivity and, as a result, its profit. While lowering any given operating cost usually boosts short-term profitability, it can also impair the company’s long-term earnings. If a corporation, for example, reduces its advertising costs, its short-term profits are expected to improve because it is spending less money on operating costs. However, by limiting advertising, the corporation may be reducing its ability to generate new customers, resulting in lower future earnings. ### **How to Calculate Operating Costs** The formula and steps below can be used to calculate a business’s operational costs. The relevant information can be found on the income statement of the company, which is used to report the financial performance for the accounting period. Operating cost=Cost of goods sold + Operating expenses 1. From a company’s income statement, take the total cost of goods sold, or COGS, which can also be called cost of sales. 2. Find total operating expenses, which should be further down the income statement. 3. Add total operating expenses and COGS to arrive at the total operating costs for the period. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot5-5-20242932www-1714871393740-compressed.jpeg) **Types of Operating Costs** ---------------------------- While operating costs rarely include capital expenditures, they might include a variety of charges, such as: * Accounting and legal fees * Bank charges * Sales and marketing costs * Travel expenses  * Entertainment costs * Non-capitalized research and development expenses * Office supply costs * Rent * Repair and maintenance costs * Utility expenses * Salary and wage expenses The cost of goods sold, which are expenses directly related to the production of goods and services, will be included in operating costs. The following are some of the costs: * Direct material costs * Direct labour * Rent of the plant or production facility * Benefits and wages for the production workers * Repair costs of equipment  * Utility costs and taxes of the production facilities The running costs of a business are divided into two categories: fixed costs and variable costs, which fluctuate significantly. **Limitations of Operating Costs** ---------------------------------- Operating costs must be compared over numerous reporting periods, just like any other financial statistic, to gain a sense of any trend. Companies might sometimes reduce expenditures for a quarter, momentarily inflating their earnings. Investors must track costs to see if they’re rising or falling over time, as well as compare the outcomes to sales and profit performance. ### **How Do Operating Costs Affect Profit?** High or rising operating costs can eat into a company’s net profit. Management of a corporation will seek to stable or reduce operational costs while balancing the need to produce goods that meet market needs. In order to retain profitability, managers may need to raise the price of their products if operational costs become too high. They then run the danger of losing clients to competitors who can produce equivalent goods at a lower cost. If you’d like to learn more about how you can expand your real estate portfolio without putting down a large cash deposit (or all the hassles that come with it!) [**Here is a link to our eBook**](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). **Related Topics to Operating Costs:** 1. [Multifamily Real Estate Investing: The Pros and Cons](https://buyproperly.ai/blog/multifamily-real-estate-investing-the-pros-and-cons) 2. [When’s the Right Time to Invest and 4 Factors to Consider](https://buyproperly.ai/blog/whens-the-right-time-to-invest-and-4-factors) 3. [The 5 Types of Real Estate Investments](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments) 4. [Here’s How Much Money You Need When You Retire](https://buyproperly.ai/blog/heres-how-much-money-you-need-when-you-retire) 5. [How to Become a Real Estate Investor: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-become-a-real-estate-investor-a-step-by-step-guide) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Principal: Loans, Investments, Bonds, Responsible Parties, and More Author: BuyProperly Engineering Published: 2022-05-19 Category: Awards Tags: PrivateCredit, Private, responsible parties, market price, principal, bonds, connotations, debt instruments URL: https://buyproperly.ai/blog/what-is-principal ![principal.jpg](https://lh3.googleusercontent.com/1E1niI0SiC1No0oYHSdFfUn5DZvw3BvuJ0A0oCjBfmaUdDVbNSPdL1Gyxuec_wavvmYXWNynRFTv7WuoBc35NysnFOP6hKARyp7NsM21lS8oaCJNl5WgMzo5TeVF9Cal2ptOWxM1DQ2GubC80g) **What Is Principal?** ---------------------- The term “principal” has many financial connotations. The most widely used term refers to the initial amount of money borrowed in a loan or invested. It can also refer to the face value of a bond, as it does with the former. The term “principal” can also refer to a single party or parties, the owner of a private corporation, or the transaction’s major participant. ### **Understanding Principal: Loans** The initial quantity of a loan, as well as the amount remaining outstanding on a loan, is referred to as the principle of ‌ borrowing. For example, if you take out a $50,000 mortgage, the principal is $50,000. If you pay down $30,000, the remaining $20,000 is your primary balance. The principal determines the amount of interest you pay on a loan. For example, if your loan has a $10,000 principal and a 5% annual interest rate, you will be required to pay $500 in interest for each year. The loan is outstanding. When you make monthly loan payments, the first portion of your payment is used to cover interest costs, and the rest is applied to your principal. The only method to lower the amount of interest that accrues each month is to pay down the principal of a loan. ### **Understanding Principal: Investing** Separate from any earnings or interest, principal refers to the initial amount invested in an asset. Consider a $5,000 deposit into an interest-bearing savings account. Your account balance will have risen to $6,500 after ten years. The $5,000 you initially put down is your capital, with the remaining $1,500 going toward earnings. ### **Understanding Principal: Bonds** In the context of debt instruments, the principal refers to the amount of money borrowed by a bond issuer and repaid in full to the bondholder at the bond’s maturity. The “par value” or “face value” of a bond is its principal (because, back in the days when bonds were actual physical pieces of paper, this amount was printed on the face of the bond itself). Any coupon, periodic interest payments, or accrued interest are not included in the bond’s principal (although the issuer is obligated to pay these as well). For example, a 10-year bond with a $10,000 face value and $50 recurring coupon payments twice a year could be issued. The principle is $10,000, regardless of the $1,000 in coupon payments made over the bond’s term. A bond’s principal is not always the same as its market price, except when it is originally issued. A bond may be purchased for more or less than its principal depending on the situation of the bond market. ### **Understanding Principal: Private Companies** A “principal” is the proprietor of a private corporation, partnership, or another sort of business. This is not the same as a chief executive officer. A principal can be an officer, a shareholder, a board member, or even a major salesperson—basically; it’s the main investor or the person who owns the most stock in the company. A business may have numerous owners, each of whom owns the same percentage of the company’s stock. Anyone considering investing in a private enterprise will want to learn about the company’s founders in order to assess the company’s creditworthiness and growth potential. ### **Understanding Principal: Responsible Parties** The term “principal” also refers to the person who has the authority to transact on behalf of a company or account and accepts the risk that comes with it. An individual, a corporation, a partnership, a government body, or a non-profit organisation can all be considered a principal. Principals have the option of appointing agents to act on their behalf. A principle could be involved in anything from a corporate takeover to a mortgage transaction. The term is usually defined in the legal documents governing the transaction. Everyone who signed the agreement and so has rights, duties, and obligations relating to the transaction are referred to as the principle in those agreements. An individual who engages a financial advisor is referred to as a principal, while the advisor is referred to as an agent. The agent follows the principal’s orders and may act on their behalf within certain boundaries. While the advisor is frequently obliged by the fiduciary obligation to operate in the principal’s best interests, the principal is responsible for the agent’s actions or inactions. The principal is still the one who loses money if the agent makes a poor investment. Are you looking to make your first (or next) real estate purchase? [**We employ innovative AI technology**](https://buyproperly.ca/) at Buy Properly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). Buy Properly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. **Related Topics to Principal:** 1. [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) 2. [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://blogs.buyproperly.ca/artificial-intelligence-making-real-estate-investment-smarter-simpler) 3. [Grow Your Wealth While Managing The Risks With Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) 4. [Investment and Wealth Basics: Real Estate edition](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition) 5. [Millennials struggle to chase Real Estate dreams using traditional investment options](https://blogs.buyproperly.ca/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is a Real Estate Agent or Relator? Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Real Estate Financing, Realtor, Real Estate Agent, Broker, Transactions, Commission, Dual Agency, EfficientTurnaround, Real estate, ROIonProperty URL: https://buyproperly.ai/blog/what-is-a-real-estate-agent-or-relator ![agent.jpg](https://lh5.googleusercontent.com/okgylrzvJ9TyLDQh8BEOz2FpOLVY_i9jWUdBa1pH61DzKU837KyymMRvvPhotwM1i9ulE9psNgPNrm5OFp1UOKa-Lp3DYD10wGCVxq-ycPNPPhTj61fx9x3TIHS670fY34IEFpgf9YDoiKu-qg) **What Is a Real Estate Agent?** -------------------------------- A real estate agent is a certified professional who facilitates real estate transactions by matching buyers and sellers and representing them in discussions. Real estate brokers are normally paid entirely by commission—a percentage of the property’s purchase price—so their income is contingent on their ability to conclude a transaction. In almost every state, a real estate agent must work for or be linked with a more experienced and licensed real estate broker (an individual or a brokerage organization). ### **How a Real Estate Agent Works** Commercial or residential real estate is usually the focus of real estate agents. Depending on whether they work for the buyer or the seller, they have various responsibilities. Seller’s agents, also known as listing agents, assist clients on how to price their homes and prepare them for sale, including last-minute modifications that can enhance the price or stimulate quick offers. Listing services, networking, and marketing are all used by seller agents to market the property. Buyer’s agents look for available residences that fall within the buyer’s price range and wish list. These agents frequently consult previous sales data on comparable properties to assist prospective buyers in making a reasonable offer. Agents operate as go-betweens for the primary parties, relaying offers, counteroffers, and other questions. Agents on both sides often continue to work after a bid is approved, assisting their clients with paperwork, communicating with them, advising on inspections and relocation, and generally shepherding the sale to completion. Consumers should be aware of whether a real estate agent represents the buyer, the seller, or both parties; obviously, the agent’s loyalty can have a significant impact on various aspects of the transaction, including the final price. State rules govern whether a real estate agent can represent both parties in a transaction, a practice known as “dual agency.” So that buyers and sellers are aware of any conflicts of interest, agents must disclose their representation. ### **Real Estate Agents’ Compensation** Traditionally, an agent is paid a commission based on the sale price of the property. The more money an agent makes, the more money the house sells for. The traditional payment structure is evolving as online listings allow consumers to perform much of their buying without the assistance of a salesperson. For more expensive homes, some brokerages offer a reduced commission, and others handle the entire transaction for a flat price that is significantly less than a typical commission. Other organizations have a fee-for-service pricing model that allows owners to pay only for the services they need, such as listing the property on a multiple listing service (MLS). **Real Estate Agent vs. Real Estate Broker** -------------------------------------------- States have different definitions and distinctions between a real estate agent and a real estate broker. However, anyone who obtains a basic real estate licence (which requires the completion of a set of recognized courses and the passing of an exam) can call themselves a real estate agent. A real estate agent is simply a salesman who is qualified to assist consumers in purchasing or selling real estate. A real estate broker is the next rung on the career ladder. Most states additionally require brokers to have a specific amount of recent experience as an active real estate agent. Brokers have additional training and education that has prepared them to pass a higher licensing exam. The technical parts of a real estate transaction are handled by brokers. A client enters into a contract with a brokerage rather than with a specific agent. Brokers’ further certification in many states allows them to handle various legal and financial parts of a transaction, such as handling the earnest money deposit and setting up the escrow account. Brokers are usually the owners of a company or a franchise. They can work as sole practitioners, but if they want to engage agents or other brokers to work for them, they must obtain a higher-level license. As previously stated, a real estate agent cannot normally work alone and must instead work through a real estate broker; the exception is in areas like Colorado and New Mexico, where every real estate professional is required to be registered as a broker. Agents, on the other hand, usually work for brokers and split commissions with them. **Real Estate Agent vs. Realtor** --------------------------------- So, while every real estate broker is (or has been) a real estate agent, not every real estate agent is a broker. What role do realtors play in this scenario? A realtor belongs to the National Association of Realtors (NAR), which is a trade group. Real estate agents and brokers, as well as property managers, appraisers, and other real estate sector professionals, can all be realtors. Realtors are expected to be specialists in their fields and must adhere to the National Association of Realtors’ code of ethics, which outlines particular responsibilities to clients and customers, the general public, and fellow realtors. Realtors must also be members of a state or municipal real estate group or board in addition to NAR. Real estate agents or brokers (or something similar) are all realtors, although not all agents or brokers are realtors. The National Association of Realtors (NAR) had almost 1.4 million members as of July 2020. Approximately two-thirds of them were registered real estate agents. Are you interested in learning how to [**get started investing in real estate**](https://buyproperly.ca/) with as little as $2500? Then, you must contact us as soon as possible. **Related Topics to Real Estate Agent (or Relator):** 1. [Three Easy Ways Smart Women Invest](https://blogs.buyproperly.ca/three-easy-ways-smart-women-invest) 2. [How COVID-19 Has Affected Rental Prices in Canada](https://blogs.buyproperly.ca/how-covid-19-has-affected-rental-prices-in-canada) 3. [What to do with your money during the COVID-19 outbreak, according to our experts](https://blogs.buyproperly.ca/what-to-do-with-your-money-during-the-covid-19-outbreak-according-to-our-experts) 4. [COVID-19, here is how to protect your savings in a contagious market!](https://blogs.buyproperly.ca/covid-19-here-is-how-to-protect-your-savings-in-a-contagious-market) 5. [Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World](https://blogs.buyproperly.ca/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Reserve Funds: Planning for Future Expenses and Emergencies Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Financial Planning, Reserve Fund, Homeowners' Association, Condominium Management, Asset Management, Financial Responsibility, Emergency Funds, Operating Budget, Special Assessments, HOA Fees URL: https://buyproperly.ai/blog/what-is-a-reserve-fund ![reservefund.jpg](https://lh3.googleusercontent.com/_C6lQp5CtlYyYMBUOZAD_BVkA4E34q3knYoNYCnFjWBRgK9XWXmcc_zUzFHh0rQyLJ9yJ2bnUrPcQXiLBTOuSEUPB6NmMJlHkpN_HUgt9zWL_XC4zPMbfbEUVFWtgMF0n6zxcr0fotFhDsomFA) **What Is a Reserve Fund?** --------------------------- A reserve fund is a savings account or other highly liquid asset set aside by an individual or company to cover future costs or financial responsibilities, particularly those that arise unexpectedly. Less liquid assets may be employed if the fund is set up to cover the costs of planned renovations. A homeowner’s association, for example, may administer a reserve fund to assist sustain the neighborhood and its facilities with dues collected from homeowners. ### **How a Reserve Fund Works** A reserve fund is set aside to meet planned, normal, and unplanned expenses that would otherwise be paid out of the general budget. Reserve funds can be established by governments, financial institutions, and private families. Although the size of the fund may vary, the traditional purpose is to deposit monies on a regular basis in an interest-bearing account, growing the fund’s worthwhile it is not in use. Reserve money is often kept in a highly liquid account, such as a savings account because expenses can emerge at any time. Money is invested on behalf of fund members in pension funds, for example, and then paid out after retirement. When employees join a pension plan, they contribute to a reserve fund, which is used to ensure that money is accessible for other employees who have signed up to receive a payout when they retire. **Reserve Funds for Condominiums or HOAs** ------------------------------------------ Reserve funds are frequently used by homeowners’ organizations and condominiums in the event of large-scale maintenance or renovation projects, as well as any costly communal emergency. Operating funds, which more usually pay the community’s day-to-day expenses or regular costs, such as housekeeping, taxes, insurance, and utilities, are typically managed in tandem with reserve funds. Dues, or HOA fees, are often established and maintained by condo communities and HOAs to cover upkeep, repairs, and other expenditures spent by the community. The monies are normally overseen and allocated by the community association’s board of directors. Rather than using money from the operating budget, the board might use money from the reserve fund to meet biennial insurance payments. If a condominium incurs a major expense for which the reserve money is insufficient, each member or owner may be required to pay an assessment. When a condominium’s parking garage requires emergency repairs, for example, unit owners may be asked for additional payments in addition to their usual association dues. **Reserve Studies and Managing Reserve Funds** ---------------------------------------------- The simplest method to avoid a special assessment is to make sure that the building’s reserve fund has enough money to cover all expenses, including those that come up unexpectedly. A reserve study, in which independent consultants examine the state of a property and give recommendations for the reserve fund based on physical and financial research, is frequently used by HOA boards to determine how much money should go into their reserve fund supply. The specialists take into account the property’s age, existing condition, and amenities, as well as project maintenance expenses that may be required in the future. The final sum produced by a reserve study is merely a recommendation because condominiums or HOAs do not usually fully fund their reserves. A poorly managed reserve fund can result in higher dues or assessments for community association members, thus prospective purchasers should research the efficacy of a particular HOA, or condominium complex, before acquiring a house under its jurisdiction. Are you interested in learning how to **get started investing in real estate with as little as $2500**? Contact Us Today! **Related Topics to Reserve Fund:** 1. [3 Ways to Identify Ontario Neighborhoods that are Poised to Beat the Rest](https://blogs.buyproperly.ca/discover-upcoming-canadian-neighbourhoods) 2. [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians](https://blogs.buyproperly.ca/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians) 3. [Are Canadians Moving to Secondary Cities? Should Toronto be worried?](https://blogs.buyproperly.ca/are-canadians-moving-to-small-cities) 4. [Why Portfolio Diversification Matters and the Role Real Estate Plays](https://blogs.buyproperly.ca/why-portfolio-diversification-matters) 5. [Passive vs. Active Investing: A Beginner’s Guide](https://blogs.buyproperly.ca/passive-vs-active-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Exploring the Fundamentals: What Is a Term Loan? Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Loan Agreements, Loan Flexibility, Loan, Financing Insights, Credit and Loans, what is Loan, Borrowing , Loan Management, Borrowing Strategies, Loan Repayment, Financial Lending URL: https://buyproperly.ai/blog/what-is-a-term-loan ![term loan.jpg](https://lh5.googleusercontent.com/mPN-KVBIyvO3qx6ugx6sHa-4kKs7FKky0jGV_0BL63RJxnqqreCO_rqvn6UWTWUB7tfxZ2MHF9r3K_cbpHKtWVK5H1D_z-cQejdFNn-UUaSC6WxxL5oZJ2W0JB_9TD1LY2N0RCBDxbnvREwi7g) **What Is a Term Loan?** ------------------------ A term loan gives borrowers an enormous sum of money upfront ‌for agreed-upon loan terms. Term loans are often reserved for well-established small firms with solid financial records. The borrower agrees to a specific repayment schedule with a fixed or fluctuating interest rate ‌for a specific amount of money. To minimize the payment amounts and the total cost of the loan, term loans may require large down deposits. ### **Understanding Term Loans** Small firms that require capital to purchase equipment, a new building for their manufacturing processes, or any other fixed assets to keep their businesses running frequently receive term loans. On a month-to-month basis, several firms borrow the funds they require to function. Many banks have created term loan programs designed expressly to assist businesses in this way. Term loans are applied for in the same way that any other credit facility is applied for: by approaching a lender. They must present financial statements and other proof of their creditworthiness. Borrowers who are approved receive a lump sum of money and must make payments over a set length of time, usually monthly or quarterly. Term loans have a predetermined maturity date and a fixed or variable interest rate. If the funds are used to purchase an asset, the asset’s useful life may impact the repayment plan. To limit the risk of default or failure to make payments, the loan requires security and a rigorous approval process. Some lenders may need a down payment before approving a loan. Term loans are popular among borrowers for a variety of reasons, including: * Simple application process * Receiving an upfront lump sum of cash * Specified payments * Lower interest rates Taking out a term loan also frees up funds in a company’s cash flow that can be put to better use. ### **Types of Term Loans** Term loans come in a variety of shapes and sizes, with the term usually indicating the length of the loan. These are some of them: Short-term loans: Term loans are typically granted to businesses that do not qualify for a line of credit. They usually last shorter than a year, however, they can also refer to an 18-month loan. Intermediate-term loans: These loans are typically one to three years long and are paid back in monthly installments from a company’s cash flow. Long-term loans: These loans might run anywhere from three to twenty-five years. They require monthly or quarterly payments from profits or cash flow and use corporate assets as collateral. They limit the company’s other financial commitments, such as other loans, dividends, or principals’ salaries. They can require a portion of profit to be set aside, especially for loan repayment. Short-term and intermediate-term loans can both be balloon loans with balloon payments. This signifies that the final installment expands or balloons to a significantly bigger sum than the others. **Example of a Term Loan** -------------------------- Long-term funding is encouraged with a Small Business Administration (SBA) loan, often known as a 7(a) guaranteed loan. Short-term loans and revolving credit lines can also be used to meet a company’s immediate and cyclical working capital requirements. Long-term loan maturities vary depending on the borrower’s ability to repay, the loan’s purpose, and the useful life of the funded asset. Real estate loans have maximum maturity dates of 25 years, working capital loans up to ten years, and most other loans have maximum maturity dates of ten years. The loan is repaid in monthly principal and interest instalments by the borrower. The payment on an SBA fixed-rate loan is the same as any other loan because the interest rate is fixed. In contrast, because the interest rate fluctuates, the payment amount on a variable-rate loan can change. During the start-up or expansion period of a business, a lender may establish an SBA loan with interest-only payments. As a result, the company has more time to create revenue before having to pay back the entire loan. Balloon payments are not permitted on most SBA loans. Only if the loan has a maturity of 15 years or more does the SBA charge a prepayment fee to the borrower. Every loan is secured by business and personal assets until the recovery value matches the loan amount or the borrower has pledged all reasonably available assets. **Why Do Businesses Get Term Loans?** ------------------------------------- A term loan is typically used for equipment, real estate, or working capital and is repayable over a period of one to 25 years. A small business will frequently use the funds from a term loan to purchase fixed assets for its production processes, such as equipment or a new building. Some companies take out monthly loans to cover their operating costs. Many banks have created term-loan programs designed expressly to assist businesses in this way. Looking for a stress-free way to get started in real estate investing? See how Buy Properly employs a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Net Worth:** 1. [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) 2. [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) 3. [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) 4. [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) 5. [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Adjustable-Rate Mortgages (ARMs): A Comprehensive Guide Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: ARM loans, Adjustable-rate mortgages, Interest rates, Mortgage terms, Home financing, Finance options, Mortgage rates, Loan terms URL: https://buyproperly.ai/blog/what-is-an-adjustable-rate-mortgage-arm ![ARM.jpg](https://lh6.googleusercontent.com/7itFJdmvkVSTRwZmJzQv38E7qbbDc5pjH3xcHafuS5Ra9rUmmja8Ha4i6ndQJ-QAE0y3733HdBuL9Tsg59zCoPjAD0PjzXG96XN2NLRgebcWhgvweI33dzlDuQ-C5KzOVU87WGiyLD9iFi-OQw) In most circumstances, you’ll have the option of keeping the interest rate set for the duration of the loan or allowing it to fluctuate. An ARM’s initial borrowing costs are usually locked at a lower rate than you’d get on a comparable fixed-rate mortgage. However, depending on the state of the economy and the general cost of borrowing, the interest rate that influences your monthly payments may rise higher or lower after that time. **Types of ARMs** ----------------- Hybrid, interest-only (IO), and payment option are the three most common types of ARMs. Here’s a basic rundown of what each one entails. ### **Hybrid ARM** Hybrid ARMs have a fixed-rate period as well as an adjustable-rate period. The interest rate on this form of loan will be fixed at the start and then begin to float at a predetermined time. This data is usually stated as a pair of numbers. In most circumstances, the first number relates to the length of time the fixed rate is applied to the loan, while the second number refers to the variable rate’s duration or modification frequency. A 2/28 ARM, for example, has a fixed rate for two years and then a fluctuating rate for the next 28 years. A 5/1 ARM, on the other hand, has a fixed rate for the first five years and thereafter a variable rate that changes every year (as indicated by the number one after the slash). A 5/5 ARM, on the other hand, would begin with a fixed rate for the first five years and then adjust every five years. ### **Interest-only (I-O) ARM** It’s also possible to get an interest-only (I-O) ARM, which means you’ll only have to pay interest on the loan for a set period of time—usually three to ten years. After this time period has passed, you must pay both the interest and the principle on the loan. These plans appeal to people who want to save money on their mortgage in the first few years so they may put it toward something else, such as furniture for their new house. This benefit, of course, comes at a price: the longer the I-O period, the larger your payments will be when it ends. ### **Payment-option ARM** A method of payment as the name suggests, an ARM with several payment choices. Payments covering principal and interest, paying down only the interest or paying a minimal sum that does not even cover the interest are all common possibilities. It may seem appealing to pay the bare minimum or only the interest. It’s important to remember, though, that you’ll have to repay the lender in full by the contract’s due date, and that interest rates are higher when the principal isn’t paid off. If you keep paying off little by little, your debt will continue to grow—possibly to untenable levels. **How the Variable Rate on ARMs Is Determined** ----------------------------------------------- ARM interest rates will become variable (adjustable) at the end of the initial fixed-rate term, fluctuating based on a reference interest rate (the ARM index) plus a defined amount of interest above that index rate (the ARM margin). The prime rate, LIBOR, Secured Overnight Financing Rate (SOFR), or the rates on short-term U.S. Treasuries are all examples of ARM indexes. Although the index rate may fluctuate, the margin remains constant. For example, if the index is 5% and the margin is 2%, the mortgage interest rate changes to 7%. If the index is just 2% the next time the interest rate adjusts, the rate falls to 4% due to the loan’s 2% margin. We’ve simplified a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to grow your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Adjustable-Rate Mortgage (ARM):** 1. [Three Easy Ways Smart Women Invest](https://blogs.buyproperly.ca/three-easy-ways-smart-women-invest) 2. [How COVID-19 Has Affected Rental Prices in Canada](https://blogs.buyproperly.ca/how-covid-19-has-affected-rental-prices-in-canada) 3. [What to do with your money during the COVID-19 outbreak, according to our experts](https://blogs.buyproperly.ca/what-to-do-with-your-money-during-the-covid-19-outbreak-according-to-our-experts) 4. [COVID-19, here is how to protect your savings in a contagious market!](https://blogs.buyproperly.ca/covid-19-here-is-how-to-protect-your-savings-in-a-contagious-market) 5. [Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World](https://blogs.buyproperly.ca/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) **What Is an Adjustable-Rate Mortgage (ARM)?** ---------------------------------------------- A home loan with a variable interest rate is known as an adjustable-rate mortgage (ARM). The initial interest rate on an ARM is fixed for a set length of time. Following then, the interest rate on the outstanding debt is reset on a yearly or even monthly basis. Variable-rate mortgages, or ARMs, are sometimes known as floating mortgages. The interest rate on ARMs is reset based on a benchmark or index, plus a spread known as the ARM margin. The London Interbank Offered Rate (LIBOR) has been the most common index used in ARMs. ### **Understanding an Adjustable-Rate Mortgage (ARM)** When you receive a mortgage, you’ll have to repay the borrowed money over a predetermined period of time, as well as pay the lender a fee to compensate them for their hassles. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Exploring Appreciation: What Drives Asset Value Growth Over Time? Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Property Appreciation, What is Appreciation?, Asset Value Growth, Investment Appreciation, Calculating Appreciation Rate, Appreciation vs Depreciation URL: https://buyproperly.ai/blog/what-is-appreciation ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/image2-1714585082267-compressed.jpg) **What Is Appreciation?** ------------------------- In general, appreciation is the increase in the value of an asset through time. Increased demand or weakening supply, as well as changes in inflation or interest rates, can all contribute to an increase in price. This is the polar opposite of depreciation, which is the gradual loss of value. ### **How Appreciation Works** An increase in any sort of asset, such as a stock, bond, currency, or real estate, is referred to as appreciation. The phrase capital appreciation, for example, refers to an increase in the value of financial assets such as stocks, which can occur for a variety of reasons, including a company’s improved financial performance. Just because an asset’s worth rises does not indicate its owner is aware of it.  A realisation of the rise occurs when the owner revalues the asset at its higher price on their financial statements. Currency appreciation is another sort of appreciation. In respect to other currencies, the value of a country’s currency can increase or depreciate over time. ### **How to Calculate the Appreciation Rate** The rate of appreciation is nearly identical to the compound annual growth rate (CAGR). As a result, you divide the ending value by the beginning value, then multiply the result by the number of holding periods to get 1 dividend (e.g. years). Finally, you deduct one from the result. However, in order to determine the appreciation rate, you must first know the investment’s starting worth and its future value. You must also know how long the asset will increase in value. Sam, for example, purchased a property in 2016 for $100,000. The value has risen to $125,000 in 2021. During these five years, the house has appreciated by 25% \[($125,000 – $100,000) / $100,000\]. \[($125,000 / $100,000)^(1/5) – 1\] The compound annual growth rate (or CAGR) is 4.6 percent. **Appreciation vs. Depreciation** --------------------------------- Appreciation is also a term used in accounting to describe an increase in the value of an asset recorded on a company’s books. The most typical accounting adjustment to an asset’s value is depreciation, which is a negative adjustment. Certain assets have a proclivity for gain, whereas others deteriorate with time. Assets with a finite useful life, on the whole, depreciate rather than appreciate. Depreciation is often used as an asset’s economic value depreciates over time, such as when a piece of machinery is used beyond its useful life. While asset appreciation is rare in accounting, assets like trademarks may receive an upward value revision as a result of improved brand recognition. Real estate, stocks, and precious metals are examples of assets purchased with the hope that their value will increase in the future. Automobiles, computers, and physical equipment, on the other hand, gradually lose value as their useful lives progress. **Example of Capital Appreciation** ----------------------------------- When an investor buys a stock for $10, the stock pays a $1 annual dividend, resulting in a 10% dividend yield. The stock is now trading at $15 per share a year later, and the investor has received a $1 dividend. As the stock price rose from its purchase price or cost basis of $10 to its current market value of $15, the investor received a $5 return through capital appreciation. In percentage terms, the increase in stock price resulted in a 50 percent return on capital. In keeping with the original dividend yield, the dividend income return is $1, corresponding to a 10% return. The total return on the stock is $6, or 60 percent, when capital appreciation and dividend returns are added together. Are you interested in learning how to [**get started investing in real estate**](https://buyproperly.ca/) with as little as $2500? Then, you must contact us as soon as possible. **Related Topics to Appreciation:** 1. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) 4. [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) 5. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Cracking the Code on Bad Credit: Causes, Impact, and Solutions Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Debt Management, Financial Responsibility, What Is Bad Credit?, Credit Score, Bad Credit, FICO Score, Improving Credit, Creditworthiness, Credit Types, Secured Credit Card, Credit Repair URL: https://buyproperly.ai/blog/what-is-bad-credit ![badcredit.jpg](https://lh5.googleusercontent.com/1gvrKTu1udiVqXAm1GdV37LIDl61-CG1xXbV0AmkxKXvDbV_ro7IdegbuzIAJvFcRIC1Yoj1IL3oes9q2qBQeXvoBhfi3oZw823rdm5gTohKxOXveh70qa-2Qzi1t7hbxwiXICaMSCZ4i4S_Zw) **What Is Bad Credit?** ----------------------- Bad credit refers to a person’s history of not paying bills on time, as well as the possibility that they would do so in the future. A bad credit score is frequently the result. Companies can also have bad credit if their payment history and current financial status are not in good standing. Because they are deemed riskier than other borrowers, a person (or company) with negative credit will find it difficult to borrow money, especially at competitive interest rates. This is true of all forms of loans, including both secured and unsecured ones, but the latter has some options. ### **Understanding Bad Credit** Most people who have ever borrowed money or applied for a credit card have a credit file with one of the three major credit bureaus: Equifax, Experian, or TransUnion. The information in those files is used to calculate their credit score, which is a figure that serves as an indication to their creditworthiness and includes how much money they owe and whether they pay their payments on time. The FICO score, named after the Fair Isaac Corporation, is the most widely used credit score in the United States. * 35%—payment history. This is given the most importance. It simply shows whether the person with the FICO score has paid their payments on time. Even a few days late can count, yet the longer the payment is late, the worse it is viewed. * 30%—total amount an individual owes. Mortgages, credit card balances, vehicle loans, any bills in collections, court judgments, and other debts fall under this category. The person’s credit usage ratio, which compares how much money they have available to borrow (such as total credit card limits) to how much they owe at any given time, is ‌essential. A high credit usage ratio (say, greater than 20% or 30%) can be interpreted as a red flag and result in a worse credit score. * 15%—length of a person’s credit history. * 10%—mix of credit types. Mortgages, vehicle loans, and credit cards are all examples of this. * 10%—new credit. This includes any jobs or internships that someone has recently started or applied for. ### **Examples of Bad Credit** FICO scores range from 300 to 850 and debtors with scores of 579 or lower are typically considered having poor credit.  Fair is described as a score between 580 and 669. These borrowers are significantly less likely to default on loans, making them far less hazardous to lend to than individuals with poor credit scores. However, consumers in this range may incur higher interest rates or have difficulty obtaining loans than borrowers with credit scores closer to the top 850. **How to Improve Bad Credit** ----------------------------- There are things you may take if you have low credit (or fair credit) to raise your credit score above 669 and keep it there. Here are some pointers on how to do just that. ### **Set Up Automatic Online Payments** Do this for all of your credit cards and loans, or at the very least, sign up for the lenders’ email or text reminder lists. This will ensure that you pay at least the monthly minimum on time. ### **Pay Down Credit Card Debt** Whenever workable, pay more than the minimum payment due. Set a reasonable payback target and strive toward it over time. Paying more than the minimum due will help you increase your credit score if you have a lot of total credit card debt. ### **Check Interest Rate Disclosures** These disclosures are provided by credit card accounts. Concentrate on paying off the debts with the highest interest rates first. This will free up the most money, which you can then use to pay down other obligations with lower interest rates. ### **Keep Unused Credit Card Accounts Open** Keep your unused credit card accounts open. Also, don’t create any new accounts that you don’t require. Either action has the potential to harm your credit score. If you’re having trouble getting a conventional credit card because of your bad credit, consider applying for a secured credit card. It works in the same way as a bank debit card in that you can only spend the amount you have on the deposit. Having a secured card and making timely payments on it can help you rehabilitate your credit and eventually qualify for a regular card if you have a low credit history. It’s also a wonderful approach for young individuals to build their credit history. Looking for a stress-free way to get started in real estate investing? See how Buy Properly employs a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Bad Credit:** 1. [3 Ways to Identify Ontario Neighbourhoods that are Poised to Beat the Rest](https://blogs.buyproperly.ca/discover-upcoming-canadian-neighbourhoods) 2. [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians](https://blogs.buyproperly.ca/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians) 3. [Are Canadians Moving to Secondary Cities? Should Toronto be worried?](https://blogs.buyproperly.ca/are-canadians-moving-to-small-cities) 4. [Why Portfolio Diversification Matters and the Role Real Estate Plays](https://blogs.buyproperly.ca/why-portfolio-diversification-matters) 5. [Passive vs. Active Investing: A Beginner’s Guide](https://blogs.buyproperly.ca/passive-vs-active-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking the World of Collateral: How It Safeguards Loan Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: What Is Collateral?, Collateral, Secured Loans, Loan Security, Borrowing with Collateral, Asset-Backed Loans URL: https://buyproperly.ai/blog/what-is-collateral ![collateral.jpg](https://lh6.googleusercontent.com/N9Ra4xbDf-dxlL-fQ7eVzDWfXAOIIfL3bgiAYlkw-303V4-xWWC0VXsL--9S_4VYkbSfY55kKkqbierGwh2ebSiT_EK-BjifloxoAFmBvw2gXkl9KcCIXpO1xKKd9XAxAW-eH3DF4-qNzwYv_w) Ever Wondered About Collateral? Dive into Its Intricacies Now! -------------------------------------------------------------- ### **​****What Is Collateral?** Collateral is a term used to describe an asset that a lender accepts as security for a loan. Depending on the purpose of the loan, collateral can be real estate or other types of assets. For the lender, the collateral serves as a type of insurance. If the borrower defaults on their loan payments, the lender can seize and sell the collateral to recoup some or all of their losses. ### **How Collateral Works** A lender wants to ensure that you’ll be able to repay the loan before giving it to you. As a result, many of them require some level of protection. Collateral is a type of security that reduces the risk for lenders. It ensures that the borrower fulfils his or her financial obligations. If the borrower defaults, the lender has the option to seize the collateral and sell it, with the proceeds going toward the unpaid amount of the loan. To reclaim any leftover balance, the lender can take legal action against the borrower. As previously stated, collateral can take many forms. It usually refers to the type of loan; for example, a mortgage is secured by the residence, but a car loan is secured by the vehicle in issue. Other assets can be used to secure non-specific personal loans. For example, a secured credit card can require a cash deposit equal to the credit limit, such as $500 for a $500 credit limit. Collateral-backed loans often have lower interest rates than unsecured loans. A lien is a legal right or claim on an asset to satisfy a debt that a lender has on the collateral of a borrower. The borrower has a powerful incentive to repay the loan on time because, if they don’t, they risk losing their home or other collateralized assets. **Types of Collateral** ----------------------- The type of loan frequently determines the nature of the collateral. Your home becomes the collateral when you take out a mortgage. If you take out a car loan, the car becomes the loan’s collateral. Cars, bank savings deposits, and investment accounts are all frequent forms of collateral that lenders accept. In most cases, retirement accounts are not accepted as collateral. Future pay checks can also be used as security for very short-term loans, not just payday loans. Traditional banks provide such loans, which are typically for a few weeks. Even if you have a true emergency, you should read the fine print and compare rates before taking out one of these short-term loans. ### **Collateralized Personal Loans** A collateralized personal loan is a type of borrowing in which the borrower pledges an object of value as security for the loan. The collateral must be worth at least as much as the loan amount. If you’re looking for a secured personal loan, your best bet is to go with a financial institution with which you already do business, especially if your collateral is your savings account. If you already have a relationship with the bank, it will be more likely to approve the loan and provide you with a reasonable interest rate. **Examples of Collateral Loans** -------------------------------- ### **Residential Mortgages** A mortgage is a loan that uses your home as collateral. If a homeowner fails to pay their mortgage for more than 120 days, the loan company can initiate legal action, which could result in the lender taking possession of the home through foreclosure. The property might be sold to satisfy the remaining principal on the loan once it has been transferred to the lender. ### **Home Equity Loans** A home can also be used to secure a second mortgage or a home equity line of credit (HELOC). The loan amount will not exceed the available equity in this scenario. For example, if a home is worth $200,000 and the primary mortgage balance is $125,000, a second mortgage or HELOC will only be available for up to $75,000. ### **Margin Trading** Margin trading also considers securitized loans. An investor uses the balance in his or her brokerage account as collateral to borrow money from a broker to gain shares. The loan increases the amount of shares an investor can purchase, hence boosting the potential gains if the value of the shares rises. However, the risks are amplified as well. If the value of the shares drops, the broker will demand payment of the difference. If the borrower fails to cover the loss, the account acts as collateral. While stock market trading may be dangerous, and real estate investing can be time-consuming, Buy Properly combines the best of both worlds. Buy Properly is a [**fractional real estate company**](https://buyproperly.ca/) that lets anyone with just $2500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Are you ready to begin investing? Contact us today! **Related Topics to Freehold:** 1. [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) 2. [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) 3. [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) 4. [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) 5. [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Credit Bureaus: Your Key to Financial Trustworthiness Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: FICO Score, What Is Credit Bureau?, Credit Reporting, Vantage Score, Financial Trust, Fair Credit Reporting Act, Credit Report, FACTA, Credit Scores, credit bureau URL: https://buyproperly.ai/blog/what-is-a-credit-bureau ![CB.jpg](https://lh5.googleusercontent.com/_9PLtRkeEKZ7P_qULTsHgjJStPes2EmnzzTiLgsHp8dT58p7QBCCdkhA9gzlQWtenJNHX16as3KFNePz43GyAWDHU0T5jPahpYtk1M0yM0QeYMeZFthaIk0u_YMpg0XpItdKxX5UU6bAhpLFtQ) What Is a Credit Bureau? ------------------------ A credit bureau, also known as a credit reporting agency in the United States, is a company that collects and analyses individual credit information and sells it to creditors for a charge so that they can make credit or loan decisions. ### **How Credit Bureaus Work** Credit bureaus work with a variety of lenders and credit issuers to assist them in making loan decisions. Their main goal is to make sure creditors have all of the information they need to make lending choices. Banks, mortgage lenders, credit card issuers, and other personal financial lending organizations are typical credit bureau clients. Credit bureaus do not make decisions about whether or not a person should be granted credit; instead, they collect and summarize data on a person’s credit score and provide it to lending institutions. Customers of credit agencies can also be consumers, who receive the same service—information about their credit history. ### **Credit Scores** Credit bureaus get their data from data suppliers such as creditors, debtors, debt collection agencies, vendors, and public records organizations (court records, for example, are publicly available). The majority of credit bureaus focus on credit accounts; however, some have access to more complete data, such as payment history on cell phone bills, electricity bills, rent, and other payments. Based on this credit history, credit bureaus employ a variety of algorithms to compute a person’s credit score. The Fair Isaac Corporation invented FICO scores in 1989, and they are the most widely used credit ratings in the United States.  There are 19 regularly used FICO scores, each of which is calculated differently with different types of clients in mind, allowing credit issuers to select the credit score that best suits their inquiry. Credit bureaus then combine the credit score with the other information they’ve gathered to create a comprehensive credit report, which gives credit issuers information to assist them decide whether to approve credit and what interest rates to charge borrowers. A person with a higher credit score will almost certainly be offered a reduced interest rate on a loan. **Major Credit Bureaus** ------------------------ Although there are other credit bureaus operating in the United States, Equifax, Experian, and Trans Union are the three most important. These three bureaus have integrated their credit ratings, the Vantage Score, in addition to using FICO scores. Although the Vantage Score originally used a 501 to 990 range, and some industry-specific FICO scores are assessed on a 250 to 900 scale, both scores are calculated on a scale of 300 to 850. FICO and Vantage Score, on the other hand, measure the relevance of various areas differently, thus their ratings are generally dissimilar. A good FICO score, for example, falls between 670 and 719, while a good Vantage Score falls between 661 to 780 range. Another significant variation between the scores is the sources. Based on information from all three bureaus, Vantage Scores generate a single score that may be used with a credit report from each of them. For its score, FICO, on the other hand, only uses data from one bureau. So, for instance, you could have three separate FICO scores, one for each of the three credit bureaus. **Credit Bureau Regulation** ---------------------------- Despite the fact that credit bureaus do not make lending decisions, they are extremely powerful financial institutions, and the information included in their reports can have a significant impact on a person’s financial destiny. Credit bureaus and their use and interpretation of customer data are governed by the Fair Credit Reporting Act (FCRA), which was enacted in 1970. Its primary purpose is to safeguard consumers from inaccurate or intentionally false information in their credit reports. The Fair and Accurate Credit Transactions Act (FACTA) of 2003 revised the Fair Credit Reporting Act, giving customers the right to receive one free credit report from credit agencies every 12 months. It also gave customers the option of purchasing a credit score, along with details on how it was calculated. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Credit Bureau:** * [3 Ways to Identify Ontario Neighborhoods that are Poised to Beat the Rest](https://blogs.buyproperly.ca/discover-upcoming-canadian-neighbourhoods) * [Are Canadians Moving to Secondary Cities? Should Toronto be worried?](https://blogs.buyproperly.ca/are-canadians-moving-to-small-cities) * [Why Portfolio Diversification Matters and the Role Real Estate Plays](https://blogs.buyproperly.ca/why-portfolio-diversification-matters) * [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians](https://blogs.buyproperly.ca/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians) * [Passive vs. Active Investing: A Beginner’s Guide](https://blogs.buyproperly.ca/passive-vs-active-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unveiling Credit History: Your Financial Past and Future Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Bad Credit, FICO Score, Creditworthiness, Credit Repair, Credit Report, What Is Credit History?, Good Credit, No Credit, Creditors, Financial Track Record, credit history URL: https://buyproperly.ai/blog/what-is-credit-history ![credithistory.jpg](https://lh6.googleusercontent.com/L1u7Zl8slyMfRjudM6gBpR70k0MRfqVjTrB5rkTm8YomnXnp9vMMI9KjN4R3ImSTh-ech-N75BU_JkST-NXLvBc1qQJV8yTwWV8GH0PD2uUDhJZaXjGpp2YC54_wa4HzIZQrZe3E8XzK7T6FqQ) What Is Credit History? ----------------------- Your credit history is a reflection of your ability to repay debts and your track record of doing so. It appears on your credit report, which lists the number and types of credit accounts you have, as well as the length of time each account has been open, the amounts outstanding, the amount of available credit used, whether you pay your bills on time, and the number of recent credit inquiries. Your credit report also shows whether you have any bankruptcies, liens, collections, or judgments on your record. Every customer has access to their credit history (via a credit report) and is entitled to one free credit report per year from each credit bureau. ### **Why Credit History Is Important** Your credit history is used by potential creditors, such as mortgage lenders and credit card firms, to determine whether or not to offer credit to you. Your FICO score is also calculated using information from your credit history. Creditors look at recent activity, the length of time credit accounts have been open and active, and the patterns and regularity of payback over longer periods of time when reviewing your credit history. ### **Good Credit History** Having a good credit history basically indicates that you pay your obligations on time and don’t have a lot of debt. It makes it easier to obtain credit cards, provides more loan options, and lowers interest rates. The easiest approach to keep your credit score in good shape is to pay all of your payments on time each month. You should only have three or four credit cards, maintain low balances on them, keep them for a long time, and never use more than 30% of your available credit. Also, review your credit reports on a frequent basis and be aggressive in rectifying any inaccuracies you detect. ### **Bad Credit History** Those with a terrible credit history, on the other hand, do not pay their payments on time and have a lot of debt. Late or missing payments, excessive credit card usage, applying for a lot of credit in a short period of time, and big financial events such as bankruptcy, foreclosure, repossession, charge-offs, and settled accounts are all factors that lead to a bad credit history. Bad credit can make it difficult to obtain loans and credit cards, as well as result in limited credit limits with high interest rates, the need to pay security deposits for items like cell phones or apartment and car rentals, and higher car insurance premiums. You must first have patience in order to restore a bad credit history, as it does not happen immediately. You should examine your credit score on a frequent basis to determine which bad aspects require the greatest attention. Furthermore, you should pay your payments on time, work off your credit card debt, apply for new credit only when absolutely necessary, and potentially find a co-signer with strong credit to accompany you when applying for new credit. ### **No Credit History** Potential borrowers with no credit history, such as college-aged young adults, may have trouble getting approved for large loans or leases. Landlords may refuse to rent an apartment to someone who does not have a credit history that proves their capacity to make timely payments. You can start building your credit history by getting a small personal loan or applying for a credit card with a low available balance. This type of usage allows you to demonstrate your ability to manage credit on a small scale before taking on higher amounts of debt. You can also open a shared credit card with someone who has a strong credit history or a secured credit card, which is backed by a deposit in a savings account. **Special Considerations** -------------------------- If you have paid off all of your bills and have not taken out a loan, credit card, or other type of financing for a number of years, you may be able to have your bad credit history erased. This time period can be seven or ten years long. Even borrowers with a good credit history may be forced to start over if such long gaps develop. You might hire a credit repair organization to remove the negative marks on your credit report for a possible faster answer if you’re ready to pay a charge. If you’d like to learn more about how you can expand your real estate portfolio without putting down large cash deposit (or all the hassles that come with it!) [**Here is a link to our eBook**](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). **Related Topics to Credit History:** 1. [Grow Your Wealth While Managing the Risks with Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) 2. [Investment and Wealth Basics: Real Estate edition](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition) 3. [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) 4. [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://blogs.buyproperly.ca/artificial-intelligence-making-real-estate-investment-smarter-simpler) 5. [Millennials struggle to chase Real Estate dreams using traditional investment options](https://blogs.buyproperly.ca/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Freehold? Exploring Ownership, Advantages, and considerations Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: What is Freehold?, Freehold Property, Advantages of Freehold, Property Rights, Asset Classification URL: https://buyproperly.ai/blog/what-is-freehold ![freehold.jpg](https://lh3.googleusercontent.com/VyOyheiSf8HZxeAW-CJP0Kvxey67eGsz_c6wkOB338ixYfBilzqjzFAYPhut9a9QZcsilr-WCn0ZhrKXdvUcVe8aCYw8RShtJ4k0-fNAKdVr6ngHdAFUn52-OIXAz6p7cIAIw65EXTt4I6j3Wg) What is Freehold? ----------------- Any estate that is “free from hold” of any entity other than the owner is known as freehold property. As a result, the owner of such an estate has continuous free ownership and can use the land for whatever purpose as long as it complies with local restrictions. Because a sale of a freehold property does not require governmental approval and hence less paperwork, it is more expensive than a leased property. Freehold property is inheritable, and the property owner’s power to further transfer the property is unrestricted. There is no encumbrance on the absolute title of the property in a freehold property. A freehold is not the same as a condominium, where each unit’s owner pays a maintenance fee. A legal guardian can inherit free and retain the property. The registration of a sale deed can be used to transfer a freehold property. ### **Freehold property advantages** As the name suggests, freehold property signifies complete freedom. Thus, the owner of the property has complete control over the freehold premises and has no further payments to make, in the form of ground rents, service charges or any other kind of charges that might be in the case of leasehold properties. Thus, the owner knows the exact amount he spends for purchasing the property. A freehold also has no restriction regarding time, visitors and the like. Thus, the owner can do whatever he legally wishes to within his property, without being answerable to anybody else. ### **Freehold property disadvantages** The only disadvantage of freehold properties is that they are more expensive. Since an individual owns both, the land and the property, to have complete control over it, the cost incurred on it increases. Thus, such properties might be difficult to be purchased by individuals who are used to staying in flats or apartments, where they just own the property and therefore, pay a lower price. ### **Freehold land title: Meaning** Freehold land title refers to a freehold property title by which the owner of the freehold land owns it for perpetuity (free from hold). In other words, freehold land title ownership has no limit in time for the landowner and its beneficiaries. ![Freehold](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/oip-1-1714756969477-compressed.jpeg) **Is freehold property an asset?** ---------------------------------- For income tax filing for businesses, it is imperative to show certain fixed assets which need to be installed like furniture, office building and plant & machinery, etc. While stocks, cash on hand and debtors are considered as current assets, freehold land and building is considered as fixed assets. ### **Freehold property rights of the owners** There are no restrictions on the right of an owner of a freehold property to transfer it further and it can be inherited. There is no encumbrance to the absolute freehold title of the property and it can be transferred, by registration of a sale deed. When you purchase a freehold property, you also own the land it was built on (freehold land), along with the house itself. If the freehold property is an apartment, the homeowner becomes a shareholder in the freehold property. You have the right to live in the house as long as you wish, and you can also make changes to it. ### **Freehold land does not depreciate.** Freehold land is not depreciated, because freehold land is assumed to have an unlimited useful life. Other long-life assets, such as land improvements, buildings, furnishings, equipment, etc., have limited useful lives. Since the owners of leasehold assets cannot sell the property, the depreciation is not factored in a leasehold property. ### **Home loan for a freehold property** Banks are generally more willing to extend a home loan for a freehold property, as compared to a leasehold property. This is because it is considered a safer investment, as the registration of a freehold property is done and it is also expected to increase in value. Banks are also willing to sanction a larger home loan amount for a freehold property with a high market value (where the loan-to-value ratio can be 80 percent of the market value of the freehold property). While stock market trading may be dangerous, and real estate investing can be time-consuming, Buy Properly combines the best of both worlds. Buy Properly is a [**fractional real estate company**](https://buyproperly.ca/) that lets anyone with just $2500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Are you ready to begin investing? Contact us today! **Related Topics to Freehold:** * [How to Spend Your Tax Return to Grow Your Wealth](https://buyproperly.ai/blog/how-to-spend-your-tax-return-to-grow-your-wealth) * [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) * [How to Create a Real Estate Investment Business Plan](https://buyproperly.ai/blog/how-to-create-a-real-estate-investment-business-plan) * [The Pros and Cons of Investing in Single-Family Homes](https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-single-family-homes) * [11 Real Estate Investing Mistakes to Avoid](https://buyproperly.ai/blog/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Mortgage Approval? Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights URL: https://buyproperly.ai/blog/what-is-mortgage-approval **![mortgage approval.jpg](https://lh3.googleusercontent.com/zs1yC45fY8sgmytiicGperucuJDGAuVrfUINZHLd7lojhwPV8OsCY2oB23FnBSGk3UavBj1QeFxU0XnnNifWQ4eYjYNfaNuZin-89p8YR5EtSrEqtnQWLAu1q4AleZBjEj2g90uATpzTZlJ8fw)** **How to Get Pre-approved for a Mortgage** Getting pre-approved for a mortgage can be a crucial step in the home-buying process. Consult with a lender and acquire a pre-approval letter to discuss loan alternatives and budgeting with the lender; this step can help you clarify your entire house-hunting budget as well as the monthly mortgage payment you can afford. As a borrower, ‌understand what a mortgage pre-approval is (and isn’t), as well as how to improve your chances of acquiring one. **Pre-approval Is a ‘Physical Exam’ for Your Finances** Before deciding whether to pre-approve you for a mortgage, lenders will consider the following factors: * Debt-to-income (DTI) ratio * Loan-to-value (LTV) ratio * Credit history * FICO score * Income * Employment history Consider a mortgage pre-approval as a financial, physical exam. Lenders will most likely investigate every aspect of your financial life in order to ensure that you’ll be able to repay the loan. **Pre-qualification vs. Pre-approval** You’ve probably heard the terms “pre-qualification” and “pre-approval” used interchangeably, but they’re not the same. A pre-qualification letter gives a mortgage lender a summary of your finances, income, and debts. After that, the mortgage lender provides you with an expected loan amount. A mortgage pre-qualification might serve as an estimate of how much you can afford to spend on a property in this way. The lender, on the other hand, does not pull your credit records or verify your financial data. As a result, pre-qualification is a good beginning point for determining what you can afford, but it has no bearing for making bids. A pre-approval‌ involves completing a mortgage application and supplying your Social Security number so that a lender may run a rigorous credit check on you. When you apply for a mortgage, you will be subjected to a hard credit check. Before opting to lend you money, a lender examines your credit record and credit score to analyse your creditworthiness. These checks will appear on your credit report and may have an effect on your credit score. A soft credit check‌ occurs when you draw your own credit or when a credit card firm or lender pre-approves you for an offer without your permission. Your credit score is unaffected by soft credit checks. You’ll also include all of your bank account information, assets, debts, income and job history, previous addresses, and other important factors that a lender will need to verify. The reason for this is that a lender wants to know that you will be able to repay the loan. Lenders use the information you supply to determine your debt-to-income (DTI) and loan-to-value (LTV) ratios, which are important considerations in deciding your interest rate and loan type. A pre-approval is far more beneficial than a pre-qualification because of all of this. It indicates the lender has investigated your credit and validated your paperwork in order to approve a specified loan amount. When you have an appraisal and the loan is applied to a property, you get final loan approval. **When to Get a Pre-approval** Pre-approval letters for mortgages are usually good for 60 to 90 days. Because your finances and credit profile may change, lenders include an expiration date on these letters. To acquire a fresh pre-approval, you’ll need to fill out a new mortgage application and provide updated documentation. If you’re just getting started thinking about purchasing a house and feel you’ll have trouble receiving a loan, going through the pre-approval procedure can help you detect credit issues—and allow you time to fix them. Pre-approval six to one year before a serious property hunt will put you in a better position to improve your overall credit rating. Additionally, you’ll have more time to save for a down payment and closing costs. When you’re ready to make an offer, a seller may need a mortgage pre-approval letter and, in some situations, proof of finances to show that you’re a serious buyer. Because of high buyer demand and a limited number of houses for sale in many hot property markets, sellers may be less reluctant to consider bids without pre-approval letters. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and gain the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). [**Related Topics to Mortgage Approval:**](https://buyproperly.com/resource-center/invest) 1. [**How to Calculate ROI in Real Estate to Maximize Your Profit**](https://buyproperly.com/resource-center/posts/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.com/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.com/resource-center/posts/why-invest-in-real-estate) 4. [**The 5 Types of Real Estate Investments**](https://buyproperly.com/resource-center/posts/the-5-types-of-real-estate-investments) 5. [**Flipping vs Renting: Which Strategy is Better for Real Estate Investors?**](https://buyproperly.com/resource-center/posts/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking Mortgage Payments: Components, Costs, and Financial Considerations Author: BuyProperly Engineering Published: 2022-05-19 Category: Insights Tags: Interest rates, Mortgage Payment Structure, Mortgage Payment, PITI, Principal and Interest, Taxes and Insurance, Loan Structure, Property Taxes, Insurance Coverage, Mortgage Insurance, Homeownership Finance URL: https://buyproperly.ai/blog/what-is-mortgage-payment-structure ![MP.jpg](https://lh6.googleusercontent.com/zwHGJgyisOFzpuvK9Ts5Aq4V2yzjJT8-NRLVwi9AkGWYXQCIIpKhrrx3u7qTarIabWpk_E-p2EdpoWc43RoA75hRknrrelrHC0A4SwW1hryaQL199LhjzWH3TlpDuHhzDQ6I4cxRqw9WFVdijg) What is Mortgage Payment Structure? ----------------------------------- The size and length of your mortgage are the most important elements in calculating your monthly payments. The size of the loan is the amount borrowed, and the term is the amount of time you have to repay it. In most cases, the longer the period, the lower the monthly cost. As a result, 30-year mortgages are the most common. A mortgage calculator is a simple way to compare mortgage kinds and lenders after you know the size of the loan you’ll need for your new home. ### **PITI: Mortgage Payment Components** A mortgage payment is calculated using four different factors: principal, interest, taxes, and insurance (PITI). We’ll take a $100,000 mortgage as an example to examine them. ### **Principal** The principal balance is paid off with a portion of each mortgage payment. The amount of principal returned to the borrower is designed in such a way that it starts out small and gradually increases with each mortgage payment. The initial years’ payments go more toward interest than principal, and the last years’ payments go the other way. The principal on our $100,000 mortgage is $100,000. The principal balance is paid off with a portion of each mortgage payment. The amount of principal returned to the borrower is designed in such a way that it starts out small and gradually increases with each mortgage payment. The initial years’ payments go more toward interest than principal, and the last years’ payments go the other way. The principal on our $100,000 mortgage is $100,000. ### **Interest** The lender’s compensation for taking a chance and lending you money is interest. The size of a mortgage payment is directly proportional to the interest rate on the loan: greater interest rates equal bigger mortgage payments. Lower interest rates enhance the amount of money you can borrow, whereas higher interest rates diminish it. If our $100,000 mortgage has a 6% interest rate, the monthly principal and interest payment on a 30-year mortgage would be $599.55 ($500 interest + $99.55 principal). A monthly payment of $804.62 is required for the identical loan with a 9% interest rate. ### **Taxes** Government agencies collect real estate or property taxes, which are used to pay public services such as schools, police forces, and fire departments. The government calculates taxes on a per-year basis, but you can include them in your monthly payments. The entire amount owed in a particular year is divided by the total number of monthly mortgage payments. The payments are collected by the lender and held in escrow until the taxes are due. ### **Insurance** Insurance payments, like real estate taxes, are included in each mortgage payment and held in escrow until the bill is due. In this process, comparisons to level premium insurance are done. A mortgage payment may contain two forms of insurance coverage. Property insurance, for example, protects a home and its contents from fire, theft, and other natural calamities. The other is private mortgage insurance (PMI), which is required for those who purchase a property with a down payment of less than 20% of the purchase price. This sort of insurance protects the lender in the event that the borrower defaults on the loan. PMI allows lenders to offer loans to investors who can have some certainty that their debt investment will be paid back because it reduces the risk of default on the loan. Once the borrower has at least 20% equity in the home, PMI coverage can be cancelled. While most mortgages include principal, interest, taxes, and insurance, some people prefer mortgages that do not include taxes or insurance as part of the monthly payment. You have a reduced monthly payment with this form of financing, but you must pay taxes and insurance. ### **What Is Mortgage Insurance?** A mortgage payment is accompanied by two types of insurance. The first is property insurance, which, more or less, protects the home and everything in it from man-made and natural disasters. The second type of mortgage insurance is known as PMI, and if you purchased your property with less than a 20% down payment, you will be required to pay this insurance to protect the lender in the event that you are unable to repay your loan. **The Bottom Line** ------------------- A mortgage is an important instrument for purchasing a home since it allows you to become a homeowner without putting down a big deposit. When you take out a mortgage, however, you need be aware of the structure of your payments, which include not just the principal (the amount borrowed), but also interest, taxes, and insurance. It estimates how long it will take you to pay off your mortgage and how much it will cost to finance your property. We’ve simplified a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to grow your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Mortgage Payment Structure:** 1. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 2. [How to Choose an Investment Property: A Step-by-Step Guide](https://write.superblog.ai/sites/supername/buyproperly/posts/what-is-mortgage-payment-structure-clr64wbnf520123mjgfs223kn/blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [Why Invest in Real Estate: 7 Key Benefits to Know](https://write.superblog.ai/sites/supername/buyproperly/posts/what-is-mortgage-payment-structure-clr64wbnf520123mjgfs223kn/blogs.buyproperly.ca/why-invest-in-real-estate) 4. [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) 5. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Property Deeds: Types, Legal Essentials, and Ownership Transfers Author: BuyProperly Engineering Published: 2022-03-28 Category: Insights Tags: property deeds, ownership transfer, quitclaim deed, warranty deed, special purpose deed URL: https://buyproperly.ai/blog/understanding-property-deeds ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/property-deeds-1714757951473-compressed.webp) Understanding Property Deeds Property deeds are legal documents that transfer ownership of real estate from a grantor (seller) to a grantee (buyer). Land or everything related to it, such as buildings or roads, is referred to as real property. A deed must include the grantor and grantee’s names, as well as an appropriate description of the property, in order to be legally enforceable. Deeds are divided into several kinds, including warranty, quitclaim, and special purpose. This article will explain what deeds are, what must be contained in a deed to make it legally enforceable, and the many forms of deeds used in property transactions. ### **What Are Property Deeds?** A property deed is a written and signed legal document that transfers ownership of real estate from the previous owner (the grantor) to the new owner (the grantee). Historically, real estate was transferred by the “livery of seisin,” a ceremonial ceremony. In this act, the individual transferring the land gave the person taking delivery of the land a twig or clod of turf from the land. Though the livery of seisin officially transferred the title to the property, it was often accompanied by a verbal or written statement. Today, a paper deed is used to transfer title to real estate. ![deed.jpg](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/image-cp-1714757923853-compressed.jpeg) **Types of Deeds** ------------------ Deeds can be categorized in a variety of ways. Deeds are categorized as either official or private in general. Official deeds are carried out as a result of legal or court proceedings. Individuals and businesses, on the other hand, use private deeds for the majority of property transactions. The type of title warranties offered by the grantor is also used to categorize deeds. The following are examples of several types of deeds: ### **General Warranty Deed** The grantee is best protected by the general warranty deed. The grantor makes a series of legally binding pledges (called covenants) and warranties to the grantee (and their heirs) in this type of deed, vowing to defend the grantee (and their successors) against any prior claims and demands of all individuals whomsoever in relation to the conveyed land. The following are common title covenants found in a general warranty deed: * the covenant of seisin, which guarantees that the grantor owns the property and has the legal authority to convey it. * the covenant against encumbrances, which states that the grantor guarantees that the property is free of liens and encumbrances, unless otherwise mentioned in the deed. * the quiet enjoyment covenant, which states that the grantee shall have peaceful possession of the property and will not be disturbed because the grantor’s title is defective. * the covenant of further assurance, in which the grantor commits to supply whatever document required to make the title good. ### **Special Warranty Deed** Where in a general warranty deed the grantor promises to warrant and defend the title conveyed against the claims of all persons, the grantor of a special warranty deed guarantees that they got the property title and that they have not done anything to cause a defect while in possession of the title. In other words, only problems that occurred while the grantor was the owner of the property are covered by the warranty. Because of this limitation, the special warranty provides less protection to the grantee than the standard warranty deed. Many real estate buyers will demand a general warranty deed to shield themselves from complications that may occur as a result of a special warranty deed. ### **Quitclaim Deed** The quitclaim deed, often known as a non-warranty deed, provides the least level of protection to the grantee. This sort of deed transfers the grantor’s current interest in the property, if any. There are no guarantees or promises given about the title’s quality. The quitclaim deed is practically as effective as a general warranty deed if the grantor has solid title. The grantee, on the other hand, has no legal recourse against the grantor if the title is defective. Whether the grantor is unsure of the status of the title (or if it has any faults), or if the grantor does not want to be liable under the title covenants, a quitclaim deed is frequently utilized. ### **Special Purpose Deeds** Special purpose deeds are frequently used in court proceedings and in situations when the deed is signed by someone acting in an official capacity. Most special purpose deeds are effectively quitclaim deeds, with little to no protection for the grantee. **The Bottom Line** ------------------- A deed is used to transfer the ownership of a property. In order for a deed to be legally enforceable, it must contain some basic characteristics. Different deeds provide different levels of protection to the grantee, and the form of the deed determines the grantor’s obligations. Because deeds are significant legal papers that affect ownership interests and rights, any transaction involving them, such as the closing of a property purchase, should be discussed with a skilled real estate attorney. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employs a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Deed:** * [Why Portfolio Diversification Matters and the Role Real Estate Plays](https://buyproperly.ai/blog/why-portfolio-diversification-matters) * [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://blogs.buyproperly.ca/artificial-intelligence-making-real-estate-investment-smarter-simpler) * [Millennials struggle to chase Real Estate dreams using traditional investment options.](https://buyproperly.ai/blog/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) * [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadian](https://buyproperly.ai/blog/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians)s? * [Passive vs. Active Investing: A Beginner’s Guide](https://buyproperly.ai/blog/passive-vs-active-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is a Down Payment? Understanding the Basics and Benefits Author: BuyProperly Engineering Published: 2022-03-28 Category: Insights Tags: Home financing, Real Estate Ownership, Principal and Interest, Loan Structure, Mortgage Insurance, What Is Down Payment?, home purchase, monthly payments, realestate URL: https://buyproperly.ai/blog/down-payment ![down payment.jpg](https://lh5.googleusercontent.com/co7qtesLYhQ8FUqj0v76nLKhlE3_Oye1UPVV3lhfWIeDTSjFmlVDxhH-OzY3RgAHUUYEnq8lKjDaxzM2fxP9lFeQMIfre62p5SulUOA8DDukW9k0ftLXPxm9MyByKHx44XzarGXA) What Is a Down Payment? ----------------------- A down payment is a quantity of money paid by a buyer at the start of the purchasing process for an expensive item or service. The down payment is only a part of the entire buying price, so the buyer will most likely need to take out a loan to cover the rest. ### **How Down Payments Work** A down payment on a house is a classic example of a down payment. The home buyer may pay 5% to 25% of the entire cost of the home up front, with the remainder covered by a mortgage from a bank or other financial institution. Car down payments function in a similar way. In some situations, if the contract falls through due to the purchaser, the down money is not recoverable. A deposit is another term for a down payment, and 0% to 5% deposit mortgages for first-time home buyers are common. ### **Examples of Down Payments** #### **Home Purchases** The typical benchmark in the United States has been a 20% down payment on a home. Mortgages with 10% or 15% down are also available, and there are options to buy a home with as little as 3.5 percent down, such as with an FHA loan. Cooperative flats, or co-ops, which are widespread in various cities, are one instance where a bigger down payment is sometimes required. Many lenders will want a 25% down payment, and some high-end co-ops may even require a 50% down payment, though this is not common. Of course, if you want to, you can put down more than the minimum. **Benefits of a Large Down Payment** ------------------------------------ Making the largest down payment you can afford will reduce the amount of interest you pay over the loan’s life, lower your monthly payments, and, in some situations, eliminate the need for insurance. The following are the specific details: ### **Interest** The larger your down payment, the less you’ll need to borrow and the less interest you’ll pay. For example, if you borrow $100,000 and pay a 5% interest rate, you’ll pay $5,000 in interest alone in the first year. If you put down an extra $20,000 and borrow only $80,000, however, your first-year interest will be only $4,000, saving you $1,000. Over time, the difference becomes even more obvious. For example, a $100,000 loan at 5% interest would cost $93,256 in interest over the course of 30 years. Borrow just $80,000 and your total interest costs will be $74,605, saving you approximately $20,000 in interest costs. Furthermore, if you can put more money down, a lender may offer you a cheaper interest rate on your loan because you are a lower risk. ### **Monthly Payments** A greater down payment will also lower your monthly payments. Using the same example as before, a $100,000 loan would demand $537 in monthly payments, whereas a $80,000 loan would require $429. ### **Mortgage Insurance** A greater down payment on a property can help you avoid paying for private mortgage insurance (PMI), which reimburses your lender if you don’t make your loan payments. If you have a 20% down payment or more, your lender is unlikely to need PMI. (If you can’t afford a 20% down payment and must purchase PMI, keep in mind that you can ask your lender to eliminate the requirement once your home’s equity exceeds 20%.) ### **How Much Do I Need for a Down Payment?** If you’re not financing the purchase, your lender or the seller may impose a minimum down payment. This is usually expressed as a percentage of the purchasing price. While the quantity may be negotiated in some cases, you’ll almost certainly need that much to complete the purchase. Putting more money down, on the other hand, can cut your monthly payments and total expenditures, as indicated above. As a result, if you need to keep your monthly budget under a certain amount, you may need to make a bigger down payment. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Down Payment:** * [Grow Your Wealth While Managing the Risks with Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) * [Investment and Wealth Basics: Real Estate edition](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition) * [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) * [3 Ways to Identify Ontario Neighborhoods that are Poised to Beat the Rest](https://blogs.buyproperly.ca/discover-upcoming-canadian-neighbourhoods) * [Are Canadians Moving to Secondary Cities? Should Toronto be worried?](https://write.superblog.ai/sites/supername/buyproperly/posts/what-is-a-down-payment-clr64wbso521223mjeu27xnt2/blogs.buyproperly.ca/are-canadians-moving-to-small-cities) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Understanding Earnest Money: A Crucial Deposit in Real Estate Transactions Author: BuyProperly Engineering Published: 2022-03-28 Category: Insights Tags: earnest money, escrow account, contingency, inspection, purchase agreement URL: https://buyproperly.ai/blog/earnest-money ![Earnest Money](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot5-5-202411057www-1714867888333-compressed.jpeg) What Is Earnest Money? ---------------------- Earnest money is a deposit provided to a seller to show that the buyer is serious about purchasing a residence. The funds allow the buyer more time to secure financing and complete title searches, appraisals, and inspections before to closing. Earnest money is similar to a down payment on a house, an escrow deposit, or good faith money in many aspects. ### **Understanding Earnest Money** Earnest money is usually presented with the sales contract or purchase agreement, although it can also be linked to the offer. The funds are usually held in an escrow account until the transaction closes, at which point they are applied to the buyer’s down payment and closing costs. Both parties engage into a contract when a buyer decides to acquire a home from a seller. Because reports from the home appraisal and inspection may subsequently disclose faults with the residence, the contract does not commit the buyer to purchase the home. However, the contract requires the seller to remove the house from the market while it is examined and evaluated. The buyer makes an earnest money deposit (EMD) to demonstrate that his or her offer to acquire the property is genuine. If something indicated in advance in the contract goes wrong, the buyer may be able to reclaim the earnest money deposit. If the house doesn’t appraise for the sales price or the inspection reveals a significant flaw, for example, the earnest money will be returned—as long as these contingencies are included in the contract. Earnest money, on the other hand, isn’t usually refundable. For example, if the buyer decides not to proceed with the property purchase due to contingencies not stated in the contract or if the buyer fails to satisfy the contract’s timetable, the seller keeps the earnest money. If a buyer has a change of heart and decides not to buy, the earnest money deposit is forfeited. While the earnest money deposit can be negotiated between the buyer and seller, it often varies from 1% to 2% of the home’s purchase price, depending on the market. In hot housing markets, the earnest money deposit could be anywhere from 5% to 10% of the property’s sale price. While earnest money deposits are often a percentage of the purchase price, some sellers prefer a predetermined amount, such as $5,000 or $10,000. Naturally, the greater the earnest money deposit, the more seriously the seller will consider the buyer. As a result, a buyer should offer a big enough earnest deposit to be approved, but not so high that he or she risks losing more money. Earnest money is frequently put into a trust or escrow account held by a real estate brokerage, legal firm, or title company through a certified check, personal check, or wire transfer. The funds are held in the account until the buyer’s down payment and closing fees are met, at which point they are applied to the buyer’s down payment and closing costs. It’s crucial to remember that, like any other bank account, escrow accounts can generate interest. If the earnest money in the escrow account earns more than $600 in interest, the buyer must file IRS Form W-9 to receive the interest. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/what-is-earnestmoney-1714868084218-compressed.jpg) **What Is Earnest Money Used for?** ----------------------------------- Earnest money is a deposit used to purchase a residence in real estate. It usually varies from 1 to 10% of the home’s sale price. While earnest money does not bind a buyer to buy a home, it does force the seller to remove the property from the market while the appraisal is being completed. Earnest money is put down as a deposit to show that you are serious about buying the house. ### **Does Earnest Money Get Returned?** If something goes wrong during the appraisal that was predetermined in the contract, the earnest money is returned. This could be due to a lower appraisal price than the sale price, or if the house has a severe fault. Importantly, earnest money may not be refunded if the fault was not anticipated in the contract or if the buyer decides not to buy the residence within the agreed-upon time frame. ### **How Can Earnest Money Be Protected?** Prospective buyers might take a number of precautions to preserve their earnest money deposit. First, buyers can make sure that problems, financing, and inspections are all covered by contingencies. This prevents the deposit from being lost if a significant flaw is discovered or if financing is not secured. Second, thoroughly read and adhere to the contract’s terms. In some situations, the contract will specify a deadline for the inspection to be completed. To avoid forfeiture, the buyer should follow these terms to the letter. Finally, make sure the deposit is properly managed, which entails working with a trustworthy broker, title business, escrow company, or law firm. Looking for a stress-free way to get started in real estate investing? See how we employ a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Earnest Money:** * [When’s the Right Time to Invest and 4 Factors to Consider](https://buyproperly.ai/blog/whens-the-right-time-to-invest-and-4-factors) * [Here’s How Much Money You Need When You Retire](https://buyproperly.ai/blog/heres-how-much-money-you-need-when-you-retire) * [The 5 Types of Real Estate Investments](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments) * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking the Basics: What Sets High-Ratio Loans Apart in Mortgages Author: BuyProperly Engineering Published: 2022-03-28 Category: Insights Tags: Mortgage, Mortgage Insurance, high-ratio loan, down payment, loan-to-value ratio (LTV), risk assessment, borrower default, private mortgage insurance , PMI, home equity loan URL: https://buyproperly.ai/blog/high-ratio-loan ![High-Ratio Loan.jpg](https://lh3.googleusercontent.com/VBSVSAQF64XEoBh5sXWX7nub-gKhsITuaQuuFf4fZCuUabX5_HqpHwnZSLXBVU9xbM5WzQDzYCQ-Is4wltBeILbsrwxTiJdShWlJNtirtB64hGoC90-42kIKtjNdsj8giFyr459m) What Is a High-Ratio Loan? -------------------------- A high-ratio loan is one in which the loan value exceeds the value of the property used as security. Mortgage loans with high loan ratios have a loan value that is close to 100 % of the property’s value. A borrower who is unable to make a big down payment may be approved for a high ratio loan. In the case of mortgages, a high ratio loan is one in which the loan value surpasses 80% of the property’s value. The loan-to-value (LTV) ratio is a metric used by financial institutions to analyse the risk of lending before approving a mortgage. **The Formula for a High-Ratio Loan using** LTV. ------------------------------------------------ Although there is no specific technique for calculating a high ratio loan, investors should first assess their loan-to-value ratio to see if it exceeds the 80% LTV threshold. Loan to Value Ratio = Mortgage amount/Appraised property value  ### **How to Calculate a High-Ratio Loan Using LTV** 1. ​ The LTV ratio is computed by dividing the loan amount by the property’s appraised value. 2. To convert the value to a percentage, multiply it by 100. 3. A loan is termed a high ratio loan if the loan value after your downpayment surpasses 80% of the LTV. ### **What Does a High LTV Ratio Loan Tell You?** The LTV ratio is used by lenders and financial providers to assess the level of risk involved in making a mortgage loan. A high ratio loan is one in which the borrower is unable to make a substantial downpayment and the loan value approaches the appraised value of the property. To put it another way, as the loan value approaches 100% of the property value, lenders may deem the loan too risky and decline the application. Borrower default is a danger for the lender, especially if the LTV is excessively high. The bank may not be able to sell the property for enough money to repay the defaulted borrower’s debt. During an economic crisis, when housing properties often lose value, such a scenario is very likely to occur. The loan is said to be underwater if the amount borrowed exceeds the value of the property. The bank will lose money if the borrower defaults on the mortgage and the property is sold for less than the outstanding mortgage balance. To avoid such a loss, banks keep an eye on LTV. As a result, in order to protect the lender, most high-ratio house loans include some sort of insurance coverage. Private mortgage insurance (PMI) is a type of insurance that the borrower must acquire separately to help safeguard the lender. ### **Example of a High-Ratio Loan** Let’s say a borrower wants to buy a home with an appraised value of $100,000. The borrower can only afford a $10,000 down payment and will have to borrow the rest $90,000. After pursuing a number of lenders, one eventually agrees to underwrite a loan, but at a higher-than-average interest rate. The result is a 90 percent loan-to-value ratio (90,000 / 100,000), which is termed a high ratio loan. **High-Ratio Loans vs. Home Equity Loans** ------------------------------------------ A home equity loan, sometimes known as a second mortgage, is a type of instalment loan that allows homeowners to borrow against the equity in their property. The loan is based on the difference between the homeowner’s equity and the current market value of his or her home. A home equity loan is for borrowers who already have a mortgage and have paid off a portion of it, but whose property worth exceeds their loan total. To put it another way, a home equity loan allows homeowners to borrow money against the value of their home. A high-ratio loan, on the other hand, can have a loan value that is close to 100% of the property’s value. While stock market trading may be dangerous, and real estate investing can be time-consuming, BuyProperly combines the best of both worlds. BuyProperly is a [**fractional real estate company**](https://buyproperly.ca/) that lets anyone with just $2500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Are you ready to begin investing? Contact us today! **Related Topics to High-Ratio Loan:** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.com/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Retirement: The Essentials of Canada Pension Plan (CPP) Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: average retirement income, Canada Pension Plan, Financial Planning, Investment Strategies, Retirement planning, Calculating Retirement Savings, Tax Benefits for Landlords, compound interest, CPP Benefits, Retirement Stages URL: https://buyproperly.ai/blog/canada-pension-plan-cpp ![new5.jpg](https://lh6.googleusercontent.com/I-_rAqgrAu9Ih24fDAp6s7vpODsI23WprgDp3ThmtNVGZABG-zWxCKBBOOG-skOvK4oLmP2kSR_dc5I5uyTeI9PGKrwqyG8IDUIbJQEJ9vpvi5eyNuy-pktgi07RHoCsQdIEEBvA) What Is the Canada Pension Plan (CPP)? -------------------------------------- Retirement planning, in its most basic form, is the process of preparing for life after paid labor, not only financially, but in all areas of one’s life. Lifestyle decisions such as how to spend time in retirement, where to live, and when to retire altogether are non-financial concerns.  In a holistic approach to retirement planning, all of these aspects are taken into account. The significance of retirement planning varies according to one’s age. Retirement planning begins early in a person’s career and comprises setting aside sufficient funds for retirement. Setting specific income or asset objectives and taking steps to achieve them in the midst of your career is another example. Now let’s understand what is The Canada Pension Plan (CPP) Retirement Plan: The Canada Pension Plan is one of three levels of the Canadian government’s retirement income scheme that pays out retirement and disability benefits. The Canada Pension Plan was formed in 1965 to provide retirees and handicapped contributors with a basic benefits package. Survivors receive the benefits granted by the plan if the recipient dies. ### **The Canada Pension Plan (CPP)** The Canada Pension Plan is a taxed monthly retirement benefit that can help enhance your income when you retire. You must be at least 60 years old and have made at least one valid CPP contribution to be eligible to apply for and receive benefits from the plan. You will receive the CPP retirement pension for the rest of your life if you qualify. The amount you receive from the CPP is determined on the amount you contributed, the length of time you contributed, and when you chose to begin receiving payments. While the greatest amount you can receive is $1,203.75, the average amount received by Canadians is $689.17 due to a variety of factors that influence the government’s assessment. Most CPP recipients receive significantly less than the maximum payout, with the average being around 60%, so budget accordingly. **Stages of Retirement Planning** --------------------------------- The following are some tips for successful retirement planning at various phases of life. ### **Young Adulthood (Ages 21–35)** Those just starting out in adulthood may not have a lot of money to invest, but they do have time to let their investments mature, which is an important part of retirement planning. This is due to the principle of compound interest. Compound interest means that interest earns interest, and the longer you have, the more interest you’ll earn. Because of compounding, even if you can just put aside $50 each month, it will be worth three times more if you start investing at age 25 than if you wait until age 45. You may be able to invest more money in the future, but you can never make up for lost time. ### **Early Midlife (Ages 36–50)** Mortgages, student debts, insurance premiums, and credit card debt are all common financial stresses in early middle age. At this stage of retirement planning, though, it’s vital to keep saving. These are some of the finest years for aggressive saving since you can earn more money while still having time to invest and earn interest. ### **Later Midlife (Ages 50–65)** Your investing accounts should grow more conservative as you get older. While time is running out to save for folks who are nearing retirement, there are a few advantages. Higher salary, as well as the possibility of having some of the aforementioned expenses (mortgages, school loans, credit card debt, and so on) paid off by this time, can provide you more money to invest. It’s also never too late to open and fund a 401(k) or an IRA. Catch-up contributions are one of the advantages of this stage of retirement preparation. In 2021 and 2022, you can contribute an additional $1,000 per year to your regular or Roth IRA and $6,500 per year to your 401(k) starting at age 50. Are you looking to make your first (or next) real estate purchase? We employ innovative AI technology at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can [**get started for as low as $2500 (and expect yearly profits of 10-40%)**](https://buyproperly.ca/). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. **Related Articles to Canada Pension Plan (CPP):** * [Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [When’s the Right Time to Invest and 4 Factors to Consider](https://blogs.buyproperly.ca/whens-the-right-time-to-invest-and-4-factors) * [Here’s How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Cracking the Code: Unraveling the World of Predictive Analytics Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Artificial intelligence, Data Modeling, Predictive Analytics, Data Mining, Technology Trends, Machine Learning, Business Forecasting, Risk Management, Financial Decision Making, Marketing Strategy URL: https://buyproperly.ai/blog/secrets-to-predictive-analytics What is Predictive Analytic? ---------------------------- The application of statistics and modelling tools to create predictions about future events and performance is referred to as predictive analytics. Predictive analytics examines current and past data patterns to see if they are likely to repeat themselves. This enables businesses and investors to re-allocate their resources in order to take advantage of potential future developments. Predictive analytics can also be utilised to boost operational efficiency and lower risk. ### **Understanding Predictive Analytics** Predictive analytics is a type of technology that makes future predictions regarding unknowns. Artificial intelligence (AI), data mining, machine learning, modelling, and statistics are among the tools used to make these determinations. Data mining, for example, is analyzing vast volumes of data in order to find patterns. Except for vast blocks of text, text analysis works the same way. Predictive models are used in a wide range of applications, including: * Weather forecasts * Creating video games * For mobile phone messaging, voice to text translation is used. * Customer service * Investment portfolio development To create predictions about future data, all of these applications use descriptive statistical models of present data. They can also aid organizations with inventory management, marketing strategy development, and sales forecasting. It also aids the survival of businesses, particularly those in highly competitive industries like health care and retail. This technology can be used by investors and financial experts to assist them create investment portfolios and reduce risk. These models identify links, trends, and structures in data so that conclusions can be drawn about how changes in the underlying processes that generate the data will affect the outcomes. Predictive models improve on descriptive models by using historical data to predict the likelihood of specific future events given current or expected future conditions. **Uses of Predictive Analytics** -------------------------------- In a variety of industries, predictive analytics is used to make decisions. ### **Forecasting** Forecasting is critical in manufacturing because it guarantees that resources in a supply chain are used efficiently. Inventory management and the shop floor, for example, are critical spokes of the supply chain wheel that require accurate forecasts to function. Predictive modelling is frequently used to clean and improve the quality of data used in forecasting. Modeling allows the system to consume more data, including data from customer-facing activities, resulting in a more accurate forecast. ### **Credit** Predictive analytics is heavily used in credit rating. When a consumer or a business applies for credit, information from the applicant’s credit history and the credit records of borrowers with comparable characteristics is used to estimate the likelihood that the application would default on any loans given. ### **Underwriting** Underwriting relies heavily on data and predictive analytics. Insurance firms look at policy applicants to see if they’re likely to have to pay out for a future claim based on the existing risk pool of similar policyholders, as well as prior events that resulted in payouts. Actuaries frequently utilize predictive models that compare attributes to data about previous policyholders and claims. ### **Marketing** When developing a new campaign, people in this profession consider how customers have reacted to the overall economy. They can utilize these demographic trends to figure out if the present product mix will encourage customers to buy. When selecting whether to purchase or sell a security, active traders consider a variety of measures based on previous events. Moving averages, bands, and breakpoints are used to estimate future price changes using historical data. **Benefits of Predictive Analytics** ------------------------------------ Using predictive analysis has various advantages. When there are no other (and clear) answers available, this form of study can assist entities in making predictions regarding outcomes. Models can be used by investors, financial professionals, and company leaders to assist reduce risk. For example, by taking certain aspects into account, such as age, capital, and goals, an investor and their advisor can utilize certain models to assist construct an investment portfolio with minimal risk to the investor. When models are employed, they have a major impact on cost reduction. Businesses can predict if a product will succeed or fail before it is released. Alternatively, they might set aside funds for production enhancements before the manufacturing process begins by employing predictive techniques. **Related Topics to Predictive Analytics** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Risk Analysis: Navigating Uncertainties in Business and Investments Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Risk Analysis, Uncertainty Management, Quantitative Risk, Qualitative Risk, Investment Strategy, Decision Making, Monte Carlo Simulation, Scenario Analysis, SWOT Analysis, Business Resilience URL: https://buyproperly.ai/blog/understanding-risk-analysis **What Is Risk Analysis?** -------------------------- The process of determining the chance of a negative occurrence occurring in the corporate, government, or environmental sectors is known as risk analysis. Risk analysis refers to the uncertainty of predicted cash flow streams, the variance of portfolio or stock returns, the probability of a project’s success or failure, and possible future economic situations. Risk analysts frequently collaborate with forecasting experts to reduce the likelihood of future negative consequences. All businesses and individuals are exposed to some level of risk; without risk, benefits are less likely. The issue is that taking too much risk can result in failure. Risk analysis allows you to strike a balance between taking risks and minimizing them. ### **Understanding Risk Analysis** Risk assessment allows businesses, governments, and investors to determine the likelihood that a negative event may have a negative impact on a company, economy, project, or investment. Risk assessment is critical for establishing the value of a project or investment, as well as the appropriate process(es) for mitigating those risks. Different approaches to risk analysis can be used to evaluate the risk-reward trade-off of a possible investment opportunity. The first step for a risk analyst is to figure out what could possibly go wrong. These drawbacks must be balanced against a probability metric that determines the possibility of an event occurring. Finally, risk analysis tries to predict the magnitude of the impact that will occur if the event occurs. Many identified risks, including as market risk, credit risk, and currency risk, can be minimized by hedging or buying insurance. Almost all large businesses necessitate some form of risk analysis. Commercial banks, for example, must adequately hedge foreign exchange exposure on overseas loans, while huge department stores must account for the possibility of lower revenues as a result of a worldwide recession. It’s crucial to understand that risk analysis allows experts to identify and manage hazards, but not to totally eliminate them. **Types of Risk Analysis** -------------------------- Risk analysis can be quantitative or qualitative. ### **Quantitative Risk Analysis** A risk model is constructed using simulation or deterministic statistics to assign numerical values to risk in quantitative risk analysis. A risk model is given inputs that are primarily assumptions and random variables. The model generates a range of outputs or outcomes for each given set of inputs. Risk managers assess the model’s output using graphs, scenario analysis, and/or sensitivity analysis to make judgments on how to mitigate and deal with the risks. A Monte Carlo simulation can be used to produce a number of different possible outcomes from a decision or action. Simulation is a quantitative technique that calculates results for random input variables several times, each time with a different set of input values. The model’s final result is a probability distribution of all potential possibilities, with the result of each input recorded. The results can be presented using a distribution graph that includes metrics of central tendency such as the mean and median, as well as standard deviation and variance to analyse the data’s variability. Risk management tools like scenario analysis and sensitivity tables can also be used to examine the consequences. Any event’s best, middle, and worst outcomes are depicted in a scenario analysis. Separating the different outcomes from best to worst gives a risk manager with a reasonable range of information. For example, a multinational corporation might be interested in knowing how its bottom line would fair if the exchange rate of a few countries strengthened. A sensitivity table illustrates how results change when one or more random variables or assumptions are changed. A portfolio manager might use a sensitivity table to determine how changes in the varying values of each security in a portfolio will affect the portfolio’s variance. Decision trees and break-even analysis are two other forms of risk management techniques. ### **Qualitative Risk Analysis** Qualitative risk analysis is an analytical process that does not use numerical and quantitative evaluations to identify and evaluate hazards. A formal characterization of the uncertainties, an assessment of the magnitude of the impact (if the risk occurs), and countermeasure preparations in the event of a negative event is all part of qualitative analysis. SWOT analysis, cause and effect diagrams, decision matrix, game theory, and other qualitative risk tools are examples. A company that wants to assess the impact of a data breach on its servers might use a qualitative risk technique to help prepare for any lost revenue that may result. **Related Articles to Risk Analysis** * ​[Cracking the Code: Unraveling the World of Predictive Analytics](https://blogs.buyproperly.ca/What-is-Predictive-Analytics)​ * [Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [When’s the Right Time to Invest and 4 Factors to Consider](https://blogs.buyproperly.ca/whens-the-right-time-to-invest-and-4-factors) * [Here’s How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire) ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Demystifying Homeowners Association (HOA) Fees: A Guide to Understanding and Managing Costs Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Rental Property Management, Special Assessments, HOA Fees, Condominium Ownership, Legal Actions URL: https://buyproperly.ai/blog/homeowners-association-hoa-fee ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/hoa1-1714795106760-compressed.jpeg) **What Is Homeowners Association (HOA) Fee?** --------------------------------------------- The phrase homeowner's association (HOA) fee refers to the amount of money that some types of residential property owners must pay to their homeowners’ associations (HOAs) on a monthly basis. These fees are collected to aid the association in the maintenance and improvement of its holdings. HOA fees are generally always imposed on condominium owners; however, they may also be imposed in some single-family house neighborhoods. [View Investment](https://buyproperly.ca/properties) ### **Homeowners Association (HOA) Fees: What You Should Know** Homeowners' associations are non-profit organizations that are charged with establishing and enforcing rules for specific properties and the people who live there. Typically, these groups form in planned communities, subdivisions, or condo complexes. When you buy one of these homes, you instantly become a member of the association. As a result, they must pay their dues in the form of monthly payments known as homeowners' association fees. Condo owners typically pay HOA fees to cover the costs of maintaining the building’s common areas, which include: * Lobbies * Patios * Landscaping * Swimming pools * Elevators Some basic amenities, such as water/sewer and waste disposal, may also be covered by fees. If the association’s reserve funds (funds set aside for significant and/or emergency repairs) are insufficient to support a major repair, such as a new elevator or roof, the company may levy special assessments from time to time. These costs may also apply to single-family homes, particularly townhouses, in certain communities, especially if common amenities like tennis courts, a community clubhouse, or neighborhood parks must be maintained. Depending on the property or neighborhood, HOA costs might be rather different. The monthly payments might be anywhere from $100 to $1,000. However, the typical monthly cost is between $200 and $300. The basic guideline is that the more services and amenities you have, the higher your prices will be. **Special Considerations** -------------------------- When a member fails to pay their HOA dues, it impacts the rest of the community. Due to a shortage of funding, common areas may suffer, or other members may be charged extra fees to pay maintenance costs or other expenditures. The HOA has the power to take legal action against non-paying homeowners. The activities are regulated by the HOA’s and homeowner’s agreement. To collect delinquent payments, some contracts allow the HOA to impose late fees to the homeowner, while others allow the HOA to file a lawsuit, place a lien on the property, or foreclose on the owner’s property. **Criticism of Homeowners Association (HOA) Fees** -------------------------------------------------- The cost of HOA fees is the most common complaint. As previously said, they can cost anywhere from a few hundred to several thousand dollars per month. Of course, this is dependent on the sort of property and the amenities available. Paying monthly fees on top of mortgage payments and other expenses like utilities can put property owners in a bad financial situation. If the reserve fund isn’t properly handled, owners may pay greater fees. Remember, these are cash set aside for unanticipated and/or major property repairs. Furthermore, the HOA’s board of directors and/or management have a fiduciary responsibility to ensure that the reserve funds are properly kept and handled. HOAs often establish restrictions for parking and the use of communal areas. In single-family home areas, the HOA may establish restrictions regarding how often residents can paint their homes, what sorts of fences they can have, how they must maintain their landscape, and other related concerns. This can ruffle a few feathers and put homeowners and associations on the defensive. ### **What Do HOA Fees Normally Cover?** The costs of maintaining common facilities such as lobbies, patios, landscaping, swimming pools, tennis courts, a community clubhouse, and elevators are often covered by HOA fees. In many situations, the rates cover basic services like water and sewer, as well as rubbish disposal. If the association’s reserve funds are insufficient to handle a major repair, such as a new elevator or roof, special assessments may be imposed. ### **What Is the Average Range for HOA Fees?** HOA dues vary widely, although some estimates place them between $100 and $1,000 each month, with the average falling between $200 and $300. The amount of an HOA fee varies depending on the type of property and the amenities provided—the higher the costs, the more services, and amenities provided. When an association’s reserve money isn’t managed properly, owners may pay increased costs. ### **What Happens if a Homeowner’s Association Fee Isn’t Paid?** The HOA may take action against property owners who do not pay their monthly or annual fees, as well as any special assessments. These acts are governed by the HOA’s and homeowner’s agreement. Some allow the HOA to charge late fees, while others allow it to file a lawsuit, place a lien on the property, or foreclose on the owner’s home to collect unpaid dues. If you’d like to learn more about how you can expand your real estate portfolio without putting down a large cash deposit (or all the hassles that come with it!) [**Here is a link to our eBook**](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/hoa-1714795130882-compressed.jpg) **​ ** **Related Articles to HOA Fees** * [The Pros and Cons of Investing in Single-Family Homes](https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-single-family-homes) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://buyproperly.ai/blog/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [When’s the Right Time to Invest and 4 Factors to Consider](https://buyproperly.ai/blog/whens-the-right-time-to-invest-and-4-factors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide) * [The 5 Types of Real Estate Investments](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments) * [11 Real Estate Investing Mistakes to Avoid](https://buyproperly.ai/blog/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking Financial Leverage: Understanding the Debt-to-Equity (D/E) Ratio in Corporate Finance Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Investment Strategy, risk assessment, Debt-to-Equity Ratio, Short-term Debt, Leverage Ratios, Financial Leverage, Corporate Finance, Balance Sheet Analysis, Shareholder Equity, Long-term Debt URL: https://buyproperly.ai/blog/debt-to-equity-d-e-ratio ![](https://lh5.googleusercontent.com/Q86nvA_uoMtvlL4cbdoAc_qKfwaGi_YS1xs0Vvk1bdhNVWo4ag3aL7JD4kbrXJOr5mAln6lk1dEU0IxUnA2mb0qrqCFvskoq-6PfzEDIiDRCbM5_KNmHxTM5G9v-yA) **What Is the Debt-to-Equity (D/E) Ratio?** ------------------------------------------- The debt-to-equity (D/E) ratio is computed by dividing a company’s total liabilities by its shareholder equity to determine its financial leverage. Incorporate finance, the D/E ratio is a crucial measure. It’s a measure of how much a corporation relies on debt to fund its operations rather than totally owned funds. In the event of a business downturn, it indicates the ability of shareholder equity to satisfy all outstanding debts. A specific sort of gearing ratio is the debt-to-equity ratio. [View Investment](https://buyproperly.ca/properties) ### **Debt-to-Equity (D/E) Ratio Formula and Calculation**   Debt/Equity= Total Liabilities/Total Shareholders’ Equity ​The D/E ratio requires information from a company’s balance sheet. Total shareholder equity must equal assets minus liabilities on the balance sheet, which is a rearranged form of the balance sheet equation: Assets=Liabilities+Shareholder Equity ​Individual accounts that would not usually be considered “debt” or “equity” in the traditional sense of a loan or the book value of an asset may be included in these balance sheet categories. Because retained earnings/losses, intangible assets, and pension plan adjustments can affect the ratio, more investigation is usually required to determine a company’s true leverage. Analysts and investors frequently change the D/E ratio to make it more helpful and easier to compare different stocks because of the uncertainty of some of the accounts in the key balance sheet categories. Short-term leverage ratios, profit performance, and growth expectations can all help improve the D/E ratio analysis. **What Does the Debt-to-Equity (D/E) Ratio Tell You?** ------------------------------------------------------ Because the D/E ratio compares the amount of a firm’s debt to the value of its net assets, it’s commonly used to determine how much debt a company is taking on to leverage its assets. A high D/E ratio is frequently associated with high risk; it indicates that a corporation has used debt to fund its growth. When a lot of debt is utilized to fund growth, a company may be able to make greater earnings than it would have been able to without it. Shareholders should expect to benefit if leverage boosts earnings by more than the debt’s cost (interest). Share values may fall if the cost of debt financing outweighs the higher income generated. The cost of debt can fluctuate depending on market conditions. As a result, unprofitable borrowing may go unnoticed at first. Because long-term debt and assets are larger accounts than short-term debt and short-term assets, changes in them have the biggest impact on the D/E ratio. Other measures can be used by investors to assess a company’s short-term leverage and its capacity to meet debt commitments due in a year or less. The **cash ratio**, for example, is used by an investor to compare a company’s short-term liquidity or solvency: Cash Ratio = Cash + Marketable Securities/Short-Term Liabilities  or the **current ratio:** Current Ratio= Short-Term Assets/Short-Term Liabilities  instead of a long-term leverage measure like the D/E ratio. **Modifications to the Debt-to-Equity (D/E) Ratio** --------------------------------------------------- The total value of assets less liabilities is equal to shareholders’ equity on the balance sheet, but this is not the same as assets minus the debt connected with those assets. Modifying the D/E ratio into the long-term D/E ratio is a frequent solution to this problem. This method allows an analyst to concentrate on the most important risks. Short-term debt is still a part of a company’s overall leverage, but it’s less dangerous because it’ll be paid off in a year or less. Consider the difference between a corporation with $1 million in short-term payables (wages, accounts payable, and notes, for example) and a company with $500,000 in short-term payables and $1 million in long-term debt. Both companies have a D/E ratio of 1.00 if they have $1.5 million in shareholder equity. On the surface, the risk from leverage appears to be the same, but the second company is actually riskier. Short-term debt is often less expensive than long-term debt, and it is less vulnerable to interest rate fluctuations, therefore the second company’s interest expense and cost of capital are higher. Long-term debt will need to be refinanced if interest rates decrease, which will raise costs even more. Rising interest rates appear to favor companies with greater long-term debt, but if the loan is redeemable by bondholders, it may still be a disadvantage. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Articles to Debt & Equity** 1. [Millennials struggle to chase Real Estate dreams using traditional investment options.](https://blogs.buyproperly.ca/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) 2. [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) 3. [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) 4. [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) 5. [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) 6. [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) 7. [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Navigating Capital Gains Tax: A Comprehensive Guide to Understanding and Calculating Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Capital Gains Tax, Tax Thresholds, Tax Calculations, Unrealized Capital Gain URL: https://buyproperly.ai/blog/capital-gains-tax ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-23-1714867437950-compressed.png) What Is Capital Gains Tax? -------------------------- The profit realized on the sale of a non-inventory asset is subject to a capital gains tax (CGT). Stocks, bonds, precious metals, real estate, and property are the most prevalent sources of capital gains. Not every country has a capital gains tax, and most have varying tax rates for people and businesses. On valuable items or assets sold at a profit, capital gains tax may be due. If you make enough money from antiques, stocks, precious metals, or second houses, you may be subject to the tax. The amount of tax that must be paid varies. The government establishes a lower limit of profit that is large enough to be taxed. If the profit falls below this threshold, it is tax-free. In most circumstances, profit is the difference between the amount (or value) of an asset sold and the price paid for it. ### **How is capital gain tax calculated?** In case of short-term capital gain: Capital gain = final sale price – (the cost of acquisition + house improvement cost + transfer cost). In case of long-term capital gain: Capital gain = final sale price – (transfer cost + indexed acquisition cost + indexed house improvement cost). ### **Definition of ‘Capital Gain/loss’** Definition: The profit earned on the sale of an asset such as stocks, bonds, or real estate is known as a capital gain. When the selling price of an asset exceeds its acquisition price, it results in a capital gain. It is the gap between the asset’s selling (higher) and cost (lower) prices. When the cost price is higher than the selling price, a capital loss occurs. Description: A capital gain occurs when the selling price of an asset surpasses its cost price or purchase price. There are two sorts of capital gains: realized and unrealized.  1) A realized capital gain is the profit earned on an investment that was sold for a profit. 2) Unrealized capital gain is the profit on an investment that has not yet been sold but could make money if sold later.  Capital gain is a term used in financial discussions to describe again that has been realized. When an investment is sold, capital loss is the inverse of capital gain, resulting in a loss. Capital gain/loss is the difference between the selling price and the cost/purchase price of an investment in basic terms. A capital gain occurs when the selling price is higher than the cost price, while a capital loss occurs when the selling price is lower than the cost price. Example: Assume a guy paid Rs 10,000 for 100 shares of Rs 100 apiece. (Formula 1: Capital Gain) If he sells those shares for Rs 130 each after a year, the total selling price of those 100 shares will be Rs 13,000, resulting in a profit of Rs 3,000. This is referred to as capital gain. (Case 2: Capital Loss) However, if the person sells those shares for Rs 80 each after a year, realizing Rs 8,000 on those 100 shares, he will lose Rs 2,000. This is referred to as a capital loss. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/capital-gain-tax-1714867626141-compressed.jpeg) **What is considered a capital gain or loss?** ---------------------------------------------- If you sell an asset for more than its adjusted basis, you earn a capital gain. If you sell an asset for less than its adjusted basis, you incur a capital loss. Personal-use property losses, such as those from the sale of your home or automobile, are not tax-deductible. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employs a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Articles to Property Taxes** * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [How to Invest in Real Estate Without Fear of Rejection](https://buyproperly.ai/blog/how-to-invest-in-real-estate-without-fear-of-rejection) * [11 Real Estate Investing Mistakes to Avoid](https://buyproperly.ai/blog/11-real-estate-investing-mistakes-to-avoid) * [The 5 Types of Real Estate Investments](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments) * [When’s the Right Time to Invest and 4 Factors to Consider](https://buyproperly.ai/blog/whens-the-right-time-to-invest-and-4-factors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking Wealth: A Deep Dive into Capital Appreciation and Investment Growth Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Investment Strategies, Passive Real Estate Investment, Unrealized Capital Gain, Capital Appreciation, Investment Growth, Economic Factors, Market Dynamics, Asset Valuation, Dividend Income, Financial Markets URL: https://buyproperly.ai/blog/capital-appreciation ![](https://lh3.googleusercontent.com/p0C7cQ_J_agFKbIg1Ggu-He8OGZjDs0k1po8C_qwYWBmEOtRD_Ey6Di2mp20a-gi4vnXOpkvOJ9siCMXTpUpkkl064R9C6Bb1ihaIpoVomECLFbXMht7gVQ6ZaX77g) **What Is Capital Appreciation?** --------------------------------- A growth in the market price of an investment is known as capital appreciation. The difference between an investment’s purchase price and its selling price is known as capital appreciation. If an investor buys a stock for $10 per share and the price climbs to $12, the investor has made a $2 profit. The $2 received becomes a capital gain when the investor sells the stock. ### **Understanding Capital Appreciation** The portion of an investment where market price increases exceed the original investment’s purchase price or cost basis is referred to as capital appreciation. In different markets and asset classes, capital appreciation can happen for a variety of reasons. The following are some examples of financial assets that are invested in for capital appreciation: * Real estate holdings * Mutual funds, or funds with a pool of money invested in a variety of securities * ETFs or exchange-traded funds or securities that track an index such as the S&P 500 * Oil and copper are examples of commodities. * Stocks or equities Capital appreciation isn’t taxed until the investment is sold and the gain is realized, at which point it becomes capital gain. Capital gains tax rates differ based on whether the investment was made for a short or lengthy period. However, capital appreciation isn’t the only way to make money from your investments. Other important sources of income for investors are dividends and interest income. Dividends are cash payments made by firms to shareholders in exchange for their investment in the company’s shares. Interest can be gained by keeping money in interest-bearing bank accounts like certificates of deposit. Bonds, which are debt instruments issued by governments and corporations, can also generate interest revenue. Bonds typically pay a yield or a fixed rate of interest. The total return is defined as the sum of capital appreciation and dividend or interest income. ### **Causes of Capital Appreciation** Asset values can rise for a variety of causes. Macroeconomic variables such as strong economic development or Federal Reserve policy such as decreasing interest rates, which supports loan growth and injects money into the economy, can all contribute to an increase in asset values. On a more detailed level, a stock price can rise because the underlying company is growing faster than its industry’s competitors or faster than market participants anticipated. Because of its closeness to new projects such as schools or commercial malls, the value of real estate, such as a house, can grow. Because people have secure jobs and income, a strong economy can contribute to an increase in home demand. **Investing for Capital Appreciation** -------------------------------------- Many mutual funds include capital appreciation as a stated investing goal. These funds seek investments that will appreciate in value as a result of higher earnings or other fundamental criteria. Investments aimed towards capital appreciation, such as government bonds, municipal bonds, or dividend-paying equities, are more risky than assets aimed at capital preservation or income creation, such as government bonds, municipal bonds, or dividend-paying stocks. As a result, capital appreciation funds are thought to be the best choice for risk-tolerant investors. Growth funds are often referred to as capital appreciation funds since they invest in the stocks of firms that are rapidly expanding and increasing in value. Investors use capital appreciation as an investment strategy to meet their financial objectives. ### **Capital Appreciation Bond** Municipal securities are defined as capital appreciation bonds that are backed by local government agencies. These bonds work by compounding interest until maturity, when the investor receives a lump sum payment that includes the bond’s value as well as any accrued interest. Traditional bonds, which normally pay interest every year, are not appreciation bonds. **Example of Capital Appreciation** ----------------------------------- An investor buys a stock for $10, and the stock pays a $1 annual dividend, resulting in a 10% dividend yield. A year later, the stock is trading at $15 a share, with a $1 dividend paid to the investor. As the stock price rose from its purchase price or cost basis of $10 to its present market value of $15 per share, the investor received a $5 return through capital appreciation. The increase in stock price resulted in a 50% return on capital appreciation in percentage terms. In keeping with the original dividend yield, the dividend income return is $1, corresponding to a 10% return. The total return on the stock is $6, or 60%, when capital appreciation and dividend returns are added together. Are you looking to make your first (or next) real estate purchase? We employ innovative AI technology at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can [**get started for as low as $2500 (and expect yearly profits of 10-40%)**](https://buyproperly.ca/). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at BuyProperly.com. **Related Articles to Net Profit (net income)** * [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World](https://blogs.buyproperly.ca/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) * [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Diversification Decoded: Building a Resilient Investment Portfolio Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Diversification in Investments, Investment Strategies, Property Investment Portfolios, financial goals, Portfolio Management, Risk Mitigation, Unsystematic Risk, Asset Allocation, Market Risk, Systematic Risk URL: https://buyproperly.ai/blog/diversification-in-investing ![](https://lh5.googleusercontent.com/kuyr1ndc7yW6P7c2O3ZYfTqjCphhGVOVDPP6dP3TFAY_MAm3HnZG3KGZi7BgTefeBXP6RBGQdQNfaDEafDKB9wDiOa_qlybJB9kZ2fcDiq7L_RgQUMZVu_ypwgeAkA) What Is Diversification in Investing? ------------------------------------- Diversification is a risk-reduction strategy that spreads investments over a variety of financial instruments, industries, and other categories. Its goal is to maximise profits by investing in a variety of sectors that will react differently to the same event. Although diversification does not guarantee against loss, most investing professionals agree that it is the most crucial component of achieving long-term financial goals while limiting risk.  ### **Understanding Diversification in Investing** Assume you have a portfolio that consists solely of airline stocks. Any negative news, such as an indefinite pilot strike that will result in flight cancellations, may cause stock values to fall. This implies that the value of your portfolio will drop. You can offset these equities with a few railway stocks, ensuring that just a portion of your portfolio is impacted. In fact, when passengers seek alternative forms of transportation, there is a significant possibility that these stock values will climb. Because of the risks involved with these companies, you may diversify even further. That’s because anything that has an impact on travel will have a negative impact on both businesses. Rail and air stocks may have a high link, according to statisticians. This implies that you should diversify across industries as well as different sorts of businesses. The higher the degree of uncorrelation between your equities, the better. Diversify your portfolio across asset types as well. Bonds and stocks, for example, do not react to negative occurrences in the same manner. Because stocks and bonds move in opposite directions, combining them in your portfolio will lessen your portfolio’s sensitivity to market movements. As a result, diversifying your portfolio will counter any negative movements in one area with positive outcomes in another. Not to mention the importance of location. Look for opportunities outside of your immediate area. **How Many Stocks You Should Have** ----------------------------------- Obviously, holding five stocks is preferable to owning one, but there comes a point at which adding more equities to your portfolio is no longer beneficial. The number of stocks required to decrease risk while retaining a high return is a source of debate. According to the most widely held belief, an investor can achieve optimal diversification by owning merely 15 to 20 equities diversified over a variety of industries. ### **Different Types of Risk** When it comes to investing, there are two categories of risk that investors must consider. The first is what is referred to as systematic or market risk. Every business is exposed to this type of risk. Inflation, exchange rates, political instability, conflict, and interest rates are all common factors. This type of risk isn’t unique to any company or industry, and it can’t be avoided or mitigated through diversification. It is a type of risk that must be accepted by all investors. Diversifiable or unsystematic risk is the second form of risk. A company, industry, market, economy, or country faces this risk. Business risk and financial risk are the most common sources of unsystematic risk. Because it is diversifiable, investors can lower their risk by diversifying their holdings. As a result, the goal is to invest in a variety of assets so that market shocks do not influence them all equally. ### **What Does Diversification Mean in Investing?** Diversification is a risk-mitigation and return-maximizing technique that involves allocating investing assets among a variety of vehicles, industries, firms, and other categories. ### **What Is an Example of a Diversified Investment?** Different asset types, such as stocks, bonds, and other assets, are included in a diversified investment portfolio. That’s not all, though. These vehicles diversify their portfolios by purchasing stock in a variety of companies, asset classes, and industries. A diversified investor’s portfolio, for example, might include equities from retail, transportation, and consumer staples companies, as well as corporate and government bonds. Money market accounts and cash can be used to diversify further. ### **What Happens When You Diversify Your Investments?** In order to maximize your returns, diversify your investments to limit the amount of risk you’re exposed to. Although certain risks, such as systemic risks, cannot be avoided, unsystematic risks, such as commercial or financial risks, can be hedged against. **The Bottom Line** Diversification can aid in risk management and decrease the volatility of an asset’s price changes. However, keep in mind that risk can never be totally avoided, no matter how well diversified your portfolio is. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and gain the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Articles to Current Assets** * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [11 Real Estate Investing Mistakes to Avoid](https://write.superblog.ai/sites/supername/buyproperly/posts/what-is-diversification-in-investing-clr64wcj3526923mjpkebf9u0/blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Amortization In Real Estate: A Complete Guide And Definition Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Adjustable-rate mortgages, Home financing, Principal and Interest, Fixed-Rate Mortgages, Loan Amortization Schedule, Interest Payments, Interest-Only Mortgages, Balloon Mortgages, Amortization, Real Estate Finance, Mortgage Repayment URL: https://buyproperly.ai/blog/amortization-in-real-estate **What Is Amortization In Real Estate?** ---------------------------------------- Amortization is a method of repaying debt in equal monthly installments over the life of the loan, with varying amounts of interest and principal payments. An amortization schedule is a table that indicates how much of your monthly payment goes toward interest and principal over the course of the loan’s duration. Let’s review some crucial terms. ### **Fully Amortized Loans** A fully amortized payment is one in which your term loan will be totally paid off by the end of the term assuming you make all of your payments according to the original schedule. ### **Positive Amortization** To lessen the risk of default, lenders often demand borrowers to repay a portion of the principal with each loan payment. As a result, as each payment is made, the loan balance decreases. Positive amortization is the term for this. ### **Negative Amortization** When a borrower makes the required payments on a loan, but the amount owed continues to climb because the minimum payment does not cover the cost of interest, this is known as negative amortization. How Does Amortization Work in Real Estate? ------------------------------------------ ### **Fixed-Rate Mortgages** For people who want to stay in their home for a long time, a fixed-rate mortgage is a terrific alternative. The interest rate on these loans is fixed for the whole term of the loan. Although the amount a borrower pays may fluctuate depending on local tax and insurance rates, fixed-rate mortgages give a predictable monthly payment for planning purposes. More of the monthly payment is applied to the interest at the start of a fixed-rate mortgage. As the interest balance drops, this changes, and more of the monthly payment is transferred to the principal. ### **Adjustable-Rate Mortgages (ARMs)** The majority of adjustable-rate mortgages (ARMs) feature a 5- to 7-year introductory period during which the borrower pays a fixed interest rate that is usually lower than the market rate. Once the introductory period is over, the lender will use a predetermined index to establish the borrower’s appropriate rate. If market interest rates rise, the borrower’s interest rate may rise as well. If market rates have dropped, the borrower’s interest rate may have dropped as well. The highest and lowest interest rates that your loan can have been capped with ARMs. ### **Interest-Only Mortgage** For people who wish to buy a home while keeping their monthly payments modest, interest-only mortgages can be a good option. A 30-year interest-only loan allows the borrower to pay only interest for the first ten years. Following that, principal and interest payments for the remaining 20 years of the loan period would be made. ### **Balloon Mortgages** Any financing that contains a lump sum payment plan at any point during the period is referred to as a balloon mortgage. Balloon loans can be set up in a variety of ways. They can be interest-only payments during the introductory period, as stated above. Many balloon mortgages have monthly payments that include both principal and interest, but the borrower must always be prepared to cope with the lump sum payment, which normally occurs at the conclusion of the loan period. **The Bottom Line** Understanding how amortization works will help you determine which form of mortgage is best for you and your family. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employs a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics:** * [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) * [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) * [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Deciphering Real Estate Appraisers: Unveiling the Experts Behind Property Valuation Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Appraisers, Asset Appraisal, Property Valuation, Market Value, Licensure, Specialization, Commercial Real Estate, Residential Appraisers, Valuation Specialists URL: https://buyproperly.ai/blog/what-is-an-appraiser What Is an Appraiser? --------------------- A specialist who determines the market value of an asset, particularly in the real estate industry, is known as an appraiser. In a transaction, an appraiser is required to act independently of the buying and selling sides. Their assessment of an evaluated asset’s true and fair worth must be unbiased, based on observations as well as relevant statistics, facts, and other data. The appraiser may give their results in a written or verbal report, depending on the circumstances. ### **How Appraisers Work** Appraisers try to put a monetary value on artefacts like jewellery, art, jewels, and heirlooms. However, their services are mostly employed to determine the worth of real estate. Because of the lack of liquidity connected with assets like this, investors often hold appraisers in high respect. Every component and trait that impacts the value of an item is expected to be noted by all appraisers. In the case of real estate, this can entail considering things like the area’s overall noise levels, the property’s closeness to sources of periodic loud disturbances like an airport or a railroad line, as well as the property’s view. The general condition of the structure and grounds will also be taken into account. Obstructions by neighbouring buildings may also impair the value of a property. Appraisers might compare the asset to other similar pieces of property that have previously sold after gathering and documenting the information from their findings of the asset. They may also consider previous valuations of the same property. An appraisal can be delivered to the client either in writing or verbally once it has been completed. Appraisers are typically hired by individuals and corporations who want to determine the worth of a piece of property or sell an item. Appraisals may be required before an asset is sold—as is the case with real estate—as well as for regular municipal property tax evaluations. **Special Considerations** -------------------------- To practice their profession, most appraisers, especially those who work with real estate, must be licensed by their state. This requires a particular level of education and experience, as well as completing and passing a state licensing exam. When it comes to real estate, appraisers spend most of their time determining the value of one item at a time. Appraisers may specialize in a specific sector of real estate after gaining experience in making evaluations. A commercial real estate appraiser, for example, would concentrate on the market for office buildings, hotels, retail sites, and other properties that generate income. A residential appraiser, on the other hand, concentrates on properties where people and families live. Condominiums and single-family homes are examples of this. A residential appraiser works with properties with no more than four dwelling units. For the purposes of an appraiser, larger size properties, such as multiple – unit apartment buildings, would most likely be designated as a commercial property. If you’d like to learn more about how you can expand your real estate portfolio without putting down a large cash deposit (or all the hassles that come with it!) [**Here is a link to our eBook**](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). **Related Topics:** * [Multifamily Real Estate Investing: The Pros and Cons](https://blogs.buyproperly.ca/multifamily-real-estate-investing-the-pros-and-cons) * [How to Build Wealth in Your 30s: Simple Steps to Become Financially Free](https://blogs.buyproperly.ca/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free) * [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) * [When’s the Right Time to Invest and 4 Factors to Consider](https://blogs.buyproperly.ca/whens-the-right-time-to-invest-and-4-factors) * [Here’s How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Demystifying Appraisals: Decoding the Role of Professional Valuation in Real Estate Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Appraisals, Home Appraisals, Refinancing, Insurance Appraisals, Collectibles, Antiques, Valuation Methods, Estate Disputes URL: https://buyproperly.ai/blog/what-is-an-appraisal What Is an Appraisal? --------------------- An appraisal is a professional estimate of the value of a piece of property, such as real estate, a business, a collectible, or an antique. An authorized appraiser must be designated by a regulatory authority that governs the appraiser’s jurisdiction. Appraisals are commonly used for insurance and tax purposes, as well as to identify a potential selling price for a specific item or property. ### **Understanding Appraisals** Appraisals are utilized in a variety of situations, including real estate transactions. If a home appraisal comes in below the purchase price, for example, mortgage lenders are unlikely to fund the transaction. The deal will not proceed unless the prospective buyer is willing and able to cover the difference between the appraised value and the lender’s financing offer. To assess the right value of an item or property, the appraiser can use a variety of methods, including evaluating the current market’s worth of similar properties or things. When estimating the value of charitable donations for itemised deductions, appraisers are also used. By deducting the value of your donation from your taxable income, you can lower your taxes owing to the IRS. Appraisals can also be useful in resolving estate disputes among heirs by determining the worth of the real estate or belongings to be divided. **Types of Appraisals** ----------------------- ### **Home Appraisals** A home appraisal is required for the purchase and sale of a home, as well as the refinancing of an existing mortgage. When a loan or mortgage is re-evaluated and updated to current interest rates and terms, it is referred to as a refinance. The value of a home is determined by an appraisal, which ensures that the price reflects the home’s condition, age, location, and amenities such as the number of bathrooms. Appraisals also assist banks and lenders in avoiding lending the borrower more money than the residence is worth. The bank utilizes the appraisal as a valuation of the residence in the event of default, when the borrower can no longer make the payments. If the house is in foreclosure, which means the bank has taken possession of it, it must be resold in order for the lender to collect any losses from the mortgage loan. It’s vital to note that when a bank provides for a mortgage, the seller receives the full worth of the home on the day it’s sold. In other words, the bank is out of the money and has a guarantee from the borrower to pay it back, plus interest. As a result, the appraisal is critical to the loan process, since it assists the bank in avoiding losses and protecting itself from lending more than it can collect if the borrower defaults. ### **Collectibles or Antiques** Many items, including collectibles, antiques, and grandma’s silver, can be professionally appraised. Multiple valuations from an accredited professional are ideal for an item. Appraisers may charge an hourly rate or a flat price for their services. ### **Appraisals and Insurance** Appraisals of the goods being insured are also required by some insurance policies. Insurance policies for homeowners and renters safeguard policyholders against the loss of personal property due to theft or damage. These broad plans cover anything up to a certain dollar amount. An appraisal of a home’s contents generates an inventory of the owner’s belongings and confirms its value, which aids in a quick settlement if a claim is filed. When the value of specific items exceeds the maximum of a homeowner’s policy, the policyholder may choose to get supplementary insurance to cover luxury items like jewels or collectibles, such as art artefacts and antiques. Many insurance underwriters require applicants to have high-end items appraised before providing personal property insurance policies. The appraisal documents the item’s existence and its description. It also aids in determining the item’s true worth. In the event of a dispute between the owner and the insurance company, some insurance contracts contain an appraisal clause stating that the owner commits to get an assessment from a mutually agreeable expert. Neutral assessments can help speed up resolving a disagreement and prevent it from turning into a long and costly lawsuit. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics:** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [The 5 Types of Real Estate Investments](https://write.superblog.ai/sites/supername/buyproperly/posts/what-is-an-appraisal-clr64wcr8528823mj17bezxu5/blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Crafting Your Retirement Blueprint: Navigating the Best Retirement Plans in Canada Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Canada Pension Plan, Income in Retirement, Canadian Retirement Benefits, Financial Strategy, TFSA, Retirement planning, Guaranteed Income Supplement, OAS (Old Age Security) Plan, RRSP URL: https://buyproperly.ai/blog/best-retirement-plans-in-canada Retirement Plans in Canada -------------------------- On Mondays, what do you call someone who is cheerful? Retired. While you’re daydreaming about the day when you won’t have to clock in every day, keep in mind that retirement isn’t about what age you want to retire; it’s about what income you want to retire at. To create your retirement strategy, you’ll need a financial strategy for saving and investing your earnings until they can pay your expenditures when you retire. Canadians can plan and save for retirement in a variety of ways. Here are some resources to help you grow your savings. List of best Retirement Plans in Canada --------------------------------------- ### **Registered Retirement Savings Plan (RRSP)** The Registered Retirement Savings Plan (RRSP) is a popular tax-sheltered retirement savings plan for Canadians under the age of 71 who have earned an income and filed a tax return in order to accumulate RRSP contribution capacity. Your contribution room is calculated using 18% of your previous year’s earned income, up to a maximum contribution limit set for the tax year. You can carry forward any unused contribution room indefinitely. ### **Tax-Free Savings Account (TFSA)** A tax-free savings account is a very flexible tax-advantaged account that can be used to put money aside for the future. Consider it more than a high-interest savings account for an emergency fund, as its name suggests. Anyone over the age of 18 with a valid social insurance number (SIN) can invest in stocks, bonds, ETFs, and other investments through their TFSA. TFSA donations, unlike RRSP contributions, are made after-tax money and are not tax deductible. ### **The Canada Pension Plan (CPP)** The Canada Pension Plan is a taxed monthly retirement benefit that can help augment your income when you retire. You must be at least 60 years old and have made at least one valid CPP contribution to be eligible to apply for and receive benefits from the plan. You will receive the CPP retirement pension for the rest of your life if you qualify. ### **Old Age Security (OAS)** Old Age Security is a taxable monthly payment programme for seniors in Canada that is funded by general tax revenue. You must be at least 65 years old, a Canadian citizen or legal resident at the time your OAS application is granted, and have lived in Canada for at least 10 years since the age of 18 to be eligible for payments. When you turn 64, Service Canada will send you a letter confirming your enrollment. You’ll have to apply if you don’t receive the letter. You must have lived in Canada for 40 years to obtain the maximum payment ($615.37 per month in 2021). You can still get a partial benefit if you haven’t resided in Canada long enough to be eligible for the maximum amount. ### **Guaranteed Income Supplement (GIS)** The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit for low-income seniors. In most situations, you’ll receive a letter from Service Canada the month following you turn 64 informing you that you’ve been enrolled. You’ll have to apply if you don’t receive the letter. Single, widowed, or divorced seniors might receive up to $919.12 per month in 2021. As you make more money, this amount decreases until it disappears after your income hits $18,648. If you have a spouse or common-law partner, you may be eligible for additional GIS supplements. ### **Employer-sponsored Pension Plans** A qualified employer pension plan might provide you with a source of income after retirement. A defined benefit plan and a defined contribution plan are the two basic forms of employer pension plans. If your employer offers one of these alternatives, take advantage of the opportunity to boost your future earnings. Are you looking to make your first (or next) real estate purchase? [**We employ innovative AI technology**](https://buyproperly.ca/) at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at buyproperly.ca/properties.  **Related Topics:** * [Grow Your Wealth While Managing The Risks With Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) * [Investment and Wealth Basics: Real Estate edition](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [Here’s How Much Money You Need When You Retire](https://blogs.buyproperly.ca/heres-how-much-money-you-need-when-you-retire) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Guaranteed Income Supplement (GIS) in Canada: A Guide for Low-Income Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: average retirement income, GIS Benefits, Early Midlife, Retirement Planning Stages, Retirement planning URL: https://buyproperly.ai/blog/guaranteed-income-supplement-gis-plan ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/image3-1714585582077-compressed.jpg) What is Guaranteed Income Supplement (GIS) Plan? ------------------------------------------------ Retirement planning identifies retirement income objectives as well as the actions and decisions required to meet those objectives. Identifying sources of income, estimating expenses, putting in place a savings plan, and managing assets and risk are all part of retirement planning.  To determine whether the retirement income objective will be met, future cash flows are projected. Some retirement plans differ depending on whether you live in the United States or Canada, which has its own system of employer-sponsored retirement plans. Retirement planning should ideally be a life-long effort. You can begin at any moment, but it is most effective if you incorporate it into your financial planning from the start. That is the most effective strategy to ensure a safe, secure, and enjoyable retirement. The fun aspect is why it’s important to pay attention to the serious (and maybe boring) phase of the process: figuring out how you’ll get there. Do you want to know about Guaranteed Income Supplement (GIS) retirement plan? If yes, then you have arrived at the right place. Have a look below: The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit for low-income seniors. In most situations, you’ll receive a letter from Service Canada the month following you turn 64 informing you that you’ve been enrolled. You’ll have to apply if you don’t receive the letter. Single, widowed, or divorced seniors might receive up to $919.12 per month in 2021. As you make more money, this amount decreases until it disappears after your income hits $18,648. If you have a spouse or common-law partner, you may be eligible for additional GIS supplements. **What these benefits offer** ----------------------------- The Guaranteed Income Supplement (GIS) is a monthly payment you can get if you meet the following criteria: * you are 65 years old or older * you are a Canadian citizen * you’re eligible for an Old Age Security (OAS) pension * If you are single, widower, or divorced, your annual income is less than $19,464 * your income + your spouse’s/common-law partner’s income is below: * $25,728 if your spouse/common-law partner receives the full OAS pension * $46,656 if your spouse/common-law partner does not receive an OAS pension * $46,656 if your spouse/common-law partner receives the Allowance Low-income Old Age Security retirees are eligible for the Supplement, which is based on income. It is not subject to taxation. **Benefit for your spouse or common-law** **partner.** ------------------------------------------------------ ### **Allowance:** Your spouse or common-law partner may be eligible for the Allowance benefit if you are eligible for the Guaranteed Income Supplement and your spouse or common-law partner: * is 60 to 64 years of age * is a Canadian citizen or a legal resident * resides in Canada and has done so for at least 10 years since becoming 18 years old. * You make less than $36,048 per year as a couple (January to March 2022 maximum annual income threshold) ### **Allowance for the Survivor:** If you meet the following criteria, you may be eligible for the Survivor’s Allowance: * you are between the ages of 60 and 64 * you have not remarried or engaged into a common-law relationship after your husband or common-law partner died. * You make less than $26,256 per year (January to March 2022 maximum annual income threshold) **Stages of Retirement Planning** --------------------------------- The following are some tips for successful retirement planning at various phases of life. ### **Young Adulthood (Ages 21–35)** Those just starting out in adulthood may not have a lot of money to invest, but they do have time to let their investments mature, which is an important part of retirement planning. This is due to the principle of compound interest. Compound interest means that interest earns interest, and the longer you have, the more interest you’ll earn. Because of compounding, even if you can just put aside $50 each month, it will be worth three times more if you start investing at age 25 than if you wait until age 45. You may be able to invest more money in the future, but you can never make up for lost time. ### **Early Midlife (Ages 36–50)** Mortgages, student debts, insurance premiums, and credit card debt are all common financial stresses in early middle age. At this stage of retirement planning, though, it’s vital to keep saving. These are some of the finest years for aggressive saving since you can earn more money while still having time to invest and earn interest. ### **Later Midlife (Ages 50–65)** Your investing accounts should grow more conservative as you get older. While time is running out to save for folks who are nearing retirement, there are a few advantages. Higher salary, as well as the possibility of having some of the aforementioned expenses (mortgages, school loans, credit card debt, and so on) paid off by this time, can provide you more money to invest. It’s also never too late to open and fund a 401(k) or an IRA. Catch-up contributions are one of the advantages of this stage of retirement preparation. In 2021 and 2022, you can contribute an additional $1,000 per year to your regular or Roth IRA and $6,500 per year to your 401(k) starting at age 50. Are you interested in learning how to [**get started investing in real estate**](https://buyproperly.ca/) with as little as $2500? Then, you must contact us as soon as possible. **Related Articles to Guaranteed Income Supplement (GIS) Plan:** * [Grow Your Wealth While Managing The Risks With Diversification](https://buyproperly.ai/blog/grow-your-wealth-while-managing-the-risks-with-diversification) * [Investment and Wealth Basics: Real Estate edition](https://buyproperly.ai/blog/investment-and-wealth-basics-real-estate-edition) * [How to Invest in Real Estate Without Fear of Rejection](https://buyproperly.ai/blog/how-to-invest-in-real-estate-without-fear-of-rejection) * [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://buyproperly.ai/blog/artificial-intelligence-making-real-estate-investment-smarter-simpler) * [Millennials struggle to chase Real Estate dreams using traditional investment options](https://buyproperly.ai/blog/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Retirement Planning: A Comprehensive Guide for a Secure and Joyful Retirement Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: average retirement income, OAS Benefits, Retirement planning, OAS (Old Age Security) Plan URL: https://buyproperly.ai/blog/old-age-security-oas-plan ![new2.jpg](https://lh6.googleusercontent.com/CJTdgnV5Hu2_-lrAa0WAlraE0LjBeWlIc0YVU9-kI2aWrBhzGvEDQqchx-6AgZ6twbGPFq_mhq56GCrihQvcyY-DMDeSeciY69yXnkC2cxAkBP3mstY9HtB8W46WECKdfoLwJeiA) What Is Retirement Planning? ---------------------------- Retirement planning defines retirement income goals as well as the actions and decisions necessary to achieve them. Retirement planning helps identify sources of income, predicting spending, creating a savings plan, and managing assets and risk. Future cash flows are anticipated to determine whether the retirement income goal will be attained. Depending on whether you live in the United States or Canada, which has its own system of employer-sponsored retirement plans, some retirement plans differ. Planning for retirement should ideally be a life-long process. You can start whenever you like, but it will be most beneficial if you include it in your financial planning from the beginning. The most successful technique for ensuring a safe, secure, and joyful retirement is to do just that. The enjoyable side is why it’s critical to focus on the serious (and even tedious) phase of the process: determining how you’ll get there. ### Let’s take a look at Old Age Security (OAS) Retirement Plan:  Old Age Security is a taxable monthly payment programme for seniors in Canada that is funded by general tax revenue. You must be at least 65 years old, a Canadian citizen or legal resident at the time your OAS application is granted, and have lived in Canada for at least 10 years since the age of 18 to be eligible for payments. When you turn 64, Service Canada will send you a letter confirming your enrolment. You’ll have to apply if you don’t receive the letter. You must have lived in Canada for 40 years to obtain the maximum payment ($615.37 per month in 2021). You can still get a partial benefit if you haven’t resided in Canada long enough to be eligible for the maximum amount. If you earn a lot of money in retirement, you’ll have to pay a fifteen-cent recovery tax on every dollar you earn over a certain amount. This OAS “clawback” applies to everyone with a net income of more than $77,580 in 2019, up to a maximum of $126,058, beyond which you will no longer be eligible for OAS. Canadians normally receive their first OAS payment the month after they turn 65, but you can choose to wait until you’re 70 to receive benefits. Delaying your OAS payment by one month raises your monthly benefit by 0.6 percent. Your monthly payment will increase by 36% if you wait a maximum of 60 months before collecting OAS. **Stages of Retirement Planning** --------------------------------- The following are some tips for successful retirement planning at various phases of life. ### **Young Adulthood (Ages 21–35)** Those just starting out in adulthood may not have a lot of money to invest, but they do have time to let their investments mature, which is an important part of retirement planning. This is due to the principle of compound interest. Compound interest means that interest earns interest, and the longer you have, the more interest you’ll earn. Because of compounding, even if you can just put aside $50 each month, it will be worth three times more if you start investing at age 25 than if you wait until age 45. You may be able to invest more money in the future, but you can never make up for lost time. ### **Early Midlife (Ages 36–50)** Mortgages, student debts, insurance premiums, and credit card debt are all common financial stresses in early middle age. At this stage of retirement planning, though, it’s vital to keep saving. These are some of the finest years for aggressive saving since you can earn more money while still having time to invest and earn interest. ### **Later Midlife (Ages 50–65)** Your investing accounts should grow more conservative as you get older. While time is running out to save for folks who are nearing retirement, there are a few advantages. Higher salary, as well as the possibility of having some of the aforementioned expenses (mortgages, school loans, credit card debt, and so on) paid off by this time, can provide you more money to invest. It’s also never too late to open and fund a 401(k) or an IRA. Catch-up contributions are one of the advantages of this stage of retirement preparation. In 2021 and 2022, you can contribute an additional $1,000 per year to your regular or Roth IRA and $6,500 per year to your 401(k) starting at age 50. While stock market trading may be dangerous, and real estate investing can be time-consuming, BuyProperly combines the best of both worlds. BuyProperly is a [**fractional real estate company**](https://buyproperly.ca/) that lets anyone with just $2500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Are you ready to begin investing? Contact us today! **Related Articles to Old Age Security (OAS) Plan:** * [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) * [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [The Pros and Cons of Investing in Single-Family Homes](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-single-family-homes) * [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking Financial Freedom: A Deep Dive into TFSA Retirement Planning Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Investment Strategies, Income in Retirement, Young Adulthood, Early Midlife, Retirement Planning Stages, TFSA Retirement Plan, Tax-Free Savings Account, Contribution Room, Financial Flexibility, Later Midlife, compound interest URL: https://buyproperly.ai/blog/tax-free-savings-account-tfsa ![new4.jpg](https://lh5.googleusercontent.com/5d6U67g8uRUbw0F2guWpYtQmSKY8_lRpvPXdNI78g67z1Wc7upmGYgLFi_aUx_uyDnBKETPq7S-oQgxh8VwWcYJjY16CRE6WXGOPYjkNPUCdeX-iB7qnQRZJAdwjjgaKggFFPlGW) What is Tax-Free Savings Account (TFSA)? ---------------------------------------- Retirement planning identifies retirement income objectives as well as the actions and decisions required to meet those objectives. Identifying sources of income, estimating expenses, putting in place a savings plan, and managing assets and risk are all part of retirement planning. To determine whether the retirement income objective will be met, future cash flows are projected. Some retirement plans differ depending on whether you live in the United States or Canada, which has its own system of employer-sponsored retirement plans. Retirement planning should ideally be a life-long effort. You can begin at any moment, but it is most effective if you incorporate it into your financial planning from the start. That is the most effective strategy to ensure a safe, secure, and enjoyable retirement. The fun aspect is why it’s important to pay attention to the serious (and maybe boring) phase of the process: figuring out how you’ll get there. Let’s take a look at Tax-Free Savings Account (TFSA) Retirement Plan:  A tax-free savings account is a very flexible tax-advantaged account that can be used to put money aside for the future. Consider it more than a high-interest savings account for an emergency fund, as its name suggests. Anyone over the age of 18 with a valid social insurance number (SIN) can invest in stocks, bonds, ETFs, and other investments through their TFSA. TFSA donations, unlike RRSP contributions, are made after-tax dollars and are not tax deductible. The TFSA contribution room limit, determined by the Government of Canada each year, determines how much you can contribute. Any investment income produced or increases in the account’s investment value are tax-free, even when withdrawn, and withdrawals can be made at any time. In 2022, you’ll have $81,500 in contribution room if you’ve never contributed to a TFSA. Keep note of your contribution room limits in your CRA’s My Account, as any over contributions will be taxed at 1% per month. **Stages of Retirement Planning** --------------------------------- The following are some tips for successful retirement planning at various phases of life. ### **Young Adulthood (Ages 21–35)** Those just starting out in adulthood may not have a lot of money to invest, but they do have time to let their investments mature, which is an important part of retirement planning. This is due to the principle of compound interest. Compound interest means that interest earns interest, and the longer you have, the more interest you’ll earn. Because of compounding, even if you can just put aside $50 each month, it will be worth three times more if you start investing at age 25 than if you wait until age 45. You may be able to invest more money in the future, but you can never make up for lost time. ### **Early Midlife (Ages 36–50)** Mortgages, student debts, insurance premiums, and credit card debt are all common financial stresses in early middle age. At this stage of retirement planning, though, it’s vital to keep saving. These are some of the finest years for aggressive saving since you can earn more money while still having time to invest and earn interest. ### **Later Midlife (Ages 50–65)** Your investing accounts should grow more conservative as you get older. While time is running out to save for folks who are nearing retirement, there are a few advantages. Higher salary, as well as the possibility of having some of the aforementioned expenses (mortgages, school loans, credit card debt, and so on) paid off by this time, can provide you more money to invest. It’s also never too late to open and fund a 401(k) or an IRA. Catch-up contributions are one of the advantages of this stage of retirement preparation. In 2021 and 2022, you can contribute an additional $1,000 per year to your regular or Roth IRA and $6,500 per year to your 401(k) starting at age 50. Looking for a stress-free way to get started in real estate investing? See how we employ a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Articles to Tax-Free Savings Account (TFSA):** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Conditional Offers: Navigating Real Estate Transactions and Job Opportunities Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Real Estate Transactions, Job Offers, Home Inspection, Building Permits, Renovation Approval, Conditional Offers, Buyer's Protection, Escape Clause, Sale of Current Home, Bank Financing, Mortgage Clearance, Zoning Regulations, Property Conditions, Purchase and Sale Agreement, Negotiation Strategies URL: https://buyproperly.ai/blog/what-is-a-conditional-offer ![Conditional Offer.jpg](https://lh4.googleusercontent.com/diZRlTzZdUkq-d7PreM-dPkwdGDU_RptNvWs4ujSXpwHUooUUobsDIO7TfeKC-7HbbW5nozTem4BucBBA-VMEl9Q4fEb2eWc1ozpcZeUWK832qsYatYq-2AxFQreJaaHblrMfuN3) What Is a Conditional Offer? ---------------------------- A conditional offer is an agreement between two parties to make an offer if certain conditions are met. Conditional offers are used in real estate transactions when a buyer’s offer for a home is contingent on the completion of a certain task. To put it another way, something has to happen before a sale can be completed. A conditional offer can also refer to a job offer that is conditional on the fulfilment of specified requirements. Passing a background check, medical clearance, immigration clearance, and reference checks are just a few examples. ### **Understanding Conditional Offers** In real estate purchases, conditional offers are most commonly employed. When a buyer agrees to buy a home on the condition that it passes a home inspection, this is known as a conditional offer. The buyer or seller will be obligated to acquire or sell the property once the offer’s criteria are met. They are not required to finish the transaction if the conditions are not met. A conditional offer usually has a short time frame because the seller does not want to tie up the property for an extended period of time. Some real estate brokers will continue to show the property to prospective purchasers in order to put pressure on the conditional-offer buyer to complete the transaction as quickly as possible. It’s critical, though, to inform other possible buyers that the offer is conditional. If a second buyer makes an offer, the contract or any proposal must be written so that the sale is only completed if the first conditional offer is not met. ### **Special Considerations** Real estate brokers may also advise the seller to include an escape clause in the conditional offer in the event that a better offer comes up. Even if there is a conditional offer, the seller can engage other buyers, according to an escape clause inserted into the purchase and sale agreement. The seller would have to inform the previous buyer that a new offer had been made. The original purchaser would be given a set period of time to waive or satisfy the condition. If the requirement is not met within that time frame, the seller is free to sell to the second buyer. **Types of Conditional Offers** ------------------------------- Conditional offers for real estate purchases might be based on a number of things. The buyer is protected by a conditional offer, which prevents the property from being sold unless the particular criteria are met. If they aren’t, the seller is released and free to sell to someone else. The seller, on the other hand, is locked in uncertainty while waiting for the bidder to meet the terms of the offer letter. Aside from the house inspection, the following are some of the most frequent conditions that can be included in a conditional offer. ### **Sale of Current Home** For the transaction to move forward, the homebuyers may need to complete the sale of their current residence. Because the buyers’ assets are primarily related to their current house, the condition may be required. For example, the current home may need to be sold in order to spend a portion of the proceeds toward the down payment on the new home. ### **Bank Financing for the Buyer** A conditional offer is one in which the sale of a home is contingent on the buyer receiving mortgage clearance from a bank. If the funding falls through, the conditional offer is nullified. For example, the bank’s appraisal of the property may be lower than the price agreed upon between the buyer and seller. To put it another way, the mortgage loan would not pay the entire purchase price. The buyer would either have to pay the difference between the bank financing and the selling price or convince the seller to sell at a cheaper price. Furthermore, if the buyer’s current home has a mortgage loan, financing for the new property will most likely be subject to the transaction being completed. In other words, the buyer would be unable to obtain financing for the new home until the current home’s mortgage was paid off first. ### **Building and Renovation Permits** A conditional offer could be contingent on zoning and building permit approval from the local authority. It is not uncommon for house buyers to make modifications in addition to repairs and routine upkeep. Landscaping, repaving the driveway, building a deck or porch, enlarging the house’s footprint, or installing a swimming pool are all examples of improvements. The buyer may also desire to make or renovate space for a home business. Before any work on a property can be done, it may be necessary to obtain building permits and other clearances from the municipality. Setting up a home-based business may require a zoning exception if there is a prohibition against conducting business in a residential area. Assume that the adjustments do not receive local consent. In that situation, the conditional offer may be withdrawn if the buyer fails to use the property as expected. We’ve simplified a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to grow your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Conditional Offer:** * [3 Ways to Identify Ontario Neighborhoods that are Poised to Beat the Rest](https://blogs.buyproperly.ca/discover-upcoming-canadian-neighbourhoods) * [Are Canadians Moving to Secondary Cities? Should Toronto be worried?](https://blogs.buyproperly.ca/are-canadians-moving-to-small-cities) * [Why Portfolio Diversification Matters and the Role Real Estate Plays](https://blogs.buyproperly.ca/why-portfolio-diversification-matters) * [How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians](https://blogs.buyproperly.ca/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians) * [Passive vs. Active Investing: A Beginner’s Guide](https://blogs.buyproperly.ca/passive-vs-active-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Demystifying Conventional Mortgages: Your Guide to Private Home Financing Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Fannie Mae, Freddie Mac, Lending Standards, FHFA, Mortgage Documentation, Conventional Mortgage, Conventional Loan, Private Lenders, Conforming Loans, Home financing, Fixed-Rate Mortgages URL: https://buyproperly.ai/blog/conventional-mortgage-vs-loan ![Conventional Mortgage or Loan.jpg](https://lh6.googleusercontent.com/HQGfwjn3AZxXIp-SPa_5akzcMhtxEQjs10IhAU0Qe-ZT4W34PTDIkfnlbt6kHdOeG_la9QPKdq1joTgOBU9JPi_09AQ3apdFdfwnOywB0lUoWvjTY_t3Dp-1ssYQ-iu_5PyLTmm9) What Is a Conventional Mortgage or Loan? ---------------------------------------- Any sort of home buyer’s loan that is not given or secured by a government agency is referred to as a conventional mortgage or conventional loan. Private lenders, such as banks, credit unions, and mortgage companies, offer regular mortgages instead. However, two government-sponsored firms, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), can guarantee some conventional mortgages. ### **Understanding Conventional Mortgages and Loans** In most cases, conventional mortgages have a fixed rate of interest, which means that the interest rate does not fluctuate over the life of the loan. Because conventional mortgages or loans are not backed by the federal government, banks and creditors often have higher lending standards. ### **Conventional vs. Conforming** Conventional loans are frequently referred to as conforming mortgages or loans, which is incorrect. While there is some overlap, the two categories are separate. A conforming mortgage is one whose underlying terms and conditions satisfy Fannie Mae and Freddie Mac’s funding criteria. The Federal Housing Finance Agency (FHFA) sets a yearly dollar cap, which is the most important of these. A loan shall not exceed $647,200 in most of the continental United States in 2022 (up from $548,250 in 2021). All conforming loans are conventional, but not all conventional loans are conforming. Because it exceeds the level that would allow it to be underwritten by Fannie Mae or Freddie Mac, a jumbo mortgage of $800,000 is a conventional mortgage but not a conforming mortgage. There will be 8.3 million homeowners having FHA-insured mortgages in 2020.  The conventional mortgage secondary market is exceptionally large and liquid. Most traditional mortgages are bundled into pass-through mortgage-backed securities, which trade in the mortgage to be announced (TBA) market, which is a well-established forward market. Many of these traditional pass-through instruments are repackaged as collateralized mortgage obligations (CMOs). ### **How a Conventional Mortgage or Loan Works** Since the subprime mortgage meltdown in 2007, lenders have tightened lending qualifications—”no verification” and “no down payment” mortgages, for example, have vanished—but most of the essential standards have remained the same. Potential borrowers must first fill out an official mortgage application (and typically pay an application fee), then provide the lender with the relevant documentation so that the lender may conduct a thorough investigation into their background, credit history, and current credit score. **Required Documentation** -------------------------- There is no such thing as a fully financed property. A lender will look at your assets and obligations to see if you can afford your monthly mortgage payments, which should not exceed 28 percent of your gross income. The lender will also want to know if you can afford a down payment (and, if so, how much), as well as additional upfront expenditures like loan origination or underwriting fees, broker fees, and settlement or closing costs, all of which can dramatically increase the cost of a mortgage. The following elements are required: ### **Proof of Income** These documents may include, but are not limited to, the following: * Pay stubs from the previous thirty days, as well as year-to-date income * Federal tax returns from the previous two years * Sixty days’ notice or a quarterly statement of all asset accounts, including your checking, savings, and investment accounts. * W-2 statements over the past two years * Borrowers must also have confirmation of any other sources of income, such as alimony or bonuses. ### **Assets** You’ll need to show bank and investment account statements to show that you have enough money to cover the down payment and closing charges, as well as cash reserves. Gift letters, which declare that they are not loans and have no necessary or compulsory return, are required if you receive money from a friend or relative to help with the down payment. These letters will almost always require notarization. ### **Employment Verification** Lenders today want to make sure they’re only lending to those who have a steady job history. Not only will your lender want to see your pay stubs, but he or she may also call your employer to confirm that you are still employed and to enquire about your compensation. If you’ve just changed jobs, your old employer may be contacted by a lender. Borrowers who are self-employed will have to furnish a lot more information about their business and income. ### **Other Documentation** To get your credit report, your lender will need a copy of your driver’s license or state ID card, as well as your Social Security number and signature. Looking for a stress-free way to get started in real estate investing? See how we employ a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Conventional Mortgage:** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What are the 12 Steps of a Real Estate Closing? Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Real Estate Closing, Homebuying Process, Mortgage Pre-Approval, Title Search, Title Insurance, Negotiating Closing Costs, Attorney in Real Estate, escrow account URL: https://buyproperly.ai/blog/12-real-estate-closing-steps ![realestateclosing.jpg](https://lh5.googleusercontent.com/ZsA8cjJXx0CnNubJhh5QZr8dyuz8BpoyiK9zPYqikS9bRNEy5gWSkF7jGRRH7mj4iK1_0jSYm43ZQgqSZ0R8AhKEw-t57S1gmuoLajtGYZhV420aevwKwTDD3YJFpsZK4Jkinw2V) A real estate deal is typically a lengthy and tedious process including numerous phases and procedural formalities. Closing on a house occurs when you sign the paperwork that makes the house yours, but there is a long list of things that must happen before that fateful day arrives. Between the time your offer is accepted and the time you receive the keys to your new home, there are 12 stages to follow. **Why Mortgage Pre-Approval Is a Good Idea** -------------------------------------------- It’s a good idea to get pre-approved for a mortgage before you start looking for a property, unless you’re an all-cash buyer. While having a pre-approval letter is not required to consummate a sale, most sellers do expect buyers to have one. Having one can help speed up the process and provide you with greater bargaining power when it comes to negotiations. It communicates to the vendor that you are well-funded. It also gives you the option of locking in your interest rate, which means you’ll be more likely to get a good deal. Getting pre-approved for a mortgage also informs you of the maximum amount you can spend on a home. It saves you time and effort by allowing you to focus your search on properties that meet your budget. Finally, pre-approval for a mortgage offers you more time to respond to any potential discrimination. Assume you believe a potential lender has treated you unfairly. In that situation, you might look for funding elsewhere and pursue legal action afterwards. Pre-approval protects you from a single skewed lender destroying a good offer and postponing your aspirations. Following are the procedures you’ll need to take to close the deal once you’ve discovered the perfect house and a buyer has accepted your offer. the 12 Steps of a Real Estate Closing ------------------------------------- ### **Open an Escrow Account** A third party holds an escrow account on behalf of the buyer and seller. A property sale entails a series of stages spread out over several weeks. As a result, bringing in a neutral third party is the best method to protect either the vendor or the buyer from being tricked. This third party can keep all of the money and documentation associated with the transaction until it is completed. Following the completion of all procedural formalities, funds and papers are transferred from the escrow account to the seller and buyer, ensuring a secure transaction. ### **Title Search and Insurance** A title search and title insurance provide legal protection and comfort of mind. They ensure that no one else can claim a property after you have purchased it. A title search is a review of public documents to establish and validate a property’s legal ownership and to determine what claims, if any, are pending against it. If any claims exist, they may need to be settled before the buyer may take possession of the property. ### **Hire an Attorney** While legal assistance is not required, it is usually a good idea to have a professional legal opinion on your closing documents. Even for well-educated people, the intricate jargon in them might be difficult to comprehend. A professional real estate attorney’s perspective can provide several benefits for a reasonable charge, including clues of any potential difficulties in the documentation. ### **Negotiate Closing Costs** All related services and entities require money, from opening an escrow account to engaging a real estate attorney. If you’re not careful, these charges can quickly add up to a significant sum of money. Home and pest inspections, for example, are essential to avoid purchasing a home with hidden—and costly—problems. However, many of these services take advantage of people’s ignorance by charging high rates. Even normal closing service fees might be costly. ### **Complete the Home Inspection** A physical house inspection is required to identify any potential issues with the property and to examine the surrounding area. If you discover a major flaw in the house during the inspection, you’ll have the option to back out or ask the seller to rectify it. You can also get the seller to pay for the repairs (as long as your purchase offer includes a home-inspection contingency). ### **Get a Pest Inspection** A house inspection is not the same as a pest inspection. It entails a professional inspecting your home for wood-destroying insects such as termites or carpenter ants. Pests can be particularly damaging to properties made mostly of wood. Even small insect issues must be resolved before the loan can be closed, according to several mortgage companies. ### **Renegotiate the Offer** Even if your purchase offer has been accepted, you may want to renegotiate the price to include the cost of any necessary repairs discovered during inspections. You might alternatively keep the purchase price the same while negotiating with the seller to cover the cost of repairs. There’s no harm in asking, even if you’re buying the house “as is.” If a severe fault is discovered that the seller can’t or won’t address, you can still back out without penalty. ### **Lock in Your Interest Rate** Interest rates, notably those on mortgages, can be volatile and alter frequently. Rates are determined by a variety of factors, including the applicant’s credit score, geographic region, property type, and type of loan asked for. ### **Remove Contingencies** The following five conditions should be included in your real estate offer: * Obtaining financing at a rate that does not exceed your financial means * The home inspection revealed no major issues with the property * Any known concerns with the residence are fully disclosed by the seller. * The pest inspection revealed no serious infestations or structural damage to the house. * Any agreed-upon repairs being completed by the seller Active approval is a process that requires such contingencies to be removed in writing by particular dates stated in your purchase offer. ### **Meet Funding Requirements** When you signed the purchase agreement, you most likely put down earnest money. A deposit provided to a seller to demonstrate the buyer’s good faith, seriousness, and real interest in the property purchase is known as earnest money. If the buyer backs out, the earnest money goes to the seller as compensation. The money is returned to the buyer if the seller cancels. ### **Final Walk-Through** One of the last things you should do before signing your closing documents is to go over the property one last time. You want to check sure there hasn’t been any damage since your last inspection. You should also double-check that the vendor has done the required repairs and that no new issues have arisen. Finally, double-check that nothing from the purchase agreement has been removed. ### **Understand the Paperwork** Closing a real estate transaction requires a lot of paperwork. Despite the fact that there is a stack of papers filled with legal jargon and sophisticated legal phrases, you should read them all. Consult a real estate attorney if you don’t understand something. Your agent will also assist you in understanding any legal language. Are you looking to make your first (or next) real estate purchase? [**We employ innovative AI technology**](https://buyproperly.ca/) at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at buyproperly.ca/properties.  **Related Topics to Real Estate Closing:** * [Grow Your Wealth While Managing the Risks with Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) * [Investment and Wealth Basics: Real Estate edition](https://blogs.buyproperly.ca/investment-and-wealth-basics-real-estate-edition) * [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) * [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://blogs.buyproperly.ca/artificial-intelligence-making-real-estate-investment-smarter-simpler) * [Millennials struggle to chase Real Estate dreams using traditional investment options.](https://blogs.buyproperly.ca/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Are the Things You Need to Be Pre-approved for a Mortgage? Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Homebuying Process, Mortgage Pre-Approval, Credit Check, Proof of Assets, Bank Statements, Investment Accounts, Pre-Qualification, Pre-Approval, Proof of Income, Pay Stubs, Supplementary Income, Tax Returns URL: https://buyproperly.ai/blog/pre-approved-things-needed-for-mortgage ![Approved Lender.jpg](https://lh3.googleusercontent.com/2kkyEKQbIEBtTxufx8YwrdVxJ0W_4p_y4oVTG6EL5v84Il8XliRNLl54IHedP9QdZZKifWFIuFpCyEuFJnGMiOyyFKqkrDiqvwp5zbv2dhoz69Kd8nY3CErvHkuYfoqby_U-kRO3) What Are the Things You Need to Be Pre-approved for a Mortgage? --------------------------------------------------------------- Learn what you require in order to speed up the approval process. While looking for a home can be thrilling and enjoyable, serious homebuyers should begin their search at a lender’s office rather than at an open house. Most sellers expect purchasers to have a pre-approval letter and will be more likely to work with those who can show that they can get financing. To be pre-approved for a mortgage, potential purchasers must produce papers proving their assets and income, strong credit, and employment verification, among other things. ### **Pre-qualification vs. Pre-approval** A mortgage pre-qualification can be helpful in determining how much a person can afford to spend on a property, but a pre-approval is far more effective. It indicates that the lender has evaluated the credit of the potential buyer and verified the documentation in order to approve a specified loan amount (the approval usually lasts for a particular period, such as 60 to 90 days). Consultation with a lender and securing a pre-approval letter benefits potential purchasers in various ways.  First, they will meet with the lender to review loan alternatives and budgeting. Second, the lender will run a credit check on the buyer to see if there are any issues. The maximum amount a homeowner can borrow will also be revealed, which will aid in determining the price range. When the buyer obtains an appraisal and the loan is applied to a property, the loan is officially approved. **Requirements for Pre-approval** --------------------------------- You’ll need five items to get pre-approved for a mortgage: proof of assets and income, good credit, employment verification, and any other papers your lender may ask. Here’s a step-by-step guide to assembling the information below and getting ready for the pre-approval process: ### **Proof of Income** W-2 salary statements from the previous two years, recent pay stubs showing income as well as year-to-date income, proof of any supplementary income like as alimony or bonuses, and the two most recent years’ tax returns are typically required by buyers. ### **Proof of Assets** Bank and investment account statements are required to show that the borrower has sufficient funds for the down payment and closing charges, as well as cash reserves. ### **Good Credit** A FICO score of 620 or above is required by most lenders for a conventional loan, and some even require it for a Federal Housing Administration loan. Customers with a credit score of 760 or higher often receive the best interest rates. According to FHA criteria, eligible borrowers with a credit score of 580 or above can put down as little as 3.5 %. ### **Employment Verification** Lenders want to be sure they’re only lending to borrowers who have a steady job. A lender will want to see the buyer’s pay stubs as well as call the employer to confirm employment and salary. If a buyer has just changed jobs, the lender may wish to contact the old employer. ### **Other Documentation** To retrieve a credit report, the lender will need a copy of the borrower’s driver’s licence, as well as the borrower’s Social Security number and signature. Prepare to deliver any additional paperwork asked by the lender during the pre-approval session and later (as promptly as feasible).  **The Bottom Line** Getting advice from a lender before beginning the home-buying process can help you avoid a lot of misery later. Gather papers before your pre-approval appointment and, most importantly, before you start looking for a home. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employs a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Topics to Approved Lender:** * [How to Spend Your Tax Return to Grow Your Wealth](https://blogs.buyproperly.ca/how-to-spend-your-tax-return-to-grow-your-wealth) * [The Pros and Cons of Investing in Real Estate: Should You Jump In?](https://blogs.buyproperly.ca/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in) * [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) * [Artificial Intelligence making Real Estate Investment smarter, simpler.](https://blogs.buyproperly.ca/artificial-intelligence-making-real-estate-investment-smarter-simpler) * [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Mastering the Dynamics of Closed-End Mortgages: A Comprehensive Guide Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Mortgage Types, Interest rates, Home financing, closed-end mortgage, real estate loans, mortgage strategies, financial insights, loan options, mortgage pros and cons, Real Estate Finance URL: https://buyproperly.ai/blog/closed-end-mortgage ![Closed-end Mortgage.jpg](https://lh3.googleusercontent.com/3WivsKstOIrK47yZVFMNXyQKQ3nADa-9fWJntfdfNEUsTjOT7_ZPkwbRoez-oNfd8AAnn3UrANN1ilXEP5v9tRaIiPV-h6t5ueDf2Ulx99NjxL9RAbEmKKS6QTnidQYuqRBHxivI) What Is a Closed-end Mortgage? ------------------------------ A closed-end mortgage (commonly known as a “closed mortgage”) is a form of a loan that can’t be prepaid, renegotiated, or refinanced without the lender charging breakage fees or other penalties. This form of loan is appropriate for homeowners who do not expect to move very soon and are willing to commit for a longer period of time in exchange for a reduced interest rate. Closed-end mortgages also prevent you from pledging collateral that has previously been pledged to someone else. ### **Understanding Closed-end Mortgages** A closed-end mortgage might have a fixed or variable interest rate, but the borrower is subject to a number of restrictions. Closed-end mortgages, for example, prevent borrowers from utilizing the equity they’ve established in their property as security for additional loans.  So, if a borrower is 15 years into a 30-year, closed-end mortgage and has returned half of their debt, they are unable to obtain a home equity loan or other kinds of financing without first obtaining permission from the original lender and paying a breaking fee. In addition, if a closed-end mortgage borrower pays down their principal early, they will be charged a prepayment penalty.  When offering finance to a borrower, lenders may offer closed-end mortgages as a strategy to reduce risk. By having a closed-end mortgage, the lender can be confident that no other lenders can claim the house as collateral if the borrower defaults on the mortgage or declares bankruptcy. In exchange, the closed-end mortgage lender may structure the deal to provide the borrower with cheaper interest rates. **Open-end vs. Closed-end** **Mortgages.** ------------------------------------------ Open-end vs. closed-end mortgages are two types of mortgages. A closed-end mortgage can’t usually be renegotiated, repaid, or refinanced until the entire loan is paid off—at least not without a substantial cost. Closed-end mortgages, on the other hand, usually have lower interest rates because lenders consider them to be less risky. On the other hand, an open-end mortgage can be paid off early. Payments can often be made at any time, allowing borrowers to pay off their mortgage considerably more rapidly and without incurring additional fees. Open-end mortgages, on the other hand, usually have a higher interest rate. Other forms of mortgages, known as convertible mortgages, attempt to deliver the best of both worlds by combining closed-end and open-end mortgages. ### **Pros and Cons of a Closed-end Mortgage** A closed-end mortgage has a lower interest rate as its primary benefit. On closed-end mortgages, lenders will typically offer their lowest interest rates, and consumers may rest assured that this rate will not alter for the duration of the loan. Closed-end mortgages are a good choice if you want to keep your mortgage for a long time and don’t mind paying it back slowly and steadily—or if you just want the reassurance of knowing that your mortgage payments will remain the same for the duration of your loan. The disadvantage of a closed-end mortgage is that it restricts your options. If you inherit a large quantity of money and have a closed-end mortgage, you won’t be able to use the funds to pay off the loan more quickly. Similarly, open-end mortgages may be preferable for people whose careers are still in their early stages, as they can adapt their repayments to their income rather than a fixed amount. As a result, open-end mortgages can assist you in paying off your mortgage more quickly, albeit at a higher interest rate. **Other Considerations** If a homeowner can obtain a home equity loan—for example, if their primary mortgage is open-end—the new financing may be characterized as a closed-end second mortgage. This sort of borrowing, unlike a home equity line of credit (HELOC), cannot be increased to allow the borrower to take out even more money against the home. Homebuyers choosing a closed-end mortgage should read the terms carefully and comprehend the full scope of the conditions.  While reduced mortgage interest rates may be appealing, consumers may be limited in how they manage their finances as a result. A borrower who wants to pay off their loan early to save money on interest costs, for example, will be charged a penalty or will be left paying the continuous interest for the life of the loan. We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). **Related Topics to Closed-end Mortgage:** * [How to Calculate ROI in Real Estate to Maximize Your Profit](https://blogs.buyproperly.ca/how-to-calculate-roi-in-real-estate-to-maximize-your-profit) * [Grow Your Wealth While Managing The Risks With Diversification](https://blogs.buyproperly.ca/grow-your-wealth-while-managing-the-risks-with-diversification) * [How to Create a Real Estate Investment Business Plan](https://blogs.buyproperly.ca/how-to-create-a-real-estate-investment-business-plan) * [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) * [Why Invest in Real Estate: 7 Key Benefits to Know](https://blogs.buyproperly.ca/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Decoding Closing Costs: A Comprehensive Guide for Homebuyers Author: BuyProperly Engineering Published: 2022-03-24 Category: Insights Tags: Real Estate Transactions, Negotiating Closing Costs, Property purchase, RESPA, Escrow deposit URL: https://buyproperly.ai/blog/what-are-closing-costs ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/closing-costs-1714871151035-compressed.jpg) What Are Closing Costs? ----------------------- Closing costs are the charges that purchasers and sellers typically incur in order to complete a real estate transaction, in addition to the property’s price. Loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges are all examples of these expenditures.  Within three days of receiving a house loan application, the lender is obligated by law to provide these charges on a loan estimate form. Closing expenses may apply to gifts of equity (real estate transactions to a relative or close friend at a below-market price). ### **How Much Are Closing Costs?** Closing fees are incurred when a property’s title is transferred from the seller to the buyer. The entire monetary amount of closing charges varies depending on the area and the property’s valuation. Homebuyers typically spend between 2% and 5% of the purchase price in closing expenses. Lenders are required by law to offer a loan estimate that includes the transaction’s closing fees.  They are required to submit this information within three days of receiving the borrower’s loan application under the federal Real Estate Settlement Procedures Act (RESPA). The lender must also submit a closing disclosure statement describing all closing fees at least three days prior to the closing. The fees listed may differ from the loan estimate. **What Do Closing Costs Include?** ---------------------------------- The loan estimate and closing disclosure will detail all of the closing fees. Here are some of the most common costs you’ll experience: ### **Application fee** The lender will charge you a fee to handle your mortgage application. Before applying for a mortgage, check about the lender’s policies. ### **Attorney fee** A real estate attorney charges a fee to design and evaluate property purchase agreements and contracts. A real estate transaction does not have to be handled by an attorney in every state. ### **Closing fee** This cost, which is sometimes known as an escrow fee, is paid to the party in charge of the closing: the title firm, escrow business, or attorney, depending on state law. ### **Courier fee** If you’re signing paper documents, this charge will help speed up their delivery. You might not have to pay this fee if the closing is done digitally. ### **Credit report fee** A fee is charged ($15 to $30) by a lender to get your credit reports from the three major credit agencies. Because they receive a discount from the credit reporting agencies, certain lenders may not charge this cost. ### **Escrow** deposit. At closing, some lenders demand you to put two months’ worth of property tax and mortgage insurance payments into an escrow account. ### **Flood determination and monitoring fee** This is a fee paid to a flood inspector who is certified. The role of the inspector is to evaluate whether the property is in a flood zone and so requires flood insurance (separate from your homeowner’s insurance policy). Continuous monitoring of changes in the property’s flood status is included as part of the price. ### **Homeowner association transfer fee** You may be obliged to join a homeowner association (HOA) if you purchase a condominium, townhouse, or property in a planned development. This charge covers the costs of transferring ownership, such as paperwork updates. You should double-check if the charge is paid by the seller or the buyer before signing the contract. A copy of the HOA’s financial statements, notifications, and minutes should be provided by the seller, along with paperwork showing HOAdue amounts. ### **Homeowners insurance** At closing, a lender will normally want proof that you’ve paid your first year’s homeowner’s insurance premium. ### **Lead-based paint inspection.** This is a cost paid to a professional inspector to assess if the property contains lead-based paint that is hazardous to health. ### **Lender’s title insurance** The lender is protected by an upfront, one-time charge paid to the title business if an ownership dispute or lien emerges that was not discovered during the title search. ### **Origination fee** This fee is normally 1% of the loan amount and pays the lender’s administrative costs in processing your loan. To cover these costs, some lenders do not impose origination fees and instead charge a higher interest rate. ### **Owner’s title insurance** This coverage safeguards you in the event that your home’s ownership is challenged. It is normally optional, but legal experts strongly advise it. ### **Pest inspection** This is a one-time fee that covers the cost of a professional pest inspection to check for termites, dry rot, or other damage. An inspection is required in some states and for some government-insured loans. ### **Points** Points (or discount points) are an optional advance payment to the lender that lowers your monthly payment by lowering the interest rate on your loan. A point is equal to 1% of the loan amount. Paying points may not save you any money at a time when mortgage interest rates are already low. ### **Prepaid daily interest** **charges.** A payment to cover any interest that will accumulate on your mortgage from the time you close until your first payment is due. **Special Considerations: Mortgages With No Closing Costs** ----------------------------------------------------------- Many, but not all, fees for the buyer at closing are eliminated with no-closing-cost mortgages. If you’re short on funds, these mortgages can help in the short term, but they normally come with higher interest rates. Your lender may offer to incorporate your closing expenses into your mortgage, but this may increase your loan balance and require you to pay interest on those charges. Are you looking to make your first (or next) real estate purchase? [**We employ innovative AI technology**](https://buyproperly.ca/) at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at buyproperly.ca/properties.  **Related Topics to Closing Costs:** * [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) * [How to Choose an Investment Property: A Step-by-Step Guide](https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide) * [The Pros and Cons of Investing in Single-Family Homes](https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-single-family-homes) * ​[Millennials struggle to chase Real Estate dreams using traditional investment options.](https://buyproperly.ai/blog/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options)​ * [Investment and Wealth Basics: Real Estate edition](https://buyproperly.ai/blog/investment-and-wealth-basics-real-estate-edition) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Guarding Your Portfolio: The Top 4 Inflation-Resistant Investments Author: BuyProperly Engineering Published: 2022-03-17 Category: Insights Tags: Financial Planning, Investment Strategies, real estate loans, Inflation protection, Portfolio diversification, Commodities, Stocks, REITs URL: https://buyproperly.ai/blog/the-4-best-investments-for-inflation-protect-your-wealth Whether you’re brand new to investing or your portfolio is filled with stocks, bonds, and other traditional assets designed to build wealth, it’s important to consider the impact of inflation. What if there were a few key investments you could add to your portfolio that were specifically included to help protect you from inflation? In this blog post, we’ll explore four of the best investments for inflation and how they can help improve your overall portfolio performance. Keep reading to learn more! **How does inflation work?** ---------------------------- When we take a closer look, inflation is actually quite logical.  When prices for goods and services increase, people tend to want to hold on to their money instead of spending it. This decrease in demand (along with an increase in supply) causes prices to level off or even go down. So, over time, the average price of all goods and services will increase. This is why it’s important for investors to include inflation hedges in their portfolios – because, as we’ve seen, unchecked inflation can have a serious negative impact on your long-term wealth. **Why does inflation happen?** ------------------------------ Inflation is a rise in the general level of prices for goods and services in an economy over time. It is measured as an annual percentage increase. When inflation rises, every dollar you have buys a smaller percentage of a good or service than it did before. In other words, your money loses value. There are several factors that can contribute to inflation, including: * too much money chasing too few goods and services, * rising production costs, such as wages and energy prices, * a decline in the value of the U.S. dollar, and * government policies, such as tax increases or spending. **How does inflation affect your investments?** ----------------------------------------------- Inflation can have a significant impact on your investments, particularly if you have a long-term investment horizon.  When inflation rises, it can erode the value of your investments over time. The best way to combat inflation is to invest in assets that are likely to rise in value at a rate greater than the rate of inflation. **What is the prediction for inflation in 2023 and beyond?** ------------------------------------------------------------ There is not one definitive answer to this question. Inflation can be impacted by a number of factors, including global events and economic conditions. As a result, it’s difficult to make an accurate prediction. However, most economists expect inflation to continue rising over the next few years. **Here are the 4 best investments to hedge inflation:** ------------------------------------------------------- ### **Commodities**  Commodities are a good investment for hedging inflation because they tend to rise in value as the cost of production increases. Furthermore, commodities are not dollar-based, so they are less affected by fluctuations in the value of the U.S. dollar. In addition, commodities can be a good hedge against stock market volatility. Commodities are not at risk in the same way as goods and services, so they can provide a “safe haven” during periods of high inflation. As an added bonus, commodities tend to have low correlations with other asset classes, making them a good addition to a diversified portfolio. Some of the best commodities to invest in include gold, silver, and platinum. ### **Real Estate** Real estate has long been considered a solid investment for hedging against inflation. Why? Because not only can landlords raise rents to keep pace with inflation, but the underlying value of real estate usually rises along with prices. Real estate is a good investment for inflation because it tends to rise in value along with the cost of living. In addition, real estate provides investors with two important benefits. First, it’s a tangible asset that can be used as collateral for loans.  Second, it offers investors a degree of insulation from stock market volatility. Some of the best types of real estate to invest in include commercial and residential property. The biggest problem with investing in real estate is all the upfront capital it takes to get started. This means that most investors are stuck being unable to buy into the market or growing their portfolio very slowly. Fortunately, there are alternatives to traditional real estate investing! Here at BuyProperly, we use a fractional ownership model to allow people to invest in real estate for as little as $2500 to start. We use an AI-powered platform to source the best property deals with the highest cash flow. **Want to learn more? Visit [BuyProperly](https://buyproperly.ca/)** ### **Stocks** Stocks are a good investment for hedging inflation because they tend to rise in value as the economy expands.  Stocks offer investors the potential for capital gains and dividends. Additionally, stocks offer liquidity, which means you can sell them at any time. Not all stocks offer the same level of inflation “protection”.  To find the best stocks to hedge inflation, you’ll want to look for companies with a strong track record of dividend growth. Some of the best stocks to invest in include technology companies, pharmaceutical companies, and energy companies. ### **REITs** REITs are a good investment for inflation because they tend to rise in value as the cost-of-living increases. Additionally, REITs offer liquidity and dividend payments. Some of the best REITs to invest in include retail, office, and industrial properties. The benefits of investing in REITs are that they provide investors with a degree of insulation from stock market volatility, and they offer a steady stream of income in the form of dividends.  **Conclusion** -------------- Inflation is a normal and expected event in any economy, but that doesn’t mean you should expect your investments to lose value over time. If you grow your portfolio with a strategy in mind, inflation can work with you, not against you. In order to best protect your investments from the effects of inflation, it is important to diversify your portfolio across different asset classes. By investing in commodities, real estate, various stocks, and REITs, you can help ensure that your investments will rise at a rate greater than the rate of inflation. If you’re interested in learning how to get started in real estate investing for only $2500, **visit** [**buyproperly.ca**](https://buyproperly.ca/) We consistently help investors find the best property deals with high cash flow and projected annual returns of 10-40%! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investing in Canadian and U.S. Real Estate: Diversify Your Portfolio Author: BuyProperly Engineering Published: 2022-03-17 Category: Insights Tags: Passive Real Estate Investment, Property Investment Portfolios, Canadian real estate market, U.S. real estate market, Best cities to invest, Portfolio diversification, Diversification strategies, Economic growth, Real estate opportunities, International real estate, Risk Management URL: https://buyproperly.ai/blog/investing-in-canadian-and-u-s-real-estate-diversify-your-portfolio If you’re looking to invest in real estate, you may be wondering **_where_** you should be investing to get the best bang for your buck!  Nowadays, there are so many opportunities for investors to venture outside of their hometowns and cities. In fact, if you’re considering investing in real estate, you can consider looking throughout North America for lucrative property deals! Both Canada and the United States have their pros and cons when it comes to investing, but there are some key differences you should be aware of.  In this article, we’ll explore the Canadian and US real estate markets, why it’s important to diversify into both markets, the best cities to invest in. Compared to the United States, investing in Canadian real estate is a relatively new concept. However, over the past few years, Canada has seen a dramatic increase in interest from foreign investors. This is partly due to the stable economy and growing housing market in Canada. One of the biggest benefits of investing in Canadian real estate is that it’s a relatively safe investment. The housing market is not as volatile as the US market, and it’s less likely to experience a crash. Additionally, Canada has a strong economy and low levels of debt, making it a desirable place to invest. According to [Better Dwelling](https://betterdwelling.com/canadas-gap-between-real-estate-prices-and-incomes-looks-ridiculous-beside-us-data/#:~:text=Canadian%20Home%20Prices%20Have%20Grown%2013x%20Faster%20Than%20In%20The%20US&text=As%20of%20Q2%202021%2C%20Canada,US%20over%20the%20same%20period.), “As of Q2 2021, Canada has seen real home prices rise 139% since 2005. In contrast, the US has only seen real home prices rise 10% over the same period. Canadian home prices have seen 13x the growth of the US over the same period.” In contrast, the US real estate market is significantly more mature than the Canadian market, and there is a greater variety of investment options available.  **Benefits of investing in the Canadian real estate market** ------------------------------------------------------------ There are a few key benefits of investing in Canadian real estate. Let’s take a closer look: **1\. Stability** – Canada is a stable country with strong economic fundamentals. This stability makes the Canadian real estate market an attractive place to invest your money. **2\. Renters are plentiful** – In most major Canadian cities, there is a high population density and a high percentage of renters. This means that there is a lot of demand for rental units, which drives up rents and provides good investment returns. **3\. Limited foreign ownership** – In Canada, there is tight control over foreign ownership. This limits the amount of foreign investment in the market, which helps to maintain stability and control prices. **4\. High returns –** In general, Canadian real estate provides higher returns than similar investments in the United States. This is due to the combination of stable prices and high rents. **Benefits of investing in the U.S. real estate market** -------------------------------------------------------- The U.S. real estate market also has fantastic upsides such as: **1\. Higher returns** – In most cases, U.S. real estate provides higher returns than Canadian real estate. This is due to the combination of higher prices and stable rents. **2\. Liquidity** – The U.S. real estate market is much more liquid than the Canadian market. This means that it is easier to sell your property if you need to. **3\. Diversification** – Investing in U.S. real estate can give you access to a wider assortment of properties helping you diversify your portfolio and reduce your risk exposure. **4\. Lower taxes** – In the United States, there are lower taxes on real estate investments than in Canada. This can save you a lot of money in the long run. **Similarities between the U.S. and Canadian real estate markets** ------------------------------------------------------------------ When diversifying your real estate portfolio across North America, it’s nice to know that Canada and the United States have several similarities including: **1\. Mature markets**– The U.S. and Canadian real estate markets have been around for a long time, and they are both relatively stable. **2\. Rising property values** – In both markets, property values are steadily increasing. This makes it a good time to invest in real estate. **3\. Rising rents** – In both markets, rents are going up, which means that you can earn good returns on your investment. **4\. Similar regulations** – The regulations governing real estate investments are similar in both countries. This makes it easy to invest in either market. Aside from these similarities, there are only a few key differences to keep in mind. For example, the U.S. market is much more liquid than the Canadian market which means that it is easier to sell your property if you need to. The U.S. real estate market is also much more developed than the Canadian market. This means that there are more opportunities to invest in different types of properties. Finally, the U.S. market is more competitive than the Canadian market which means that you will have to compete with more buyers for the best properties. **Which city is best to invest in real estate?** ------------------------------------------------ There is no one-size-fits-all answer to this question. Every city has its own unique advantages and disadvantages when it comes to investing in real estate. However, some cities are definitely better than others. We help investors find lucrative properties and start investing for as little as $2500. Our AI technology selects the properties that are ideal to invest in with the highest returns. Also, since we manage the properties and tenants,  investing in a property far from where you live isn’t a problem! If you’re looking to grow your real estate portfolio across North America, **check out our properties [here](https://buyproperly.ca/properties).** ### **Here are five of the best cities to invest in real estate in Canada:** **1\. Toronto –** Toronto is one of the largest and most vibrant cities in Canada. It has a strong economy and a high population density, making it a great place to invest in rental property. **2\. Vancouver** **–** Vancouver is also a large and prosperous city with a high population density. It is one of the most expensive cities in Canada to live in, which makes it a good place to invest in property. **3\. Calgary –** Calgary is the third-largest city in Canada and it has a strong economy. It is also a great place to invest in real estate because of its low taxes and high returns. **4\. Montreal –** Montreal is the largest city in Quebec and it has a diverse economy. It is a great place to invest in real estate because of its high population density and low taxes. **5\. Edmonton** – Edmonton is the fifth largest city in Canada and it has a strong economy. It is also a great place to invest in real estate because of its low taxes and high returns. ### **Here are five of the best cities to invest in real estate in the United States:** **1\. New York City –** New York City is the largest city in the United States, and it has a strong economy. It is also a great place to invest in property because of its high population density and high rents. **2\. Los Angeles –** Los Angeles is the second-largest city in the United States and it has a strong economy. It is also a great place to invest in property because of its high population density and high rents. **3\. San Francisco –** San Francisco is the fourth largest city in the United States and it has a strong economy. It is also a great place to invest in property because of its high population density and high rents. **4\. Chicago –** Chicago is the third-largest city in the United States and it has a strong economy. It is also a great place to invest in property because of its high population density and low taxes. **5\. Dallas –** Dallas is the ninth-largest city in the United States and it has a strong economy. It is also a great place to invest in property because of its high population density and low taxes. As you can see, there are a lot of great places to invest in real estate in both Canada and the United States. It’s also important to consider investing in areas that may not be well established, yet still have tremendous potential for growth. At ButProperly, we have properties in up-and-coming urban centers like Phoenix and fast-growing cities like Austin, Texas. Don’t be afraid to branch out and explore new locations that are poised for economic expansion! **The benefits of diversifying real estate by location** -------------------------------------------------------- When investing in real estate, it is important to diversify your portfolio by location. This means investing in property in different cities and countries. By doing this, you will minimize your risks and maximize your returns. Investors that focus solely on local properties end up missing out on several opportunities including new developments and up-and-coming cities outside their marketplace! You’ll also be able to build a very diverse portfolio focusing on both capital appreciation and cash flow investing in real estate at all different price points. Additionally, investing in property in different countries will help you protect your portfolio from any potential economic downturns. For example, if the economy of the United States weakens, you can rely on your investments in Canadian real estate to help offset any losses. Having property in both the U.S. and Canadian markets will allow you to better leverage your assets.  For example, if you need to borrow money to invest in more real estate, you’ll be able to get a better interest rate as a Canadian investor because the lender will see that you have diversified your portfolio. **Conclusion** -------------- There are many great reasons to invest in real estate in both Canada and the United States. By diversifying your portfolio by location, you’ll be able to minimize your risks and maximize your returns. Additionally, investing in property in different countries will help you protect your portfolio from any potential economic downturns. Lastly, having property in both the U.S. and Canadian markets will allow you to better leverage your assets.  So, what are you waiting for? It’s time to start investing to build a lucrative real estate portfolio! Wondering how to make the first move? **[View Properties](https://buyproperly.ca/properties)** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Deciphering Property Tax Calculations: A Comprehensive Guide for Investors Author: BuyProperly Engineering Published: 2022-03-09 Category: Insights Tags: Property Valuation, Property tax assessment, Tax jurisdiction, Property assessment methods, Real estate taxation, Property value estimation, Mill levy calculation, property appraisal URL: https://buyproperly.ai/blog/property-taxes [**Back to Investing Wiki**](https://blog.buyproperly.ca/investing-wiki) ![](https://lh5.googleusercontent.com/X7fnAH5cyvKkvxJIU4DcE6tfUDh5_wQmJD6MoESxoG1gss2YddoT1ZtTBrIlUL7TXutFr-lS5eq-Nu8qfLOzUx4NLUm7kmWpMeR-SLGqrfyCqef9j7e-bwfmPt6WSA) **How Property Taxes Are Calculated** ------------------------------------- Millions of homeowners pay property taxes each year. It’s crucial to understand the calculations behind how property taxes are assessed by the property appraiser’s office in your community, rather than merely paying the tax bill when it’s due. You can ensure that you are not being overcharged this way. [View Investment](https://buyproperly.ca/properties) ### **Assessing Property Tax** Different sorts of taxes are assessed on the land and its structures, depending on the property classification. Vacant land, for example, will have a substantially lower assessed value than a comparable piece of renovated property, resulting in cheaper property taxes. The land assessment may be greater if there is access to public facilities such as sewer, water, and gas. If the assessor believes the land has development potential, the owner may face a higher assessment and higher taxes. A percentage of the property’s assessed value is used to determine how much a property is taxed. Property taxes are a significant source of revenue for local governments. The proper rates are decided by various boards, councils, and legislatures. They hold budget hearings to determine how much money is needed to provide the many services that the community requires. Property taxes provide for services including education, transit, emergency services, parks, recreation, and libraries. ### **Calculating Property Taxes** The valuation of the property is used to calculate property taxes. This refers to both the land and the buildings on it. Tax assessors will typically evaluate the property every one to five years and charge the owner-of-record the appropriate rate based on the taxing authority’s requirements. Assessors use the mill levy–also known as the millage tax–and the assessed property value to arrive at that figure. ### **Mill Levy or Millage Tax** The mill levy is a tax rate based on the value of your home, with one mill equalling one-tenth of a cent. One mill equals $1 for every $1,000 in assessed property value. Tax levies for each tax jurisdiction in an area are computed separately, and then the total mill rate for the region is calculated by adding all the levies together. In general, each city, county, and school district has the authority to impose taxes on the properties within its jurisdiction. Each entity determines its own mill levy, which is then added together to determine the total mill levy. Assume a county’s total assessed property worth is $100 million, and the county determines that it requires $1 million in tax income to run its operations. The mill levy would be calculated as $1 million divided by $100 million, totalling 1%. Let’s say the city and school district both came up with a mill levy of 0.5 % and 3%, respectively. The region’s total mill levy would be 45 mills, or 4.5 % (1 % + 0.5 percent + 3 %). **3 Ways to Assess Property Value** ----------------------------------- The assessor has the choice of employing one of three methodologies to estimate the market value of the property, or any combination of the three. ### **1\. Performing a Sales Evaluation** The assessor determines the value of the property by looking at recent sales in the region. The location, the condition of the property, any improvements, and the overall market circumstances are all factors to consider. After that, the assessor adjusts the figures to reflect particular changes to the property, such as new additions and renovations. ### **2\. The Cost Method** This is when the assessor evaluates the value of your home based on the cost of replacing it. Assessors calculate the amount of depreciation that has occurred and how much the property would be worth if it were unoccupied if it is older. For newer properties, the assessor subtracts any reasonable depreciation and considers the price of construction materials and labor, including these costs, into the property’s ultimate value. ### **3\. The Income Method** This method is based on how much money you could make if you rented the home. The assessor examines the costs of maintaining, managing, insurance, and taxes, as well as the return you could reasonably expect from the property when using the income method approach. After assessing the property’s market value, the assessed value will be calculated by multiplying the actual value by an assessment rate. That rate is a fixed proportion that varies by tax jurisdiction and could be anything below 100%. The assessed value is multiplied by the mill levy to determine the amount of property taxes owed. Assume the assessor concludes that your property is worth $500,000 and that the assessment rate is 8%. The assessed value of the property would be $40,000. Using the 4.5 % mill levy we determined earlier, the tax due would be $1,800 ($40,000 x 4.5%). The assessor works in two stages after they have the value: They provide the owner the assessed value of the property first, and then a tax bill after that. **The Bottom Line** Taxes on property investment might be confusing. Understanding how the tax is computed, where to receive this information, and when tax bills are sent out and due are all necessary for paying the correct amount. Residents in some cities can view and/or pay their property tax bills online. Property owners may help themselves stay informed by learning how taxes are calculated when the billing cycle is, and where they can get it. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employs a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). **Related Articles to Property Taxes** 1. [Flipping vs Renting: Which Strategy is Better for Real Estate Investors?](https://blogs.buyproperly.ca/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors) 2. [How to Choos​e an Investment Property: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-choose-an-investment-property-a-step-by-step-guide)​ 3. [How to Become a Real Estate Investor: A Step-by-Step Guide](https://blogs.buyproperly.ca/how-to-become-a-real-estate-investor-a-step-by-step-guide) 4. [How to Invest in Real Estate Without Fear of Rejection](https://blogs.buyproperly.ca/how-to-invest-in-real-estate-without-fear-of-rejection) 5. [11 Real Estate Investing Mistakes to Avoid](https://blogs.buyproperly.ca/11-real-estate-investing-mistakes-to-avoid) 6. [The 5 Types of Real Estate Investments](https://blogs.buyproperly.ca/the-5-types-of-real-estate-investments) 7. [When’s the Right Time to Invest and 4 Factors to Consider](https://blogs.buyproperly.ca/whens-the-right-time-to-invest-and-4-factors) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Spend Your Tax Return to Grow Your Wealth Author: BuyProperly Engineering Published: 2022-03-07 Category: Insights Tags: InvestingStrategies , EmergencyFund , TaxReturnInvesting , FinancialPlanning , PeerToPeerInvesting , InvestInYourself , DividendInvesting URL: https://buyproperly.ai/blog/how-to-spend-your-tax-return-to-grow-your-wealth Are you anticipating a tax return this year? If you’re like most people, you may be thinking about that next big purchase you want – a new TV, the latest smartphone, or even a vacation! While there’s nothing wrong with treating ourselves once and a while, those treats won’t do anything for us in the long run. What about looking for ways to invest your refund to grow your wealth, save for retirement, and set yourself up for a lucrative financial future? With so many options available, it can be tough to decide how to best use your money. In this blog post, we’ll discuss some of the smartest ways to invest your tax return and grow your wealth (and invest in yourself!). So read on for some helpful tips! **Start by making a** plan. --------------------------- The most important thing you can do when you’re expecting any lump sum of money is to plan for it.   Sit down and make a list of all your expenses, like rent or mortgage payments, groceries, utilities, gas, etc. Then estimate how much money you’ll need to get through the next 6 months. You should also think about any debts you’d like to get rid of – for example, if you owe $5000 on a credit card with 21% interest, you might consider investing your tax return in paying it off. Remember, rather than letting your emotions take over, one of the best ways to get money working for you is to make a plan and spend it wisely! **How can you make money work for you?** ---------------------------------------- It’s common to look at the money and your bank account and think, _“… if I have x amount of dollars, I can buy something that costs x amount.”._ So many people work tirelessly to make enough money to fund their lifestyle while forgetting that money can also grow their wealth!   If you know how to spend it, money is an incredible tool for investing and growing your wealth. And investing a tax return is actually one of the smartest things you can do! Best of all, investing doesn’t always mean investing in stocks or mutual funds – that’s just one option. You may want to consider investing in [fractional real estate ownership](https://buyproperly.ca/) or even something that will give you immediate returns. For example, if you’re trying to save up for a new car, investing your tax refund could help you get there much faster.  This is why investing your tax return in particular accounts like a TFSA is such a smart idea. If you put $5000 of your refund into a TFSA and invest it wisely (we’ll discuss investing strategies later), you could make up to $50,000. Let’s discuss the top 10 ways to invest your tax return. ### **1\. Start an emergency fund** An emergency fund is a stash of cash that you hold in reserve for unexpected expenses. But the sad truth is, many people never build one. And when an unplanned bill comes up, they have to borrow money or sell something to come up with the cash they need. By investing your tax return and building an emergency fund, you can make sure you have money set aside for life’s unexpected moments. Start investing your tax return by opening a high-yield savings account to earn interest on your funds. Remember, the earlier you start saving, the more time your money will have to grow. If you’re not sure how much to save, try to save at least 3 months’ worth of expenses. ### **2\. Boost your [retirement savings](https://blogs.buyproperly.ca/registered-retirement-savings-plan-rrsp)** Most people spend their entire working lives investing funds in order to prepare for retirement. But if you start investing your tax return and boost your contributions, you can set yourself up for a comfortable retirement much earlier than that.  Even just investing $500 from your tax refund in a Roth IRA or TFSA can make a big difference.  But investing $1000 or more can really add up over time! ### **3\. Fund your child’s education** If you have kids, investing your tax return in their future is another smart way to use the money.  Thanks to Section 529 plans, investing for your child’s higher education has never been easier or more tax-efficient . These college and university savings accounts are sponsored by individual states, and they help you invest funds for your child’s tuition tax-free. In Canada, take advantage of your RESP and the Canada Education Savings Grant which provides [_“20% on the first $2,500 in annual personal contributions to an RESP, for a maximum of $500 per year.”._](https://www.canada.ca/en/employment-social-development/services/student-financial-aid/education-savings/resp/pays-to-plan.html) This is free money that anyone can take advantage of! ### **4\. Start investing in yourself** One of the best ways to invest your tax return is in yourself! For example, investing in education or training that will allow you to gain job skills can improve your career and earning potential. You might invest in a course on how to improve your resume, an MBA degree, or investing in a professional certification program. ### **5\. Pay into your Tax-Free Savings Account (TFSA)** If you have a Tax-Free Savings Account (TFSA) , investing your tax return is another smart investing move.  TFSAs are flexible accounts that let you hold many different kinds of investments, including cash, GICs , ETFs and mutual funds . And because the money inside them grows completely tax-free, investing your refund into your TFSA is a smart way to boost your wealth. ### **6\. Invest in dividend stocks** Dividend investing is another great investing strategy. After you’ve covered some of the basics with your emergency fund, Roth IRA and Tax-Free Savings Account, investing in high-quality dividend stocks is a sensible next step.  These are stocks that typically pay dividends every quarter, and investing your tax return in them is one of the best ways to supercharge your portfolio. You can even set up an automatic investing plan, so investing your tax return becomes an effortless part of your investing regimen. ### **7\. Pay off high-interest debt** Do you have credit card debt? Student loans? A car loan that’s costing you too much money? By investing tax return funds in paying off debts, you’ll save a lot of money on interest and get out of the red faster. If you have a high-interest credit card, investing your tax return could help you pay it off faster saving thousands in interest! Once the debt is gone, investing your tax return can help you grow wealth much more quickly than paying off an interest rate of 18 percent would. ### **8\. Invest in fractional real estate** Real estate investing has grown increasingly popular over the years, and investing your tax return is one way to get started investing in property. It allows you to buy an investment property with minimal money down, and investing can provide monthly cash flow while you wait for it to appreciate. Also, if you’re investing in a property with others, investing your tax return can be an easy way to divide up the down payment and other expenses. If you want to invest your tax return in real estate investing but don’t have the cash or credit for a full investment, you can try fractional investing. This way, you can still own a share of a rental property, which will appreciate over time and provide monthly cash flow. Even investing a couple thousand dollars can be enough to get you started. At BuyProperly, we use proprietary AI technology to help our investors see projected annual returns of up to 10-40%! [Learn how you can get started for as little as $2500.](https://buyproperly.ca/) ### **9\. Invest your tax return in peer-to-peer investing** There are many different ways to invest tax return funds, but investing in peer-to-peer lending is one of the most popular right now. This investing strategy allows you to earn high returns (often over 10% ) investing in personal loans like credit cards, home improvement projects, small business financing, and more. ### **10\. Start a business** Finally, investing your tax return could help you start investing for yourself and invest in your own future. As more people realize that they don’t have to work for someone else anymore, investing your tax return is one way to start investing in your future. You can even use this investment as a tax write-off! **Conclusion** -------------- So, there you have it! These are 10 of the best ways to spend your tax return money in order to grow your wealth. We hope this information was helpful and that you are feeling excited and motivated to get started on growing your money. If you have more questions about how to get started in real estate investing for only $2500, learn more about our fractional ownership model! Visit [www.buyproperly.ca](https://buyproperly.ca/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pros and Cons of Real Estate Investing: Should You Jump In? Author: BuyProperly Engineering Published: 2022-03-07 Category: Insights Tags: advantages of investing in real estate, Why invest in real estate URL: https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-real-estate-should-you-jump-in Investing in real estate can definitely be a lucrative endeavor, but it’s not without its risks. Before you decide to jump into the world of property investment, it’s important to understand the pros and cons of doing so. In this blog post, we’ll take a look at some of the key factors you need to consider before making your decision. Let’s dive in! **Pros of Investing in Real Estate** ------------------------------------ Here’s a list of the pros of investing in real estate: ### **1\. You can make money in (almost) any market** Real estate is the ultimate equalizer. If you’re in a good market where prices are rising, then you’ll be able to make some solid profits on your investment.  However, even if you’re in a bad market where prices are falling or stagnating, there’s still a way to make money. The key is to invest in a property that’s increasing in value, which will enable you to sell at a higher price than what you originally paid for it. Ultimately, real estate comes down to supply and demand – if there are more people looking for homes or rentals than there are properties available, then the prices will rise, whereas if there’s less demand than there are properties on the market, prices will fall.  What this means is that no matter where you invest, even in an area that’s suffering from low demand or weak support from an economy, as long as you find a troublesome property that meets your criteria for investment (more on this later), then you’re still able to make profits by buying it at a lower price and selling at a higher one. ### **2\. Real estate is an effective hedge against inflation** Inflation is the gradual decline in the value of money over time while demand for goods and services rises, which also drives up prices and costs of living.  Inflation can make it difficult to afford everyday things like groceries and gas, but investing in real estate offers some measure of protection from its effects by enabling you to increase your income regardless of whether or not the economy’s doing well or on shaky ground. In addition, real estate provides protection against inflation. The value increases year-over-year and landlords can raise the rent to adjust for the cost of living. Regardless of inflation or deflation, you’ll be able to rent out your properties for more than what you’re paying to keep them repaired and maintain their values (and hopefully even add some upgrades), helping you build equity faster. ### **3\. Real estate offers tax benefits** In most areas, investors can write off expenses related to rental properties on their taxes including interest, repairs, and travel costs. Even if you’re making a decent profit from your rental properties, it’s still possible to offset some of your yearly income through tax deductions related to depreciation and home office use, so there are still opportunities for savings. ### **4\. You can diversify your investments with real estate** One of the worst things an investor can do is put all their eggs into one basket. By spreading your investment across various sectors and geographies (such as real estate), you limit your risk and increase the likelihood of getting a good return on your investment. Another pro of investing in real estate is that you can act as your own bank by leveraging the equity in your properties to invest in other opportunities. ### **5\. It’s easy to get started investing in real estate** As long as you have enough money on hand to put down a deposit, real estate is one of the easiest investments to get started with – all you need is a little bit of research and some elbow grease to find the right property for investment! If you don’t have the huge downpayment necessary to secure your first property, consider starting with fractional ownership. Here at BuyProperly, we use a fractional ownership model to allow investors to get started for as little as $2500!  You’ll invest in a share of a property and earn both an income stream and capital appreciation over time. Learn more about our platform [here.](https://buyproperly.ca/) ### **6\. There are plenty of investors looking for new opportunities** One of the pros of investing in real estate is that there’s always something to find, whether it be a foreclosure, auction, or otherwise. Even if you can’t find anything on your own, you can usually contact an agent who specializes in commercial properties and they’ll be able to direct you towards any new listings as soon as they come up – sometimes even before they hit the market! ### **7\. Real estate is a relatively safe investment** Real estate is generally considered to be one of the safer investments. Property values generally have predictable increases year-over-year, rental markets aren’t subject to severe market fluctuations, and real estate is an asset protected from rising inflation.  So if you want something that won’t tank your savings or put your family’s welfare at risk, it might be time to go hunting for some properties! **Cons of Investing in Real Estate** ------------------------------------ Here are some of the cons that may dissuade people from getting into the world of real estate: ### **1\. You’ll need money upfront before making any profit** One thing that often deters many new investors is having enough capital on hand before they can make their first purchase, as real estate has some pretty hefty up-front costs. If you’re buying a home (and not getting one specifically to rent out), then you’ll need enough cash on hand to cover the down payment and closing costs – this could be anywhere between 10% to 20% of the property value depending on your plans for it and what kind of interest rates the bank is offering at that time. Learn how we help new real estate investors get started for less! Visit [BuyProperly!](https://buyproperly.ca/) ### **2\. Real estate requires a lot of maintenance** When you buy a house or an apartment, you’re taking over all responsibilities related to keeping it in good repair. This means being ready to pay for whatever necessary renovations or improvements might be needed from time to time, which could set you back hundreds or thousands of dollars. ### **3\. Highly illiquid market** Real estate markets tend to be highly illiquid, which means that it could take weeks (or even months) for you to close a sale or find another investor who wants to buy your property or equity stake at its current market value.  This can make it especially difficult if you need cash right away – unless you can borrow against your investment quickly, then it may not be possible to do anything until after you’ve sold the property. If there are no other buyers available when you do want to sell, then you might have to take a loss on your investment or hold onto the property until you can find someone who is willing to make a purchase. Sometimes potential investors may want to buy a property at a lower price than what it can earn or sell for in order to turn a quick profit if they need cash right away, but you might not be able to accommodate them unless it’s something that you’re willing to do yourself.  And if no one else is interested in purchasing the property once they learn about its potential value, then you may have to hold onto it for a while until you’re able to find someone who wants it at your asking price. If liquidity is important to you, consider looking at alternative forms of real estate investing. For example, we use a fractional ownership model which allows several investors to buy into properties for less money than required for traditional real estate. In addition, investors have the ability to sell their shares before 5 years is up, making it a more liquid investment than traditional investing. ### **4\. Turnover takes time and money** Before you’re able to start making profits from a potential real estate investment, it may take months before there’s anyone interested in renting out or buying the property that you’ve chosen.  This means that if you need quick cash flow, then real estate investments aren’t going to do anything for you at all – they’re slow turn-around investments.  In order to buy a good rental property with good returns on its value, you’ll have to spend some time learning about market conditions so that you can find properties with the highest likelihood of growing in price over time as well as find renters with the highest chances of staying in your properties long-term (and who will pay their rent on time every month) – and you’ll have to spend some money for this research, too. ### **5\. Bad tenants, damage, and vacancies** Even if you find great renters who are willing to move into your properties right away, there’s always the chance that they could stop paying their monthly payments (especially when times get tough), which means that you’ll be stuck with financial problems in spite of all your hard work.  Not only will you lose out on rental income, but repairs might also cost money that could be better spent elsewhere. ### **6\. Real estate values can vary significantly** If you invest in only one region, only one type of property, or even in just one neighborhood in a city, then you could be missing out on potential profits if there are other parts of town that see better growth over time. If your investment strategy is too narrow, then it will be difficult to make up for any missteps or bad investments that you might have made when benchmarking the area’s average values against your own. ### **7\. Real estate markets provide relatively slow returns on their investments** Real estate markets tend to generate slower returns than other business models, which means that you may not be able to take advantage of any potential profits if you need immediate cash flow.  When compared to other investments like stocks and bonds, real estate is considered a lower risk investment, but it also tends to have slower growth rates overall – which means that if your money is tied up in real estate, then it might not grow as quickly as other types of investments would. **Conclusion** -------------- So, what should a new investor do when it comes to real estate investing? It depends on their goals and individual situation. No one investment strategy is right for everyone; the key is finding the best fit for each person’s unique needs. Real estate is an incredibly stable and lucrative investment to add to any new investor’s portfolio. With the right time, dedication, and research, most new investors will be able to see success from their real estate investments! Hopefully this article has helped equip you with the knowledge you need to make an informed decision about your own investments.  Are you thinking of investing in real estate? [Check out our properties](https://buyproperly.ca/properties) and see what fractional ownership can do for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Risk Analysis? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/risk-analysis-explained **![](https://lh3.googleusercontent.com/qi-Wgq94Fbl_F9XEpBqH8KJDLQ2P9Jd9f9bbPjLvZypyYz2Aut1kvsxHgP132hyA_FqZK7vusI9EJexTRkUFmc75u0nxtNx4PBrPivfcWz5Jdl777w3I9TFF27TpTA)** **What Is Risk Analysis?** The process of determining the chance of a negative occurrence occurring in the corporate, government, or environmental sectors is known as risk analysis. Risk analysis refers to the uncertainty of predicted cash flow streams, the variance of portfolio or stock returns, the probability of a project’s success or failure, and possible future economic situations. Risk analysts frequently collaborate with forecasting experts to reduce the likelihood of future negative consequences. All businesses and individuals are exposed to some level of risk; without risk, benefits are less likely. The issue is that taking too much risk can result in failure. Risk analysis allows you to strike a balance between taking risks and minimising them. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Understanding Risk Analysis** Risk assessment allows businesses, governments, and investors to determine the likelihood that a negative event may have a negative impact on a company, economy, project, or investment. Risk assessment is critical for establishing the value of a project or investment, as well as the appropriate process(es) for mitigating those risks. Different approaches to risk analysis can be used to evaluate the risk-reward trade-off of a possible investment opportunity. The first step for a risk analyst is to figure out what could possibly go wrong. These drawbacks must be balanced against a probability metric that determines the possibility of an event occurring. Finally, risk analysis tries to predict the magnitude of the impact that will occur if the event occurs. Many identified risks, including as market risk, credit risk, and currency risk, can be minimized by hedging or buying insurance. Almost all large businesses necessitate some form of risk analysis. Commercial banks, for example, must adequately hedge foreign exchange exposure on overseas loans, while huge department stores must account for the possibility of lower revenues as a result of a worldwide recession. It’s crucial to understand that risk analysis allows experts to identify and manage hazards, but not to totally eliminate them. **Types of Risk Analysis** Risk analysis can be quantitative or qualitative. **Quantitative Risk Analysis** A risk model is constructed using simulation or deterministic statistics to assign numerical values to risk in quantitative risk analysis. A risk model is given inputs that are primarily assumptions and random variables. The model generates a range of outputs or outcomes for each given set of inputs. Risk managers assess the model’s output using graphs, scenario analysis, and/or sensitivity analysis to make judgments on how to mitigate and deal with the risks. A Monte Carlo simulation can be used to produce a number of different possible outcomes from a decision or action. Simulation is a quantitative technique that calculates results for random input variables several times, each time with a different set of input values. The model’s final result is a probability distribution of all potential possibilities, with the result of each input recorded. The results can be presented using a distribution graph that includes metrics of central tendency such as the mean and median, as well as standard deviation and variance to analyse the data’s variability. Risk management tools like scenario analysis and sensitivity tables can also be used to examine the consequences. Any event’s best, middle, and worst outcomes are depicted in a scenario analysis. Separating the different outcomes from best to worst gives a risk manager a reasonable range of information. For example, a multinational corporation might be interested in knowing how its bottom line would fair if the exchange rate of a few countries strengthened. A sensitivity table illustrates how results change when one or more random variables or assumptions are changed. A portfolio manager might use a sensitivity table to determine how changes in the varying values of each security in a portfolio will affect the portfolio’s variance. Decision trees and break-even analysis are two other forms of risk management techniques. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Qualitative Risk Analysis** Qualitative risk analysis is an analytical process that does not use numerical and quantitative evaluations to identify and evaluate hazards. A formal characterization of the uncertainties, an assessment of the magnitude of the impact (if the risk occurs), and countermeasure preparations in the event of a negative event are all part of qualitative analysis. SWOT analysis, cause and effect diagrams, decision matrix, game theory, and other qualitative risk tools are examples. A company that wants to assess the impact of a data breach on its servers might use a qualitative risk technique to help prepare for any lost revenue that may result. While stock market trading may be dangerous, and real estate investing can be time-consuming, BuyProperly combines the best of both worlds. BuyProperly is a [**fractional real estate company**](https://buyproperly.ca/) that lets anyone with just $2500 to participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Are you ready to begin investing? Contact us today! [**Related Articles to Risk & Risk Analysis**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is A Paydown? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/what-is-a-paydown ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/paydown-1714585196149-compressed.jpg) **What Is a Paydown?** A paydown is a reduction in a company’s, government’s, or consumer’s overall debt. It’s common in business to issue a new round of corporate bonds at a lower price than the previous one. As a result, the company’s debt load is reduced. A paydown is when a consumer makes a greater payment on a mortgage, car loan, credit card, or any other type of debt in order to reduce the outstanding principal. [View Investment](https://buyproperly.ca/properties) **Example of a Consumer Paydown** Making extra principal payments toward a mortgage is a common example of a consumer paydown. Assume a homeowner has 20 years of payments left on a $300,000, 30-year mortgage with a 5% interest rate. Their monthly payment will be around $1,610 (principal and interest). If they put an extra $100 toward principal each month, they would save $15,250 over the life of the loan and pay it off nearly two years sooner. Are you looking for a new investment property? We can assist you! We offer a fractional ownership concept at BuyProperly, which allows investors to start with as little as $2500! We’ve simplified a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to grow your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). [**Related Articles to Principal Paydown**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Is Net Income Different From Profit? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/net-income-vs-profit ![](https://lh5.googleusercontent.com/684a7rMXTnIENzqcgXZWLK8Z0ADajqcUW0R3CGBEzQAWNz5sEHtUmlKob209g-o0j_1guya1TkBgmQE9IUZx0bmqAlVfAPrVrVYe2fu_E1bgfLUz7_87-lderZHt7A) **Net Income vs. Profit: An Overview** -------------------------------------- In everyday use, many terms in business and finance have different or even unclear definitions. In the context of finance or accounting, some concepts that the average person may use interchangeably have highly specific definitions. Consider the terms profit and net income. Though both expressions refer to a surplus of revenue over expenses, their definitions and applications differ significantly. [View Investment](https://buyproperly.ca/properties) ### **How To Calculate Net Profit** The calculations for each are as follows: * **Gross profit:** Revenue – COGS * **Operating profit:** Gross profit – operating expenses – depreciation – amortization * **Net profit:** Total revenue – total expenses Are you looking to make your first (or next) real estate purchase? We employ innovative AI technology at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can [**get started for as low as $2500 (and expect yearly profits of 10-40%)**](https://buyproperly.ca/). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at BuyProperly.com. [**Related Articles to Net Profit (net income)**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World**](https://buyproperly.ca/resource-center/posts/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) 5. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 6. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 7. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is The House Price Index (HPI)? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/explaining-house-price-index **![](https://lh3.googleusercontent.com/CZSlOnrWBdef8b76XEF_1_b41d0szgAFVJ6W7-Hl_bXo6YKvao8og9791a-GyaMffz36-P2_bvyEY69IOpHFK0WKpCuTpx2_VVjQiU9q4ZnRDtWEooAywUvB6rwgpw)** **What Is the House Price Index (HPI)?** The House Price Index (HPI) is a wide indicator of single-family home price movement in the United States. It serves as an analytical tool for estimating changes in the rates of mortgage defaults, prepayments, and housing affordability, in addition to functioning as an indication of home price trends. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Understanding the House Price Index (HPI)** The Federal Housing Finance Agency (FHFA) compiles the HPI using data from the Federal National Mortgage Association (FNMA), also known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac. The HPI is based on single-family transactions involving conventional and conforming mortgages. It’s a weighted repeat sales index that tracks average price changes across repeat sales or refinancings on the same properties. Every quarter, an HPI report is released, however, from March 2008, a monthly report has also been released on a regular basis. Mortgages purchased or securitized by Fannie Mae and Freddie Mac are used to compile data. **How the House Price Index (HPI) Is Used** The HPI is one of many economic indicators used by investors to monitor broader economic trends and prospective stock market shifts. The increase and decrease of housing values can have significant economic consequences. Price increases usually result in more jobs, increased confidence, and increased consumer spending. This creates more aggregate demand, which boosts GDP and overall economic growth. When prices drop, the opposite usually occurs. Consumer confidence is weakening, and many corporations prospering from the real estate boom are laying off workers. This can occasionally lead to a slowdown in the economy. **The House Price Index (HPI) vs. the S&P CoreLogic Case-Shiller Home Price Indexes** The HPI isn’t the only way to keep track on home prices. The S&P CoreLogic Case-Shiller Home Price Indices are one of the more well-known alternatives. These indexes use a variety of data and measurement approaches, resulting in a wide range of outcomes. The HPI, for example, gives equal weight to all homes, whereas the S&P CoreLogic Case-Shiller Home Price indexes give value to properties. Furthermore, unlike the Case-Shiller indices, which solely include purchase prices, the HPI includes refinance appraisals as well. The HPI also covers a larger area. **Fannie Mae and Freddie Mac** As previously stated, the HPI examines mortgages purchased or secured by Fannie Mae or Freddie Mac to determine average price changes for properties that are sold or refinanced. That means it excludes loans and mortgages from other agencies, such as the US Department of Veterans Affairs and the Federal Housing Administration (FHA). **Fannie Mae** Fannie Mae is a government-sponsored business (GSE) that is publicly traded yet is governed by congressional legislation. The company’s objective is to keep the mortgage market alive. Fannie Mae accomplishes this by purchasing and guaranteeing mortgages from legitimate lenders, such as credit unions and local and national banks—it is unable to create loans. By developing a secondary market, the FNMA increases the liquidity of mortgage markets and makes house ownership more accessible to low-, moderate-, and middle-income Americans. Fannie Mae was founded as part of the New Deal in 1938, during the Great Depression. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Freddie Mac** Like Fannie Mae, Freddie Mac, or the FHLMC, is also a GSE. Mortgage-backed securities (MBS) are created by purchasing, guaranteeing, and securitizing mortgages. It then issues liquid MBS with a credit rating similar to that of US Treasuries. Freddie Mac can borrow money at interest rates that are often lower than those available to other financial institutions because of its ties to the US government. Are you interested in learning how to [**get started investing in real estate with as little as $2500**](https://buyproperly.ca/resource-center/invest)? Contact Us Today! [**Related Articles to Home Price Index**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Gross Rental Yield? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/understanding-gross-rental-yield **What Is Gross Rental Yield?** Gross rental yield, along with other factors, can help you compare how good an investment property is in generating rent. An investment’s gross yield is simply its gross profit (before expenses and taxes) expressed as a percentage of the purchase price. For example, a $10,000 investment that produces $1,000 in gross profit has a 10% gross yield. [View Investment](https://buyproperly.ca/properties) We’ve simplified a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to grow your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). [**Related Articles to Gross Rental Yield**](https://buyproperly.ca/)  1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is A Fixed Asset? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/understanding-fixed-assets **![](https://lh3.googleusercontent.com/aGNz82608_yOaZC9g9LofepBaJxF-yA-s8pLBJiYFSnvIYkmGY1EvCEbF5lZwmVZ02tehvya37SGmu3OepPPECiJEwURzA6Mfk6leFhvLom982qemyY5DVUvg7YHJg)** **What Is a Fixed Asset?** A long-term tangible piece of property or equipment that a company owns and utilizes in its operations to produce revenue is referred to as a fixed asset. The usual assumption about fixed assets is that they will last at least one year before being consumed or transformed into cash. As a result, businesses can use depreciation to account for natural wear and tear on these assets. Property, plant, and equipment (PP&E) are the most typical fixed assets on the balance sheet. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Understanding Fixed Assets** The assets, liabilities, and shareholder equity of a company are all listed on the balance sheet statement. Assets are separated into two categories: current assets and noncurrent assets, with the difference of which lies in their useful lives. Current assets are usually liquid, meaning they may be converted into cash in under a year. Long-term investments, deferred charges, intangible assets, and fixed assets are examples of noncurrent assets owned by a company that is difficult to convert to cash. The word refers to the fact that these assets will not be consumed or sold during the accounting period. A fixed asset has a physical form and is recorded as PP&E on the balance sheet. Fixed assets are purchased for a variety of purposes, including: * The production or supply of goods or services * Rental to third parties * Use in an organization As time passes, fixed assets lose value. These assets are expensed differently than other things because they offer long-term revenue. Intangible assets are depreciated, while tangible assets are depreciated on a regular basis. Annually, a portion of the cost of an asset is recognized as an expense. The asset’s value declines as the amount of depreciation on the balance sheet increases. After then, the company can match the asset’s cost to its long-term value. The way a company depreciates an asset might lead its book value (the asset’s value on the balance sheet) to differ from the asset’s current market value (CMV). One fixed asset that cannot be depreciated is land. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Special Considerations** The purchase or sale of a fixed asset is noted under cash flow from investment activities on a company’s cash flow statement. The purchase of fixed assets is a cash outflow (negative) for the business, but the sale is a cash inflow (positive) . The asset is liable to an impairment write-down if its value falls below its net book value. This signifies that its balance sheet value has been modified downward to reflect the fact that it is overvalued in comparison to the market value. When a fixed asset has reached the end of its useful life, it is usually sold for a salvage value. If the asset were broken down and sold in pieces, this is the estimated worth. In rare situations, the asset may become obsolete and, as a result, will be disposed of without payment. The fixed asset gets written off the balance sheet in either case since it is no longer in use by the business. **Benefits of Fixed Assets** Asset information helps in the preparation of accurate financial reporting, business valuations, and in-depth financial research. These reports are used by investors and creditors to assess a company’s financial health and decide whether to purchase shares or lend money to it. Because a firm might employ a variety of accepted methods for recording, depreciating, and disposing of its assets, analysts must read the notes on the financial statements to understand how the figures are calculated. Fixed assets are especially crucial in capital-intensive businesses like manufacturing, which require significant PP&E investments. When a company’s net cash flows for the purchase of fixed assets are consistently negative, it could be a sign that the company is expanding or investing. **Examples of Fixed Assets** Buildings, computer equipment, software, furniture, land, machinery, and cars are examples of fixed assets. If a corporation sells fruit, for example, the delivery trucks it owns and uses are considered fixed assets. A corporation parking lot is a fixed asset if it is built by a company. Any investor’s portfolio should include real estate! Are you interested in learning how to [**get started investing in real estate**](https://buyproperly.ca/) with as little as $2500? Then, you must contact us as soon as possible.  [**Related Articles to Fixed Assets**](https://buyproperly.ca/)  1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World**](https://buyproperly.ca/resource-center/posts/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) 6. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 7. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is A Dividend? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/what-is-dividend ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/dividend-1714585279371-compressed.jpg) **What Is A Dividend?** A dividend is a payment made to a group of shareholders in the form of cash or stock. Dividends are often paid out of a company’s retained earnings; however, dividends paid out of negative retained income are feasible but uncommon. Dividends have critical dates attached to them that influence whether or not shareholders will be paid a dividend. The ex-dividend date is the last day on which a shareholder’s eligibility to receive a dividend expires; it usually happens one business day prior to the record date. Second, the record date is the date on which the board of directors determines which shareholders will receive dividends, as well as other significant financial information which is related to the dividend payout. [View Investment](https://buyproperly.ca/properties) **Impact of Dividends on Share Price** Dividends are irreversible, therefore they often result in money being permanently removed from the company’s books and accounts. As a result, dividend payments have an impact on share prices, which may rise by about the amount of the dividend announced on the announcement and subsequently fall by a comparable amount in the opening session of the ex-dividend date. For example, a company with a share price of $60 declares a $2 dividend on the day it is announced. The stock price rises by roughly $2 as soon as the news is made public, reaching $62. Let’s say the stock is trading at $63 one day before the ex-dividend date. Because anyone buying on the ex-dividend day will not receive the dividend, it is adjusted by $2 and begins trading at $61 at the start of the trading session on the ex-dividend date. Keep in mind that this may or may not occur, but the price should adjust to reflect the dividend on the ex-dividend date, decreasing the share price by the dividend. Learn how BuyProperly can help you [**generate 10-40% annual returns for a fraction of the cost**](https://buyproperly.ca/) of traditional real estate investing. [**Related Articles to Dividend**](https://buyproperly.ca/)  1. [**Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World**](https://buyproperly.ca/resource-center/posts/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) 2. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 3. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 4. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 5. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 6. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 7. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Are Current Assets? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/current-assets-explained **What Are Current Assets?** Current assets are all of a company’s assets that are projected to be sold, consumed, used, or exhausted within one year of normal business operations. A company’s current assets are listed on its balance sheet, which is one of the annual financial statements that must be prepared. Cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets are examples of current assets. Current assets and current accounts are two different terms for the same concept. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **The Formula for Current Assets** As a result, the current assets formula is just the sum of all assets that can be converted to cash in a year. When examining at a company’s balance sheet, for example, we can add up: Current Assets = C + CE + I + AR + MS + PE + OLA **where:** C = Cash CE = Cash Equivalents I = Inventory AR = Accounts Receivable MS = Marketable Securities PE = Prepaid Expenses OLA = Other Liquid Assets **Understanding Current Assets** Long-term assets, on the other hand, are assets that cannot be converted into cash in a year’s time. Land, infrastructure, equipment, copyrights, and other illiquid investments are common examples. Businesses value current assets because they can be utilized to fund day-to-day operations as well as pay for ongoing operational expenses. It also indicates a company’s liquid assets because the word is stated as a dollar worth of all assets and resources that can be quickly converted to cash in a short period of time. However, care should be taken to include just those qualifying assets that can be sold at a reasonable price within the next year. For example, many commonly used fast-moving consumer goods (FMCG) products manufactured by a corporation are likely to be easily sold in the coming year. Inventory is included in current assets, but land and heavy machinery may be difficult to sell, thus they are removed from current assets. Current assets can range from crude oil barrels to fabricated goods, work-in-progress inventory, raw materials, and foreign currency, depending on the nature of the firm and the products it sells. **Key Components of Current Assets** Current assets include cash, cash equivalents, and liquid investments in marketable securities such as interest-bearing short-term Treasury bills or bonds. Current assets, on the other hand, include the following: **Accounts Receivable** Current assets are money owing to a corporation for goods or services delivered or utilised but not yet paid for by consumers, as long as they can be expected to be paid within a year. A part of a company’s accounts receivables may not qualify for inclusion in current assets if it makes sales by giving customers extended terms of credit. It’s also likely that some accounts will never be completely paid off. An allowance for questionable accounts is removed from accounts receivable to reflect this concern. If an account isn’t paid, it’s written off as bad debt expenditure, and such entries aren’t considered as current assets. **Inventory** Inventory, which includes raw materials, components, and finished goods, is considered a current asset, although its assessment may require some thought. Inventory can be inflated using various accounting procedures, and it may not always be as liquid as other current assets, depending on the product and industrial sector. For example, there’s no certainty that a dozen units of high-priced heavy earth-moving equipment will be sold in the following year, but there’s a much better probability that a thousand umbrellas will be sold during the rainy season. Inventory is less liquid than accounts receivable, and it drains into working capital. Inventory can become backlogged if demand fluctuates suddenly, which is more typical in some industries than others. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Prepaid Expenses** Current assets are prepaid expenses, which are payments made in advance by a corporation for products and services to be received in the future. They are the payments that have already been paid, despite the fact that they cannot be transformed into cash. These components free up funds for other purposes. Payments to insurance companies or contractors are examples of prepaid expenses. Current assets are usually included on the balance sheet in order of liquidity; that is, the items that are most likely to be turned into cash are listed first. Cash (including money, bank accounts, and petty cash), short-term investments (such as liquid marketable securities), accounts receivable, inventories, supplies, and pre-paid expenses are the normal order in which current assets appear. Are you looking for a new investment property? We can assist you! We offer a fractional ownership concept at Buy Properly, which allows investors to start with as little as $2500! We’ve streamlined a procedure that was previously complex, time-consuming, and costly. We locate and acquire the greatest properties using our industry expertise and AI technology, resulting in top-performing rental properties and fantastic investment prospects for you to develop your wealth. [**Take a look at our properties**](https://buyproperly.ca/properties). [**Related Articles to Current Assets**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Cash Flow? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/understanding-cash-flow **What Is Cash Flow?** The net amount of cash and cash equivalents being transferred in and out of a corporation is referred to as cash flow. Inflows are represented by cash, whereas outflows are represented by money spent. The ability of a corporation to generate positive cash flows or, more precisely, to maximise long-term free cash flow (FCF), determines its potential to create value for shareholders. After removing any money spent on capital expenditures (CapEx), FCF is the cash generated by a company through its normal business operations. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Understanding Cash Flow** The amount of money that comes in and goes out of a business is referred to as cash flow. Businesses generate revenue from sales and spend money on expenses. They may also earn money via interest, investments, royalties, and licensing agreements, as well as selling things on credit with the expectation of receiving the money owed later. One of the most essential objectives of financial reporting is to assess the amounts, timing, and uncertainty of cash flows, as well as where they originate and where they go. It is necessary for evaluating a company’s liquidity, flexibility, and overall financial performance. Positive cash flow implies that a company’s liquid assets are growing, allowing it to meet obligations, reinvest in its business, return money to shareholders, pay bills, and offer a cushion against potential financial difficulties. Profitable investments can be taken advantage of by companies with high financial flexibility. They also do better during economic downturns because they avoid the costs of financial distress. The cash flow statement, a basic financial statement that reflects on a company’s sources and uses of cash over a specific time period, can be used to examine cash flows. It can be used by corporate management, analysts, and investors to assess how well a firm can generate cash to pay its debts and manage its operating expenses. Along with the balance sheet and income statement, the cash flow statement is one of the most essential financial statements given by a firm. **Types of Cash Flow** 1. **Cash Flows From Operations (CFO)** Cash flow from operations (CFO), also known as operating cash flow, refers to money flows that are directly related to the production and sale of goods. The CFO determines if a firm has sufficient finances to pay its debts or cover its operating expenses. To put it another way, a company’s long-term financial viability requires greater operating cash inflows than cash outflows. Cash received from sales is subtracted from operational expenses paid in cash for the period to determine operating cash flow. On a company’s cash flow statement, which is presented quarterly and annually, operating cash flow is recorded. Operating cash flow reveals if a company can create enough cash flow to maintain and expand operations, but it can also signal when a company needs external funding to expand. It’s worth noting that CFO can help you separate sales from cash received. For example, if a corporation made a large sale to a client, revenue and profitability would increase. The greater revenue, on the other hand, does not necessarily enhance cash flow if the consumer is unable to pay. 2. **Cash Flows From Investing (CFI)** The cash flow from investing (CFI) or investing cash flow report shows how much money was made or spent in a given time from various investment-related activities. Purchases of speculative assets, investments in securities, and the sale of securities or assets are all examples of investing activity. Negative cash flow from investment operations can be caused by large sums of money being invested in the company’s long-term health, such as research and development (R&D), and is not always a warning sign. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) 3. **Cash Flows From Financing (CFF)** The net cash flows used to fund the company and its capital are shown in cash flows from financing (CFF), also known as financing cash flow. Transactions involving the issuance of debt, equity, and the payment of dividends are all examples of financing activities. Investors can see a company’s financial strength and how well its capital structure is managed by looking at cash flow from financing operations. Conclusion: We love helping investors identify rental homes that can create passive income and help them expand their wealth at BuyProperly. If you’d like to learn more about how you can expand your real estate portfolio without putting down a large cash deposit (or all the hassles that come with it!) [**Here is a link to our eBook**](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). [**Related Articles to Cash Flow**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Are Assets? Author: BuyProperly Engineering Published: 2022-02-14 Category: Insights URL: https://buyproperly.ai/blog/understanding-assets **What Is an Asset?** A resource with an economic worth that an individual, corporation, or country possesses or controls with the hope of future gain is referred to as an asset. Assets are bought or generated to raise a company’s value or benefit its operations, and they are reported on the balance sheet. Whether it’s manufacturing equipment or a patent, an asset can be looked on as something that can create cash flow, cut expenses, or increase sales in the future. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Understanding Assets** An asset is a financial resource for a corporation or access that other persons or companies do not have. A legal right or other access indicates that economic resources can be used at the discretion of a corporation, and their use can be prohibited or regulated by the owner. A corporation must have a right to an asset as of the date of the financial statements in order for it to be present. An economic resource is something that is limited in supply and has the power to generate an economic gain by increasing or decreasing cash inflows or outflows. Short-term (or current) assets, fixed assets, financial investments, and intangible assets are all types of assets. **Types of Assets** 1. **Current Assets** Short-term economic resources that are expected to be transformed into cash within a year are referred to as current assets. Cash and cash equivalents, accounts receivable, inventories, and different prepaid expenses are all examples of current assets. While cash is simple to value, accountants must re-evaluate the recoverability of inventory and accounts receivable on a regular basis. It will become impaired if there is evidence that accounts receivable may be unrecoverable. Companies may also write off inventory if it becomes obsolete. 2. **Fixed Assets** Fixed assets are long-term resources, like plants, equipment, and buildings. Depreciation is a recurring charge that may or may not reflect the loss of earning capacity for a fixed asset. It is used to account for the depreciation of fixed assets. Depreciation can be done in two ways, according to generally accepted accounting principles (GAAP). 1 The straight-line technique implies that the value of a fixed asset depreciates in proportion to its useful life, whereas the accelerated method assumes that the asset depreciates more rapidly in the first years of usage. 3. **Financial Assets** Financial assets are investments in other institutions’ assets and securities. Stocks, sovereign and corporate bonds, preferred equity, and other hybrid securities are examples of financial assets. The value of financial assets is determined by how the investment is classified and the motivation behind it. 4. **Intangible Assets** Intangible assets are financial resources that do not have a physical location. Patents, trademarks, copyrights, and goodwill are among them. Intangible assets are treated differently depending on their type, and they might be depreciated or assessed for impairment each year. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **How Do I Know If Something Is an Asset?** An asset is something that provides an individual or other entity with a current, future, or potential economic advantage. As a result, an asset is anything that you own or that you owe to yourself. As a result, a $10 bill, a computer, a chair, or an automobile are all assets. If you owe someone money, that loan is also an asset because you owe the money (even though the loan is a liability for the one paying you back). **What About Non-physical Assets?** You can’t touch intangible assets, but they provide a financial benefit to someone. Intellectual property (for example, patents or trademarks), contractual obligations, royalties, and goodwill are all examples of this type of asset. Non-physical assets such as brand equity and reputation can be quite valuable. Stocks and derivatives contracts, for example, are intangible financial assets. **Is Labor an Asset?** No. Human labor is defined as work for which people are paid in the form of wages or salaries. Assets, which are called capital, are not the same as labor. **How Are Current Assets Different From Fixed (Noncurrent) Assets?** Companies will categorize their assets based on how long they will be used. Fixed assets, also known as noncurrent assets, are assets that are designed to be held for a longer period of time (one year or longer) and are difficult to liquidate. As a result, fixed assets, unlike current assets, depreciate. Looking for a stress-free way to get started in real estate investing? See how BuyProperly employ a fractional ownership concept to assist investors to build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). [**Related Articles to Assets**](https://buyproperly.ca/) 1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World**](https://buyproperly.ca/resource-center/posts/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) 3. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 4. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 5. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 6. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 7. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Mortgage Down Payment? Author: BuyProperly Engineering Published: 2022-02-11 Category: Insights URL: https://buyproperly.ai/blog/mortgage-down-payment **![](https://lh3.googleusercontent.com/hQ-JPwce5tMigKiayxdax3DWJQ-u4XrsJIH5ntiTLjif3eb9psh5MFo8DEjKd7iUSffR3QBLB4Fm1hbwHrRkoo5lV8x-hEyxoKbwgSSb5vjV0e6o3hGYX5LvDMccQg)** **What is a mortgage?** You may only be able to pay a portion of the purchase price when buying a home. A down payment is an amount you pay. You may require the assistance of a lender to finance the remaining expenditures of the house purchase. A mortgage is a loan that you get from a lender to help you pay for your property. A mortgage is a contract between you and your lender that is legally binding. It describes the terms of your loan and is secured by a piece of real estate, such as a house or a condo. **What is a minimum down payment?** The amount of money you put down on a house is referred to as a down payment. The down payment is deducted from the purchase price of your house by your lender. The rest of the home’s cost is covered by your mortgage. The amount you’ll need for a down payment is determined by the home’s purchasing price. In Ontario and across Canada, the minimum down payment is 5% of the first $500,000 in property purchase price. In other words, a $500,000 home would require a $25,000 down payment. However, if the purchase price is greater than $500,000, a 10% down payment is required. For example, if the home costs $750,000, the down payment would be $25,000 on the first $500,000 and then $25,000 on the next $250,000 (for a total of $750,000 in this example). The key to understanding this concept is to distinguish between the first $500,000 (5 percent down on this amount) and the fact that every dollar of the purchase price above $500,000 requires a 10% down payment. Mortgage loan insurance is required if your down payment is less than 20% of the buying price of your home. Your lender may ask for a greater down payment if you’re self-employed or have a poor credit history. The minimal down payment is usually required to be paid out of your own pocket. It’s preferable to save for a down payment and pay off your debts first. **The different kinds of minimum down payment** The following is a list of the various down payment minimums available on the market, categorized by purchase type. * Owner-occupied home: occupied home: 5% on the first $500,000, 10% on the additional $500,000 – add the two to get the minimum. * Owner-occupied home: To avoid the CMHC charge, a 20% down payment is required (as much as 4 percent if less than 20 percent is applied). * Rental property: The majority of lenders need a 20% down payment on a rental property. * Second-home: With as little as a 5% down payment, you can purchase a second home for recreation, family, or other uses. There is no CMHC/default insurance fee if you put down 20%. **Is making just the minimum down payment for a mortgage bad?** The size of your down payment has an impact on the mortgage options available to you. For properties under $500,000, the minimum down payment is 5%, which means you’ll have a higher mortgage and a CMHC insurance charge of up to 4%. While you will pay less in interest today, you will pay more in interest in the long term if you make a larger down payment at the same interest rate. Another downside is the mortgage stress test, which requires you to demonstrate that you can still make your mortgage payments if interest rates rise. Your monthly mortgage payments may be much greater if you have a larger outstanding mortgage. It will be more difficult to qualify for a mortgage refinance or products like a home equity line of credit (HELOC), which can have loan-to-value requirements if you have less equity in your house. Another downside is the mortgage stress test, which requires you to show that you can still make your mortgage payments if interest rates rise. Your monthly mortgage payments may be much greater if you have a larger outstanding mortgage. It will be more difficult to qualify for a mortgage refinance or products like a home equity line of credit (HELOC), which can have loan-to-value requirements if you have less equity in your house. A down payment of 20% or more, on the other hand, allows mortgage lenders additional flexibility if you default on your mortgage or property values fall. As a result, you will not be required to pay for mortgage insurance. In order to qualify for a mortgage from your mortgage lender, you may be required to make a larger down payment. This could be for a variety of reasons, including being self-employed or having a bad credit history. Even if they don’t have a credit history in Canada, newcomers to the country, such as recent immigrants, may be eligible for a mortgage. However, special programs for newcomers may need a larger down payment. Are you interested in learning how to [**get started investing in real estate with as little as $2500**](https://buyproperly.ca/)? Consult Us Today! [**Related Topics to Mortgage Down Payment**](https://buyproperly.ca/) 1. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 2. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 3. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 4. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 5. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Essential Guide To Compound Interest Author: BuyProperly Engineering Published: 2022-02-10 Category: Insights URL: https://buyproperly.ai/blog/guide-to-compound-interest **What Is Compound Interest?** When it comes to money management, compound interest is a must-know concept. It can help you make a larger return on your savings and investments, but it can also work against you when you have a loan with interest. Learn how compound interest works, how it’s calculated, and how to use it to maximize your assets with this simple yet powerful idea. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Definition and Examples of Compound Interest** Consider compound interest in the same way that the “snowball effect” occurs. A snowball begins little, but when more snow is added, it grows larger. It gets bigger at a faster rate as it increases. Interest generated on the original principal plus accumulated interest is referred to as compound interest. You’re not only getting interested on your initial deposit, but you’re also earning interest on your interest. **How Does Compound Interest Work?** To grasp the concept of compound interest, first grasp the concept of simple interest: You put money in the bank, and the bank gives you interest. For example, if you get 5% yearly interest on a $100 deposit, you will receive $5 after a year. What will happen next year? Compounding comes into play here. You’ll earn interest on both your initial deposit and the interest you’ve already earned. Because your account balance is now $105, rather than $100, the interest you earn in the second year will be higher. Even if you don’t make any further deposits, compound interest will boost your earnings. Year One: A $100 deposit generates 5% interest, or $5, raising your total balance to $105. Year two: Your $105 yields 5% interest, or $5.25, for the second year. The total amount due to you is $110.25. Year three: Your balance of $110.25 gets 5% interest, or $5.51, for the third year. Your account balance rises to $115.76. This is an example of yearly compounded interest. Many banks, particularly online banks, compound interest daily and add it to your account monthly, making the process even faster. Compounding, on the other hand, works against you and in favor of your lender if you are borrowing money. On the money you’ve borrowed, you have to pay interest. If you haven’t paid off your debt in full by the end of the month, you’ll owe interest on the amount you borrowed plus the interest you’ve incurred. **Compound Interest Formula** Compound interest can be calculated in a variety of ways. Learning how to do it yourself might provide you with vital insight into how to meet your savings objectives while being realistic. Examine a few “what-if” scenarios using different numbers whenever you run calculations to see what would happen if you saved a bit more or earned interest for a few more years. Some people choose to examine the figures in greater depth by completing their own calculations. You can calculate exponents with a financial calculator that provides storage facilities for formulas or a normal calculator with a key. **Use the following formula to calculate compound interest:** A=P(1+\[r/n\])^nt Fill in the following variables to use this calculation: A: The total amount you’ll have. P: The principal refers to your initial deposit. r: the annual interest rate, expressed as a decimal. n: the annual number of compounding periods (for example, monthly is 12, and weekly is 52). t: the duration of time (in years) it takes for your money to compound. **For Example** You have $1,000 that is compounded monthly at 5%. After 15 years, how much money will you have? 1. A = P (1 + \[ r / n \]) ^ nt 2. A = 1000 (1 + \[.05 / 12\]) ^ (12 \* 15) 3. A = 1000 (1.0041666…) ^ (180) 4. A = 1000 (2.113703) 5. A = 2113.70 You’d have about $2,114 after 15 years. Due to rounding, your final number may differ somewhat. The $1,000 represents your initial deposit, while the $1,114 represents interest. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **Final Thoughts** Compounding is undoubtedly one of the most significant components of compounding, which is why young people should open investing accounts. Start making use of the power of compound interest and compound investment income right away so you don’t miss out on the chance to expand your savings. It is for this reason that you should begin investing as soon as possible. Make sure you choose a bank that gives a reasonable interest rate for your daily banking. On the other hand, keep in mind that compound interest has a negative influence on debts. It has the potential to turn a manageable credit card amount into something more difficult to pay down. If you have credit card debt, think about some creative strategies to pay it off quickly. Focus on compound interest’s potential to supercharge your savings over time to make it work for you. Are you looking to make your first (or next) real estate purchase? We employ innovative AI technology at [**BuyProperly**](https://buyproperly.ca/) to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at BuyProperly.com. [**Related Articles to Compound Interest**](https://buyproperly.ca/)  1. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 2. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 3. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 4. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 5. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Mortgage Down Payment? Author: BuyProperly Engineering Published: 2022-02-10 Category: Insights URL: https://buyproperly.ai/blog/guide-to-mortgage-down-payment [**Back to Investing Wiki**](https://blog.buyproperly.ca/investing-wiki) **![](https://lh3.googleusercontent.com/hQ-JPwce5tMigKiayxdax3DWJQ-u4XrsJIH5ntiTLjif3eb9psh5MFo8DEjKd7iUSffR3QBLB4Fm1hbwHrRkoo5lV8x-hEyxoKbwgSSb5vjV0e6o3hGYX5LvDMccQg)** **What is a mortgage?** You may only be able to pay a portion of the purchase price when buying a home. A down payment is an amount you pay. You may require the assistance of a lender to finance the remaining expenditures of the house purchase. A mortgage is a loan that you get from a lender to help you pay for your property. A mortgage is a contract between you and your lender that is legally binding. It describes the terms of your loan and is secured by a piece of real estate, such as a house or a condo. .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) **What is a minimum down payment?** The amount of money you put down on a house is referred to as a down payment. The down payment is deducted from the purchase price of your house by your lender. The rest of the home’s cost is covered by your mortgage. The amount you’ll need for a down payment is determined by the home’s purchasing price. In Ontario and across Canada, the minimum down payment is 5% of the first $500,000 in the property purchase price. In other words, a $500,000 home would require a $25,000 down payment. However, if the purchase price is greater than $500,000, a 10% down payment is required. For example, if the home costs $750,000, the down payment would be $25,000 on the first $500,000 and then $25,000 on the next $250,000 (for a total of $750,000 in this example). The key to understanding this concept is to distinguish between the first $500,000 (5 percent down on this amount) and the fact that every dollar of the purchase price above $500,000 requires a 10% down payment. Mortgage loan insurance is required if your down payment is less than 20% of the buying price of your home. Your lender may ask for a greater down payment if you’re self-employed or have a poor credit history. The minimal down payment is usually required to be paid out of your own pocket. It’s preferable to save for a down payment and pay off your debts first. **The different kinds of minimum down payment** The following is a list of the various down payment minimums available on the market, categorized by purchase type. * Owner-occupied home: occupied home: 5% on the first $500,000, 10% on the additional $500,000 – add the two to get the minimum. * Owner-occupied home: To avoid the CMHC charge, a 20% down payment is required (as much as 4 percent if less than 20 percent is applied). * Rental property: The majority of lenders need a 20% down payment on a rental property. * Second-home: With as little as a 5% down payment, you can purchase a second home for recreation, family, or other uses. There is no CMHC/default insurance fee if you put down 20%. **Is making just the minimum down payment for a mortgage bad?** The size of your down payment has an impact on the mortgage options available to you. For properties under $500,000, the minimum down payment is 5%, which means you’ll have a higher mortgage and a CMHC insurance charge of up to 4%. While you will pay less in interest today, you will pay more in interest in the long term if you make a larger down payment at the same interest rate. Another downside is the mortgage stress test, which requires you to demonstrate that you can still make your mortgage payments if interest rates rise. Your monthly mortgage payments may be much greater if you have a larger outstanding mortgage. It will be more difficult to qualify for a mortgage refinance or products like a home equity line of credit (HELOC), which can have loan-to-value requirements if you have less equity in your house. Another downside is the mortgage stress test, which requires you to show that you can still make your mortgage payments if interest rates rise. Your monthly mortgage payments may be much greater if you have a larger outstanding mortgage. It will be more difficult to qualify for a mortgage refinance or products like a home equity line of credit (HELOC), which can have loan-to-value requirements if you have less equity in your house. A down payment of 20% or more, on the other hand, allows mortgage lenders additional flexibility if you default on your mortgage or property values fall. As a result, you will not be required to pay for mortgage insurance. In order to qualify for a mortgage from your mortgage lender, you may be required to make a larger down payment. This could be for a variety of reasons, including being self-employed or having a bad credit history. Even if they don’t have a credit history in Canada, newcomers to the country, such as recent immigrants, may be eligible for a mortgage. However, special programs for newcomers may need a larger down payment. Are you interested in learning how to [get started investing in real estate with as little as $2500](https://buyproperly.ca/)? Consult Us Today! [**Related Topics to Mortgage Down Payment**](https://buyproperly.ca/) 1. [**11 Real Estate Investing Mistakes to Avoid**](https://buyproperly.ca/resource-center/posts/11-real-estate-investing-mistakes-to-avoid) 2. [**How to Create a Real Estate Investment Business Plan**](https://buyproperly.ca/resource-center/posts/how-to-create-a-real-estate-investment-business-plan) 3. [**The Pros and Cons of Investing in Single-Family Homes**](https://buyproperly.ca/resource-center/posts/the-pros-and-cons-of-investing-in-single-family-homes) 4. [**The 5 Types of Real Estate Investments**](https://buyproperly.ca/resource-center/posts/the-5-types-of-real-estate-investments) 5. [**How to Choose an Investment Property: A Step-by-Step Guide**](https://buyproperly.ca/resource-center/posts/how-to-choose-an-investment-property-a-step-by-step-guide) 6. [**Why Invest in Real Estate: 7 Key Benefits to Know**](https://buyproperly.ca/resource-center/posts/why-invest-in-real-estate) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Create a Real Estate Investment Business Plan Author: BuyProperly Engineering Published: 2022-02-04 Category: Insights URL: https://buyproperly.ai/blog/how-to-create-a-real-estate-investment-business-plan Starting a real estate investment business can be a great way to grow your wealth. However, it’s important to have a well-thought-out plan in place before you get started. In this blog post, we will discuss the steps you need to take to create a successful real estate investment business plan. We’ll talk about setting short-term and long-term goals, as well as how to financially plan for growing your real estate portfolio.  If you’re ready to start investing in real estate, let’s dive in! Before creating your real estate investment plan, it’s important to know why you’re investing in the first place.  What is your motivation for wanting to invest? Are you getting in the market now to save up for retirement? Are you hoping to become a full-time real estate flipper? Once you have a good understanding of why you’re doing this, it will be easier to come up with goals, strategies, and action plans that fit with what you want to achieve. **Why create a real estate investment plan** -------------------------------------------- There are a few key reasons why you should create a real estate investment plan: 1. **To set short-term and long-term goals for your business:** without having clear goals in place, you may be prone to making impulsive or impractical decisions as you begin your investment journey. Use your goals as a barometer. 2. **To figure out how much money you need to save up for your investments:** creating a business plan means getting crystal clear on the out-of-pocket expenses to expect as you grow your portfolio. 3. **To develop strategies for finding good deals and growing your portfolio:** your business plan should have a clear and repeatable strategy you can use to source, acquire, and manage your investments. Now that we know why a plan is so important, here are the 10 steps you need to follow in order to create a real estate investment business plan. **Step #01: Define your short-term goals** ------------------------------------------ What are your goals for the next 12-24 months? What do you hope to achieve in that time frame? Your short-term goals should be realistic and achievable, and they should help you move closer to your long-term goals. Here are some ideas to help you get started: * when do you want to buy your first property? * how much do you need to save up for a down payment? **think you need tens or hundreds of thousands to get your first investment? Not true! At BuyProperly, we help investors get started for as little as $2500 using a fractional ownership model. [Learn how](https://buyproperly.ca/).** * what sort of returns (if any) are you looking for in your first 12-24 months? * what other expenses are you saving up for? **Step #02: Define your long-term goals** ----------------------------------------- Here’s where we get into the fun stuff! Your long-term goals should be even more ambitious than your short-term goals. What do you hope to achieve in the next five, ten, or twenty years? How will your real estate investment business help you reach these goals? Are you hoping to build a nest egg so you have money for your child’s college tuition? Are you planning on saving up for retirement? Remember, real estate is a long-term game that works best when you’re prepared to hold onto your properties. When setting financial goals, look at both the potential rental income and appreciation over time to get a better idea of your return. **Step #03: Assess your current financial situation** ----------------------------------------------------- Before you can start investing in real estate, you need to know where you stand financially. How much money do you have to invest? What is your credit score? How much debt do you currently have? Answer these questions and more in order to get a clear picture of your current financial situation. Once you know how much money you’re working with, assess whether it’s enough for you to get started (comfortably) in traditional real estate investing. Make sure you have enough money to cover: * the closing costs (lawyer’s fees, surveys, title search, realtors, etc.), * one-time repairs, * property management fees, * utilities, mortgage costs, and taxes, and * ongoing maintenance and repairs. These expenses can really add up, so be sure to factor them into your financial plan. In fact, it’s this step that makes many people rethink real estate investing altogether! When we work with new investors at BuyProperly, they’re often shocked to learn that traditional real estate isn’t the only way to grow a lucrative portfolio. We help people get started in real estate for a small fraction of the cost of traditional investing! [View properties.](https://buyproperly.ca/properties) **Step #04: Create a solid financial plan** ------------------------------------------- Now that you have an idea of what you need to begin investing in real estate, it’s time to build out a solid financial plan. Investing in real estate can be a great way to grow your wealth, but it’s important to understand how to invest and what to expect before you get started. * Anticipate your monthly expenses. In your area, what are average management costs? What about heat, electricity, and water? * Look at potential rental income. What can you expect for a 1, 2, or 3-bedroom rental in your area? * What monthly net income can you expect? After all expenses, work out what you expect to receive monthly. * What annual appreciation are you expecting? Look at your local market to determine these rates. * How will you continue to invest? Will you be able to leverage your current assets to continue growing your portfolio? **Step #05: Research the market** --------------------------------- Before you invest in any property, it’s important to do your research and understand the current real estate market conditions. First, decide on the area you want to invest in. Do you want to stay local or are you open to investing out of city, province, or state? Next, take a close look at your chosen area. Are prices rising or falling? What are the current vacancy rates? How much competition is there for properties in your area? Knowing this information will help you make smarter investment decisions. **Step #06: Choose your investment strategy** --------------------------------------------- There are many different ways to invest in real estate, and each comes with its own set of risks and rewards. First, do some research and decide which investment strategy is right for you. Maybe you want to buy and hold properties for the long term, or maybe you’re interested in flipping houses for a quick profit. Next, decide on which type of real estate investment you’d like to start with. Are you looking for single-families with lower repair and maintenance costs, or multi-family buildings that can yield a higher return but are more expensive to get started. Are you hoping to quickly leverage your properties to grow your portfolio, or are more interested in buying properties with the potential to appreciate over time? Having a clear strategy in place before you start investing is the best way to ensure you’ll meet your short and long-term goals! **Now it’s time to create your business plan** ---------------------------------------------- Even if you’re not raising funds or seeking outside investment, it’s always a good idea to have a business plan in place. This will help you stay organized and keep track of your progress over time. It can also be helpful when applying for loans or other financing. Now that you know your goals and what you need to do to achieve them, it’s time to put together a real estate investment business plan. This will act as your roadmap for growing your portfolio and achieving success in real estate investing. Your business plan should include the following: – A description of your business – The goals you hope to achieve with real estate investing – How you plan to finance your investments – Strategies for finding and evaluating deals – Plans for managing your properties – Marketing and sales strategies – Projected income and expenses – A risk management plan Creating a business plan is not easy, but it is essential if you want to be successful in real estate investing. It will help you stay on track and make smart decisions as your business grows. So take the time to create a plan that is tailored to your specific goals and needs. With a well-constructed business plan, you can confidently move forward with your real estate investment business and achieve the success you desire. **Conclusion** -------------- Real estate investing can be a great way to build wealth and create financial security for yourself and your family. But like any business, it takes planning, hard work, and dedication to succeed. By following the steps outlined in this article, you can create a real estate investment business plan that will help you reach your goals. Stay focused on your goals, do your research, and take action to make your dreams a reality. So what are you waiting for? Start planning today and see how real estate investing can change your life! **[Learn](https://buyproperly.ca/properties) how BuyProperly helps investors get 10-40% projected annual returns for a fraction of the cost of traditional real estate investing!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pros and Cons of Investing in Single-Family Homes Author: BuyProperly Engineering Published: 2022-02-04 Category: Insights Tags: cons of investing in single-family homes, pros of investing in single-family homes URL: https://buyproperly.ai/blog/the-pros-and-cons-of-investing-in-single-family-homes There is no doubt that investing in real estate is a smart move for anyone looking to secure their financial future. But when it comes to building a lucrative real estate portfolio, there are a few different options to choose from. One of the most popular choices is investing in single-family homes. In this blog post, we will take a look at the pros and cons of investing in single-family homes and help you decide if this is the right type of investment for you! First, let’s define the main types of residential investments: **Single-family:** A property that has one available dwelling to rent. **Duplex:** A property that has two available dwellings to rent. **Multi-family:** A property that has 3 or more available dwellings to rent. Let’s start by looking at all the pros of investing in single-family homes. **High Returns** ---------------- Single-family homes are a great choice if you’re looking for steady appreciation with a good return on investment. In most cases, you can expect to make around 12% on your investment each year. Don’t forget you’ll have maintenance and operating expenses and potentially regular mortgage payments as well which we’ll discuss in a moment. That’s a pretty good chunk of change! And remember, investing in real estate isn’t just about getting rich quick; it’s about investing for the future. If you plan on holding onto these properties indefinitely, then single-family homes are a great choice because they tend to appreciate quickly over time. For instance, if you buy a property today for $100,000 and sell it 20 years from now for $200,000 then that’s an average of 12% appreciation per year. If you held onto your investment property indefinitely, the value would continue to increase at this rate while other investment options (like stocks) might plateau after some time. **Easier to Get Started** ------------------------- Another pro of investing in single-family homes is that it is a very easy way to get started. Unlike multi-families that may require hundreds of thousands of dollars to buy in, single families are less expensive and, therefore, easier to acquire. You don’t need a lot of money to start building your real estate portfolio and you can begin seeing returns pretty quickly. Perhaps you don’t have enough deposit for the mortgage down payment, – then you consider the opportunity to invest a fractional share of a property. Here at BuyProperly, we help investors get started in real estate investing for as little as $2500! Learn more [here.](https://buyproperly.ca/) **Stable and Secure** --------------------- The market for single-family homes is always growing. Even if the economy takes a turn for the worse, you can still expect to make money off of your investment. Unlike investing in stocks or other forms of investments, real estate is something that normally retains its value no matter what the market is doing. **Maintenance and Repair Costs** -------------------------------- A big benefit of single-family investing is that repair and maintenance costs are often lower than what you would pay with larger buildings. Instead of having multiple units to look after under a very large roof, investing in a single-family means you only have one unit (or “door”) to worry about. Plus, you can often do the repairs yourself to save even more money. **More Control** ---------------- Investing in single-family homes gives you more control over your investments.  For example, if you buy a single-family home and then decide that investing isn’t right for you anymore, you can sell it at any time. You have more control over the investment and how long to continue investing. Plus, since they appreciate quickly over time with little upkeep required from an investor point of view this means less stress when investing. **Less Risk** ------------- Single-family homes are a great way to get started in real estate investing without taking on too much risk. Why? Because, as we mentioned before, the market for single-families is always growing. This means that even if your investment doesn’t go as planned, you can still sell it down the road and make most of your money back. **Easier to Manage** -------------------- Another pro of investing in a single-family home is that it is much easier to manage than a larger property. It’s often easier to find a property management company and the fees are substantially less than you would pay with a larger building. You also don’t have to worry about hiring and managing staff, which can be a big hassle. **Less turnover** ----------------- Single-family rentals tend to have long-term tenants with less turnover than lower-priced units in a multi-family building.  Long-term tenants are more stable and will pay their rent on time, which means less stress for you. Multiple vacancies can become a big issue with larger properties and can really eat into your profits. **Diversification** ------------------- Because single-family homes are less expensive than large buildings, it’s easier to continue investing and keep adding more homes to your real estate portfolio. This means you can diversify and reduce the risk of sudden vacancies and non-paying tenants. As you can see, there are several pros to investing in single-family real estate! But, like any investment, it doesn’t come without some risk. **Cons of Investing in Single-Family Homes** Now that you have a good idea of the many benefits of investing in single-families, let’s take a look at some of the cons of this type of real estate investment. **Sourcing Deals** ------------------ The main con of investing in single-family homes is that it can be difficult to find good deals. Because this is such a popular choice, the competition for good deals is fierce. So you need to be prepared to do some digging and put in some work if you want to make a profit.  The main con of investing in single-family homes is that it can be difficult to find good deals. Because this is such a popular choice, the competition for good deals is fierce. So you need to be prepared to do some digging and put in some work if you want to make a profit. **Takes time to generate a return** ----------------------------------- With single families, it can take a while to see a return on your investment. It’s not uncommon for it to take at least five years before you start seeing any real profits. Remember, although you’re always able to collect rental income on your investment, much of the benefit in single-family investing comes with the capital appreciation over time.  **Flip & Sell Risks** --------------------- “Flipping” houses (buying and selling them quickly for a profit) can be risky – especially if you don’t know what you’re doing.  If you’re not careful, you could end up losing money on a flip. Another con to flipping is that it’s often difficult to find good deals – the same issue we mentioned before. And if you do find a good deal, there’s always the risk that someone will come in and snatch it out from under you. If the market takes a downturn, you could end up losing money on the sale. **Vacancy rates** ----------------- Unlike multi-family investing with several units or “doors” to generate income, single-family investing means you’re buying only one unit to rent. If a tenant doesn’t pay the rent or leaves the property, you could suddenly find yourself at 100% vacancy which can significantly eat into your ROI. **Management** -------------- Another downside is that it can take a lot of time and effort to manage all of the different aspects of owning and managing multiple single-family homes. Two or three properties can be extremely easy, whereas 10, 15, or even 20 single-family homes can mean a lot of traveling for your management company!   If you are planning on managing the property yourself, you’ll also need to be within a reasonable commuting time to this property to deal with any issues. **Less Leverage** ----------------- Lastly, investing in a single-family home usually doesn’t provide as much leverage as investing in a larger property. In the real estate investing world, leverage means using other people’s money to fund your investment. For example, with single-family investing, you may only be able to get a loan for 50% or 60% of the purchase price. Whereas with investing in a larger property, you may be able to get a loan for up to 80% or even 90%. This is because investing in larger buildings means investing more money and investing more money means investing more risk. And the bank doesn’t want to be stuck with all the risk if something goes wrong. So, they’re more likely to loan you money when you’re investing in a larger property. This means you can’t make as much money on your investment if it goes up in value. **Are single-family homes the right investment for you?** --------------------------------------------------------- That all depends on your goals and what you’re looking for in an investment. If you’re prepared to do some work sourcing good deals, investing in a single-family home can be a great way to get started in real estate investing. They are stable and secure, have lower maintenance costs, and are easier to manage than larger properties. However, keep in mind that it can take a while to see a return on your investment. So if you’re looking for something that will generate income quickly, single-family homes may not be the best option for you. **Conclusion** -------------- Overall, investing in single-family homes is a great way to secure your financial future. It is a stable investment that has the potential to make you a lot of money over time. However, it is important to remember that there are some risks involved and it does take some effort to manage everything.  If you are willing to take on these challenges, then investing in single-family homes is definitely something you should consider! Looking for your first (or next) real estate investment? Here at BuyProperly, we use advanced AI technology to help match investors with lucrative investment opportunities. We use a fractional ownership model so you can get started for as little as $2500 (and see projected annual returns of 10-40%!).  With this approach, BuyProperly makes it easy to invest in multiple properties and locations to diversify your investment portfolio and build your wealth! Want to learn more? Visit us at [BuyProperly.](https://buyproperly.ca/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 11 Real Estate Investing Mistakes to Avoid in 2024 Author: BuyProperly Engineering Published: 2022-02-04 Category: Insights Tags: Real estate opportunities, AvoidMistakes, RealEstateTips, ResearchFirst, FinancialGoals URL: https://buyproperly.ai/blog/11-real-estate-investing-mistakes-to-avoid ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/real-estate-investing-mistakes-to-avoid-1714875962021-compressed.jpeg) Investing in real estate can be a great way to secure your financial future, but it’s important to avoid mistakes that can derail your success. In this blog post, we will discuss some of the most common mistakes that real estate investors make and how to avoid them. ### Here are 11 mistakes you’ll want to avoid as a successful real estate investor. **1\. Overpaying for a property** --------------------------------- Investing in real estate can be a great way to build wealth over time, but it’s important not to overpay for a property.  One of the biggest mistakes that investors make is paying too much (OR getting caught in a bidding war) for a property. When you pay too much, you are limiting your potential profits and could even end up losing money on the investment. To avoid overpaying for a property, be sure to do your research and know what properties are worth in the area you are investing in. Don’t get caught up in the excitement of the purchase and end up paying more than it’s worth. Even if you find a fantastic deal, don’t be afraid to let it go. **2\. Not doing proper research** --------------------------------- Another common mistake that investors make is not doing proper research. Before buying a property, be sure to have a solid understanding of the market conditions, the rental potential of the property, and what you will need to do to get it ready for tenants. If you don’t do your homework before buying a property, you could end up losing money on the investment. The best way to avoid this is to gather as much information as you can before making an offer so you know exactly what to expect. Do your research on the market conditions, the property, and the neighborhood before making an offer.​​​​​​​​​​ **3\. Trying to do everything alone** ------------------------------------- Successful investors know they need a team of professionals working alongside them to build a lucrative real estate portfolio.  Trying to do everything yourself is a recipe for disaster. When you try to do everything alone, you will likely make mistakes and miss out on potential opportunities. Instead, build a team of professionals who can help you with every aspect of your real estate investing. This includes lawyers, accountants, contractors, realtors, and more. By working with a team of professionals, you will be able to make more money and avoid mistakes.​​​​​​ Here at BuyProperly, we use an AI-powered platform to help match investors with high-performing investments. We use a fractional investment model to allow investors to buy in for as little s $2500, and we take care of all the property management and necessary legal paperwork! **_Learn more [here](https://buyproperly.ca/about-us)_** **4\. Making emotional decisions** ---------------------------------- One of the biggest traps investors fall into is making emotional decisions. When you buy a property based on your emotions, you are likely to overpay or make other mistakes that can hurt your bottom line. To avoid making emotional decisions, take some time to think about the purchase and what it will mean for your business. Make a list of pros and cons and be sure to think about the long-term implications of the investment. If you are still not sure, it’s best to wait until you are 100% certain before making a decision. **​​​​​​5. Underestimating repair costs** ----------------------------------------- Investors often underestimate the repair costs of a property, which can lead to them losing money on the investment. When you buy a property, be sure to factor in the cost of repairs and renovations. If you don’t have enough money set aside for repairs, you could end up taking a loss on the investment. To avoid this, make sure you have a realistic estimate of the repair costs and be prepared to pay for them out of pocket. This is where working with professionals really pays off! If you’re not sure how to calculate repair costs, bring in home inspectors, contractors, and licensed professionals to give you accurate estimates. **6\. Buying in a bad neighborhood** ------------------------------------ Another mistake that investors make is buying in a bad neighborhood. This can negatively impact rental incomes, vacancy rates, and resale value. When you buy a property in an undesirable or unsafe neighborhood, you are likely to experience high levels of crime, vandalism, and other problems. To avoid this, do your research on the neighborhoods where you are thinking about investing. Make sure to check out the crime statistics, school ratings, and other important information. If a neighborhood doesn’t meet your standards, don’t invest in it. ​​​​​​​​Instead, look for neighborhoods that are growing and have a lot of potential. These areas are more likely to experience positive growth in the future which will translate into higher rents, fewer vacancies, and greater appreciation. **7\. Investing without a plan** -------------------------------- Another mistake that investors make is investing without a plan. This can lead to money being wasted on bad investments and missed opportunities. To avoid this, create a detailed investment plan before buying any property. This plan should include your goals, strategies, and how you will measure success. When considering your budget, it’s also important to ensure the mortgage payment, repairs, and emergency fund can be covered by the rental income. By having a solid plan in place, you will be able to make better decisions and avoid mistakes. You will also be able to stay focused on your goals and achieve them faster. ​​​​​​​​Creating a plan is essential for any real estate investor, so don’t skip this step! **8\. Not having enough cash reserves**  ---------------------------------------- Investors often make the mistake of not having enough cash reserves. This can lead to them being forced to sell a property in a hurry or take out a loan, which can be costly. To avoid this, make sure you have plenty of cash saved up so you can buy properties without having to borrow money. You should also have money set aside for repairs and other unexpected costs. If you don’t have enough cash saved up, it’s best to wait until you do before investing in real estate. The last thing you want is to get into a financial bind that forces you to sell a property at a loss. ​​​​​​So, how much cash should you have set aside when you buy a property? Aside from your down payment and closing costs, aim to keep an additional 5% set aside for repairs, maintenance, and emergencies. At BuyProperly, we use a fractional investment model that allows investors to get started for as little as $2500. This eliminates the need for a huge cash downpayment and the fear of getting hit with unexpected repair costs! **See our properties [here](https://buyproperly.ai/ca/investments/allDeals/)** **9\. Paying too much in fees**  -------------------------------- Another mistake that investors make is paying too much in fees. This can include broker’s fees, closing costs, and other expenses. To avoid this, be sure to shop around for the best deals on fees. Ask your real estate agent about their commission, get quotes for title insurance, and compare rates for home inspections. By shopping around for the best deals, you can save yourself a lot of money in the long run. **10\. Not setting short-term and long-term goals** --------------------------------------------------- Before buying an investment property, it’s important to know your financial goals. If you’re looking for quick returns and you’re available to put more time into your real estate investment portfolio, a buy-and-flip could be a great option.  If you’re looking for long-term wealth, a buy-and-hold strategy may be better. Successful investors know their goals ahead of time so they can find the right properties to grow their portfolios. Not having short-term and long-term goals can lead to costly mistakes, so make sure you know what you want before investing in real estate. **11\. Quitting too soon** -------------------------- One of the biggest mistakes that investors make is quitting too soon. This can be due to a number of reasons, such as not having enough money saved up or experiencing some early losses. To avoid this, set a goal for how long you will stay in the real estate market. If you’re just starting out, give yourself at least five years to make mistakes and learn from them. By setting a goal and sticking to it, you’ll be more likely to succeed in real estate investing. Remember, Rome wasn’t built in a day! **Conclusion** -------------- With these mistakes in mind, have you made any of them when investing in real estate? If so, you’re not alone. But don’t let this discourage you!  Investing doesn’t have to be overwhelming, frustrating, or even costly. Learn how you can get started investing in real estate for as little as $2500! Visit us at [https://buyproperly.ai](https://buyproperly.ai) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## BuyProperly – Investing Wiki Author: BuyProperly Engineering Published: 2022-02-01 Category: Insights URL: https://buyproperly.ai/blog/investing-wiki ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/buy-properly-investment-canada235700232-1024x536-1715167255529-compressed.jpeg) Find here all the terms you need to know in order to understand A.B.C of investment. [Amortization](https://buyproperly.ca/resource-center/posts/amortization-in-real-estate) [Appraisal](https://buyproperly.ca/resource-center/posts/what-is-an-appraisal) [Appraiser](https://buyproperly.ca/resource-center/posts/what-is-an-appraiser) [Approved Lender](https://blog.buyproperly.ca/pre-approved-things-needed-for-mortgage) [Assets](https://buyproperly.ca/resource-center/posts/understanding-assets) [Appreciation](https://blog.buyproperly.ca/what-is-appreciation) [Adjustable-Rate Mortgage (ARM)](https://blog.buyproperly.ca/what-is-an-adjustable-rate-mortgage-arm) [Appreciation – housing price appreciation, capital appreciation](https://blog.buyproperly.ca/capital-appreciation) [Bad Credit](https://blog.buyproperly.ca/what-is-bad-credit) [Compound Interest](https://buyproperly.ca/resource-center/posts/guide-to-compound-interest) [Capital Gain or Loss Tax](https://buyproperly.ca/resource-center/posts/capital-gains-tax) [Cash Flow](https://buyproperly.ca/resource-center/posts/understanding-cash-flow) [Conditional Offer](https://buyproperly.ca/resource-center/posts/what-is-a-conditional-offer) [Closed-end Mortgage](https://buyproperly.ca/resource-center/posts/closed-end-mortgage) [Closing Costs](https://buyproperly.ca/resource-center/posts/what-are-closing-costs) [Current assets](https://buyproperly.ca/resource-center/posts/current-assets-explained) [Conventional Mortgage](https://buyproperly.ca/resource-center/posts/conventional-mortgage-vs-loan) [Compound Interest](https://blog.buyproperly.ca/what-is-compound-interest) [Credit Bureau](https://blog.buyproperly.ca/what-is-a-credit-bureau) [Collateral](https://buyproperly.ca/resource-center/posts/what-is-collateral) [Credit History or Credit Report](https://blog.buyproperly.ca/what-is-credit-history) [Curb Appeal](https://blog.buyproperly.ca/what-is-curb-appeal) [Contributed Capital](https://blog.buyproperly.ca/what-is-contributed-capital) [Debt & Equity](https://buyproperly.ca/resource-center/posts/debt-to-equity-d-e-ratio) [Dividend](https://buyproperly.ca/resource-center/posts/what-is-dividend) [Diversification](https://buyproperly.ca/resource-center/posts/diversification-in-investing) [Down Payment](https://buyproperly.ca/resource-center/posts/down-payment) [Deed](https://buyproperly.ca/resource-center/posts/understanding-property-deeds) [Depreciation](https://blog.buyproperly.ca/what-is-depreciation) [Earnest Money](https://buyproperly.ca/resource-center/posts/earnest-money) [Fixed assets](https://buyproperly.ca/resource-center/posts/understanding-fixed-assets) [Freehold](https://blog.buyproperly.ca/what-is-freehold) [Gross profit margin (Gross Rental Yield)](https://buyproperly.ca/resource-center/posts/understanding-gross-rental-yield) [HOA Fees](https://buyproperly.ca/resource-center/posts/homeowners-association-hoa-fee) [Home Price Index](https://buyproperly.ca/resource-center/posts/explaining-house-price-index) [High-Ratio Loan](https://buyproperly.ca/resource-center/posts/high-ratio-loan) [Mortgage Approval](https://blog.buyproperly.ca/what-is-mortgage-approval) [Mortgage down payment](https://buyproperly.ca/resource-center/posts/guide-to-mortgage-down-payment) [Net profit (net income)](https://buyproperly.ca/resource-center/posts/net-income-vs-profit) [Operating Costs](https://blog.buyproperly.ca/what-are-operating-costs) [Open End Mortgage](https://blog.buyproperly.ca/what-is-an-open-end-mortgage) [Principal Paydown](https://buyproperly.ca/resource-center/posts/what-is-a-paydown) [Property taxes & rates](https://buyproperly.ca/resource-center/posts/property-taxes) [Predictive analysis](https://buyproperly.ca/resource-center/posts/what-is-predictive-analytics) [Real Estate Risk](https://buyproperly.ca/resource-center/posts/types-of-real-estate-risks) [Risk & Risk Analysis](https://buyproperly.ca/resource-center/posts/risk-analysis-explained) [Reserve Fund](https://blog.buyproperly.ca/what-is-a-reserve-fund) [Real Estate Agent (or “Realtor”)](https://blog.buyproperly.ca/what-is-a-real-estate-agent-or-relator) [Term Loan](https://blog.buyproperly.ca/what-is-a-term-loan) [Net Worth](https://blog.buyproperly.ca/what-is-net-worth) [12 Steps of a Real Estate Closing](https://buyproperly.ca/resource-center/posts/12-real-estate-closing-steps) .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) Best Retirement Plans in Canada ------------------------------- [Best Retirement plans in Canada](https://buyproperly.ca/resource-center/posts/best-retirement-plans-in-canada) [Registered Retirement Savings Plan (RRSP) – Best Retirement plans in Canada 1](https://buyproperly.ca/resource-center/posts/registered-retirement-savings-plan-rrsp) [Tax-Free Savings Account (TFSA) – Best Retirement plans in Canada 2](https://buyproperly.ca/resource-center/posts/tax-free-savings-account-tfsa) [The Canada Pension Plan (CPP) – Best Retirement plans in Canada 3](https://buyproperly.ca/resource-center/posts/canada-pension-plan-cpp) [Old Age Security (OAS) Best Retirement plans in Canada – 4](https://buyproperly.ca/resource-center/posts/old-age-security-oas-plan) [Guaranteed Income Supplement (GIS) – Best Retirement plans in Canada 5](https://buyproperly.ca/resource-center/posts/guaranteed-income-supplement-gis-plan) .ctacontainer {width:100%; align-content: center;} .ctacontainer a{display: block; height: 50px; width: 300px; background-color: rgb(224, 216, 215); border-color: rgb(212, 63, 58); color: black!important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none; margin: 0 auto;} .ctacontainer a:hover{display: block; height: 50px; width: 300px; background-color: #c10303!important; border-color: #cccaca!important; color: white !important; text-align: center; font-weight: bold; font-size: 150%; line-height: 50px; font-family: Arial; border-radius: 20px; text-decoration: none!important; margin: 0 auto;} [View Investment](https://buyproperly.ca/properties) Download Our Ebooks ------------------- [Learn How to Calculate ROI in Real Estate](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-_-How-to-Calculate-ROI-in-Real-Estate-v2-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-_-How-to-Calculate-ROI-in-Real-Estate-v2-1.pdf) [Women & Investing](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_Women__Investing-v2-1-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_Women__Investing-v2-1-1.pdf) [Why Invest in Real Estate?](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-Why-Invest-in-Real-Estate-v2-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-Why-Invest-in-Real-Estate-v2-1.pdf) [The 5 Types of Real Estate Investments](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-The-5-Types-of-Real-Estate-Investments-v2-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-The-5-Types-of-Real-Estate-Investments-v2-1.pdf) [House Flipping vs. Rental Income](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-House-Flipping-vs.-Rental-Income-v2-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca_-House-Flipping-vs.-Rental-Income-v2-1.pdf) [Want to Retire Early By Your 50s?](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-Want-to-Retire-Early-By-Your-50s-v3-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-Want-to-Retire-Early-By-Your-50s-v3-1.pdf) [The ABC of Investing](https://blog.buyproperly.ca/wp-content/uploads/2022/07/Buyproperly.ca-The-ABC-of-Investing-v2.7-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/Buyproperly.ca-The-ABC-of-Investing-v2.7-1.pdf) [How to Choose an Investment Property](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-_-How-to-Choose-an-Investment-Property-v2-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-_-How-to-Choose-an-Investment-Property-v2-1.pdf) [How To Cope Up With Rising Prices?](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-How-To-Cope-Up-With-Rising-Prices-v3-1.pdf)[Download](https://blog.buyproperly.ca/wp-content/uploads/2022/07/BuyProperly.ca-How-To-Cope-Up-With-Rising-Prices-v3-1.pdf) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Calculate ROI in Real Estate to Maximize Your Profit Author: BuyProperly Engineering Published: 2022-01-20 Category: Insights Tags: RealEstateROI, ROIExploration, ROIFormula , Calculating ROI, RealEstateJourney URL: https://buyproperly.ai/blog/how-to-calculate-roi-in-real-estate-to-maximize-your-profit ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-calculate-roi-on-real-estate-1714757519774-compressed.jpg) If you’ve dabbled in real estate investing (or even if you’re brand new) you’ve undoubtedly heard of ROI and how important it is to consider when making your investment decisions. But what exactly **_is_** it, and how do you calculate ROI in real estate? Is it crucial for investment success? We’re going to break down the basics of ROI, how to calculate it, and how to use it to make smart investment decisions so you can grow your real estate portfolio with confidence. Ready? Let’s dive in! **What is ROI?** ---------------- ROI stands for “return on investment” and it’s a very important concept to understand when it comes to real estate investing. It is a standard metric used to calculate the profitability of an investment on a case-by-case basis. It measures the financial return of a particular investment _**r**_**_elative to its cost_**. The higher the ROI, the more profitable the investment and (presumably) the better it is. ### **Why is ROI so popular for measuring profitability?** Two reasons: first, it’s incredibly simple to understand and easy to calculate the ROI on almost any investment. Second, it provides a simple way to get a financial “snapshot” of an investment relative to other investments so you know when to buy, sell, or simply measure whether or not your portfolio is on the right track. Although it’s incredibly important to know the ROI of any investment, it often doesn’t take into account the complexities, nuances, and “life factors” involved in growing a successful real estate portfolio. For this reason, it should be used as a tool to give broad feedback on the quality of your investments. **Why is ROI in real estate so important?** ------------------------------------------- Although many ROI formulas paint a simplistic picture of investing, they can also give a very quick and solid overview of a property’s profitability. In a pinch, you can figure out the “health score” of any potential investment you’re interested in and weed out some of the bad apples along the way. Properties with an obvious cash flow issue or negative ROI can be identified quickly. When taken into account with your overall investment goals, using ROI calculations will help you make smart financial decisions and build a solid real estate portfolio. Here at BuyProperly, we calculate ROI for our investors and use it as a benchmark to measure the profitability of our properties. Most of our investors can expect to see projected annual returns of 10-40%! [Take a look at our properties](https://buyproperly.ca/properties). **The formula for calculating ROI** ----------------------------------- There are a few different ways to calculate ROI depending on the type of real estate investment you have. Let’s look at how to calculate ROI for real estate investments that are resales OR rental investments. Let’s look at some examples. ### **Resales** When calculating the profitability of resale real estate investments, there is a simple formula: Your equity in the property (total gains minus your total costs) divided by total costs There are 2 methods real estate investors can use to calculate their gains and costs: the Cost Method and the Out-of-Pock Method. Let’s look at them both in detail. #### **Cost Method** This method for calculating ROI uses the total equity in a property divided by that property’s costs (renovations, repairs, and sale price). The Cost Method works for properties purchased with both cash and/or financing.  As an example, say you purchase a home for $250,000. After putting in an additional $100,000 for repairs, you sell the property for $500,000.  First, you need to calculate your equity in the property. If it sold for $500,000 after your total costs were $350,000 for the purchase and repairs, you had $150,000 left of equity.  Next, calculate the total costs. As mentioned above, the total costs for the property were $350,000 ($250,000 purchase price plus $100,000 in repairs). After you divide your equity ($150,000) by the total costs ($350,000), you get 0.43 which is a 43% ROI. ![](https://lh6.googleusercontent.com/f2OWACJqm9p401NjOtBCvgoczB0JW8bSod-Lm05IvgWBJym-qisylU2qRY3Fh_mYwTcOmlqXw7S8SHlilvS5ZpUavn6-_agvvasVu3Mdd5bJeFRf5liUMRxUra4eYKTiiv5gh7Ls) #### Out of Pocket Method The second popular method for calculating ROI looks at only what you’ve spent out-of-pocket for property costs and expenses and doesn’t take into account the property financing.  When would investors use this method? The Out-of-Pocket Method can be used to calculate ROI **_only when investors purchase a property with a mortgage._** Both the down payment and financing on the property are calculated as equity, making the overall ROI higher. Let’s use the same example as above.  You purchased the property for $250,000 and put $100,000 of repairs, only this time, let’s say you put a 20% down payment on the house and used a traditional mortgage to finance the rest.  This means your **out-of-pocket expenses** are only $50,000 (your down payment) plus $100,000 (repair costs). If the property is worth $500,000 after repairs, this means you have $350,000 of equity (including your bank financing as leverage). After you divide $350,000 by the total sale price ($500,000) you’re left with a 70% ROI. ![](https://lh6.googleusercontent.com/GztM4rE1IvT6IuJtdY8tuG58mZ2kMgVpjLqOrskeFkz1ZVrv605Ryp8Pr0E2xwKaOvhwQIRjy_2JmYZ5q6USSUjSVDknATE6-tgT12QRpaAIzp0r1nwia1ivvDDmTcX3ANbRZa6F) ### **Rental properties** Calculating ROI on rental properties is slightly more complex since we need to factor in year-over-year profitability. For this ROI, we use the following formula: Net operating income (annual rental income – operating expenses) divided by the total out-of-pocket expenses. Using the example from above, if you purchased your property for $250,000 with a 20% down payment, that means your out-of-pocket expenses would be $50,000. Add in closing costs ($5000) and some money you used for repairs ($20,000) your total expenses are $75,000.  Now, let’s say your monthly rent is $1200. Multiply this by 12 to get the average yearly rent. Subtract operating expenses (let’s assume these are $500 a month). This leaves you with a yearly net operating income of $8400. Divide $8400 by your out-of-pocket expenses ($75,000) and you’re left with an ROI of 11%. **Other important factors when considering ROI** ------------------------------------------------ When you’re trying to paint a more detailed picture of your ROI on a property, there are two more important factors to consider: home equity and year-over-year appreciation. Using the above example, if you buy a $250,000 with a $50,000 down payment and $200,000 mortgage, your equity grows over time as you pay down the principal balance on your loan.  Let’s say (according to your mortgage amortization schedule) you paid $2300 on the principal balance of your loan in the first year. This $2300 now becomes equity and can be used in your ROI calculation. Furthermore, it’s important to consider year-over-year appreciation. If we assume your $250,000 property appreciates at 6% each year, then next year, your property will be $265,000 giving you an additional $15,000 in your equity position. Here at BuyProperly, we calculate ROI using net cash flow, mortgage repayments, and capital appreciation to paint a more accurate picture of the returns investors will make over time. **What is a good ROI for real estate?** --------------------------------------- Determining a “good ROI” for real estate investments very much depends on your personal goals and ability to tolerate risk which means there’s no right or wrong answer. Investors looking to rent will normally be content with lower yearly ROI numbers knowing they plan on holding the property as a long-term investment. For rental properties, it’s common to expect a 5-10% ROI. Property flippers on the other hand are more interested in the immediate ROI and are looking for something with the potential to generate higher returns. In this case, an ROI of 20% or above is ideal. Here at BuyProperly, we help real estate investors get started for as little as $2500 and see projected annual returns of 10-40%! Want to know how? [Learn More](https://buyproperly.ca/) **Conclusion** -------------- ROI is an important consideration when investing in a property. Whether you’re looking for a quick return or long-term cash flow and appreciation, calculating ROI can help make your next investment decision easier. Remember, since ROI is a simplistic method of sizing up your next real estate investment, it’s important to analyze it alongside your risk tolerance profile, as well as your long-term and short-term goals before making any investment decisions. Looking to get started in real estate investing without the overwhelm? [Check out our properties](https://buyproperly.ca/properties) and see how we use a fractional ownership model to help investors build their real estate portfolios. Read about [The formula for calculating ROI | Buyproperly](https://buyproperly.ai/blog/the-formula-for-calculating-roi)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The 5 Types of Real Estate Investments Author: BuyProperly Engineering Published: 2022-01-20 Category: Insights URL: https://buyproperly.ai/blog/the-5-types-of-real-estate-investments There are many types of real estate investments that are available for people ready to jump into the market. Many feel that real estate investing is a solid way to grow wealth with prosperous returns, and the outlook for the housing market in 2022 remains positive. Fortunately, there are several ways to invest in real estate. No longer are you limited by the traditional barriers of entry like large down payments and excellent credit scores. There are now many different kinds of real estate investments that a person can pursue. From residential and commercial to wholesaling and REITs, there are several ways to jump into the real estate market in 2022 and beyond.   Whether it is residential, commercial, or industrial properties, these tangible assets have provided countless investors with superior returns. Let’s look at the various real estate investment strategies designed to give your portfolio a solid return. **Residential Investing** ------------------------- Residential investing is likely the most common way to invest in real estate.  This is when an investor buys a single-family home, duplex, or multi-family building, and either flips it for profit or holds it as a rental property. The purchase of this kind of real estate may be done with the use of financing or cash.  When people invest in residential real estate, they are typically purchasing a property to use it in one of four ways: ### **Long term rentals** In this situation, investors purchase a property such as a house, duplex, or apartment building that they rent out to tenants to live long term. This allows investors to maintain a steady cash flow and pay for expenses as the property appreciates in value. The tenants are tied to a monthly rent payment (a lease) to live there, and the investor is the responsible landlord. The investor has the option of being the landlord themselves or hiring a property maintenance service to act on their behalf. Typically, tenants sign long-term rental agreements usually set for a year or longer. ### **Short term rentals** Vacation properties are ideal for this kind of real estate investment. Often, the investor will purchase a cottage, chalet, or vacation home in a highly desirable location and rent the property out on a weekly or monthly basis for guests.  This type of investment is ideal for vacation hot spots where the property will be in high demand. Again, the investor can manage the property themselves or hire a property maintenance service to take care of it for them.   When investing in rental properties, it’s also important to consider the tax implications. Because these properties generate income and are not considered a “primary residence”, owners should be aware of specific tax ramifications in their area. In addition, when investors sell these rentals, there will be a capital gains tax to pay on the sale.  Make sure to check your state, provincial, and federal guidelines to learn more.  ### **House flipping** The idea of house flipping is to buy a lower-priced fixer-upper property below market value and invest the time, energy, and money into renovating the property before selling it at a premium.  Provided the property’s purchase price reflects the amount of work that needs to be put into the structure (and allows for a profit), it can be a good way to invest in real estate. This method of house flipping only works when you can sell at a profit, which would be the sale price less purchase price and renovation costs. The profit on the sale is taxable income. ### **New construction** Purchasing new construction is an option people consider during hot markets. Typically, the down payment on the property is required far in advance before the house is ready to inhabit.  Many investors purchase these new sales and resell them at fair market value when the home has been constructed and ready to inhabit. The idea is that the house’s fair market value would have appreciated from the time the down payment was placed to the time the home was ready to inhabit. This income would be considered taxable. **Commercial Investing** ------------------------ Investing in commercial property is another kind of real estate to consider. Typically, the investor purchases a commercial building to rent out to businesses. Business owners also consider investing in this kind of real estate to own the building that they run their business out of. This saves the business on paying rent and, instead, they are able to put money towards building a very lucrative asset. **Raw Land** ------------ Raw land is completely uncultivated and untouched real estate. It doesn’t have roads, houses, or any other buildings. Investors who choose to purchase raw land are taking a chance that, based on the location and projected market demand, this land will appreciate in value.  The more the price of the land increases, the higher return on investment (ROI) there is. Many investors purchase raw land expecting to sell it to developers. If someone purchases a piece of raw land and expects to wait years before they can capitalize on that acreage, then it’s important to consider that appreciation in price as opposed to immediate profit for this kind of real estate investment. **Third-Party (Crowdfunding, Fractional, REITs, etc.)** ------------------------------------------------------- Third-party real estate has become an intriguing option that makes real estate investing more accessible to people who want to invest in real estate but don’t have the down payment or credit rating to enter the market. There are various types of third-party real estate investments such as fractional real estate investing and real estate investment trust (REIT). Fractional real estate is a collaborative effort of a group of people who pool assets together to purchase smaller shares of a property. The advantage of fractional investing is that these investors don’t have to know each other to get started. A platform like BuyProperly connects investors from across the country and allows them to pool their resources to invest in a property! Being a fractional real estate owner means that you own a part of the investment, depending on your financial contribution, and you reap that reward on a fractional basis. This is passive income if you are not directly involved in the management of the property. REITs are like mutual funds in the sense that there is a portfolio, or pool, of real estate properties that are managed by a management group. You can purchase shares in that investment and get paid out dividends on a per-share basis. The value of that share can increase over time as well. **Wholesaling** --------------- Wholesaling real estate can be a tricky endeavor, depending on where you live and what the rules are around this activity. A wholesaler is someone who pays cash for a property that has equity, then fix the property up and quickly resell it to another buyer at an inflated price.  The key to being successful with this type of real estate investment is that you need to be able to purchase the property quickly and recover your costs within a short period of time. **What is the best type of real estate investment?** ---------------------------------------------------- The best type of real estate investment is the type that you’re most comfortable with, falls within your budget, and meets your financial goals. If you want to invest in rental properties but don’t have enough capital for a whole building, then purchasing condos would be the next best option as opposed to just owning raw land or commercial buildings that do not generate income.  Fractional investing is also a fantastic option for people who don’t have the upfront capital or time to manage and oversee a rental property.  **Conclusion** -------------- The bottom line is that real estate investing has earned a good reputation over the years as being a reliable way to get your money working for you. As you can see, there are many kinds of real estate investing opportunities at your disposal. It’s about finding an investment vehicle that is right for you. Investing in real estate can be worthwhile as it has historically offered impressive returns through cash flow potential and long-term appreciation. Real estate is a great way to diversify your investment portfolio. Whichever way you choose to invest in real estate, be sure to do your research, educate yourself on the pros and cons of the investment, and make an informed decision before you jump in. If you’re ready to find your next investment property, we’re here to help! At BuyProperly, we use a fractional ownership model to help investors get started for as little as $2500 (plus, they can see projected annual returns of 10-40%!).  Interested in learning more? [Visit us: www.buyproperly.ca](https://buyproperly.ca/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Flipping vs Renting: Which Strategy is Better for Real Estate Investors? Author: BuyProperly Engineering Published: 2022-01-20 Category: Insights Tags: House flipping pros and cons, Renting real estate benefits, Investment strategies compared URL: https://buyproperly.ai/blog/flipping-vs-renting-which-strategy-is-better-for-real-estate-investors ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/image-406x1024-1715167257905-compressed.png) When it comes to real estate investing, there’s a lot of debate about whether flipping or renting is the best way to go. Both options have their pros and cons, so it can be tough to decide which property investment strategy to start with. In this blog post, we’ll take a closer look at flipping vs renting, and help you decide which option is better for you. The difference between flipping and buying to rent is that flipping entails selling a house after purchasing it (often after a few months), whereas with ‘rental income’ real estate investments are meant to be long-term. Let’s dive into the pros and cons for both investment strategies so you can decide which one will help you reach your financial goals! **What is house flipping?** --------------------------- House flipping is when an investor buys a house, renovates it, and then, ideally, sells it for more than what they paid for it. The flipping process can be done very quickly – in some cases the entire flips can be done in only 4-6 months! When flipping properties, the best strategy is to find and buy houses for below market value. These properties are normally in need of major renovation work which gives investors an opportunity to increase the value in a relatively short period of time. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screenshot5-5-20241208www-1714868423351-compressed.jpeg) **The pros of house flipping** ------------------------------ Many investors love the house-flipping model. Here’s why…  **– Flipping offers a quick return on investment.** Once an investor finds a property, it can be renovated, listed, and resold in a matter of months. **– There are different financing options available.** Some investors qualify for renovation loans which allows them to spend less money out-of-pocket for their flips.  **– It’s a repeatable process.** Investors simply find houses below market value, renovate them and sell ASAP for more than the purchase plus renovation cost. This simple formula can be applied to 5, 10, 20, or even 100 properties! **The cons of house flipping** ------------------------------ Although flipping houses can seem like a quick and lucrative way to invest, it’s not without risk. Here are some things to consider… **– Flipping can be risky.** Large amounts of capital are tied to the purchase and there’s pressure to relist the house quickly.  This may lead to mistakes that could be costly – such as paying too much for a property or renovating it incorrectly. **– Flipping properties is competitive!** In order to be successful, investors need to find houses either below market value OR with tremendous potential to be updated. Hundreds of other investors are also searching for the same thing, which can ultimately drive up prices. **– Flipping can be stressful and time-consuming.** It’s a fast-paced project with several deadlines and moving parts. Many investors find the prospect of flipping to be too overwhelming for their lifestyle. **– House flipping relies on finding the right contractors.** Investors who choose to rehab and resell houses must find reputable contractors who understand renovations, pricing, and project management. Hiring the wrong contractors can lead to bad renovation decisions, wasted time, overspending, and, potentially, zero profit. **What happens when house flipping goes wrong?** ------------------------------------------------ Sometimes, rehabbing and reselling houses can go majorly wrong. The flipping process involves purchasing a property, renovating it and then selling it as quickly as possible to make a profit. If investors run into any issues during this process it can be costly. Here are some common flipping fails to be aware of: **Getting over-extended** Flipping houses takes a significant amount of capital, and this can quickly take a toll on investors. Unexpected costs, miscalculations, and time delays can all eat into the bottom line and end up turning a simple house flip into a nightmare. **Buying the wrong houses** Because flipping is competitive, there may be a lot of investors bidding for the best houses and snatching them up quickly. You want to make sure you’re buying properties that aren’t overpriced or in need of too much work to be profitable. **Not finding flipping deals**  Making a lucrative income from flipping is 100% dependent on finding the right properties. Some investors either get impatient or they get overwhelmed by the competition and end up over-bidding on properties. Overpaying is a common mistake when investors are looking during a hot real estate market.  **What is rental income real estate investing?** ------------------------------------------------ Rental income real estate investing is a strategy where investors purchase properties with the intent to rent them for a monthly income. This is also known as a buy-and-hold and is a more long-term investment approach. The main difference between flipping and rental income real estate investing is that flipping entails selling the property immediately after renovation work has been completed, whereas with rental income properties, the intent is to hold onto the investment for a longer period of time – typically 5-20 years. ### **The pros of rental properties** Purchasing rental properties tends to be a more common strategy for most real estate investors. Here are some of the major reasons why… – Rental income real estate investing is generally less stressful than flipping, as investors have more time to find and purchase a rental property due to the longer holding period. As a result, renting alleviates pressure from making quick decisions. – Rental income investing is less risky than flipping. Instead of focusing on flipping for a quick profit, rental properties are meant to be held for multiple years which results in more time to make adaptations and improvements to the property when required. – Buying rental properties can be inexpensive compared to flipping. The costs associated with flipping often include significant renovation fees and improvements. This means investors expect to put down an additional 20-30% of the purchase price for flipping costs. With rental properties, the capital can be put directly towards the purchase with an immediate opportunity for cash flow. \-With rental properties, investors get to take advantage of long-term property appreciation. At the same time, they’re able to generate consistent income in the years between property renovations or while the housing market is slow. \-Rental investors aren’t as affected by sudden dips in the housing market. A buy-and-hold strategy allows investors to weather the storm and wait for a more favorable market before deciding to sell. ### **The cons of rental properties** Although rental property investments can create a lot of financial security and stability, no investment strategy is perfect. Let’s take a look at some cons of buying rentals. – Renting does not bring in money immediately. The income that you’ll be making will be spread over the entire time you own the property, which means the profit is not received in one lump sum as flipping would provide. – Traditional rental income real estate requires large amounts of capital. Like flipping, purchasing rental properties does involve some costs (i.e. down payment brokerage fee, land transfer tax, legal fees, etc.).  \-Rental properties are not as liquid as flipping which means they cannot be sold as quickly and easily if a sudden need arises.  – Rentals take time and money to manage. Investors must choose to handle maintenance, repairs, showings, rentals, and emergencies on their own, or find a reputable property management company to handle the job. Today, there are many options for investors to buy into real estate without the huge upfront costs. At BuyProperly, we use a fractional ownership model that allows people to buy real estate for as little as $2500 to start. With this type of investment, you don’t have to dedicate time to finding tenants, managing the property, and taking care of all the operational details. Check out our properties to get started. **Which investment strategy is better for you?** ------------------------------------------------ Deciding between flipping vs renting real estate comes down to your goals, lifestyle, and preferences. Flipping is a riskier investment strategy and certainly not for the faint of heart. It takes time and energy finding, prepping, and selling properties, and it also takes time to learn the ins and outs of your local market. Most people feel more comfortable starting with rental investments. They require less immediate capital and the holding period is longer, which provides more time for renovation work and improvements. There are also fantastic tax benefits for landlords and investors get to take advantage of long-term appreciation on the property. Not to mention, owning multiple rental properties gives investors more leverage to continue investing and building their portfolios. The bottom line is, rental properties allow you to grow a lucrative, stable portfolio and they’re perfect for investors who want to build wealth with predictable cash flow and appreciation. **Are rental property investments best for beginners?** ------------------------------------------------------- The best strategy for beginners is the one that they’re most comfortable with. More often than not, this ends up being buy-and-hold properties like single-family and duplex rentals.  Real estate has historically shown dependable growth of property values, it has also been able to deliver consistent cash flow for those investors. However, a major issue for many new investors is the time and dedication it takes to manage a rental property. But there’s no need to let this stand in your way! There are companies that can help take care of day-to-day management, rentals, and maintenance required to keep a property running smoothly, making your investment more passive than ever. Here at BuyProperly, we make real estate investing easy and accessible for everyone using a fractional ownership model. Our mission is to enable investors to grow wealth through alternate asset classes. With real estate investing you are receiving a rent payment that is not only consistent in timing but also in the amount.  We provide regular investors with the benefits of investing in rapidly growing cities with huge capital appreciation without bearing the brunt of high real estate costs and the challenges of managing and operating a rental property.  We take care of everything – all you need to do is select the property to invest in and watch your investment grow! Eager to learn more? [Visit BuyProperly](https://buyproperly.ai) Read about [Why Invest in Real Estate: 7 Key Benefits to Know | Buyproperly](https://buyproperly.ai/blog/why-invest-in-real-estate)​ **Conclusion** -------------- The bottom line is that flipping vs renting real estate depends on the individual investor’s preferences and lifestyle. With flipping, you can generate wealth quickly – but flipping also requires a lot of time and attention to detail with no room for error. Buying rental properties takes longer to grow your income portfolio but carries significantly less risk. It’s normally a better choice for investors who are looking for a more passive income approach. Here at BuyProperly, we love helping investors find rental properties that can generate passive income and grow their wealth. If you’re interested in learning more about how you can grow your real estate portfolio without a massive cash deposit (or all the headaches!) [Download our eBook here](https://buyproperly.ca/resource-center/learn/ebook/abc-of-investing). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Choose an Investment Property: A Step-by-Step Guide Author: BuyProperly Engineering Published: 2022-01-20 Category: Insights Tags: criteria to look at when choosing a rental property, how to choose a rental property, how to choose an income property URL: https://buyproperly.ai/blog/how-to-choose-an-investment-property-a-step-by-step-guide So you’ve decided to buy an investment property! That’s great news – real estate is a sound investment that has the potential to provide long-term financial stability. Real estate can be a good investment for those looking to diversify their portfolio and save up some passive income. If you are thinking about investing, it’s important to research the property market thoroughly. Since this includes many factors including location, size, and price, you may feel stuck wondering how to choose the right investment property that will give you great returns. Before you can start buying properties, you need to figure out which property is right for you. In this blog post, we’ll outline the factors you need to consider when choosing an investment property.  Keep reading to learn more! **Talk to other investors about their experiences investing in real estate** ---------------------------------------------------------------------------- Investing in real estate is no small commitment. Speaking with other investors and learning from their experience is the best way to make sure you set yourself up for success. Before you put down thousands of dollars on that perfect investment property, learn as much as you can from other investors. You may find that some properties are not worth your time or money, saving you a great deal of frustration in the long run. Where can you find other like-minded investors? Look for online forums, search for Facebook groups, attend seminars, and join local business meetups. Here at BuyProperly, we’re a tight-knit group of real estate investors. Want to learn more about how we help people grow their real estate portfolios? [Visit BuyProperly](https://buyproperly.ca/) **Find out what type of property is best for your needs (apartment buildings vs single-family homes)** ------------------------------------------------------------------------------------------------------ As a new real estate investor, it may be hard to decide what type of investment property is best for your needs. But before you can decide which type of property to invest in, it’s important to figure out what kind of return you want to get on your investment. Single-family and multi-family investment properties both come with their own unique challenges. Single-family homes are less expensive and often easier to manage upfront, but you may not see fast growth. Multi-families, on the other hand, are much more expensive to purchase and require a higher level of management, but the returns will start rolling in more quickly. The investment property you choose should be based on your goals and lifestyle! Speaking of goals, this brings us to our next point… **Plan out your short term and long term investment goals** ----------------------------------------------------------- Before you can choose an investment property, you need to know what your goals are. Do you want to quit your job and work for yourself? Or are you just looking for passive income that can help supplement your existing salary? The first step is knowing what you actually want. Once you’ve identified your short-term and long-term goals, use those to map out your investment portfolio. Are you looking for properties under market value and that you can renovate and flip for a quick profit? Do you want to build a portfolio with more long-term, cash-flowing investments? Maybe you want a healthy combination of both! Whatever you decide, let your goals guide you when searching for new investment properties. **Consider the location of the property** ----------------------------------------- The location of an investment property is one of the most important factors to consider. This means that you should take into account the current demand for housing in that neighborhood, as well as any future growth projections. You’ll need to know how each neighborhood stacks up against other areas in terms of safety levels and amenities.  You should also research average property values in the neighborhood. Once you have gained a deeper understanding of the local housing market, assess if there are certain areas that will be growing at a faster rate than others and analyze how your potential income property stacks up. **Research house prices in the neighborhood** --------------------------------------------- The key to a successful **house flip** is buying under-market value properties. The key to a successful **rental portfolio** is buying properties that have the potential to net a good operating income in relation to their purchase price. Finding these deals means having a really good understanding of the current market conditions in your area. It’s always best to purchase real estate in a “[buyer’s market](https://www.rbcroyalbank.com/mortgages/sellers-vs-buyers-market.html#:~:text=A%20seller's%20market%20happens%20when,sale%20as%20there%20are%20buyers.)” to avoid overpaying for your property, but no matter what market you’re in, keep an eye out for diamonds in the rough and properties that look like they have the potential to increase in value! **Determine if you can afford monthly mortgage payments, taxes, insurance, and maintenance costs** -------------------------------------------------------------------------------------------------- If you want to invest in real estate, you’ll need to be able to pay for the costs of owning the property. For instance, if you are buying an apartment, your mortgage payments may consist of property taxes, interest payments on your loan, and homeowners’ insurance. You should also consider things like one-time repair costs, ongoing maintenance, property management, and average vacancy rates. The most important thing new investors should do is make a budget and have a very clear idea of how much not **_only_** the building itself costs, but how much the ongoing expenses will be. **Take into account any zoning or building restrictions** --------------------------------------------------------- It’s possible that the property you have your eye on comes with some strings attached. You should make sure that the property has the appropriate zoning and permits for what you want to do with it. If you plan on carrying out any renovations, check city planning documents first to determine if certain renovations are allowed. You’ll need this information later when you’re putting together a business plan. **Evaluate the long-term potential for rental income** ------------------------------------------------------ The price you’ll pay for an investment property greatly depends on how much rent you’re able to collect. This is known as your return on investment (ROI). You’ll need to consider current vacancy and rental rates as well as any factors that may affect demand for your apartment(s) in the future, such as nearby development projects, schools, parks, transportation, or popular bars and restaurants. For example, if there is a new shopping mall being built, your apartment might become more desirable to renters after the mall is completed. This could increase your monthly cash flow by 5, 10, or even 20%! Even if you plan on owning a property for several years, always keep an eye out for opportunities to make extra cash through rental income. **Speak with a Realtor or Mortgage Broker about financing options** ------------------------------------------------------------------- Your Realtor and Mortgage Broker are experts in the field of real estate financing. They have helped many people buy homes before, so they can help you too! Speak to them about any prerequisites – such as a minimum credit score – for qualifying for a loan and how much money you need to bring to closing. Some closing costs to keep an eye out for include: * lawyer’s fees * property tax adjustments * utility bill adjustments * surveys and deeds * title search documents * appraisals Don’t have enough cash to buy a property in your neighborhood? Here at BuyProperly, we allow investors to get started for as little as $2500 and see projected annual returns of 10-40%! How? We use a fractional ownership model with the mission to make real estate investing simple and accessible to everyone.  [Learn more here.](https://buyproperly.ca/) **Make sure that you have enough savings for emergencies like repairs or vacancies** ------------------------------------------------------------------------------------ You should also take into account any repairs that might be needed on the property, as you might have to dip into your emergency fund for this. Here are some important questions to ask that any qualified home inspector will be able to give you information on: * _what is the age and condition of the roof?_ * _how old is the furnace and was the maintenance done regularly?_ * _what is the age and condition of the water heater?_ * _what is the condition of the windows?_ * _are all the appliances in good working order?_ * _are there any serious code violations that need to be addressed immediately?_ * _what is the general interior condition and are there any small repairs required?_ Before moving ahead with your purchase, it’s important to seriously consider all the necessary repairs and budget accordingly! **Decide on property management** --------------------------------- First, decide how you’ll be structuring the management for your new property. Will you rely on a management company, or are you buying something close by so you can take care of showings, maintenance, and emergencies? The management structure you choose will depend on your lifestyle, knowledge, location, and availability. If there is a property management company already established in the area, you should speak with them to determine what fees they charge for rent collection and maintenance. Find out average management rates in the area and factor that into your budget. **Consider long term appreciation potential** --------------------------------------------- We all know that real estate prices have been going up year after year, but before finalizing a purchase, you’ll want to take a serious look at what the long-term outlook is for that particular neighborhood. Pay close attention to large developments being built nearby. Is there an expected increase in demand? Will there be a new highway exit or a major retailer moving in? What has the average appreciation rate been over the last 5, 10, and 25 years? Property appreciation is a tremendously important factor when building a profitable real estate portfolio. **Determine how much money you want to re-invest in new properties each year** ------------------------------------------------------------------------------ When looking for a new property to invest in, you should consider how aggressively you want to acquire new properties and grow your real estate portfolio each year. If you have a limited amount of capital, then perhaps begin by purchasing one or two smaller units per year until you have built up 10 units. Then you can re-invest profits to acquire more units over time. On the other hand, if you’re looking for a high-growth rate return on your investment, you could consider purchasing 5+ more units per year or looking into larger multi-families to see the returns accumulate more quickly. **Calculate the CAP rate** -------------------------- The cap rate (also known as the cash-on-cash, return on investment, ROI, or COC) is used to determine how profitable a property will be in comparison to its purchase price. The formula for CAP rate is: CAP Rate = Net Annual Cash Flow / Purchase Price For example: if you buy a property for $300,000 and figure out that after expenses, the net operating income will be $15,000/year, your CAP rate is 5%. ### **What is considered a good CAP rate?** The industry average for a single-family home is between 6-8% while apartments are around 10%. However, cap rates depend on several factors such as location, property type, and market conditions. What you look for as a real estate investor depends on your goals! **Have patience and remember that it takes time to make a profit in real estate** --------------------------------------------------------------------------------- Remember that any purchase you make is an investment. While the early years of owning property may not be profitable, it’s important to be patient and hold on to your rental property for the long term, or at least 5 years. Through cash flow from rental income, appreciation, and several fantastic tax benefits, you’ll build a stable and profitable real estate portfolio and increase your wealth at the same time. **Conclusion** -------------- Whether you’re looking for your first property or your tenth, the buying process doesn’t have to be overwhelming. Remember that it takes time and patience when investing in real estate so don’t feel like you need to rush into a decision right away. Think about what type of investment is best for you. Whether it’s an apartment building with many units, a single-family home as a rental, or getting involved in flipping properties, each option will come with different levels of risk and reward. Ready to find your next investment property? We can help! Here at BuyProperly, we use a fractional ownership model that allows investors to start for as little as $2500!  We have taken that complex, time-consuming, and expensive process and simplified it. Using our expertise in the industry,  AI technology we find and acquire the best properties that will make top performing rental properties and excellent investment opportunities for you to build your wealth. [See our properties here.](https://buyproperly.ca/properties) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Invest in Real Estate: 7 Key Benefits to Know Author: BuyProperly Engineering Published: 2022-01-19 Category: Insights Tags: Alternative Asset Classes, RealEstateMarketAnalysis, Fractionalrealestate, cash flow, appreciation URL: https://buyproperly.ai/blog/why-invest-in-real-estate ![Why Invest in Real Estate: 7 Key Benefits to Know](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/why-invest-in-real-estate-7-key-benefits-to-know-1714751702825-compressed.png) Investing in real estate can be an incredibly rewarding and lucrative endeavor, but if you’re like a lot of new investors, you may be wondering WHY you should be investing in real estate and what benefits it brings over other investment opportunities. In addition to all the amazing benefits that come along with investing in real estate, there are some drawbacks you need to consider as well. We’re going to cover the 7 top reasons why you should be investing in real estate (and a few reasons you may not want to jump in right away!). Let’s get started. ### **Opportunity for Cash Flow**  Purchasing real estate to rent it out for additional cash flow is becoming a very popular investment strategy, and it’s easy to see why. Not only do rental properties give you the opportunity to generate additional cash flow month-over-month, but they allow you to build up a portfolio of long-term, stable assets and benefit from all that appreciation over the life of your investments! There’s another big advantage to cash flow: it provides an opportunity for new real estate investors to “house hack”. It’s no secret that real estate prices are going up and pushing a lot of new investors out of the market. When you decide to purchase a rental property, you can use the cash flow to fund your living expenses and pay your mortgage down faster to continue investing in **_more_** real estate! Many newbie investors buy duplexes or houses with additional dwellings to make extra cash to fund their real estate dreams.  If you’re looking for a way to buy into the real estate market without having to spend hundreds of thousands of dollars, [check out our properties](https://buyproperly.ai/ca/properties/). At BuyProperly, we use a fractional ownership model that allows investors to start with as little as $2500. ### **High Return on Investment** Another major benefit of real estate investing is the ability to make a high return from buying, renovating, and reselling (a.k.a. house flipping). Although this requires significantly more upfront cash than rental properties, there’s huge potential for profit if you buy the right property. Most flippers look for undervalued buildings in great neighborhoods. These properties need work (and money!) to get them up to average market value, but, once renovated, the returns from these resales can happen relatively quickly. ### **Appreciation**  The wonderful thing about investing in real estate is that the value of the property is expected to appreciate. The principal amount that you invested in the property will grow over time and should be worth more than what you paid for it when you purchased it. Real estate is a fantastic long-term investment because it’s almost always guaranteed to appreciate in value.  Investors patient enough to buy and hold their properties will benefit from predictable appreciation year-over-year. Depending on where you buy, you can expect annual appreciation rates anywhere from 2-8%.  In Canada, there’s been an average [6.11% annual appreciation](https://creastats.crea.ca/en-CA/) over the last 15 years! ### **Tax Benefits** Another major advantage of investing in real estate is all the tax benefits you’re eligible to take advantage of! Many investors can write off costs associated with depreciation, mortgage interest, operating costs, repairs, and property tax. These incredible tax benefits are a fantastic way for investors to save and build wealth. For example, if you are charging $2,000 rent per month and you incurred $1,500 in tax-deductible expenses per month, you will only be paying tax on that $500 profit per month.  That’s a large difference from paying taxes on $2,000 per month. The profit that you make on your rental unit for the year is considered rental income and will be taxed accordingly. It is vital that you keep good accounting records on your investment property. If you are claiming maintenance and repairs, for example, be sure to keep those receipts as proof. If you are to be audited by the government and can’t supply the proof of expenses in form of official receipts, chances are you will be disqualified from claiming those tax deductions. The appreciation of the property will be assessed when you dispose of the property and capital tax will come into play.  You will be taxed on the capital gains that you earned on the property from when you invested and purchased the property to the day you sold it.  The difference between the sale price and the price you paid to purchase will be the capital gain, which will be taxed, but only in the year that you dispose of the property. ### **Low Volatility** Real estate isn’t subject to the same volatility as other kinds of investments. Unlike stock trading, the real estate market isn’t like to have the same massive overnight shifts.  For this reason, it’s an option for people who want something more stable and predictable. It’s a great addition to a more risk-averse portfolio, making it an all-around fantastic investment! It’s important to note that real estate investment doesn’t come without risk. The US housing market crash of 2008 showed investors the importance of not over-leveraging and making smart investment decisions when growing their portfolios. ### **Leverage Your Investment** One of the most appealing aspects of real estate investment is the ability to leverage your assets. In a nutshell, leverage refers to [“the use of debt (borrowed funds) to amplify returns from an investment or project”](https://www.investopedia.com/terms/l/leverage.asp).  This means you can put 20%, 10%, or even 5% down and control an asset worth significantly more than that! It also means you have the ability to borrow against your assets to continue investing. This creates a snowball effect and, when done effectively, can skyrocket your investment portfolio. ### **Passive Income** This last point ties into the other benefits we’ve mentioned above. Rental income aside, real estate accumulates passive wealth through its inherent tax benefits and long-term appreciation.  In addition, the rental income you collect can be done with minimal involvement and effort. With the right property managers and rental team, the ROI on your investment becomes relatively passive.  Here at BuyProperly, we help investors start with as little as $2500 and see projected annual (passive) returns of 10-40%!  [Find out how](https://buyproperly.ca/). [![What are the cons of investing in real estate?](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/what-are-the-cons-of-investing-in-real-estate-1714752287153-compressed.jpeg)](https://buyproperly.ai/) **What are the cons of investing in real estate?** -------------------------------------------------- Real estate is a fantastic investment to add to your portfolio, but it doesn’t come without risk. Here are a few things all new investors should consider before jumping in. ### **Upfront costs** It’s no secret that investing in real estate the traditional way takes money. If you’re buying a property to live in, expect a minimum of 5% down plus closing costs. Most investment properties and second homes may even require a 20% down payment to buy! Real estate isn’t cheap, and it’s important for new investors to be prepared for the costs.  Here at BuyProperly, we leverage a fractional ownership model to allow investors to buy real estate for as little as $2500. This means they can get started quickly without having to wait and save up huge lump sum deposits for investment properties. Want to see how we do it? \*\*\*\*Call to action here\*\*\*\*\*\* ### **Sourcing deals** In addition to financial costs, investing in real estate comes with a significant time cost when you take into account sourcing property deals Unlike buying and trading stocks which can be done with the click of a mouse, property investment often requires more time, research, and preparation. Not only do you need to find great deals, but you need to analyze them and gather the necessary paperwork to get the deal done. On top of this, if you don’t have a good team in place, managing your repairs, maintenance, and tenants can turn into an overwhelming process. Fortunately, sourcing great deals doesn’t have to be complicated. At BuyProperly, for example, we’ve created an AI-powered platform that allows investors to view, buy, and sell real estate digitally (much like they would trade stocks). Let us show you how it works.  https://buyproperly.ai/ ### **Difficult to unload** As much as we love real estate for its security and predictable returns, it’s not the type of investment that can be bought and sold quickly. In fact, the highest returns are earned when investors are willing to buy and hold. If you think you may need to free up cash quickly, OR if you’re looking for an exceptionally quick profit, real estate may not be your main investment vehicle. **Conclusion** -------------- Investing in real estate has several major advantages. In addition to cash flow potential, you can also take advantage of steady appreciation, reduced volatility, and investor tax benefits. It’s important to remember that real estate is a fantastic long-term investment, and not well suited to people who want instant returns. It’s a reliable, predictable asset with great cash flow and ROI potential.  Real estate is a great addition to any investor’s portfolio! Interested in learning how you can get started in real estate investing for as little as $2500? Learn more about real estate investing: ​[How to Build Wealth with Real Estate | Buyproperly](https://buyproperly.ai/blog/how-to-build-wealth-with-real-estate) [The 4 Best Investments for Inflation: Protect Your Wealth! | Buyproperly](https://buyproperly.ai/blog/the-4-best-investments-for-inflation-protect-your-wealth-3) [Mastering Real Estate: The Top 50 Investment Books for Success | Buyproperly](https://buyproperly.ai/blog/the-top-50-real-estate-investment-books)​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Compound Interest? Author: BuyProperly Engineering Published: 2021-12-22 Category: Insights Tags: compound interest URL: https://buyproperly.ai/blog/what-is-compound-interest ![compoundinterest.jpg](https://lh3.googleusercontent.com/_oFc-uhfiFOP1clgu-fcoHm642df7liT8Oyl2sxND_QB9iciS8rd_x4l9Jefs-vsnWCkNac5n56zaeOlEyg2p7wF17YschXqs_FFFoUfTd0_R6qfK-tXXpC1m-H7S1oBM8PfldCNvb40_UzmBg) Compound interest (also known as compounding interest) is the interest on a loan or deposit that is computed using both the initial principal and the interest accumulated over time. Compound interest, which is said to have originated in 17th-century Italy, is “interest on interest” and will cause a sum to grow at a quicker rate than simple interest, which is computed just on the principal amount. Compound interest accrues at a rate determined by the frequency of compounding, with the higher the number of compounding periods, the higher the compound interest rate. Thus, during the same time period, the amount of compound interest accrued on $100 compounded at 10% annually will be less than that on $100 compounded at 5% semi-annually. Compounding is sometimes referred to as the “wonder of compound interest” since the interest-on-interest effect can yield more positive returns based on the starting principal amount. **How Compound Interest Works** Compound interest is computed by multiplying the initial principal amount by one and then multiplying the annual interest rate by the number of compound periods minus one. The loan’s total beginning amount is then deducted from the final value. The following is the formula for computing compound interest: * Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value) \= \[P (1 + i)n\] – P \= P \[(1 + i)n – 1\] Where: P = principal i = nominal annual interest rate in percentage terms n = number of compounding periods Take a three-year loan of $10,000 at an interest rate of 5% that compounds annually. What would be the amount of interest? In this case, it would be: $10,000 \[(1 + 0.05)3 – 1\] = $10,000 \[1.157625 – 1\] = $1,576.25 **Pros and Cons of Compounding** Compounding can operate against consumers who have loans with very high interest rates, such as credit card debt, despite the mythical account of Albert Einstein declaring it the eighth wonder of the world or man’s greatest invention. A $20,000 credit card load with a 20% compounded monthly interest rate would result in a total compound interest of $4,388 over a year, or about $365 per month. Compounding, on the other hand, can work in your favour when it comes to investing and can be a powerful element in wealth building. Compounding interest’s exponential growth is especially significant in moderating wealth-eroding causes including rising costs of living, inflation, and decreasing purchasing power. Mutual funds are one of the most straightforward ways for investors to gain from compound interest. Reinvesting dividends from a mutual fund leads in the purchase of more shares of the fund. Over time, compound interest accumulates, and the cycle of purchasing more shares will help the fund’s investment rise in value. Consider a mutual fund with a $5,000 initial investment and a $2,400 annual contribution. The fund’s future worth is $798,500, based on a 12-percent average annual return over 30 years. The difference between the cash committed to an investment and the investment’s actual future worth is known as compound interest. Compound interest is $721,500 of the future sum in this scenario, based on a contribution of $77,000, or a cumulative contribution of merely $200 per month, over 30 years. Unless the money is in a tax-sheltered account, compound interest earnings are taxable, and it’s usually taxed at the regular rate linked with the taxpayer’s tax bracket. **Who Benefits From Compound Interest?** Simply defined, compound interest is beneficial to investors, but the term “investors” has a wide definition. Banks, for example, benefit from compound interest when they lend money and then reinvest the interest into making more loans. When depositors receive interest on their bank accounts, bonds, or other investments, compound interest is also a benefit. Although the term “compound interest” incorporates the word “interest,” it is crucial to stress that the concept extends beyond instances where the word “interest” is commonly used, such as bank accounts and loans. Looking for a stress-free way to get started in real estate investing? See how Buy Properly employs a fractional ownership concept to assist investors build their real estate portfolios by having a [**look at our properties**](https://buyproperly.ca/properties). [**Related Topics to Compound Interest:**](https://buyproperly.com/resource-center/invest) 1. [**Three Easy Ways Smart Women Invest**](https://buyproperly.com/resource-center/posts/three-easy-ways-smart-women-invest) 2. [**How COVID-19 Has Affected Rental Prices in Canada**](https://buyproperly.com/resource-center/posts/how-covid-19-has-affected-rental-prices-in-canada) 3. [**Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World**](https://buyproperly.com/resource-center/posts/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world) 4. [**What to do with your money during the COVID-19 outbreak, according to our experts**](https://buyproperly.com/resource-center/posts/what-to-do-with-your-money-during-the-covid-19-outbreak-according-to-our-experts) 5. [**COVID-19, here is how to protect your savings in a contagious market!**](https://buyproperly.com/resource-center/posts/covid-19-here-is-how-to-protect-your-savings-in-a-contagious-market) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Multifamily Real Estate Investing: The Pros and Cons Author: BuyProperly Engineering Published: 2021-12-17 Category: Insights Tags: investing in multifamilies, Multifamily investing, multifamily property investing URL: https://buyproperly.ai/blog/multifamily-real-estate-investing-the-pros-and-cons Are you a brand new investor ready to start growing your real estate portfolio? Maybe you have a few investments and you’re eager to diversify and learn more about multifamily real estate investing.  No matter where you are in your investment journey, diversifying your real estate portfolio is a fantastic way to generate more cash, reduce risk, and grow your wealth. If you’re in the market for a new investment, a multifamily property may be the perfect fit for you and your goals. Below, we’ll discuss the pros and cons of multifamily investing, along with our top tips for how you can find your first (or next) multifamily property deal.  **What is multifamily real estate?** ------------------------------------ A multifamily home is essentially a single building that’s separated into units, or dwellings, to accommodate 2 to 4 families. This includes duplexes, triplexes, and quadruplexes.  Anything above 4-units is considered a “commercial” property. A house or apartment with only one dwelling is simply considered a single-family. According to Statista, multifamily property investing shows no signs of slowing down! In 2023, there will be an expected [5.39 million multifamily properties](https://www.statista.com/statistics/1072366/number-of-multifamily-homes-canada-timeline/) in Canada, which is an increase from 4.96 million in 2018. **What are the pros of multifamily real estate investing?** ----------------------------------------------------------- Multifamily properties offer some incredible benefits to real estate investors. Here are some of the top reasons you should consider adding multifamilies to your real estate portfolio: #### **_Owner-occupied arrangements_** One of the biggest pros of multifamily family real estate investing is the ability to have an owner-occupied real estate investment. This means you can buy the property and live in one unit while renting out the others and collecting cash to pay down the mortgage!  This is a great opportunity to “house-hack” and start building equity in real estate quickly. #### **_More cashflow_** Another pro of multifamily investing is that your cash collected will accumulate faster. More units to be rented means more cash, which allows you to reinvest and continue building your real estate portfolio. #### **_Less risk_** Multifamily properties generally reduce your risk of full vacancy. Unlike single-family homes (when losing a tenant means you’re at 100% vacancy) multifamily properties give you the opportunity to spread out cash flow between 2-4 dwellings.  This means a non-paying tenant or sudden vacancy won’t hit you (and your bank account) as hard. #### **_Simplified management_** Looking after several “doors” under one roof tends to be easier on managers. There are fewer independent buildings to keep track of and less travel required for inspections, emergencies, and general maintenance. This means you’ll save on property management fees, and you’ll have fewer headaches if you manage the property yourself. #### **_Tax benefits_** Owning multifamily properties means you can take advantage of great tax benefits. You’re able to deduct maintenance fees and operating costs including utilities, management fees, insurance premiums, and marketing costs.  **What are the cons of multi-family real estate investing?** ------------------------------------------------------------ Although there are some incredible benefits to owning multifamily properties, there are some drawbacks that come along with this type of investment.  Let’s go over them in detail. #### **_High market entry costs_** Generally, multifamily properties are significantly more expensive than single families which limits many people from being able to start with this type of investment. The price tag is often hundreds of thousands (or even millions) of dollars depending on your market. #### **_Higher degree of management required_** Many investors choose to manage single families and duplex properties on their own, but once you start investing in 3 and 4-unit buildings, property management becomes incredibly important.  Great property managers will help keep your units full of happy tenants by filling vacancies quickly, collecting monthly rents, performing routine maintenance, responding to requests for repairs, and conducting regular inspections of the building. More units means more tenants which, inevitably, means a higher degree of management is needed to keep the property cash flowing.  #### **_Expensive maintenance_** Multifamilies tend to incur higher maintenance costs. Instead of maintenance and repair costs on one unit, multifamily investors need to worry about 2-4 units! This cost is easily offset by the increased cash flow, but new investors should be prepared for potentially higher maintenance and repair costs upfront. **_The good news?_**  --------------------- No matter which type of property you choose to invest in, you can do it even with limited cash on hand. Through fractional investing, BuyProperly allows people to invest in real estate for as little as $2500. This means your dreams of adding a rental unit to your portfolio are 100% achievable! Want to learn more? Visit us at [www.buyproperly.ca](https://buyproperly.ca/) to get started on your real estate investment journey. ![](https://lh3.googleusercontent.com/NXqXkDPBJa7xZN4zF-6IeApPHKwPHmOuw3ORv5QSOJ6dCq-MCSY5-CUPGWzQvNDhqvkrDMcbKxQQQQiP9-j3Rx2tfIykyO97u5OHVI1pjo5Frdc1A6s4ISUhWtbD1-ZzFztcQwaE) **What should you look for in multifamily real estate investing?** ------------------------------------------------------------------ The property you purchase should 100% depend on your goals.  If this is your first real estate investment or if you’re hoping to “house-hack” and buy something smaller to offset your mortgage costs, a duplex is a great option. Similarly, if you want to manage the property yourself and keep your portfolio small, stick with a 2-unit. If you’re working with investment partners, you want more cash flow, **_or_** you’re looking to grow your portfolio quickly, consider a 3 or even 4-unit property!  You should also consider how much time and money you’ll have to dedicate to your new investment.  If you’re a full-time investor ready to dive in and you’re not afraid of some hands-on management, a larger building may not seem so intimidating to you.  Many of our investors who purchase multifamilies through BuyProperly are looking for a more “passive income” project where they can grow wealth and see returns without having to be involved in the day-to-day management. If that sounds like you, [sign up](https://buyproperly.ca/signup/personal) to view a list of our [available properties](https://buyproperly.ca/properties). We’ll talk more about how to evaluate multifamily properties in a moment. **How to find your first multifamily real estate deal** ------------------------------------------------------- If you’ve weighed the pros and cons and decided multi-family real estate investing is the way to go, it’s time to find your first property deal! The first thing to do when you’re looking for the right multifamily property is to contact a local realtor. They often have connections, opportunities, and deals that aren’t listed on public websites. They also tend to have great networks with other investors who may be interested in partnering with you. Second, join all the local networking groups you can. Find Facebook groups, forums, and local meetups to connect with other investors to talk about real estate. Some of the best deals can be found through word-of-mouth and networking! Third, consider investing out-of-town. If your local market doesn’t have a lot of availability or it’s too expensive, consider expanding your property search to neighbouring towns and cities. With the right management company, out-of-town multifamily investments can be incredibly lucrative! **_Ready to invest in your next property deal? We can help!_**  --------------------------------------------------------------- Here at BuyProperly, we offer people an opportunity to get into the real estate market using a fractional investing model. This means you can start with as little as $2500 and see projected annual returns of 10-40%. See a list of our [available properties](https://buyproperly.ca/properties) right here. **How to evaluate a multifamily property for sale** --------------------------------------------------- Unlike single-family properties, multifamily units tend to be more complex and there are several factors to consider when trying to figure out whether or not to make an offer on that listing!  _Here are some important things to keep in mind:_ #### **Total units** Does the multifamily property you’re considering have 2, 3, or 4 units? How does this fit your goals? Keep in mind, larger properties may come with a larger price tag but they also yield higher returns. It’s also important to know your local rules and requirements. In some areas, triplexes and quadruplexes must be registered with the city and cooperate with additional yearly inspections. Speak with your local realtor and city officials to learn more. #### **Potential cashflow** Cash flow is everything and all potential investors need to have a realistic picture of how much money they can collect every month. How much rent are tenants currently paying each month? Also, how much rent could you potentially charge based on the condition and location of the property?  #### **Operating costs** Cash flow is obviously incredibly important, but it doesn’t mean much if the operating expenses put you in the red each month! Make sure to collect information about all the ongoing operating expenses for the property so you can properly calculate your net profit. This includes taxes, utilities, insurance, management, etc. Don’t forget to account for potential vacancies in your calculation (it’s a safe bet to assume a 10% vacancy). #### **Repairs needed** When assessing whether or not to buy your next multifamily, it’s important to carefully consider all upcoming repair costs. Because multifamily buildings tend to be larger than single families and have more units to take care of us, those upfront costs are normally higher.  When purchasing, make sure you have enough money in the bank to make the necessary repairs to keep your new tenants! #### **CAP Rate** Calculating Cap Rate is important because it tells you how quickly you’ll be able to pay off your investment. It’s a quick snapshot of your income and expenses as they relate to the price of your property.  Here’s how to calculate it: First, find out your **_gross income_** (rent) each month and multiply it by 12 to get your number for the year.  Next, subtract all of your **_operating expenses_** for the year. This will give you your yearly **_net operating income._** **_Gross income – operating expenses_** **_\= net operating income_** Now, divide the **_net operating income_** by the **_total purchase price_**. Multiply this number by 100 and you’ll have your Cap Rate. The higher the Cap Rate, the higher the annual return on investment, and the quicker you’ll make your money back!  ![](https://lh6.googleusercontent.com/h0gbWY78p14mmsT8Hdmp9tf1ygYqHdxKJQfyNZmYwtQLt2sbtqerDQu0zsFBzaJDdfNdeq4JMZ94t7OndWADOeCfo8LDLjhZebMtFtN9uavyfuFpFF3e65eYrp5mWekJZpDdfDmG) Generally, most investors like to stay above a 4% Cap rate. This varies from person to person and it’s important to consider your personal goals when using Cap Rate to assess a real estate deal. #### **Location and rental potential** The location of a building plays a crucial role in assessing its’ future cash flow potential. How desirable is the area? Is it near schools, shopping malls, and other city services? How is transportation to and from the location? Are there any plans to develop the surrounding area OR add neighbourhood features that would make the property even more attractive? Location is everything and it’s an important consideration when buying your next multifamily property! **Conclusion: Should you invest in multifamily properties?** ------------------------------------------------------------ Multifamily real estate is an incredible opportunity for both new and seasoned investors. These deals can help you grow your portfolio quickly, provide increased cash flow, and reduce your vacancy risk. You’ll also be able to take advantage of some great tax benefits.  But, multifamily isn’t right for everyone. If you’re prepared to handle multiple tenants (or pay a property manager who can) and you’re not scared away by higher operating costs and maintenance fees, you should strongly consider adding a duplex, triplex, or even quadruplex to your portfolio! Want to learn more about how you can start investing in real estate for as little as $2500? _[Schedule a call](https://calendly.com/team-buyproperly/30-minute-meeting?month=2022-02) to learn more!_ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Build Wealth in Your 30s: Simple Steps to Become Financially Free Author: BuyProperly Engineering Published: 2021-12-17 Category: Insights Tags: how to be financially secure, how to build wealth, increase wealth, invest at 30, Grow wealth URL: https://buyproperly.ai/blog/how-to-build-wealth-in-your-30s-simple-steps-to-become-financially-free “Financial freedom” is becoming a buzzword nowadays, but what does it **_actually_** mean? When it comes to learning how to build wealth in your 30s, patience, persistence, and a solid plan are at the root of this new financial freedom movement. Here are 6 simple tips to get you started on the road to wealth-building and financial independence. Let’s dive in! **1\. Make a budget (and live within your means)** -------------------------------------------------- The first step to building wealth in your 30s (or at any age for that matter!) is to make a budget and stick to it. Many people never realize how much money they’re actually spending each month and how much could be saved by simply creating a budget and learning to consciously live within their means. How should you create a budget? Here’s a simple guide to follow: * **Calculate your total net income for both you and your partner:** make sure to build your budget based on your take-home pay each month. * **Calculate all your fixed expenses:** this includes all the expenses that are predictable and stay consistent each month like your mortgage, rent, insurance, car payments, etc. * **Calculate all your variable expenses:** variable expenses include all of your discretionary spending and bills that change from month to month like groceries, dining out, utilities, and leisure activities. * **Set aside money for debt repayment and wealth-building:** Ideally, you should be able to set aside between 10-20% of your net income for debt repayment, savings, and investing.  ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/unnamed-8-1715167345614-compressed.png) If you don’t have any wiggle room in your budget, start looking for fixed and variable expenses you can cut back on. Here are some ideas to keep in mind: **_– Are there any subscriptions you’re not using?_** Netflix, Amazon, and that old gym membership may seem like nothing, but those monthly subscriptions can really add up! Take a look at where you can cut back to save some extra money. **_– Are you paying high interest rates on any loans?_** Credit card debt can cost thousands in interest charges, so it’s always best to prioritize those high-interest loans when repaying debt. If you’re struggling to make a dent in your loan, call the bank and ask what your options are for lowering the interest rate. **_– Have you shopped around for new insurance rates lately?_** Car, home, and life insurance premiums can creep up without us ever noticing. If it’s been a while since you’ve looked into those payments, it may be worth shopping around to see if you can find a better deal. **_– Is dining out eating up all your extra cash?_** After work, it can be tempting to grab a ready-made meal or takeout from a local restaurant. If you’re spending a lot of your monthly income at restaurants, look into cost-effective options like batch-cooking and meal prepping.  Learning how to build wealth in your 30s isn’t always about making more money. Sometimes the quickest and easiest way to find extra money is to take a good hard look at what you’re spending and find creative ways to save!  **How much money should 30-year-olds have saved?** -------------------------------------------------- There’s no right or wrong answer for how much you should have saved by the time you turn 30 since it depends on your income, lifestyle, and the wealth-building opportunities available to you. Most experts suggest saving 10-20% of your pre-tax income each month for retirement. According to [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/200327/dq200327a-eng.htm), as of 2020, the average salary for Canadians was $54,630. This means $455-$910 would be an ideal amount to put towards savings each month.   If you’re just getting started at 30 and you’re able to invest $900 each month in accounts or investments that yield a 5% annual return, you would have just over $980,000 by the time you’re ready to retire at 65! ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/unnamed-9-1715167347509-compressed.png) **2\. Pay off debt as quickly as possible** ------------------------------------------- Debt can rack up some serious interest payments that eat into your potential wealth-building opportunities! According to [BNN Bloomberg](https://www.bnnbloomberg.ca/household-debt-ratio-rises-to-170-7-per-cent-statcan-says-1.1535105), as of December 2020, Canadians now owe $1.71 for every dollar of disposable income they have to spend.  What’s the hidden cost of high-interest debt? Let’s say you have credit card debt totaling $10,000 at an 18% interest rate. If you decide to pay $200 towards this debt, it will take **94 months** to pay off AND cost you **$8,622 in interest**!  If you decide to increase that payment to $400 per month, your credit card will be paid off in 32 months and you’ll pay only $2627 in interest. That means you’d be saving $5995 which could be put towards savings, retirement, or investments that will help grow your wealth over time! If you’re battling with high-interest loans and credit card debt, one of the fastest ways to pay it off is by focusing on the highest-interest loan first (a.k.a. “The Avalanche Method”). This method for debt repayment frees up more cash month-over-month as you continue paying down those debts! **3\. Work on your money mindset** ---------------------------------- So many have us have been conditioned to believe we can’t be wealthy or that only a select few people are lucky enough to be financially secure.  Although it’s important to acknowledge the privilege of being able to work full time, earn an income, and invest in various financial markets, it’s also important to realize that it’s never too late to start investing and growing your wealth! The first thing you can do to get comfortable with money is to start talking about it. Open up a dialogue with family and friends about savings and retirement. Talk with coworkers about financial resources available through your employer. Find financial advisors and professionals who can teach you how to build wealth in your 30s and deconstruct some of the money myths you believe. The quickest way to change your mindset about money is to surround yourself with people, conversations, and thoughts that are **_different from your own._** If you’re willing to challenge some of the long-held beliefs you have about money, you’ll find new and amazing opportunities to start building wealth and take steps towards becoming financially free! **4\. Learn as much as you can about investing** ------------------------------------------------ Everyone knows the power of smart investing, but many people are too intimidated to take the first step to get started. After all, where **_should_** you put your money? Stocks? Bonds? Real estate? The fastest way to grow your wealth is to get educated about investing so you can make informed financial decisions.  **_What can you do to learn?_** * **Read books** One of the simplest ways to learn about investing is to go to the local library or book store to find some books on budgeting, saving, and investing. Here are some great books to start with: _The Intelligent Investor:__\-The Definitive Book on Value Investing__–__The Book on Rental Property Investing__\-Investing in Your 20s & 30s For Dummies_ * **Join supportive communities** Eager to dive in and talk about investing? Find local or online communities you can join to learn all about investing! If you don’t have any business clubs in your area, look online on Reddit Facebook for supportive communities to join. **_Here at BuyProperly………..\*a simple CTA would go here\*_** * **Speak with financial professionals** Take advantage of all the professional wealth-building advice you can! Book an appointment with a financial advisor at your bank. Talk to your employer to ask about RRSP opportunities. Meet with an accountant to discuss ways you can find more money in your budget to invest. * **Attend seminars and/or events** Going to local events is a fantastic way to learn valuable financial skills and network with like-minded investors. Not sure where to find events in your area? Simply head to Google and look for investment conferences, business groups, and meetups in your local area. The more you educate yourself about money, the more opportunities you’ll find to build your wealth! **5\. Diversify your portfolio** -------------------------------- Many of us have heard of the saying “don’t put all your eggs in one basket” and this is absolutely true when it comes to building long-term wealth! Diversifying is one of the best ways to ensure you’re protecting your money. What does diversification look like? Simply put, diversifying your portfolio means investing in a variety of different industries, sectors, and asset classes. This could include stocks, bonds, real estate, currencies, and more.  Diversification is a key component to building wealth because it allows you to spread your money around to mitigate risk and better predict expected growth.  While investing in something like Bitcoin may bring some temporary gains, it can also be extremely volatile. Balancing out those volatile investments with the long-term appreciation from rental properties, for example, would create a more stable portfolio. Here at BuyProperly, we help new investors get started in real estate investing for as little as a $2500 initial investment! Learn more at [www.buyproperly.ca](https://buyproperly.ca/) Speak with your financial advisor about different ways you can diversify your investments for maximum growth. **6\. Remember to be patient** ------------------------------ Building wealth doesn’t happen overnight: it takes time, dedication, and patience to see the best results! One of the biggest secrets to wealth-building is the compounding effect that comes from reinvesting your money over time. The more returns you’re able to reinvest in the market, the higher your earnings will be! This snowball effect is what creates stable, long-term opportunities.  Don’t get discouraged if you can only invest a small amount of cash at the beginning, **_or_** if your investments don’t make you a millionaire overnight. The key is to make smart financial decisions that will set you up for long-term wealth and success. If you follow these simple wealth-building tips, you’ll be one step closer to financial freedom! Want to learn more about how to build wealth in your 30s?  [BuyProperly](https://buyproperly.ca/) is on a mission to make real estate investing accessible for everyone! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Become a Real Estate Investor: A Step-by-Step Guide Author: BuyProperly Engineering Published: 2021-12-17 Category: Insights Tags: real estate investing for beginners, How to be a real estate investor, invest in real estate, make money in real estate URL: https://buyproperly.ai/blog/how-to-become-a-real-estate-investor-a-step-by-step-guide Are you wondering how to become a real estate investor and start growing your very own property portfolio? We’re diving into the nitty-gritty of what it takes to find your first property deal and build a lucrative real estate investment business.  Real estate investing is on the rise and now is a great time to get into the market. In fact, according to an article in [The Globe and Mail](https://www.theglobeandmail.com/business/article-investors-account-for-a-fifth-of-home-purchases-in-canada-are-they/), investors account for one-fifth of all home purchases across Canada! If you’re brand new, investing can feel overwhelming, but there are a few simple steps you can take to set yourself up for success. With a clear plan and the right strategy, being a real estate investor is incredibly exciting, rewarding, and lucrative. **What qualifies you as a real estate investor?** ------------------------------------------------- The great news is that you don’t need any special credentials or qualifications to start investing in real estate. Many people choose to get their real estate license so they can get commissions on sales and find private deals, but this is absolutely not mandatory to start finding great property deals. Even though you don’t need specialized qualifications, it’s important to educate yourself as much as possible on the world of real estate investing so you can become an expert in your field.  **Is it hard to become a real estate investor?** ------------------------------------------------ Building a lucrative real estate portfolio isn’t incredibly difficult, but it **_does_** take time, effort, and patience. New investors should be prepared for a learning curve as they figure out how to navigate the market and build the connections that will help them succeed in the industry. If you’re brand new to real estate, BuyProperly has opportunities for investors to jump into the property market without tons of money (or risk!).  How? Through fractional real estate investing, we offer people the chance to own properties for as little as $2500 with a 10-40% return on investment! Want to learn more? Now, let’s dive into the six steps you’ll need to follow to become a successful real estate investor.  **Step One: Educate yourself about real estate** As a new investor, there is no shortage of concepts, terminology, tricks, and lessons to learn about real estate. The single most important thing you can do is educate yourself.  What are some ways you can learn more about real estate? * Read as many books and articles as you can on the subject * Attend local seminars and meetups to discuss real estate with investors, realtors, and brokers * Find supportive online communities. [Sign up](https://buyproperly.ca/signup/personal) for the BuyProperly email list Your real estate education is an ongoing process that will change and adapt as you become a more confident investor. Be open to meeting new people, making connections, and learning as much as you can! **Step Two: Get crystal clear on your goals**  There are many different paths you can take as a real estate investor that depend on what short-term and long-term goals you’re trying to achieve.  The best thing you can do before getting started is to sit down and write out your 1-year, 5-year, and 10-year goals. Remember, real estate should be a long-term investment that not only generates some cash flow, but also appreciates in value the longer you hold onto it.  If you’re looking for instant returns and a quick exit strategy, real estate and rentals is probably **not** the best investment to start with. **_Here are some questions to ask yourself:_** – why do you want to become a real estate investor?  – do you want real estate to be a full-time profession or a more “passive” investment strategy? – what financial goals are you hoping to achieve in the next 1, 5, and 10 years? – are you prepared to adopt a “buy-and-hold” strategy with your real estate portfolio? – are you more interested in monthly cash flow or long-term appreciation? If you’re not in a position to put a 10% or 20% down payment on a property, consider working with partners or starting with a fractional ownership model. Here at BuyProperly, our investors start with as little as $2500 and see projected annual returns of 10-40%! If you’re interested in learning more, **visit [www.buyproperly.ca](https://buyproperly.ca/)** **Step Three: Nail down a location and property market** Deciding on which location you want to target is an important part of building your real estate portfolio. Are you planning on investing in your local area or would you consider expanding your search to include neighbouring towns and cities? When looking for areas to invest, focus on locations with job stability, nearby schools, facilities like parks and recreation centers, predictable rents, and opportunities for economic growth. Remember, you’re building up a real estate portfolio for short-term cash flow AND long-term appreciation, so make sure you choose a stable location. If you’re willing to purchase investments outside your local area, you can often find great deals in smaller cities and various up-and-coming housing markets! At BuyProperly, we help investors across Canada find rental properties through fractional ownership. Investors can be 100% remote!  **Step Four: Start building your network** Many real estate investors attribute their success (at least in part) to having an incredible network behind them. One of the most important things you can do as a new investor is to start making connections with other investors, local realtors, lawyers, and brokers. These people know what’s going on in the housing market and they often have access to insider opportunities before the public finds out!  Not only will this allow you to take advantage of off-market deals and get a leg up on the competition, but you’ll also have the confidence and knowledge you need to make smart financial decisions. Having a great “team” by your side will make the process go more smoothly. **Step Five: Learn how to assess properties for sale** When you’re trying to figure out whether or not to purchase a property, there are many things you should keep in mind.  Here are a few examples to consider: **Income potential:** What is the current rental revenue and is there an opportunity to increase that? Are there improvements that could be made to the building? Is the rent lower than the average for the area? **Expenses:** What are the ongoing expenses for the property? How much is heat, water, and electricity? What will your insurance costs be? Don’t forget about potential vacancies! When analyzing property income, assume a 10% vacancy rate for the year. **Repairs:** Are there any significant one-time repairs that need to be done on the property? How old is the roof and windows? What’s the age of the hot water tank and furnace? Factor in all one-time repair costs when analyzing your budget. **Management fees:** How will you be structuring property management? Will you be handling it yourself or hiring a company to collect rent, find tenants, and perform routine maintenance? Factor this into your expenses. **Location:** We’ve already talked about the importance of location, but it’s crucial to analyze the location for every single real estate deal you make. In some cities, adjacent neighbourhoods (and even streets) may seem similar, but they actually have significantly different average monthly rents and property appreciation. Ask your realtor or property broker for more information on how you should analyze rental properties. **Step Six: Dive in and make a deal!** It’s true what they say: practice makes perfect! No amount of books or real estate seminars can replace the knowledge you’ll get from jumping in and taking action.  Remember: there’s no such thing as a perfect property! Being a real estate investor means analyzing properties carefully, weighing the pros and cons, and making a decision based on **your** goals and investment strategy. Don’t be afraid to get out there and start looking at properties, putting in offers, and making deals!  If you’re ready to invest in your first (or next) rental property, be sure to check out our available listings [here](https://buyproperly.com/properties). You can get started for only $2500! ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/how-to-become-a-real-estate-investor-step-by-step-1-410x1024-1715167264747-compressed.png) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## When’s the Right Time to Invest and 4 Factors to Consider Author: BuyProperly Engineering Published: 2021-12-08 Category: Insights Tags: Stocks, BuyProperly, Canadahomes, FinancialGoals, Moneytips, Passiveincome URL: https://buyproperly.ai/blog/whens-the-right-time-to-invest-and-4-factors ![](https://blog.buyproperly.ca/wp-content/uploads/2021/12/lukas-blazek-UAvYasdkzq8-unsplash.jpg) New to investing? Maybe you’ve heard of the investing technique of trying to time the market. In other words, you’re waiting for the right time to pay the lowest price on your investment. If you wait to pay the lowest price, you’ll gain the highest amount of appreciation. But is this true? Is there such a thing as the best time to invest? Best time to invest in the Stock Market --------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-1715166389852-compressed.jpg) When it comes to investing in stocks, there is no such thing as the right time. Even experts don’t know the exact day, time, and year to invest. If you wait to invest or are trading too often, you’re actually losing. Since the stock market has ups and downs, investing in the market is all about the time spent in the market, not choosing the right time. If you’re in good financial health and have extra cash on hand that’s sitting in the bank, start investing and invest regularly. The longer you’re in the market, the more your investments will grow. If you don’t know what to invest in or aren’t comfortable investing, start investing in a sector funds/etfs or in s&P 500 index. And remember to not invest more than you are willing to risk.  Best time to invest in Real Estate ---------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/property-1715165888177-compressed.jpg) Why should I invest in real estate when stocks can provide high returns? Well, real estate offers more stability than the stock market cannot. When it comes to investing in real estate, timing plays a more important role than stocks. There are factors related to timing you need to consider before investing in real estate. Below are 4 factors to consider before investing in real estate: ### 1\. Financial Health Similar to stocks, you’ll want to make sure you’re in good financial health before investing. Make sure your debts are in control and you are not taking on more debt to finance a down payment. Additionally, you’ll want to wait to have the cash available to pay for a down payment. Being in good financial health will get your mortgage approval.. but don’t have a lot of money to put down, options are still available. If you want to invest in real estate but lack the funds for a down payment, there are still options available. Learn more about them [here](https://buyproperly.ai/blog/how-to-invest-in-real-estate-with-little-money). ### **2\. Buyer vs Sellers Market** You’ll want to know the historic market trends of the city or neighborhood you plan on buying in. In particular, you’ll want to know if it’s a buyer’s or a seller’s market. In a buyers market, there’s more supply and less demand. This means the buyer has the power to negotiate better deals. In a seller’s market, there’s more demand and less supply. This means the seller has the power to negotiate deals. To determine a buyer’s or seller’s market, you can look at days on market and trends in home sale prices. A low days on market indicates a seller’s market whereas a high means a buyer’s market. An increase in home sale prices means it is a seller’s market whereas a decrease means a buyer’s market. ### 3\. Time of year You’ll generally find lower housing prices in the winter compared to the summer months. Since it’s the holidays, there are fewer interested buyers in the winter, giving you an advantage at the negotiating price. The second best time of the year is in the spring when there is an increase in the number of available properties. If you start early with your mortgage pre-approval, the higher chance of securing a good deal faster. ### 4\. External factors out of your control Global events like a pandemic or the 2008 global financial crisis can affect real estate. These external factors usually result in low housing prices and mortgage rates. This can be a good time to invest for those looking to buy a home. However, if you’re looking to buy a rental property, these events might impact your ability to find tenants and their ability to pay rent. Consider the risks of investing in a rental property during these times and purchase rental insurance.  While investing in the stock market can be risky and real estate can be a lot of upkeep, BuyProperly mixes the best of both markets. BuyProperly is a fractional real estate company that allows anyone to invest in real estate with just $2500. This innovative solution is like investing in stocks without the management that goes into real estate ownership. Ready to start investing? Head over to our [website](http://buyproperly.ca) to start investing in BuyProperly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Our Awards & Recognition Author: BuyProperly Engineering Published: 2021-11-19 Category: Insights URL: https://buyproperly.ai/blog/our-awards-and-recognition **Bay Steet Bull 2021** ----------------------- #### [Women of The Year Title](https://baystbull.com/how-khushboo-jha-of-buyproperly-is-revolutionizing-real-estate/) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/baystreetbull-1715167277527-compressed.png) Khushboo Jha, CEO of BuyProperly got honored with the Women of the year 2021 title by Bay Street Bull. In words of Bay Steet Bull, Khushboo Jha is democratizing real estate through BuyProperly. Bay Street Bull for [**Women Who Lead**](https://baystbull.com/topics/business/women-who-lead/) talked to Khushboo Jha on how she managed to make a name for herself in the world of tech and real estate by making real estate investing accessible and easy for everyone.Women Who Lead is a Bay Street Bull initiative where they talk to female business leaders about their life, passion, and their road to success. **Link(s):** [Bay Street Bull: Women of The Year 2021 Title](https://baystbull.com/how-khushboo-jha-of-buyproperly-is-revolutionizing-real-estate/) **Women In Tech Award 2021** ---------------------------- #### [**Fintech Grant Winner (Toronto, Vancouver)**](https://www.talkshopmedia.com/blog/social-media-blog/the-talk-shop-women-in-fintech-grant-winner-has-been-selected/) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/talkshop-1715167279070-compressed.png) Fintech is thrilled to announce BuyProperly led by Khushboo Jha as the winner for the Talk Shop Women in Fintech Grant after reviewing applications from across the country. Their expert judging panel comprised Janet Bannister, Managing Partner of [Real Ventures](https://realventures.com/), Leen Li, CEO of Wealthsimple Foundation and Erin Bury, CEO and Co-Founder of [Willful](https://www.willful.co/). **Link(s):** [Women In Tech Award: Talk Shop Women in Fintech Grant Winner](https://www.talkshopmedia.com/blog/social-media-blog/the-talk-shop-women-in-fintech-grant-winner-has-been-selected/) **The Pitch Contest 2020** -------------------------- #### [**Part of Top 10 Start-Ups**](https://dailyhive.com/vancouver/the-pitch-orbiiit-contest-finalists) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/orbiit-1715167280869-compressed.png) BuyProperly.ca was selected amongst the top 10 from the entire pool of entrants. Pitch at Orbit gives opportunities to great projects or startups who are looking for business opportunities or investors to present their pitch before a professional panel of investors and successful entrepreneurs. The Pitch online start-up competition, in a partnership with [Orbiiit](https://orbiiit.com/contest/10), grants tech start-ups the opportunity to win part of a $100,000 prize pool that features crucial services, funds, and so much more. **Link(s):** [Part of Top 10 Start-Ups From The Pitch Contest](https://dailyhive.com/vancouver/the-pitch-orbiiit-contest-finalists) **Audience Choice Award 2020** ------------------------------ #### [**Best Fintech Startup**](https://fintechcadence.com/ascension/) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/fintechcadence-1715167282267-compressed.png) BuyProperly has won 3 awards, including the ‘Audience Choice Award for Best Fintech Startup’ at the Ascension Demo Day of Fintech Cadence. Fintech Cadence provides multiple programs and events for the fintech community from coast to coast. Structured as a non-profit organization, they are dedicated to serve early stage startups and building fintech products from the grassroots level. **Link(s):** [Audience Choice Award for Best Fintech Startup](https://fintechcadence.com/ascension/) **Big Push Pitch & Pair and The Big Push Lift-off Program** ----------------------------------------------------------- #### [**Big Push Pitch & Pair Winner**](https://www.thebigpush.ca/liftoffprogram) ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/thebigpush-1715167283909-compressed.png) BuyProperly.ca also won the Big Push Pitch & Pair and The Big Push Lift Off Program. The Big Push is a business accelerator that bridges the funding gap for women led-companies and the Lift-Off Program is an innovative expert resource program designed to provide early stage women-led technology companies with access to free consultation and assessment of their business plans along with a clear roadmap that connects them to a network of highly vetted business and technology professionals. The program is focused on the development and execution of business growth plans in 6 key areas: finance, marketing, sales, PR, product and recruitment. **Link(s):** [Big Push Pitch & Pair and The Big Push Lift-off Program](https://www.thebigpush.ca/liftoffprogram) **Women in Payments Unicorn Challenge** --------------------------------------- #### **Finalist for Women in Payments Unicorn Challenge** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/women-in-payment-unicorn-1715167285477-compressed.png)  BuyProperly.ca became the Finalist for Women in Payments Unicorn Challenge. Women in Payments is a global network for women, by women. They work in a male-dominated industry, where they help you take your career in payments further by creating a supportive and empowering community that fosters tremendous growth. **Features & Articles** ======================= [**101 Top Real Estate Startups and Companies in Canada**](https://beststartup.ca/101-top-real-estate-startups-and-companies-in-canada/) ---------------------------------------------------------------------------------------------------------------------------------------- BestStartup.ca featured BuyProperly.ca in top 101 Real Estate Startups and companies in Canada. They picked companies across the size spectrum from groundbreaking startups to established brands.    **Link(s):** [Featured in top 101 Real Estate Startups and companies in Canada](https://beststartup.ca/101-top-real-estate-startups-and-companies-in-canada/) [**BuyProperly Founder &CEO, Khushboo Jha featured on the Female CoFounder weekly newsletter**](https://us20.campaign-archive.com/?u=0c6e0d59ae80a06c5c5a9fad7&id=b5d4bc3c7f) ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/thrive-global-1715167287362-compressed.png) Our Founder & CEO got an opportunity to be featured on the Female CoFounder Weekly Newsletter. See what all she had to say [about BuyProperly](https://us20.campaign-archive.com/?u=0c6e0d59ae80a06c5c5a9fad7&id=b5d4bc3c7f). **Link(s):** [Featured on the Female CoFounder weekly newsletter](https://us20.campaign-archive.com/?u=0c6e0d59ae80a06c5c5a9fad7&id=b5d4bc3c7f) **How Canadians can invest in real estate without buying a home** ----------------------------------------------------------------- Sky-high real estate prices have locked countless Canadians out of the housing market and the wealth gains that come with ownership. Through passive fractional ownership, investors can cash in on returns without having to qualify for a big mortgage or come up with a huge down payment. **Link(s):** [How Canadians can invest in real estate without buying a home](https://news.yahoo.com/how-canadians-can-invest-in-real-estate-without-buying-a-home-100046164.html) **Khushboo Jha Of BuyProperly: “Invest in yourself”** ----------------------------------------------------- In an interview with thriveglobal.com our CEO, Khushboo Jha discussed about what made her choose this career path and gave advice on real estate investment options. **Link(s):** [Khushboo Jha Of BuyProperly: Invest in yourself](https://thriveglobal.com/stories/khushboo-jha-of-buyproperly-invest-in-yourself/) **Meet The Disruptors: Khushboo Jha Of BuyProperly On The Three Things You Need To Shake Up Your Industry**  ------------------------------------------------------------------------------------------------------------ In an interview with medium.com magazine discussed about the three things you need to shake up your industry. **Link(s):** [Meet The Disruptors: Khushboo Jha Of BuyProperly On The Three Things You Need To Shake Up Your Industry](https://medium.com/authority-magazine/meet-the-disruptors-khushboo-jha-of-buyproperly-on-the-three-things-you-need-to-shake-up-your-eff26ae67b45) **How Khushboo Jha of BuyProperly is Revolutionizing Real Estate** ------------------------------------------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/baystreetbull-1-1715167289031-compressed.png) Bay Street Bull talked to our CEO Khushboo Jha, Buy Properly, about how she made a name for herself in the world of tech and real estate by making real estate investing accessible and easy for everyone. **Link(s):** [How Khushboo Jha of BuyProperly is Revolutionizing Real Estate](https://baystbull.com/how-khushboo-jha-of-buyproperly-is-revolutionizing-real-estate/) **Democratizing the real estate investing experience** ------------------------------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/women-in-payment-unicorn-1-1715167290470-compressed.png) Amid broad pandemic restrictions and a boom in everything digital, individual investors have found opportunities to invest in all sorts of assets from cryptocurrencies, to non-fungible tokens, and even fractional shares of mega-cap tech stocks. And against that backdrop, BuyProperly is using technology to disrupt the traditional real estate investment process. **Link(s):** [Democratizing the real estate investing experience](https://www.wealthprofessional.ca/investments/alternative-investments/democratizing-the-real-estate-investing-experience/359134) **How You Can Invest In the Real Estate Market through Fractional Investing** ----------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wealth-professional-1715167292045-compressed.jpg) Many finance professionals say that investing in real estate can offer some great returns, and it certainly has for many investors over the years. But getting into real estate these days is unaffordable for the masses. In this article our CEO, Khusboo Jha discussed about how you can get started in the real estate market through fractional investing in less than 7 minutes. **Link(s):** [How You Can Invest In The Real Estate Market Through Fractional Investing](https://www.forbes.com/sites/melissahouston/2021/07/14/how-you-can-invest-in-the-real-estate-market-through-fractional-investing/?sh=67136a237c87) **Homegrown Business: Real Estate Investment Company BuyProperly** ------------------------------------------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/toronto-guardian-1715167293402-compressed.png) For Homegrown business feature torontoguardian.com spoke with our founder and CEO Khushboo Jha, where she discussed about how [BuyProperly](https://buyproperly.ca/) enables Canadians to invest in real estate. **Link(s):** [Homegrown Business: Real Estate Investment Company BuyProperly](https://torontoguardian.com/2021/07/toronto-business-buyproperly/) **54 Top Service Industry Startups and Companies in Toronto (2021)** -------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/best-startup-1715167294989-compressed.png) BestStartup.ca featured BuyProperly.ca in top 54  Toronto based Service Industry Startups.  They picked companies across the size spectrum from cutting edge startups to established brands. **Link(s):** [54 Top Service Industry Startups and Companies in Toronto (2021)](https://beststartup.ca/54-top-service-industry-startups-and-companies-in-toronto-2021/) **101 Top FinTech Startups and Companies in Toronto (2021)** ------------------------------------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/best-startup-1-1715167296402-compressed.png) Df.media showcased BuyProperly.ca in best 101 Canada based Real Estate Investment companies. They selected these startups and companies for exceptional performance in one of these categories: Innovation, Growth, Management & Societal Impact. **Link(s):** [101 Top FinTech Startups and Companies in Toronto (2021)](https://beststartup.ca/101-top-fintech-startups-and-companies-in-toronto-2021/) **WOMEN IN TECH: Q&A with Khushboo Jha, CEO & Founder, BuyProperly** -------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wifi-hifi-1715167297933-compressed.png) Wifihifi.com, in their series of Q&A’s with our CEO Khushboo Jha discussed about her unique perspective she brings to the organization as women and the changes that can be made to attract more women into higher-positions. **Link(s):** [WOMEN IN TECH: Q&A with Khushboo Jha, CEO & Founder, BuyProperly](https://wifihifi.com/women-in-tech-khushboo-jha-buyproperly/) **101 Best Canada Based Real Estate Investment Startups and Companies 2021** ---------------------------------------------------------------------------- df.media showcased BuyProperly.ca in best 101 Canada based Real Estate Investment companies. They selected these startups and companies across the size spectrum from cutting edge startups to established brands. **Link(s):** [101 Best Canada Based Real Estate Investment Startups and Companies 2021](https://df.media/101-best-canada-based-real-estate-investment-startups-and-companies-2021/) **Want to buy property but don’t have a down payment? ‘Fractional ownership’ may be the ticket** ------------------------------------------------------------------------------------------------ Cbc.ca in its article talks about how Buyproperly is using technology to disrupt the financial and real estate industries.  **Link(s):** [“Want to buy property but don’t have a down payment? ‘Fractional ownership’ may be the ticket](https://www.cbc.ca/news/real-estate-fractional-investing-1.6070504) **Buyproperly Raises $2 Million to Expand Real Estate Investment Platform Across Canada, US** --------------------------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/betakit-1715167299775-compressed.jpg) [BuyProperly](https://buyproperly.ca/) has secured a $2 million CAD pre-seed round to fuel the growth of its online fractional real estate marketplace, which allows users to invest in portions of residential properties for as little as $2,500. The round was led by Nurture Ventures, and also saw continued participation from Fastbreak Ventures and angel investors, including Andrew Graham and Eva Wong of fellow Toronto FinTech company Borrowell. **Link(s):** [Buyproperly raises $2 million to expand real estate investment platform across canada, us](https://betakit.com/buyproperly-raises-2-million-to-expand-real-estate-investment-platform-across-canada-us/) **Fractional Ownership May Be The Solution To Housing Affordability** --------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/rem-1715167301177-compressed.png) Insightt featured Buyproperly in the list of top three innovative companies that have launched fractional or co-ownership solutions in Canada. **Link(s):** [Fractional ownership may be the solution to housing affordability](https://www.realestatemagazine.ca/fractional-ownership-may-be-the-solution-to-housing-affordability/) **These Are The Top Real Estate Investment Companies In Canada** ---------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/welp-1715167303006-compressed.png) Welpmagazine.com in its article showcased BuyProperly in of their top picks for the best Canada based Real Estate Investment companies which are taking a variety of approaches to innovate the Real Estate Investment industry, but are all exceptional startups and companies  **Link(s):** [These are the Top Real Estate Investment Companies in Canada](https://welpmagazine.com/these-are-the-top-real-estate-investment-companies-in-canada-2021/) **15 Technology Trends Disrupting Real Estate Today** ----------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/forbes-1715167304433-compressed.png) 15 experts from Forbes Real Estate Council discussed the most impactful technology trends disrupting the real estate industry today. Our CEO, Khushboo Jha, discussed about the spread of Blockchain and its potential to transform the industry. **Link(s):** [15 Technology Trends Disrupting Real Estate Today](https://www.forbes.com/sites/forbesrealestatecouncil/2021/02/10/15-technology-trends-disrupting-real-estate-today/?sh=25392a5142ae) **Best Real Estate Startups** ----------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/start-up-1715167305848-compressed.png) Startup Pill’s featured BuyProperly.ca in top 101 Real Estate Startups in Canada. They picked companies across the size spectrum from cutting edge startups to established brands. **Link(s):** [Best Real Estate startups](https://startupill.com/101-best-real-estate-startups-worth-a-follow-in-2021/) **Top Picks For The Best Real Estate Investment Startups** ---------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/start-up-1-1715167307578-compressed.png) Startup Pill’s showcased BuyProperly in one of their top picks for the best real estate investment startups. These startups are taking a variety of approaches to innovating inside of the Real Estate Investment industry and around the world. **Link(s):** [Top picks for the best Real Estate Investment startups](https://startupill.com/101-awesome-real-estate-investment-that-will-take-2021-by-storm/) **Best Service Industry Startups** ---------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/start-up-2-1715167308837-compressed.png) Startup Pill’s featured BuyProperly.ca in the list of top 101 Service Industry Startups in Canada, 2021. These startups are taking a variety of approaches to innovating inside of the Real Estate Investment industry and around the world. **Link(s):** [Best Service Industry startups](https://startupill.com/101-amazing-service-industry-startups-worth-a-follow-in-2021/) **101 Of The Best Marketplace Startups To Watch Out For In 2021** ----------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/start-up-3-1715167310260-compressed.png) Startup Pill’s featured BuyProperly.ca in the list of top 101 best Marketplace startups.These startups are taking a variety of approaches to innovating inside of the Real Estate Investment industry and around the world. **Link(s):** [101 Of The Best Marketplace Startups To Watch Out For In 2021](https://startupill.com/101-of-the-best-marketplace-startups-to-watch-out-for-in-2021/) **Top Fintech (Financial Technology) Companies in Toronto (2021)** ------------------------------------------------------------------ df.media showcased BuyProperly in their top picks for the best Toronto based Fintech (Financial Technology) companies. These startups and companies are taking a variety of approaches to innovating the Fintech (Financial Technology) industry, but are all exceptional companies well worth a follow. **Link(s):** [Top Fintech (Financial Technology) Companies in Toronto (2021)](https://df.media/these-are-the-top-fintech-financial-technology-companies-in-toronto-2021/) **Navigating Online Marketplaces? 12 Tips for Real Estate Newbies** ------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/forbes-1-1715167311833-compressed.png) There are many things that skilled real estate professionals know that newcomers to the field still have to figure out for themselves. To help, our CEO, Khushboo Jha, along with 11 other experts of Forbes Real Estate Council discussed the best ways for a real estate investment newbie to navigate this online space and get in touch with potential buyers and sellers. **Link(s):** [Navigating Online Marketplaces? 12 Tips For Real Estate Newbies](https://www.forbes.com/sites/forbesrealestatecouncil/2021/01/13/navigating-online-marketplaces-12-tips-for-real-estate-newbies/?sh=32e85cb462ed) **Startup newsletter** ---------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/virtus-1715167313454-compressed.png) Virtusgroups.com in its Canadian Startup Newsletter edition featured Buyproperly in the list of three companies that enable their customers to make better decisions with their money. **Link(s):** [Start up newsletter](https://virtusgroups.com/newsletters/canada-startup-newsletter-1-december/) **BuyProperly** **⎼** **Making Real Estate Investing Accessible to Any Investor** --------------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/loans-canada-1715167314923-compressed.png) Investing in real estate can be a costly and involved process and often requires a large down payment. Enter BuyProperly, a new online platform that allows any Canadian investor to add real estate to their portfolios. . **Link(s):** [BuyProperly ⎼ Making Real Estate Investing Accessible to Any Investor](https://loanscanada.ca/industry-spotlight/buyproperly-making-real-estate-investing-accessible-to-any-investor/) **How You Can Invest In The Real Estate Market Through Fractional Investing** ----------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/forbes-2-1715167316217-compressed.png) Many finance professionals say that investing in real estate can offer some great returns, and it certainly has for many investors over the years. But getting into real estate these days is unaffordable for the masses. In this article, published by Forbes our CEO, Khusboo Jha gave few tips for women who are considering their startup venture.. **Link(s):** [How You Can Invest In The Real Estate Market Through Fractional Investing](https://www.forbes.com/sites/melissahouston/2021/07/14/how-you-can-invest-in-the-real-estate-market-through-fractional-investing/?sh=67136a237c87) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Here’s How Much Money You Need When You Retire Author: BuyProperly Engineering Published: 2021-10-14 Category: Insights URL: https://buyproperly.ai/blog/heres-how-much-money-you-need-when-you-retire ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/unnamed-1-1-1024x683-1715167358396-compressed.jpg) Surely you have made some plans for your next vacation, listed the locations, browsed the options and estimated the costs but have you considered saving for your retirement? Most millennials might shrug it off as a stage that will appear in a few decades but that’s why you need to ask yourself a few questions – how much do you need to retire at 50/60 or 70? How do you know if you are financially ready for retirement and how can you invest for the future without being stingy about your present. You are not alone, [64% of Canadians](https://go.fidelity.ca/retirementsurvey) think they won’t be able to save enough for their retirement. Yes, it is shocking but there is a cure – plan ahead and start investing your savings as soon as possible! This article will help you determine how much money you need for retirement in Canada. We will also explain the benefits of investing early. Let’s get started. How Much Money Do I Need To Retire? ----------------------------------- Here are some questions to help you determine the retirement income you need: * **When do I want to retire?** – It’s simple math; the earlier you want to retire, the more you’ll have to save every year. However, things like life expectancy and general retirement age play a vital role in this equation. For instance, you might want to retire early at 50 but the average life expectancy is 75 years. In such a scenario, you will have to save 25 years’ worth of retirement funds. * **Where do I want to live after retirement?** – Whether you dream of spending your retirement by the beach or living in the city also determines how much you need. This is because the expenses needed to maintain the property where you live change according to the location. * **What will my expenses be?** – The general rule of thumb is that you will need 70-100% of your current income to maintain a similar lifestyle post-retirement. However, this can change based on the lifestyle you want to maintain in your retirement days. For example, you might want to slow down and live a simple life. In that case, you would need less than 70-100% of your current income. * **How much income will I generate?** – Perhaps the most critical question to answer is how much money you’ll be able to earn after retiring. Knowing this figure will help you stay prepared and develop a plan that caters to all your desires. [50% of millennials think they need $300,000 or less to retire in comfort.](https://grow.acorns.com/half-of-millennials-think-they-need-to-save-300000-or-less-to-retire/) In reality, that figure could be much higher or much lower. The 70 percent replacement rate is a typical rule of thumb to estimate how much money they need for retirement. Even then, it’s essential to always have more for emergencies and personal requirements because consistent investments of savings **can** give you the freedom and control to live life exactly how you want. [As per the Canadian Pension Plan(CPP)](https://dividendearner.com/understanding-cpp-payments/), one of the Canadian citizens’ main retirement income programs, the average Canadian Pension Plan retirement payout person is approximately $8,500. If you meet the [CPP criteria](https://www.canada.ca/en/services/benefits/publicpensions/cpp.html), the maximum monthly payout for CPP that you can expect to earn is $1,203.75, whereas on average, the payout has been $736.58 in 2021.  While the retirement income generated through CPP helps increase your retirement funds, it’s not enough. Thus, it’s essential to plan for retirement without banking on the CPP income and using it as an emergency fund in case things don’t go as you had planned. If you want a more specific figure based on your particular requirements, you can also consider using a [retirement calculator.](https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html)  Why You Should Start Investing Early ------------------------------------ While the figure might vary based on requirements and circumstances, you cannot rely entirely on your salary to save a substantial amount of money for retirement. This is because one cannot build wealth merely by earning an income. Instead, to amass a significant amount of money, you need to make money work for you through [active and passive investing.](https://buyproperly.ca/resource-center/posts/passive-vs-active-investing)  When you start investing early, you can enjoy the following benefits: * **Compounding –** With the help of compounding, you can make your money grow faster as you earn interest on your savings and the interest that you’ve earned. * **More savings –** By investing early, you can develop a habit of saving more and investing your savings. The more you invest, the more returns you’re able to get in the future. Moreover, by developing the habit of saving, you can also learn how to cut down on unnecessary expenses and use those funds for investing. * **Time value of money –** The time value of money increases over a period as investing early leads to compounding returns. At the time of retirement, these early investments can reap huge benefits. * **Understanding finances early –** By investing early, you enter the world of finance at an early age and have more time to learn and improve your investment skills and knowledge.  * **Regular investments and Diversification –** You don’t need to look for shortcuts to get rich quickly since you have time on your side. You can follow [tried and tested practices such as portfolio diversification](https://buyproperly.ca/resource-center/posts/why-portfolio-diversification-matters) and investing regularly to build your wealth over decades. * **More ability to take risks –** When you start early, you don’t have much to lose. Hence, you’re able to make more risky investments, and as the old saying goes, ‘more the risk, more is the reward.’ Thus, by taking more risks, you can also increase your chances of earning exponential returns. * **Supporting your retirement plans –** By saving for retirement from a young age and investing early, you also increase your chances of reaching financial stability when you’re young. Early investments will boost your retirement funds, and you’ll be able to lead a happier life post-retirement. ![](https://lh4.googleusercontent.com/1an0aBd1o1vECCNhaTa3exivysnDxE-FqYTfS9jZXmwDFcZTjTMhMqhVh6hAgOStmiqR58mFTP3xZPE_fupihI9ReMsK_ZnocbyyGeRupQmFhiIUbaHGj4_HSaLJtQ=s0) Conclusion ---------- While ‘how much money do I need to retire’ is a simple question, the answer is quite complicated. When it comes to determining how much money is needed for retirement, no one size fits all. As everyone has different needs and wishes, every retirement is not the same, and hence, it’s vital to plan accordingly.  Many millennials struggle to make sound financial decisions at an early age. If you’re looking to achieve your long-term financial goals to support your financial plans, feel free to contact us at info@buyproperly.com. At BuyProperly, we enable millennial investors to build their portfolios with the best real estate investment opportunities in a hassle-free and secure manner. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Grow Your Wealth While Managing The Risks With Diversification Author: BuyProperly Engineering Published: 2021-10-14 Category: Insights URL: https://buyproperly.ai/blog/grow-your-wealth-while-managing-the-risks-with-diversification ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/unnamed-3-1024x123-1715167318263-compressed.png) Introduction ------------ Every investment carries some amount of risk. Since markets can be volatile and unpredictable, diversifying your portfolio helps maximize returns over the long term as well as better protect yourself against unexpected market downturns. This article will talk about what diversification is, its importance, and how you can diversify your investment portfolio. Moreover, we will also shed some light on the benefits of illiquidity and [how real estate investments can help you enhance your returns.](https://buyproperly.ca/resource-center/posts/why-portfolio-diversification-matters) Let’s get started! Diversification: Why It’s Crucial for Your Portfolio? ----------------------------------------------------- Diversification is the most crucial step in risk management. It is the investment technique of holding unrelated investments across asset classes that react differently to social and economic events.  Diversification is a technique that is [crucial for investors to reach their long-term goals](https://www.forbes.com/advisor/investing/tips-for-long-term-investing/) as it enables them to hedge against unsystematic risk and build wealth over a period across different asset classes. Using diversification, an intelligent investor reduces the risk by planning carefully and allocating funds across various asset classes.  For instance, in a growing economy, stocks generally outperform bonds. However, when market conditions change, bonds hold their value, whereas stock prices tumble. Thus, if a smart investor diversifies their investment portfolio and holds both stocks and bonds, they can reduce their overall exposure to such change in market conditions and mitigate the risks of their portfolio taking a big hit. Investment Portfolio Diversification: How to Achieve it? -------------------------------------------------------- An investor can diversify their portfolio by using the asset allocation strategy, which involves selecting a combination of investments based on the investors’ risk profile, financial goals, and time horizon. Each asset class available to investors have different risk-reward ratios, and thus, each performs differently in varying market conditions. For instance, while stocks are more volatile and risky in comparison to bonds, they also offer the potential for higher returns. Some of the standard asset allocation classes include the following: * Equities (Stocks and ETFs) * Fixed Income Bonds * Real Estate * Gold * Cryptocurrency * Collectables * Cash and cash equivalents **Diversified Portfolio Example** ![](https://lh5.googleusercontent.com/1SSw5XQBda-Cqw5zNAZb4mODiS2MH8K5U8SI-F5ejNx_Sgaa8ko7CzTvvSuka5tpOZgttwUEfS9VP83n9RYeZxnEbz-zwalTNDFpVjFRS0lfQRAkmBQpB-4qQ4CVkRPkMsRKsBg=s0) **Source:** [Cary Stamp & Co.](https://carystamp.com/asset-allocation-not-stock-picking-may-have-more-impact-on-your-portfolios-success/) While diversification is essential, it’s equally important not to over diversify. The best way for an investor to do so is to keep their portfolio at a manageable level that varies for each investor based on their financial goals and risk profiles. For instance, avoiding diversification for some investors could mean only holding six assets in different industries that they are confident about. Whereas, for others, it could mean avoiding investment in certain asset classes that they don’t understand, just for the sake of diversification. The Benefits of Illiquidity --------------------------- Liquidity refers to the ease with which an asset can be converted to cash and cash equivalents without losing market value. In general, it is seen that liquid assets such as stocks are more volatile in nature. Thus, to [capture the benefits of illiquidity](https://www.yieldstreet.com/resources/article/liquidity-in-finance/), long-term investors may prefer allocating funds towards illiquid assets. Typically, illiquid assets have a low correlation to the broader stock market, and thus, they are less volatile in nature, and their value remains stable over a more extended period. As a result, such investments are considered low beta investments that are less risky but offer lower returns. As a result, such investments help minimize portfolio losses when the market sees a downturn. How to Enhance Portfolio Diversification Using Real Estate ---------------------------------------------------------- Real Estate Investment is the process of purchasing property to either rent it out or sell it to make a profit. As an asset class, real estate is mainly used for diversification purposes and has helped investors amass generational wealth. Diversifying your portfolio by investing in real estate offers the following benefits: * **Long-term stability –** Real estate market is seen as one of the most stable financial markets. Thus, real estate investment is considered to be a less volatile and stable long-term investment opportunity. * **Usability –** Real estate is a tangible asset that investors can use for renting out or for personal use. For example, real estate bought for diversification purposes can be rented out and used to generate additional income. * **Mitigating Risks –** Real estate is an illiquid asset and thus, is not highly correlated to the stock market. Hence, many investors use real estate to hedge their risks against more volatile assets in their portfolios. * **Tax Benefits –**  Governments in many countries offer tax benefits on real estate investment to promote the sale of properties in the country and boost the economy. Additionally, there are many different ways through which investors can invest in real estate. They are as follows: * **Real Estate Investment Trusts (REITs) –** [REITs enable investors to invest in real estate even with small amounts of money.](https://www.forbes.com/advisor/investing/what-is-reit/) Shares of REIT stocks can be bought and sold in the market just like any other publicly listed company. * **Crowdfunding Real Estate Platforms –** These online platforms let investors take a more hands-on approach and invest in specific real estate development projects. * **Investing in Rental Properties –** Purchasing rental properties enables investors to add an alternative source of cash flow and earn some additional monthly income. Important Questions to Ask About Your Portfolio Diversification --------------------------------------------------------------- To diversify your portfolio successfully, an investor first needs to understand the fundamentals of diversification and ask the right questions to evaluate how these fundamentals apply to their specific portfolio. Here are some critical questions about your portfolio diversification to evaluate your diversification strategy and make more informed choices. 1. **What is my risk tolerance?** – This changes according to investment objectives and time horizon. Each asset class has different risks. Hence, investors must choose an asset class that is suitable to their risk tolerance. 2. **What is my risk-adjusted rate of return? –** This question answers how well you are being compensated for the amount of risk you’re taking. 3. **How many asset classes should I invest in? –** While diversifying your portfolio, it’s important to look for a wide range of asset classes. Closing Thoughts ---------------- As an investor, to achieve your long-term financial goals, you need to balance your risk and reward. Diversification allows you to choose a mix of assets that reduce the risk of losses in the market. Thus, it’s essential to find the right balance between risk and return and select a mix of assets that can help you achieve your financial goals while limiting your exposure to unsystematic risks. ![](https://lh4.googleusercontent.com/fDbdMnvqXitJyK0pdriKV9rS-yPz5QbZuobt9r_kAjCIukdcrBteVcDEq5HRXpPd5AEWaJhkP3sJumv1asAyzDTyr6UJJOLh5Hd4-cafAIgkAYmk9hm7ve6qJ6F_4Q=s0) Here at BuyProperly, we enable investors to diversify their portfolios by providing them with best-in-class real estate investment opportunities. By investing fractionally in high-yield real estate an investor diversifies his portfolio and with BuyProperly you can diversify within the portfolio as it is easy to add shares of many properties. If this is of interest to you, feel free to contact us at info@buyproperly.com, and we will help you build your portfolio in a hassle-free, secure, and transparent manner. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investment and Wealth Basics: Real Estate edition Author: BuyProperly Engineering Published: 2021-09-07 Category: Insights URL: https://buyproperly.ai/blog/investment-and-wealth-basics-real-estate-edition Congratulations! If you’re reading this, chances are, you are currently saving enough money to start thinking about investments that work for you. Putting your money in the right place can help you get everything you’ve ever wanted: A beautiful house, early retirement, complete financial security for your family, and much more. You can either save your money or invest it in assets that you think will generate great returns. The latter, of course, is subject to several market risks but is saving as safe as it looks? Not quite. Dormant cash is prone to risks and it is nearly impossible for it to generate wealth. In the long run, the little interest that it could generate sitting in your bank account can cost you more money than it makes. Why invest at all? ------------------ If the only way you can expect to earn from your savings is by putting them in a bank account -then we are happy that you are reading this. Let’s say you put $10,000 in a bank account that offers an annual interest of 3%(if at all!). By the end of the first year, you can expect to have $10,300. However, as per the [current inflation rate (3.7%)](https://www.inflationtool.com/canadian-dollar), something priced at $10,000 right today would cost $10,370 in a year, this means that you essentially earned $300 on your savings but still lost on purchasing power. This simple comparison highlights an extremely important relationship between inflation rates and interest rates offered by banks. * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/1dsa-1715167364098-compressed.png) Source – Statista Inflation eating into important savings like pension/retirement funds, college funds, emergency healthcare funds, etc., is a common occurrence. Before you realize it, you end up with less buying power than what you started with, thereby putting your financial future in jeopardy. However, Good investments ensure financial security through wealth creation, which in turn gives you the freedom to live your life to the fullest. Investing in Canada  -------------------- Simply put, Canada’s proximity to the U.S and numerous free trade agreements give Canada substantial power in world trade. Some of the largest Fortune 500 companies based out of the U.S (and even Europe, in some cases) have been choosing Canadian cities as ground zero for establishing their R&D hubs. With industry and immigration both converging, it is no wonder that real estate has seen unprecedented growth over the past few years.  As for the Canadian economy, it is expected to fully recover from the Covid slump within the next few months. The Government’s decision to lower the threshold for [Foreign Direct Investments](https://investmentpolicy.unctad.org/investment-policy-monitor/measures/3629/canada-lowers-fdi-review-thresholds-for-2021) in 2021 has also massively helped this recovery. With a rock-solid economy and booming real estate market, Canada currently presents an incredible market opportunity for young investors.  Canada Investment Options  -------------------------- ##### **1\. Buying a house** In a booming economy, real estate is an incredibly fruitful asset in terms of long-term investments and rent is one of the oldest, most trusted methods of generating passive income. Even if you aren’t looking for a rental property for investment, you can always look for a second home that would appreciate in value over time.  Almost every Real Estate option turns out to be a great asset if the neighbourhood and setting are correct. **2\. REITs** REITs or Real Estate Investment Trusts are also a great option to explore as they allow you to invest in real estate without having to purchase different plots/houses. REITs are generally considered to be low-risk, high-yield investment options but these are long-term investment options. Any money you put in a REIT would have to be money you’re okay with not seeing for at least the next five years.  Another major drawback is that REITs give you no power to choose where you would like to invest – this lack of transparency is a major drawback.  The different types of REITs you can invest in are : * **Equity REITs**: These are funds that own and manage income-producing real estate. A part of the profits is naturally funneled back to the shareholders, who are free to cash out or reinvest it. Contrary to popular belief, equity REITs make most of their money through rent and not reselling acquired properties.  * **Mortgage REITs**: As the name suggests, mortgage REITs lend money to real estate stakeholders directly (through loans) or indirectly by investing in mortgage-backed securities. (If that term sounds familiar, it’s because you have most probably come across it before while reading about the USA’s 2008 housing crisis!). These REITs mostly earn through net interest margin on hundreds of loans, which means they’re directly dependent on interest rates.  * **Hybrid REITs:** These REITs (usually the largest) are simply funds that use both equity and mortgage-backed methods to make money. Hybrid REITs are considered to be the safest because of their diversified nature.  * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/fsadfas-1024x653-1715167367923-compressed.png) Source: [https://static.seekingalpha.com/uploads/2020/8/11/1723581-1597191897564591\_origin.png](https://static.seekingalpha.com/uploads/2020/8/11/1723581-1597191897564591_origin.png) Investing as a beginner  ------------------------ As a beginner, it can be challenging to navigate the complex world of real estate investment. The legal and technical jargon attached to most Real Estate investment options discourages investors from exploring them. Further, it takes up a sizable amount of your time and money to regularly manage these investments. But there‌ ‌is a better‌ ‌way‌ ‌to‌ ‌invest‌ ‌in‌ ‌property‌ ‌without‌ ‌taking‌ ‌out‌ ‌a‌ ‌huge‌ ‌mortgage‌ ‌fee‌, ‌paying‌ ‌a‌ ‌fee‌ ‌to‌ ‌the‌ ‌realtor or locking it away in a REIT.‌ ‌ With Fractional Real Estate Investing you are on your way to saving enough for buying your own home sooner than you thought and that too with no entry barrier and no hassle of maintenance or tenants – that is what BuyProperly does! Fractional Real Estate Investment --------------------------------- BuyProperly provides the benefits of real estate investments’ high returns for everyday investors, without any barriers, pre-approval or hassle. We turn high-yield real estate into easy-to-invest opportunities, giving you the chance to grow your wealth in a quick and easy manner. Unlike the traditional model of real estate investment, with BuyProperly you know that you are owning a slice of a high-yield property as our proprietary AI analyzes hundreds of factors and evaluates over 500 million data points to identify trends and uncover high-value deals to generate the highest returns for you. Also, we purchase and manage the real estate assets for you so you enjoy being a landlord without the usual headaches that tenants and maintenance bring. We also help eliminate the hassle that landlords often face in managing a property.  Contact us at [info@buyproperly.com](mailto:info@buyproperly.com) to know more about our best-in-class platform. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Invest in Real Estate Without Fear of Rejection Author: BuyProperly Engineering Published: 2021-08-12 Category: Insights Tags: Real estate, investing, finance, Fractionalrealestate, CanadaRealEstate, investors, active investing, Canadarealestatemarket, Fractionalownership, GTA real estate market, Toronto real estate URL: https://buyproperly.ai/blog/how-to-invest-in-real-estate-without-fear-of-rejection ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-photo-7578939-1024x577-1715167323888-compressed.jpeg) The Canadian real estate market is hot – and you want in. But you know there can be many hoops to jump through before you score the investment property of your dreams. And one of the last, most frustrating hoops is making an offer…only to have it rejected, Unfortunately, that happens a lot. **Reasons for rejection** ------------------------- Putting in an offer on a property that you worked hard to find and having it rejected can be tough to take. Perhaps there was a counteroffer, but a rejection by the seller may catch you by surprise. Why would your offer be rejected? Here are the most common reasons: ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-photo-7128989-1024x682-1715167325865-compressed.jpeg)   **1. Your offer was too low** Many sellers would counter a low-ball offer in hopes of driving the price higher. But some sellers may just throw out that low offer altogether, especially if they hear of other buyers willing to go higher. And if your offer was very low, and insulted the seller may be unwilling to entertain it at all.  **2\. Your finances are weak** These days, sellers want to make sure that prospective buyers are at least [pre-approved for a mortgage](https://loanscanada.ca/mortgage/pre-approved-vs-pre-qualified/) to finance the purchase. If you haven’t spoken with a mortgage specialist yet, there’s no way for the seller to verify whether or not they’re wasting their time with your offer. Instead, they’ll be much more willing to accept an offer from a buyer whose finances are already in order. **3\. Your deposit was too small** While your purchase price is a key component of your offer, the seller will also consider the size of your deposit. A large deposit shows the seller that you are financially strong: capable of supporting a home purchase. A small deposit looks weak and could scare off the seller. 4\. **Your closing dates don’t line up** Matching closing dates help smooth real estate transactions. For instance, sellers who have already bought a new property may want a short closing date so they’re not stuck with two mortgages. Or perhaps the seller has yet to find another home and doesn’t want to risk having anywhere to go. In this case, the seller may want a longer closing date. Either way, if your proposed closing date doesn’t align with the seller’s needs, your offer may be rejected. **5\. The seller maybe unwilling to compromise** If the home inspection reveals issues with the property, you may request to have the seller make repairs. But if the seller is unwilling to put in any more work on the home before selling and you can’t reach a compromise, your offer may be rejected. Aside from the outright rejection of your offer, there are other difficulties that you can encounter in a competitive market, such as bidding wars. But the biggest hurdle to investing in real estate is money. These days, real estate prices are through the roof, especially in certain cities. Many would-be investors simply don’t have the financial means to get started, especially if they are buying a property on their own.  ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-photo-7578875-1024x577-1715167328084-compressed.jpeg) Fortunately, there are other ways to get a foot in the door – even with minimal capital – including “fractional” investing.  ### **Fractional investing in real estate**  In fractional investing, several parties purchase the property: each has its own share and each assumes its share of the risk. For instance, if a property sells for $500,000 and you put in $10,000, you own 2% of that property.  Unlike full ownership, fractional ownership allows investors to diversify their portfolios, reducing risk while getting access to high-value assets. It also eliminates many of the hassles: searching for properties, putting in offers, managing tenants, and maintaining the property.  ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/15-1-1024x712-1715167331507-compressed.png) ### **Who offers fractional investment?** Fractional investing reduces the barriers to entry for investors just starting out in the real estate market. But where can you find these investment opportunities? BuyProperly is an online platform for fractional real estate ownership: it gives investors with limited capital – as little as $2,500 – the chance to buy into a property without the headaches that usually come with being a landlord. The expert team at BuyProperly thoroughly vets the high-value, high-growth, buy-to-let properties available for investment. And BuyProperly’s local property managers handle “landlording,” hassles: maintenance, improvements, tenant searches, rent collection….. Investors can earn monthly rental dividends while watching the property value grow over time. If or when the property is eventually sold, all the investors can capitalize on the increase in equity. ### **Benefits of fractional ownership**  There are plenty of reasons why investors — particularly beginners with minimal capital or experience — might want to go the fractional investment route: * **Minimum capital needed.** Traditional real estate deals require tens of thousands of dollars (or more); fractional investing requires as little as a couple of thousand dollars to get started.  * **Increased diversification**. Adding a real estate property to your investment portfolio is a great way to help you hedge against risk. * **High return potential**. Real estate is known to increase in value over time: this can help increase your returns, especially as renters help pay the mortgage.  * **Asset tangibility**. Unlike stocks, real estate is a real-world asset, which can offer both growth potential and intrinsic value. * **Tax breaks.** When the property is eventually sold, you’ll get taxed only on capital gains, rather than having your entire return taxed as income.  ### **How do you earn returns with fractional ownership?**  Like any other type of real estate investment, fractional ownership pays out in two ways: * **Through rental income.** Depending on how much you invest and your exact share in the property, you’ll collect rental income relative to your share.  * **Profit when the property is sold**. Over time, the property will likely increase in value, which helps add to your equity in it. You’ll be able to recover your initial investment, plus your share of any profits.  ### **Should you invest with BuyProperly?** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-photo-8293636-1024x682-1715167334735-compressed.jpeg) If you’re interested in investing in real estate but haven’t yet, because of done so because of all the hurdles, BuyProperly may offer a solution.  **In particular, BuyProperly may be an ideal investment platform for those who:** * **Want to invest a modest amount of money** * **Want to avoid managing the property and dealing with tenants** * **Want to diversify their investment portfolio** * **Want help choosing the right property to invest in** **Our final thoughts** ---------------------- There are plenty of benefits to investing in real estate: passive income, regular cash flow, tangible assets that grow in value, investment diversification, and tax advantages. But getting involved in real estate investment can be tough for many. BuyProperly makes getting your foot in the door is much easier. You can start investing with as little as $2,500 and see potential annual returns of 10–40%. And you can kiss that fear of rejection goodbye. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pre-construction Investment Basics with Hunter Milborne Author: BuyProperly Engineering Published: 2021-07-08 Category: Events URL: https://buyproperly.ai/blog/pre-construction-investment-basics-with-hunter-milborne [![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/webinar-new-design-10-1024x512-1715167373837-compressed.png)](https://www.eventbrite.ca/e/pre-construction-investment-basics-with-hunter-milborne-tickets-159365836507) **About** Hosted by BuyProperly CEO Khushboo Jha, and featuring guest panelist President/CEO of Milborne Group, Hunter Milborne, this webinar engaged in an open and constructive discussion around why invest in the pre-construction real estate market. * Why invest in real estate * What happens in pre-construction investing (the basics) **Guest Panelist: Hunter Milborne, President/CEO, Milborne Group** Hunter Milborne is the President/CEO of Milborne Group. Canadian Business Magazine recognizes Hunter Milborne as the “Dean of Condos”. The high measure of his success is evident in the large volume of repeat business secured. He has firmly established Milborne Group as the dominant force in Canadian condominium marketing. Holding a Bachelor of Commerce from the University of Toronto he is a sought-after speaker on the topic of Marketing and Sales. **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor’s degree in Architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Artificial Intelligence making Real Estate Investment smarter, simpler. Author: BuyProperly Engineering Published: 2021-05-03 Category: Insights Tags: realestateinvesting, Artificial intelligence, CanadaRealEstate, Toronto real estate, Canadahomes URL: https://buyproperly.ai/blog/artificial-intelligence-making-real-estate-investment-smarter-simpler When Lucy Ainsworth saw that the real estate around her Toronto neighbourhood was booming, she knew that it was the right time to invest. But unlike her parent’s generation, the Senior Tax Associate did not ask a trusted local realtor, she simply went online. This generational change in approach, to seeking investment-related solutions has placed investors at the core of unmeasurable information and data. Thankfully Artificial Intelligence is here to rescue investors from the chaos of detailed analysis on innumerable investment opportunities available online by carefully connecting them to the best deals. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/toronto-image-234-1715167339293-compressed.jpg) A booming real estate market and a thriving tech ecosystem have poised Canada to be a hub for real estate innovation where Artificial Intelligence led opportunities to guide investors as they build their portfolios.  A booming real estate market and a thriving tech ecosystem have poised Canada to be a hub for real estate innovation where Artificial Intelligence led opportunities to guide investors as they build their portfolios.  ​[Artificial Intelligence in Real Estate](https://buyproperly.ai/blog/how-ai-is-revolutionizing-the-real-estate-industry)  ----------------------------------------------------------------------------------------------------------------------------- Artificial Intelligence (AI), in simple words, is the ability of a machine to learn and solve problems. AI has simplified the investor’s search process by connecting them to the right opportunities and bringing transparent access to reliable information on market trends, historic prices that were historically only available to agents. Online real estate listings replaced newspaper advertisements long ago but the continual rise of AI is credited to its ability to process large data, predict trends, transparency, and most importantly ease of access to investors. ### **Process Data** Thanks to the world wide web, a few clicks can show thousands of properties,  attend or host virtual tours, review market trends and receive data but that doesn’t necessarily help in making the right decisions. Thankfully, the real estate industry has adapted to the digital era by using Artificial Intelligence to better match investors with opportunities. One might think that the old-fashioned realtors did the same, but platforms like [BuyProperly](https://buyproperly.ca/) have mastered machine learning and artificial intelligence tools to monitor and evaluate over two hundred thousand data points, that uncover high-value opportunities suited for each investor. ### **Predict Trends** It’s no surprise that real estate data represents a treasure trove of information for a keen investor. Local insights, key market trends, sale prices, demographics and other market data can all be used to browse through listings, but not predict the future of investments. AI has become a game-changer for real estate investing as its predictive real-estate analytics enables stakeholders to make better, more informed decisions when trying to assess property values and rental returns. Smarter AI models predict tenant churn, maintenance issues, building energy requirements, elevator usage in buildings as well as space utilization. This information gives a better idea of potential upcoming costs and issues. Ms. Ainsworth’s financial planning now includes the returns from a beautiful house in Hamilton. ‘I had been interested in owning investment property for a while, but the barriers to entry felt insurmountable. Enter BuyProperly, the company that makes it possible for “the little guy” to get started. It was so easy to research the properties available on the website, create an account, and buy into the real estate market, and at an entry price point that feels safe. No need to bet the farm on a single investment!’ she said.  Read more about the Hamilton Property [here](https://buyproperly.ca/single-property/view/5). ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/artificial-intelligence-canada-1715167341304-compressed.png) New tools can combine a company’s data with third-party sources to gain insights into new strategies for existing properties or portfolios or identify additional markets or locations for investment opportunities. New tools can combine a company’s data with third-party sources to gain insights into new strategies for existing properties or portfolios or identify additional markets or locations for investment opportunities. ### **Transparency** Traditionally, the real estate market has been dominated by brokers, and information about high-yield investments was made available to a select few.  Latest AI-powered platforms bridge the gap by aggregating once isolated data, constantly updating information to arm investors with all the information they need. This approach allows websites to better match users to their properties and investment units that are more likely to convert into sales. ### **Ease of access** Investors can now access information on potential rental earnings, net cash flow, expected monthly mortgage payments and decide on whether the return makes sense given the details of the property. Websites like [BuyProperly](https://buyproperly.ca/) provide free tools which can indicate the potential cash flow/ positive negative from investments in a given property based on past sales, potential rental value, and interest rates. AI models work with the assumption that house prices are a function of both the features of the house and the suitability of the neighbourhood and hence focused on intrinsic value (rather than the market sentiment). ### **Innovative solutions to Pandemic** The impact of AI across industries has been increasing over the past few years, however, Covid-19’s disruption was a crucial flip to the digitization of real estate companies and their use of digital data analytics. With restrictions on travel and physical tours, technology simplified all phases of the process from origination, analysis & due diligence, financing & closing, post-closing rental/ongoing maintenance, and finally to exit through the sale with the investor safe in his own home. PWC Canada’s 2021 report on the, ‘Emerging trends in Real Estates’ stated that as the business continues to emerge from pandemic restrictions, proptech will offer additional solutions for real estate needs. The report stated that ‘With digitization giving real estate companies access to more data than ever, they have a powerful new tool to help them make important business decisions…data analytics and predictive modeling can help with the determination of optimal asset allocation for mixed-use developments at a high level, as well as provide more detailed insights into the composition of unit mixes for a property.’ **Buy Property, Properly** -------------------------- Every real estate investment needs to consider a multitude of dynamic factors, but through the power of AI, it is possible to identify emerging trends and uncover opportunities that others don’t see. ‘Thousands of data points and factors are considered over the long term before we consider a real estate valuation using AI. We then physically inspect each nook and corner of the property. Finally, less than 1 percent of the properties get qualified for our marketplace,’ said Khushboo Jha, founder of Buy Properly Canada-based real estate investment firm. BuyProperly’s proprietary AI tracks the markets, monitoring hundreds of economic and regional factors before predicting the profitability. [BuyProperly](https://buyproperly.ca/), Canada based fractional investment company uses AI as its most reliable tool for initial screening and then audits each property. ‘I am often asked how am I confident about the growth of investments, truth is that no human can assess over 150 variables and 200,000 data points for each proposal, but AI can. We merge the predictive power of AI and the experience of our on-site team so that before any product is added to the marketplace, we are certain of its future,’ Jha added. [BuyProperly](https://buyproperly.ca/)’s online marketplace shows qualified properties with clear details of fees, charges, risk, and projected returns. Simply choose properties from the marketplace and start investing with as little as $2,500. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Millennials struggle to chase Real Estate dreams using traditional investment options. Author: BuyProperly Engineering Published: 2021-04-21 Category: Insights Tags: Fractionalrealestate, CanadaRealEstate, BuyProperly, Highyieldinvestment, investwithoutmortgage, livedebtfree, livemortgagefree, MillennialInvestment, Canadarealestatemarket, Fractionalownership, Canadahomes, Moneymatters, Moneytips, MortgageFree, Passiveincome, Passivemoney, ROI URL: https://buyproperly.ai/blog/millennials-struggle-to-chase-real-estate-dreams-using-traditional-investment-options Soaring house prices and rising personal debt are making it impossible for Canadian millennials, even those with high-paying jobs, to afford a home. A new poll commissioned by KPMG confirms the opinion of industry experts. ![](https://blog.buyproperly.ca/wp-content/uploads/2021/04/mwangi-gatheca-qlKaN7eqay8-unsplash-1536x1128-1.jpg) Statistics released by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in February 2021. Source: [https://creastats.crea.ca/en-CA/](https://creastats.crea.ca/en-CA/) Statistics released by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in February 2021. Source: [https://creastats.crea.ca/en-CA/](https://creastats.crea.ca/en-CA/) Owning a house has always been a major life milestone, or it used to be until millennials stopped chasing it. Often judged for living in their parent’s basement way past their welcome, Generation Y has had to delay investment in real estate as the traditional model of real estate investment is working against them.   **Rising Costs, Student Debt and Complicated Process** ------------------------------------------------------ Home prices continue to rise and so does the average age of millennials staying at home. In today’s market, young first-time homebuyers juggle student debt, rising home prices, and stringent mortgage requirements. Despite being the most educated generation, their student debt delays the time it takes to save the money for a down payment and with rising prices, the down payment required keeps increasing. While real estate is arguably the best source of passive income out there, small investors cannot enter the market because they don’t qualify for loans, don’t have stable jobs to make regular mortgage payments, or can’t arrange for the down payment. The complicated path to real estate investing is a barrier for Gen Y, who seek hassle-free and transparent processes. However, platforms like BuyProperly have curated a solution that eliminates the entry barriers to high-yield real estate investments. Learn more about owning a fractional real estate asset [here](http://www.buyproperly.ca/). Despite being a high yield investment opportunity, the real estate market in Canada is perceived as a pipeline dream for most millennials due to high costs and student debts. According to a recent KPMG Study in Canada, almost three-quarters (72 percent) of millennials say that their goal is to own a home. The KPMG Millennials and Retirement poll surveyed 2,500 Canadians, including 1,000 millennials between the ages of 23 and 38 who now represent the largest population generation in the country. * Almost half (46 percent) of millennial homeowners, received a financial boost from their parents to buy a home. * Two in five (38 percent) believe their house won’t be worth as much in the future. The data showed that millennials are earning more than earlier generations due to higher education levels. However, they are not necessarily better off. Interestingly 46% of millennial homeowners could only enter the housing market after they received a financial boost from parents.  Purchasing a home has been the most trusted way to build generational wealth, however, it is trickier today than ever. “It seems pretty clear that millennials are in a unique situation in terms of their ability to purchase a home – which has historically been a foundation for retirement stability – and most Canadians agree that the government has a role to play in making it a more achievable dream for many of them,” says Martin Joyce, Partner, National Leader, Human & Social Services, KPMG.  You can find the report [here](https://home.kpmg/ca/en/home/media/press-releases/2019/12/owning-a-home-is-a-pipedream-for-many-millennials.html). ![](https://blog.buyproperly.ca/wp-content/uploads/2021/04/aa_0002-1024x683.jpg) A recent property curated by BuyProperly, now fully sold out and fractionally owned. For many millennials, the idea of taking a huge mortgage right after paying off student debt feels like a debt-deja vu. Despite financial stability, Generation Y prefers to pay rent, however, a lifetime of renting means that they miss out on the opportunity to invest in the real estate market, which has been the most stable investment pool and retirement fund. Many youngsters, save for a down payment and qualify for a loan, but lack knowledge, detest the paperwork and are wary of hidden costs and maintenance issues that might come with an impatient purchase. **Fractional Real Estate Investments** -------------------------------------- While the policies regulating the housing market and student debt is being debated, new solutions have emerged to tap into the booming real estate market. Canada has seen a boom in fractional real estate ownership, where an individual can buy or sell a part of a high-yield property online. There are many types of real estate investments, as explained [here](https://buyproperly.ai/blog/the-5-types-of-real-estate-investments). The properties are selected after stringent due diligence and are selected to ensure high-yield returns so that a small sum can also become a long-term passive income source. ### About BuyProperly Founder of [BuyProperly](https://www.buyproperly.ca/), Khushboo Jha was motivated to begin her own firm after she saw the obstacles in the real estate investment industry for small investors, ‘‘The recent reports are an accurate description of the situation on the ground, every day we meet with clients who have not had access to the market simply because it is designed to welcome High Net Worth Individuals only.’’ She added that ‘‘Another issue which concerns  first-time investors is the fear of putting all their eggs in one basket, that’s why we welcome small investments and help clients diversify their portfolio,’’ [BuyProperly](https://buyproperly.ca/) is a Canada-based online exchange, which aims to democratize real estate investing by making it accessible to everyone through fractional ownership.  #BuyProperly #CanadaRealEstate #MillennialInvestment #Fractionalownership #Passiveincome  #Fractionalrealestate #MortgageFree #Moneytips #Canadahomes #Canadarealestatemarket #Highyieldinvestment #ROI #Moneymatters #ownahome #Passivemoney  #mortgagefree #livedebtfree #livemortgagefree #investwithoutmortgage #investsafe #investinhomes --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar – Buy or Rent? Wait or Sell? What a Vaccine Means for the 2021 Housing Market? Author: BuyProperly Engineering Published: 2021-02-02 Category: Insights URL: https://buyproperly.ai/blog/webinar-buy-or-rent-wait-or-sell-what-a-vaccine-means-for-the-2021-housing-market ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/event-banners-8-768x419-1-1715167615989-compressed.png) Webinar Recording brought to you by BuyProperly Limited. Should you buy now, or rather wait it out and keep renting? Condo or Detached House? Downtown or suburb? These are all questions our industry experts have answered in this webinar! There is no question that since it’s global spread, COVID-19 has upended the economy and shifted the growth trajectory of almost everything. With the dispersion of the first few rounds of vaccinations happening, one question on all our minds is how dramatic the impact of this pandemic will be on the long-term investment interests of Canadians. BuyProperly CEO Khushboo Jha, alongside featured guest panelists Investment Analyst Nigel D’Souza, Brokerage Owner Raja Mahendran, & Insightt.ca Founder Brian Bell, will be discussing what vaccine accessibility means for the state of buyer and seller attitudes within the Canadian housing market, real estate investing trends, and overall market confidence moving into the New Year. **Key Takeaways** * Condo prices in Toronto have dropped substantially * Suburbs/detached home prices are skyrocketing * Government stimulus cheques have allowed for the economy to function more smoothly, and minimize economic decline * Credit card debt is down * A decrease in consumption spending (i.e, travel, entertainment, eating, etc.) during COVID-19 means more households have been able to allocate more money towards mortgage & debt payments – avg. household has saved $9000 & $148 billion in savings nationally * Canadians may be underestimating expenses increasing post-pandemic, and their ability to maintain current mortgage/debt payments – this may cause a market decline **Host: Khushboo, BuyProperly CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor degree in Architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. **Panelist: Nigel D’Souza, CFA, Investment Analyst @Veritas Investment Research** Nigel D’Souza is an Investment Analyst for Veritas Investment Research. Nigel’s coverage includes banks and life insurers. In 2019, Nigel was recognized by Refinitiv StarMine as the top stock picker among analysts covering Canadian banks and was ranked as the sixth overall stock picker among all analysts. Nigel is a CFA Charterholder and graduated with high distinction from the University of Toronto. **Panelist: Raja Mahendran, Owner/ Broker @ HomeLife/GTA Realty Inc.** Raja Mahendran is the owner of HomeLife/GTA Realty Inc. He is an avid real estate investor and developer with extensive experience. An engineer by profession, he started his real estate career over 25 years and for the last 17 years he and his partner have been running HomeLife GTA Real Estate brokerage and have about 160 sales reps working with his company. Homelife specializes in resale and pre construction. HomeLife GTA has been associates with well-known builders in Toronto for selling their condominiums and low rises. Raja Mahendran and his partner Eddie Woo, built the first south Asian Indoor mall in Toronto in 2007. **Panelist: Brian Bell, Insightt.ca Founder** Brian is the Founder of Insightt.ca. A senior executive with cross functional experience in financial services, insurance and real estate. He is a proactive strategic thinker with a proven track record of helping organizations achieve growth. Brian is a licensed real estate broker and graduated with a Masters from Queen’s University. He has also completed his MBA in Finance and Public Relations from Wilfrid Laurier University. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Discovering Promising Ontario Neighbourhoods: 3 Key Identifiers for Success Author: BuyProperly Engineering Published: 2021-01-09 Category: Insights Tags: OntarioNeighbourhoods, InvestmentOpportunities, PropertyEvaluation , NeighbourhoodStatistics , BuyProperlyLimited , RealEstateMarketAnalysis, ConstructionProjects , SalesData , realestateinvesting URL: https://buyproperly.ai/blog/discover-upcoming-canadian-neighbourhoods * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/paul-hanaoka-5za2ss955yg-unsplash-5-1024x624-1-1715167387284-compressed.jpg) Looking to invest in real estate? If so, how do you know which suburb is the right one to invest in?  As an investor, you’ll want to be in the know of neighbourhoods that have a high likelihood of appreciating. We’ve broken down the three ways to know if an Ontario suburb is poised to beat the rest. Throughout the duration of this article, we will use these factors to evaluate four different neighbourhoods. Neighbourhood Statistics ------------------------ * ![houses in Canada](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-jill-evans-2035406-1024x687-1715167389745-compressed.jpg) There are many different statistics you can use to determine if a neighbourhood is up and coming. The different statistics can be considered in the following categories: **Municipality demographics** Each city releases data such as crime and unemployment rates as well as the average household income. In particular, a declining crime rate is a good indication of an upcoming suburb. Typically unemployment rates and average household income can be found on a municipality website. Additionally, unemployment rates are included in some city real estate rankings like Moneysense’s “W[here to buy real estate” ranking](https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-2020-top-35-cities/). Crime rates can also be found on a municipality or regional police website. **Ratings and rankings** It’s also a good idea to take a look at rankings from real estate and financial leaders such as ReMax and Macleans. These websites not only look at statistical data, but they also consider factors like proximity to amenities and services as well as walkability. For example, ReMax releases a [Canada liveability report](https://blog.remax.ca/canada-liveability-report/) each year that includes factors such as walkability, driveability, and access to green space. A suburb that is walkable and close to amenities and services like work, healthcare, and grocery stores are good signs that it’s up and coming. Canada’s premier current affairs magazine, Maclean’s, also provides insight into [Canada’s Best Communities every year](https://www.macleans.ca/best-communities-canada-2019-full-ranking-tool/). In addition to an overall ranking, Maclean’s also provides rankings based on families, retirement, weather, and affordability. If a community is rising through the ranks on Maclean’s year after year, that’s definitely a community worth considering.  Construction Projects and New buildings --------------------------------------- ![Construction of high rise buildings](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-sevenstorm-juhaszimrus-439416-1024x768-1715167391776-compressed.jpg) Although it can be a pain for current residents, construction and major developments means a thriving community. Revitalization and upgrading projects such as replacing street lights as well as fixing street potholes and sidewalk cracks are healthy signs of growth. To see what construction projects are currently happening, municipalities typically have a building and construction page on their website where you can see what projects are going on. In addition to neighbourhood projects, major developments like a building restoration, high rise condominiums, as well as, new office or retail space is a sign it’s on the rise. One way to know about new construction projects happening in a given area, is through the release of municipal building permits. New buildings and businesses are typically an indication of economic activity, as well as,  a means to attract more people into a neighborhood. Sales Data ---------- ![House for sale](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-pixabay-164522-1024x733-1715167393890-compressed.jpg) Real Estate sales information can be used to measure a neighbourhood’s growth. Useful data points to look at include the average days listing spend on the market, average or median sales price, and total sales. If there’s a decrease in the average days spent in the market, and an increase in the average sales price and total sales, that’s an indication of a growing market. With these data points, you’ll also want to look at the trends year after year. If the average days listing has trended downward over the years and the average or median sales price has been increasing over the years, that’s a sign of an upcoming hot market. Real estate sites like Zolo provide market insight into Canadian cities like Hamilton.  While looking at sales data is great, also knowing if a city is a buyer’s or seller’s market can gage whether or not a neighborhood has a high likelihood of appreciation. In a buyers market, there’s more supply and less demand meaning the _buyer_ has the power to negotiate better deals. In a seller’s market, there’s more demand and less supply meaning the _seller_ has the power to negotiate deals. The sales-to-listing ratio in a seller’s market is generally at 60% or more, which translates to six or more sales for every ten new listings. However, in a balanced market, the ratio is between 40% and 60%, and in a buyer’s market, you’re looking at fewer than four sales for every ten new listings. When researching upcoming neighbourhoods, you’ll want to know if it has a buyers market because you’ll buy real estate at a low price and earn the most amount of gains. **4 Upcoming neighbourhoods in Ontario** ======================================== With the considerations mentioned above, here are four Ontario neighbourhoods we believe are on the rise: ### Beasly, Hamilton, Ontario ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/operator-hamilton-international-village-3-1440x893-1-1024x635-1715167395805-compressed.jpg) **Neighbourhood statistics**  Before the pandemic, Hamilton boasted the lowest unemployment rate of 3.7% out of all of the cities we’re analyzing in 2019. This trendy downtown Hamilton neighbourhood ranks number one as the most liveable neighbourhood in Hamilton in [ReMax’s 2019 liveability report](https://blog.remax.ca/canada-liveability-report/). The neighbourhood has a lot of upcoming shops and restaurants and has a [walkability score of 80](https://www.walkscore.com/score/loc/lat=43.26158115411505/lng=-79.86056327819824). **Construction projects and new buildings** There are also currently [6 city revitalization projects](http://construction.hamilton.ca/) underway in Beasly. There have also been [6 new high rise developments](https://www.buzzbuzzhome.com/us/place/beasley-hamilton-hamilton-county-on) that have been recently completed. **Sales data** The real estate market in Beasly is a seller’s market. It’s hot with a [34% year over year increase](https://www.zolo.ca/hamilton-real-estate/beasley/trends) in housing prices and has an average of [22 days](https://www.zolo.ca/hamilton-real-estate/beasley/trends) that the average house is on the market.  ### Centretown, Ottawa, Ontario ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/p918923964-5-1715167398150-compressed.jpg) **Neighbourhood statistics** Before the pandemic, Ottawa boasted a low [employment rate of 5.1%](https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-2020-top-35-cities/) in 2019. Located right next to the University of Ottawa and only a 10 minute walk to Parliament Hill, it’s no surprise that Centretown is one of the top liveable neighbourhoods in Ottawa according to [ReMax’s 2019 liveability report](https://blog.remax.ca/canada-liveability-report/).  **Construction projects and new buildings** Over the past year, new high rise condo buildings and restaurants have come up. In fact, the City of Ottawa currently has a [city wide official plan](https://ottawa.ca/en/planning-development-and-construction/whats-happening-your-neighbourhood/projects-overview-ward) to become a more compact and affordable city. Included in this plan are new high rise urban zoning provisions and various area traffic management measures in Centretown. **Sales data** The real estate market in Centretown is a buyers market. It’s booming with a [25.4% year over year increase](https://www.agentinottawa.com/stats/) from October 2019 to October 2020 and an average of 14 days on the market. ### Kitchener Centre, Kitchener-Waterloo, Ontario ![Kitchener Centre](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/instagram-2017-winter-lights-downtown-kitchener-night-800x533-1-1715167400249-compressed.jpg) **Neighbourhood statistics** Before the pandemic, Kitchener also had a low unemployment rate in 2019 at [5.7%](https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-2020-top-35-cities/). With a school of pharmacy and growing number of tech offices popping up in the area, Kitchener Centre ranks number one as the most liveable neighbourhood in Kitchener according to [ReMax](https://blog.remax.ca/canada-liveability-report/). The neighbourhood has a lot of revamped buildings and has a [walkability score of 89](https://www.walkscore.com/score/loc/lat=43.45253239034371/lng=-80.49354182006712).  **Construction projects and new buildings** The downtown core has seen a revamp in [old downtown buildings](https://www.cbc.ca/news/canada/kitchener-waterloo/retail-revitalization-in-downtown-kitchener-give-it-another-2-years-city-says-1.5413480) which are turning into retail spaces as well as [parking lots being turned into condos](https://kitchener.ctvnews.ca/downtown-kitchener-parking-lot-to-close-in-preparation-for-condo-development-1.4463633). In addition to the number of condo buildings going up,there are currently [6 city construction projects](https://www.regionofwaterloo.ca/en/living-here/construction-and-road-closures.aspx). **Sales data** The real estate market in Centretown is a buyer’s market. Kitchener itself has seen a [49.3% year over year increase](https://www.zolo.ca/kitchener-real-estate/trends) from October 2019 to October 2020 in housing prices and has an average of 12 days on the market. ### Corktown, Toronto, Ontario ![Corktown Toronto](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/17-07-30-0212xgaplus-1024x683-1715167403337-compressed.jpg) **Neighbourhood statistics** Although Toronto has a higher [unemployment rate of 6.3%](https://www.moneysense.ca/spend/real-estate/where-to-buy-real-estate-in-2020-top-35-cities/) in 2019, it doesn’t mean that Corktown isn’t an up and coming neighbourhood. This suburb has been ranked one of [ReMax’s top 10 liveable neighbourhoods in Toronto in 2019](https://blog.remax.ca/canada-liveability-report/) and is one of Urban Toronto’s [top growth neighbourhoods to watch for in 2020](https://urbantoronto.ca/news/2020/08/growth-watch-2020-presented-neezo-studios-corktown-regent-park-cabbagetown-now).  **Construction projects and new buildings** The surge in development of this neighbourhood can be attributed to the Pan Am games, where Corktown Common was used as the Athlete’s Village. Since then, the neighbourhood has been growing. A number of new high rises have been and [are still being built](https://urbantoronto.ca/news/2020/04/construction-rises-above-grade-home-power-and-adelaide) despite the pandemic. The latest is a new 21-storey designed tower being built called [home:Power and Adelaide](https://urbantoronto.ca/news/2020/04/construction-rises-above-grade-home-power-and-adelaide). Lastly, there have been talks about [Corktown station](https://urbantoronto.ca/news/2020/09/metrolinx-fills-more-details-downtown-section-ontario-line) being built when the GO train Ontario line is built. **Sales data** The Corktown real estate market is a seller’s. It also has a hot real estate market with a house being [listed on the market for an average of 9 days](https://www.getwhatyouwant.ca/toronto-neighbourhood/central-toronto/corktown) and a [15.6% year over year increase](https://pierrecarapetian.com/is-corktown-torontos-best-kept-secret/) from March 2019 to 2020 in condo prices.  **What Does This Mean For You?** Whether you are interested in personal home buying, or investment real estate, these tools will allow you to effectively evaluate the value and potential of any given neighborhood you may be interested in. With these steps, you’ll be able to discover upcoming neighbourhoods and get high appreciation on your investment.  If you’re someone who is interested in auditing a specific neighborhood, using the methods mentioned in this article is one way to do that. However, if you are looking for a simpler and even more reliable option, investing through BuyProperly could be a great option for you.   BuyProperly works by allowing investors — both novice and experienced — to get their feet wet within the real estate industry through fractional investment. For as low as $2500, you can own a piece of investment property, without the burdens of putting together a hefty down-payment, finding and managing tenants, or dealing with property maintenance issues.  At BuyProperly, we pride ourselves on being able to assure all investors that each and every property we acquire has been evaluated from top to bottom, starting from the methods highlighted in this piece. Our goal is to make it as easy and risk-free for the investor as possible. So, if you happen to be interested in real estate investing, but the property evaluation process worries you, you can rest assured that by investing with BuyProperly, all the research and evaluative work has already been done. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar – Investing 101: Navigating the Space of New Wealth Creation Author: BuyProperly Engineering Published: 2020-12-12 Category: Events Tags: InvestmentAnalyst , BuyProperlyLimited , investments, finance, webinar URL: https://buyproperly.ai/blog/webinar-investing-101-navigating-the-space-of-new-wealth-creation Webinar Recording brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/event-banners-3-1715176247127-compressed.png) Hosted by BuyProperly CEO Khushboo Jha, and featuring guest panelist and Professor of Finance at The State University of New York, Dr. Chinmay Jain, this webinar engaged in an open and constructive discussion around investing accessibility. * Targeted to younger and/or new investors. * Offers valuable, yet practical, learnings on how investors of all backgrounds can best discover and navigate the many options available to them. * Specific emphasis on the value of portfolio diversification, and real estate investment in particular **Key Takeaways** ----------------- * For novice investors looking to mitigate risk, it is best to start with a broad-market based index, so you can invest in SPY, QQQ * Portfolio diversification allows you to achieve a higher return rate for a given level of risk. * Individual real estate investors (either direct property investment owners, or investors through platforms like BuyProperly) tend to have higher rates of returns than those whom invest in REITS. ### **Guest Panelist: Chinmay Jain, PHD** Dr. Chinmay Jain is an Assistant Professor of Finance at the State University of New York. Dr. Jain completed his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. ### **Host: Khushboo Jha, CEO** Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor’s degree in architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank, and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Are Canadians Moving to Secondary Cities? Should Toronto be worried? Author: BuyProperly Engineering Published: 2020-11-12 Category: Insights Tags: Real estate, Cities, secondary cities URL: https://buyproperly.ai/blog/are-canadians-moving-to-small-cities * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/warren-wong-syhsbardwbq-unsplash-1-2-scaled-1715167408251-compressed.jpg) There’s a reason why people move to cities. Cities provide job prospects, wage gains, and innovation. [More than 80%](https://www.statista.com/statistics/271208/urbanization-in-canada/#:~:text=In%202018%2C%2081.41%20percent%20of,in%20Canada%20lived%20in%20cities.&text=Canada%20is%20one%20of%20the,land%20area%2C%20second%20behind%20Russia) of Canadians [live in cities](https://www.statista.com/statistics/271208/urbanization-in-canada/#:~:text=In%202018%2C%2081.41%20percent%20of,in%20Canada%20lived%20in%20cities.&text=Canada%20is%20one%20of%20the,land%20area%2C%20second%20behind%20Russia). And [more than one-third](https://www150.statcan.gc.ca/n1/daily-quotidien/190328/dq190328b-eng.htm) live in the Toronto, Montreal, and Vancouver census metropolitan areas. Covid has accelerated the trend of people moving out of cities. Is it here to stay?  **Secondary Cities Pre-Pandemic** --------------------------------- Even before the pandemic, urbanites were slowly gravitating away from city hubs. Millennials were getting priced out of traditional powerhouse markets like Toronto, so they looked to more affordable options.  They were looking at places like Hamilton and Niagara. Both cities are commutable to Toronto’s downtown core, making them an attractive option for Torontonians. Hamilton experienced almost a [9% year over yea](https://rentals.ca/blog/rentals-ca-july-2019-rent-report)[r](http://rentals.ca/blog/rentals-ca-july-2019-rent-report\(opens in a new tab\)) price increase in a one-bedroom apartment in July 2019 whereas Niagara experienced a [15% year over year increase](https://www.niagararealtor.ca/news/market-report-october-2019-niagara-association-realtors%C2%AE) in residential home sales activity in October 2019. While there was growth in Hamilton and Niagara before covid, will the pandemic accelerate this trend?  ![aerial view of Ottawa](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-pixabay-208749-1-1024x685-1715167410514-compressed.jpg) **Smaller cities and the pandemic** ----------------------------------- According to a survey conducted by Leger on behalf of RE/MAX Canada in 2020, [32% of Canadians no longer want to live in large urban centres](https://blog.remax.ca/canadian-housing-market-outlook/). With remote work becoming the norm, Gen Y’s (29-39 year olds) are beginning to prioritize space over the city lifestyle. And young professionals are heading back to the suburbs with mom and dad, where they can save money. This departure of both young and experienced professionals is reflected in listing viewership and rental prices. There was a 9.5% decrease in the average rental price for a one-bedroom apartment in Toronto from August 2019 to August 2020. Other large cities have seen similar declines, with the only exception being Montreal. This is because the city is having an influx of new condo listings in their prime downtown location and fewer listings in less expensive neighbourhoods.  While Toronto saw a decrease in rental prices, where does this leave places like Hamilton and Niagara? In Hamilton, rents have increased by 19.5% from August 2019 to August 2020 and all condo sales (one, two, and three-bedroom) increased by 10% from September 2019 to September 2020. The Niagara region saw one-bedroom rental rates increase by [14% from June 2019 to June 2020](https://www.stcatharinesstandard.ca/news/niagara-region/2020/08/04/niagara-rental-rates-likely-to-keep-rising-despite-downturn-closer-to-toronto.html) and house sales increase by [38% from July 2019 to July 2020](https://www.stcatharinesstandard.ca/news/niagara-region/2020/08/06/niagaras-real-estate-market-jumps-into-high-gear-in-july.html). ![Year over year change in rental price for one-bedroom apartments (Aug 2019-Aug 2020)](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/screen-shot-2020-11-12-at-7-1715167413666-compressed.png "Chart") Average One-BedRoom Apartment Rental Price in Canadian Cities Year-Over-Year (2019-2020)\* \*data obtained from [rentals.ca August 2020 National Rental Report](https://rentals.ca/blog/rentals-ca-august-2019-national-rent-report) **Should Toronto be worried?** ------------------------------ While Hamilton and Niagara have a bright future ahead of them, is there going to be a decline in Toronto? We believe the answer is no.  During the 2008 housing crash, [it took three months for Toronto to reverse from a decline in housing prices](https://torontostoreys.com/toronto-real-estate-correction-not-crash/). At the beginning of 2009, the market saw a high volume of sales. Over time, the market did correct itself. Similar to the 2008 crash, we believe the market will eventually correct itself from the covid decline.  In fact, people are still moving to Toronto. Thanks to the lure of potentially high wages for highly skilled workers, recent post-secondary graduates see the city as a great place to move to. For every millennial who leaves Toronto, [the city gains seven new residents](https://www.cbc.ca/news/business/think-millennials-are-leaving-canada-s-big-cities-think-again-rbc-report-says-1.5111071). Not only are educated millennials making the move, but Toronto is also Canada’s immigration hub. In 2019, [the city welcomed more than 100,000 immigrants](https://www.cicnews.com/2020/02/which-cities-in-canada-attract-the-most-immigrants-0213741.html) – making it the Canadian city that welcomed the most immigrants. While the pandemic recently slowed the influx of immigrants, Toronto is still expected to see growth in immigration post-pandemic. Sure, it may seem like Toronto is losing appeal to long-term residents, but recent grads and immigrants will keep the city alive and well.  ![Toronto skyline at night](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-snapwire-6998-1024x682-1715167416229-compressed.jpg) **The Bottom Line** ------------------- The question of how Toronto will grow alongside secondary cities, only time will tell. But for those folks who can think long-term and look beyond fear, there will be buying opportunities, both in major centers and secondary cities. That’s why we chose to invest in Hamilton – we recently acquired a newly renovated detached home in Hamilton for below asking. If you’d like to invest in our Hamilton property for as little as $2,500, [learn how on our website](https://buyproperly.ca/single-property/view/5). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Portfolio Diversification Matters and the Role Real Estate Plays Author: BuyProperly Engineering Published: 2020-11-06 Category: Insights Tags: Real estate URL: https://buyproperly.ai/blog/why-portfolio-diversification-matters ![Why portfolio diversification matters and the role real estate plays](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wordpress-images-3-1024x576-1715167422761-compressed.png) Have you ever asked yourself- “Why does an investor need to diversify her portfolio?”. You may know the answer to the question if you were invested in internet stocks in 1999, or in real estate and bank stocks in 2007, or in travel and entertainment industry stocks at the beginning of this year. When the pandemic hit the economy earlier this year, it caused a market-wide decline in stock prices, but industries such as airlines (Delta, United, American), cruise ship (Carnival, Royal Caribbean), hotel (Hyatt, Hilton), and entertainment (Disney, Las Vegas Sands) were hit much harder. Being heavily invested in an asset or sector increases the risk of an investor’s portfolio without increasing the expected return. When a retail investor thinks of optimizing her portfolio, they need to consider two aspects: 1) Diversification of portfolio among different asset classes such as stocks, bonds, and real estate 2) Diversification of portfolio invested in a particular asset class. This article will briefly cover both aspects. Following that, this article will also highlight the importance of real estate in an investor’s portfolio and how much of an investor’s portfolio should be invested in real estate. So why do we need to diversify our portfolio among different asset classes? Because as an investor we aim to earn the highest risk premium per unit of risk we take (defined as Sharpe ratio). Risk premium is the excess return over risk-free rate that an asset provides and risk is defined as the standard deviation of expected return. We expect the risk premium to follow this order: **Risk premium** _treasury bonds_ < **Risk premium** _corporate bonds_, and **Risk premium** _stocks_ Based on this order, an investor with high risk appetite will prefer to put higher proportion of her money in stocks compared to an investor with a low risk-appetite. Portfolio diversification helps in increasing Sharpe ratio, no matter what the risk-appetite of an investor is. Returns from different asset classes are not perfectly correlated, and as long as the correlation between returns of two asset classes is less than 1, investor benefit from diversifying their portfolio among assets. As depicted in Figure 1, adding alternative investments to a portfolio of bonds and stocks increases the expected return for any given level of volatility (risk). So, an investor benefits from diversifying their portfolio among different asset classes such as stocks, bonds, and real estate. ![Figure 1: Alternative may improve the efficient frontier](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture2-1715167425970-compressed.png) **Figure 1:** Alternative may improve the efficient frontier When investing in a particular asset class, one needs to again consider diversification within the asset class. Any asset has two components of risk: Systematic risk and idiosyncratic risk. Systematic risk or market risk is defined as the risk due to events that impact broad market9 returns and investors cannot diversify away systematic risk. Idiosyncratic risk or unsystematic risk results from firm-specific events that impact a small set of firms. For example, firms in travel and entertainment industry were negatively affected by the pandemic. On the other hand, firms in technology and ecommerce sector such as Amazon and Zoom video communications benefited from pandemic. Having a mix of both types of firms would have resulted in diversifying away the idiosyncratic risk associated with individual firms/sectors. This would have also resulted in a higher Sharpe ratio for the investor’s portfolio. **Why real estate?** -------------------- When we talk to a retail investor about investing, the most common answer happens to be investment in stocks. Investors tend to not know about other important asset classes such as bonds and real estate. Many investors are able to get exposure to bond markets through their retirement account. Unless an individual owns the house or condo they live in, being exposed to real estate market is not very likely. All homes in the US alone were worth $31.8 trillion dollar (Fortune (2017), in comparison, the value of all US stocks in 2017 was $27.4 trillion according to SIFMA Fact book. This clearly highlights the size of this asset class and the need for investors to invest some amount of their portfolio in real estate. David Swensen who manages Yale Endowment portfolio, suggests to allocate 20% of an individual’s portfolio in real estate (Refer to Figure 2). * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture1-1715167428397-compressed.png) **How to invest in real estate** -------------------------------- It is understandable that it is not feasible for most retail investors to buy a real estate property as an investment. This is especially true when they are investing only 20% of their total portfolio in real estate. Even with mortgage, investors still need to put down 10-20% of the price as down payment. Fortunately, there are many ways to invest in real estate that do not require you to buy a physical property. One can invest in real estate stocks, most of which operate as Real Estate Investment Trusts (REITs). REIT is a company that owns and/or manages a collection or real estate properties. Unlike stocks, REITs have an obligation to distribute 90 percent of their income in the form of dividends. Although there are some Residential REITs that invest in multi-family rental apartment buildings, REITs mostly focus on commercial properties. Residential real estate tends to be less sensitive to economy as people always have a need for a place to live. Recently, some start-ups (Fundrise in US and BuyProperly in Canada) have made it possible to for investors to buy fractional shares of real estate properties. One advantage of buying through these new fractional investing start-ups is that some of them, such as BuyProperly, allow you to buy residential properties. A study by D’Lima and Schultz (2020) finds that individual investors outperform major real estate indices. Real estate investors earn higher returns if they live close to the property they buy for investment, buy without a mortgage, and have experience investing in real estate. So, it might be beneficial for investors to pick a property of their choice and buy a slice of it using fractional real-estate investment platforms.             In summary, there is no guarantee which investment asset will give you higher returns: Real estate, stocks, or some other asset. Adding real estate in your portfolio is key to the principle of portfolio diversification. All rational investors want to maximize their returns for a given level of risk, and adding real estate to your portfolio will help you in achieving that goal. **References:** D’Lima W. and P. Schultz, 2020, Residential Real Estate Investments and Investor Characteristics, Forthcoming in _Journal of Real Estate Finance and Economics_. Fortune (2017). Article available at http://fortune.com/2017/12/28/house-value-gain-zillow/ Guest post by Chinmay Jain --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Empower Her Wealth: Unveiling the Path to Women's Investment Success Author: BuyProperly Engineering Published: 2020-11-02 Category: Events Tags: invest like a woman, webinar URL: https://buyproperly.ai/blog/webinar-invest-like-a-woman In this webinar, Invest Like a Woman, finance experts touched on: ****Key Topics:**** ------------------- * Why women do not traditionally invest as much as men (hint: it’s not their fault) * The benefits of investing for women * Common financial mistakes women make and how to avoid them. * Ways for women to start investing. * Ways women can invest in line with their values and goals. Panelists --------- ### **[Fernanda Corrales](https://www.linkedin.com/in/fernandacorrales/)** Head of Institutional Clients @MBI Inversiones Fernanda Corrales is the Head of Institutional Clients from MBI Inversiones. She has 10+ years of experience in private equity, investment management, and consulting, and will be offering her much valued knowledge from within the investment sphere to engage us in this month’s webinar conversation discussing what today’s landscape looks like for female professionals in the investment space. She has worked within reputable organizations such as ECUS Private Equity (AXA Private equity), Boston Consulting Group (BCG), Credit Suisse, and currently with MBI Inversiones. Fernanda has an MBA from Wharton School, University of Pennsylvania and a Business Administration degree from Pontificia Universidad Catolica, Chile. ### **[Charanya Rangamannar](https://www.linkedin.com/in/charanya-rangamannar/)** Director, Real Assets @Willett Advisors LLC Charanya Rangamannar is the Director of Real Assets at Willett Advisors. With her extensive private equity experience, within organizations like Willett Advisors LLC, Canada Pension Plan Investment Board (CPPIB), Credit Suisse, and DLJ Merchant banking, will be offering us her advanced knowledge, accumulated from throughout the investment industry to further engage us in this month's webinar discussion surrounding what it means to be a professional woman in today’s investing sphere. Charanya has an MBA from Wharton School, University of Pennsylvania, and a bachelor's in economics from Barnard College. ### **[Rita Li](http://linkedin.com/in/ritali71/\(opens in a new tab\))** Investment Advisor @ RBC Dominion Securities Rita is an Investment Advisor at RBC Dominion Securities. She has over ten years of experience in the investment industry, working within reputable organizations such as Scotia Wealth Management, RP Investment Advisors, PwC , and J.P. Morgan. She holds both Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) designations and has completed her MBA from Richard Ivey School of Business. **[Khushboo Jha](http://linkedin.com/in/khushboo-jha-wharton/\(opens in a new tab\))** CEO @ BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, University of Pennsylvania, and a Bachelor degree in Architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Alternative Lenders and Investment Platforms Are Helping Underserved Canadians Author: BuyProperly Engineering Published: 2020-10-28 Category: Insights Tags: AlternativeLenders , AlternativeLending, FintechInnovation, FinancialTechnology, CreditProducts URL: https://buyproperly.ai/blog/how-alternative-lenders-and-investment-platforms-are-helping-underserved-canadians ![Alternative Investments](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wordpress-images-1024x576-1714563918969-compressed.png) According to [ACORN](https://www.canada.ca/content/dam/fin/migration/consultresp/pdf-pssge-psefc/pssge-psefc-03.pdf), millions of Canadians are underserved by the mainstream banking sector. These individuals have restricted access to basic banking services like overdraft protection, tax-free accounts, and credit products like credit cards, personal loans, lines of credit, etc. As a result, these individuals rely on predatory financial institutions like payday lenders and cheque cashers to meet their banking needs. **Who Are The Underserved?** ---------------------------- Individuals who have limited access to traditional banking services can be organized into two categories: * **The underbanked** – are individuals who have a bank account but seek other financial services and access to credit products through fringe financial institutions. * **The unbanked** – are individuals who don’t have a chequing or savings account. Many low-income individuals are unable to sustain a regular bank account due to the minimum required balances, ATM fees, and other banking fees. In Canada, 3% of individuals are unbanked and 15% are underbanked, which adds up to approximately [6 million Canadians](https://www.canada.ca/content/dam/fin/migration/consultresp/pdf-pssge-psefc/pssge-psefc-03.pdf). These individuals often come from vulnerable groups such as individuals with low income, individuals with disabilities, individuals who are new to the country, and even young professionals with a thin credit profile. ### **How The Fintech Industry Impacts The Unserved** ![Graph trending upword](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-burak-k-187041-2-1024x768-1715167433446-compressed.jpg) Both underbanked and unbanked individuals face certain barriers when dealing with traditional financial institutions. Traditional banks typically have high requirements and fees when it comes to banking, lending, and investing, which makes all these services hard to access. Moreover, the unserved are often seen as risky due to: * Decline in financial health. * Low income. * Thin credit file or no credit file. Thankfully, as the Fintech industry continues to grow, new financial services, tools, and resources become available to the underserved. Through the Fintech industry, which focuses on developing the way we bank through innovative technology, new financial services like crowdfunding, online lenders, robo-advisors, digital wallets, cryptocurrencies, etc. are helping underserved Canadians regain control of their financial lives. As the Fintech industry continues to grow and evolve, both alternative lenders and alternative investment platforms are changing the way Canadian consumers interact with their money, with particular emphasis on those who struggle to access products and services from traditional financial institutions. ### **How Alternative Lenders Help the Underserved** Alternative lenders are a cornerstone for many of the underserved. Their flexible lending requirements have given these individuals the opportunity to gain access to different credit products such as personal loans, lines of credit, mortgages, credit cards, guarantor loans, and more. ### More Than a Credit Score Unlike banks and other traditional financial institutions, alternative lenders don’t simply base a borrower’s eligibility on their credit score but take a more holistic approach to credit approval. Alternative lenders often take into account a wide variety of financial factors including: * Income level * Job stability * Debt-to-income ratio * Previous months’ bank statements * Security (an asset or a co-signor) This means that individuals who are new to Canada or those who have not had enough time or the opportunity to build a credit history can still apply for the financial products they need. ### An Alternative to Predatory Lender ![Lenders ](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-andrea-piacquadio-3760067-1024x682-1715167435242-compressed.jpg) Providing underserved Canadians with access to installment loans, lines of credit and even debt relief products protects them from relying on predatory lenders when in a financial pinch. Payday loans (the most widely used form of predatory lender) create a cycle of debt that is almost impossible to break especially for consumers who are already struggling financially because of low income or bad credit. ### Build Credit and Improve Financial Future Moreover, alternative lenders act as a stepping stone for individuals with a thin or bad credit profile, as they’ll be able to improve their credit score through these credit products. This, in turn, will increase their chances of being approved for a mainstream credit product in the future.  **How Alternative Investment Platforms Help The Underserved** ------------------------------------------------------------- platforms (aka [robo-advisors](https://loanscanada.ca/best/best-robo-advisor-apps/)) like Wealthsimple, CI Direct Investing, and Questrade are changing the way all Canadians, not just the wealthy, invest in their future. ### Low Barrier to Entry Probably the most significant change that robo-advisors have brought to the table is lowering the barrier to entry. With low fees and low commissions, these platforms provide average and low-income individuals with the opportunity to invest and grow their wealth. Furthermore, most alternative investment platforms offer low account minimums or even offer options that don’t require a minimum amount to get started. ### Less Time Invested ![apple watch](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-energepiccom-110471-1024x768-1715167437068-compressed.jpg) These investment platforms are usually fully-automated and require little to no maintenance. Individuals interested simply answer a few questions to create a customized portfolio based on their risk tolerance and investment goals. Furthermore, most robo-advisor platforms offer additional learning resources that consumers can take advantage of. Which will ultimately help improve the decisions they make about investments in the future. Alternative investment platforms allow anyone to invest regardless of their income level, how much they have to invest, or how much knowledge they have in investing. In fact, many Canadians have already opted for robo-advisors. According to [Statista](https://www.statista.com/outlook/337/108/robo-advisors/canada#market-revenue), assets under management in the robo-advisor sector is projected to reach USD 8,837million in 2020. [Exploring Private Credit: A Lucrative Opportunity for Savvy Investors. | Buyproperly](https://buyproperly.ai/blog/private-credit-as-an-opportunity-for-investors)​ **Bottom Line** --------------- Innovative technology has opened the financial doors for many unserved individuals in Canada. Many unserved Canadians now have the opportunity to access different credit products and financial services including banking and investing. As the Fintech industry continues to grow and change, traditional banks and financial institutions will be forced to re-examine the way they provide their services.  Guest Post by [loanscanada.ca](https://loanscanada.ca/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Choosing Between Active and Passive Investing: A Comprehensive Guide Author: BuyProperly Engineering Published: 2020-10-27 Category: Insights Tags: investing, active investing, beginner investing URL: https://buyproperly.ai/blog/passive-vs-active-investing With full-time jobs becoming increasingly competitive to secure, salaries getting smaller, and everyday life getting more and more expensive, finding a reliable and effective way to grow your wealth appears to be a more daunting task than ever before! Figuring out how and where to grow your wealth, is something that can be overwhelming when considering all the different avenues that exist for prospective investors. As a result, BuyProperly will focus this article on distinguishing between two main types of investment strategies — active investing, and passive investing — with the ultimate goal of helping new investors discover what investment approach may best work for them! ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/passive-vs-active-1715178005620-compressed.png) **​****Active Investing** * ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-energepiccom-159888-1024x768-1715167453712-compressed.jpg) Active investing, as its name suggests, requires a more hands-on approach and necessitates that someone act in the role of a portfolio manager. The purpose of active money investment is to beat the stock market’s average returns and take full advantage of short-term price fluctuations. It involves a much deeper analysis, and the expertise to know when to enter into, or out of, a particular stock, bond, or any asset. Forms of active investing include; hedge funds, actively managing stocks to buy and sell, investing in mutual funds that have an investment objective of outperforming a benchmark, as well as most pension funds. ### **Benefits of active investing:** 1. Opportunity for investors to quickly take advantage of undervalued market sectors. 2. Active investing provides the potential for greater profits and returns than the overall market and index funds. 3. Greater control over an investment ### **Potential disadvantages of active investing:** 1. Active investing can have much higher management fees and expenses than other investments. 2. Can provide more taxable income, leaving you subject to more taxes. 3. Can underperform the market due to poor investment strategies. 4. Higher risk due to turbulence and volatility of markets **Passive Investing** --------------------- ![Stock market on an imac](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/pexels-serpstat-572056-1-1024x683-1715167456246-compressed.jpg) For passive investors, capital is invested in pursuit of long-term gains. Through passive investing, the amount of buying and selling within one’s portfolio is substantially minimized, making this a very cost and time effective way to invest. This approach requires a buy-and-hold mentality. That means resisting the temptation to react or anticipate the stock market’s every next move. Some examples of possible passive investments are real estate, index funds, dividend stocks, and peer to peer lending (also known as direct lending or crowdfunding).  For example, an innovative and low maintenance way to invest in something like real estate, is through a method known as fractional investing. BuyProperly allows you to share in, and mitigate the risk of, ownership of one or more properties of their choosing that BuyProperly has to offer. Fractional real estate is one of the most easy and accessible ways for investors to diversify their portfolio, but without the hassle that comes with traditional property investment. ### **Benefits of passive investing:** 1. Ultra-low fees: Passive funds simply follow the index they use as their benchmark. 2. Transparency: Its always clear which assets are in an index fund. 3. Tax efficiency: Their buy-and-hold strategy doesn’t typically result in a massive capital gains tax for the year. ### **Potential disadvantages of passive investing:** 1. Limited: Passive funds are limited to a specific index or predetermined set of investments with little to no variance; meaning, investors are locked into those holdings, no matter what happens in the market 2. Smaller reruns: By definition, passive funds will virtually never beat the market, even during times of turmoil, as their core holdings are locked in to track the market **Which is Right for You? A Mini Quiz!** ---------------------------------------- ### **1\. How much time per week do you want to devote to managing your finances** 1. As minimal as possible 2. Just enough to understand the risks and make a decision 3. I would be okay with 5 hours a week or more ### **2\. Do you trust your ability to pick stocks?** 1. No, the stock market is intimidating 2. Somewhat 3. Absolutely ### **3\. Assume you check on your portfolio and see your account balance has gone down by hundreds of dollars, how would you feel?** 1. I am instantly tempted to sell 2. I freak out a little, but carefully evaluate the situation first 3. I don’t panic ###  **4. Do you enjoy reading financial news?** 1. No, not really 2. Sometimes 3. Yes! Regularly _**\*\*\* If you selected “a**“** 3 times or more during the quiz, then it sounds like you are more of a hands off, passive investor. If you chose “c” 3 times or more, then odds are you enjoy more active investing type approaches. However, if you found yourself with answers evenly across the spectrum (“a” through “c”), then perhaps a dually inclusive approach of both active and passive investing is the best fit for your money-making pursuits.**_ **Key Takeaways** ----------------- Ultimately, picking between active and passive investing approaches comes down to outcome expectations and bottom lines. If you are an individual or entity willing to take higher risks in exchange for the chance of high returns, then active investing is most likely the avenue best suited to you.  However, if you are looking for a strategic, dependable, and sustainable way to grow your wealth, passive investment will be best for your situation. With this, there is no worrying about day-to-day portfolio management. One of the most proven and dependable passive investment approaches is through property ownership, but even more accessible, fractional property ownership. With this, prospective investors can own a fraction of real-estate through a minimum initial contribution, to which their returns would be proportionate to. Check [hear](https://buyproperly.ai/blog/how-to-invest-in-real-estate-with-little-money) to know how to invest in real estate with little money If you as a prospective investor, are interested in further exploring fractional property ownership as an avenue to grow your wealth, then BuyProperly is the perfect place to get started. For more information on who we are, what we do, and how we can help you expand your investment opportunities, visit our [website](https://buyproperly.ca/), follow our socials ([Instagram](https://www.instagram.com/buyproperly/), [Twitter](https://twitter.com/buyproperly), [LinkedIn](https://www.linkedin.com/company/28707868/), [Facebook](https://www.facebook.com/buyproperly)), and set up a one-on-one meeting with one of our dedicated team members to address any questions you may have, we are always ready and eager to help! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Empowering Women: Bridging the Gender Gap in Investment Opportunities Author: BuyProperly Engineering Published: 2020-09-30 Category: Insights Tags: investing, investors, empowerment, leadership, money, women URL: https://buyproperly.ai/blog/three-easy-ways-smart-women-invest ![Three easy ways smart women invest](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/wordpress-images-4-1024x576-1715167444568-compressed.png) Women’s empowerment is on the rise. With the growth in recognizing female leadership and power, strides are being made to achieve gender equality across all sectors. With this happening, why are women still getting left behind in investing? In the past, the investing world was difficult to access. If you wanted to invest, you had to go through an advisor, which was most likely gate kept by a man. And even when you met with them, they used male language and lacked knowledge around women’s investment needs to give the best advice. This left women to experience negative stereotypes about their investing acumen and financial contributions to their household. It was not an inclusive or empowering experience.  This inaccessibility of investing is still felt today. [According to Ellevest](https://www.thesimpledollar.com/investing/blog/why-women-should-invest-and-how-to-get-started/), 71% of all assets controlled by women are in cash, not investments. Additionally, women overall invest 40% less money than men do according to a [survey conducted by Wealthsimple](https://www.nbcnews.com/better/business/why-women-invest-40-percent-less-men-how-we-can-ncna912956). Not only do they invest less compared to men, but 41% of women wished they invested more of their money according to a [study by Merrill Lynch](https://www.bofaml.com/content/dam/boamlimages/documents/articles/ID18_0244/ml_womens_study.pdf). The majority of Canadian working women are contributing meaningfully to household income and want to be engaged in their financial future. While investing may seem intimidating and inaccessible for women, thanks to the digital world, there are accessible ways to become investment literate. Here are three easy and beginner-friendly ways you can start investing: **1\. Get engaged by listening and learning.** ---------------------------------------------- There are many free resources available online. Here are some resources that can educate you on the lingo and types of investments you can make. ### [**BuyProperly**](https://blog.buyproperly.ca/)  offers free email courses and webinars featuring experts in the field. Our resources make investing and financial literacy available for everyone. We have [panel discussions](https://blog.buyproperly.ca/) with academics and senior leadership in the industry and keep you updated with the industry trends and insights through our newsletters and blogs. Sign up for our newsletter and events [here](https://buyproperly.ca/signup/personal). ### [**Clever Girl Finance**](https://www.clevergirlfinance.com/about/)  is a fun, engaging, and relatable website that educates women on Finance. They do this through blogs, websites, podcasts, and a weekly newsletter. ### [**Everygirl**](https://theeverygirl.com/about/)  is a blog that provides both lifestyle and finance tips for the everyday life of a millennial woman. ### [**Women Investing Network’s Podcast**](https://podcasts.apple.com/us/podcast/women-investing-networks-podcast/id1232452232?mt=2)  talks with finance experts. From entrepreneurs, investors, and financial experts, they share tips and tools that you can apply to your finances. ### [**Money Girl**](https://podcasts.apple.com/us/podcast/money-girls-quick-and-dirty-tips-for-a-richer-life/id209859739?mt=2)  is a short and sweet podcast. In less than 20 minutes, they give advice on personal finance for both amateurs and experts. **2\. Know Yourself.** ---------------------- Take the time to understand your tolerance for risk and what level of risk you are comfortable with. You never want to spend more than you make. Also, take the time to save. Start by saving $1 a day. By understanding your risk tolerance and savings, you can create an allocated investing budget. This will ease you into the world of investing. **3\. Consider consulting a professional.** ------------------------------------------- Sure, you can learn the ins and outs of investing, but an expert can also help you create a more robust plan that works for you. Women are long-term planners looking for specific growth goals rather than risky returns. Reach out to an advisor that understands the investing needs and values of a women. BuyProperly has a dedicated financial adviser for women, [Rita Li](https://www.linkedin.com/in/ritali71/)[,](https://www.linkedin.com/in/ritali71/) Investment Advisor at RBC, who can provide unique advice. She understands the needs of women and can cater to your values, goals, and aspirations. With these steps, you will become more confident and gain the knowledge to make smart financial and investing decisions! Ready to start? Learn how you can invest with our free [webinars](https://us02web.zoom.us/webinar/register/WN_Z0Wo4aEwRUOnGTBXKlJmbQ) and investing courses or start investing in fractional real estate with BuyProperly. [Contact us today](https://calendly.com/investments-buyproperly/15min?month=2020-09)! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar – Are Millennials Killing the Banks and Traditional Financial Institutions? Author: BuyProperly Engineering Published: 2020-09-09 Category: Events Tags: investors, webinar, banking, millennials URL: https://buyproperly.ai/blog/webinar-are-millennials-killing-the-banks-and-traditional-financial-institutions Webinar Recording brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/eventbrite-banners-1-1715176942635-compressed.png) S**ession Overview** ----------------------- In a survey conducted by Business Intelligence, nearly 3/4th of the millennials indicated they visit the branch once or less per month, while 40% do not visit physical banks at all. While often blamed for killing industries (retail, home improvement stores, beer), they are only forcing these industries to rethink the paradigm we operate in. This is changing the way we interact with these traditional institutions. New Apps will come out that will allow individuals to create portfolios that mimic those of hedge funds and mutual funds, do banking and stock trading and now even buy real estate online. ### View our webinar recording with Mahima Poddar and Pouya Zangeneh as they talk about the questions below: * Do you believe challenger banks, neo banks, fintechs have been successfully able to capture share from traditional institutions, especially in the context of millennials and GenZ * What in your opinion are the top things millennials/Gen Z look for when choosing Financial Institutions? * What are some of the things your bank/institution is currently doing/ offering that will get millennials/ genZ excited? What are the differentiators? * With open banking coming (hopefully the stalled work of the open banking task force will restart soon) – how do you see the landscape evolving for fintechs/ challengers and incumbents. * Is there scope for startups and Fintechs to work with traditional institutions and co-exist for mutual benefits ? Will this destroy millennial trust in fintechs and genx/ older generations in traditional institutions or will it strengthen? Panelists --------- ### **Mahima Poddar** ([**Profile**](https://www.linkedin.com/in/mahima-poddar-73b1b430/)) Senior Vice President, Digital Banking and Strategy @ Equitable Bank Mahima is the Senior Vice President, Digital Banking and Strategy @ Equitable Bank. Previously, she was a long-time management consultant with the Boston Consulting Group and a member of both the BCG Financial Services and Corporate Development practices. Mahima holds an MBA from the Kellogg School of Management at Northwestern University and an HBA from the Richard Ivey School of Business at The University of Western Ontario. ### **Pouya Zangeneh (**[**Profile**](https://www.linkedin.com/in/pouya-zangeneh-b7002335/) **)** VP of Strategy, Scotiabank Pouya Zangeneh is the Vice President of Strategy at Scotiabank. He has completed his MBA from University of Michigan – Stephen M. Ross School of Business and M.A.Sc in Mechanical Engineering from McMaster University. He has over 10+ years of experience working at companies like Bain and Company and Engie before leading charge at Scotiabank. ### **Khushboo Jha** ([**Profile**](https://www.linkedin.com/in/khushboo-jha-wharton/)) CEO @ BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor's degree in architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: [Webinar – What do CMHC forecast and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) [The Power of Tax Loss Harvesting for your Investments with Parag Jha​](https://blogs.buyproperly.ca/lunch-learn-personal-finance-real-estate-and-investing) ​[Webinar – How much Debt is too much? Should you go for that extra credit card, or for a bigger house?](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Debating on debt limits? Opting for extra credit or a larger home? Author: BuyProperly Engineering Published: 2020-07-31 Category: Events Tags: Real estate, finance, Covid-19 Investments, credit card, debt, expert discussion URL: https://buyproperly.ai/blog/webinar-debt-extracredit-largerhome [![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/copy-of-event-banners-7-1024x576-1715167592785-compressed.png)](https://us02web.zoom.us/webinar/register/WN_dzS9MGjVQ3O_qTyTGm36lg) Webinar Recording brought to you by BuyProperly Limited. **Session Overview** -------------------- Canadians owe $1.76 in debt for every $1.0 of disposable income- piling up faster than any other developed nation. Expensive real estate and COVID do not help in this scenario. With the COVID federal support coming to an end in fall, we explored the implications of increased debt levels for households and the best ways to manage that in the context of credit cards, personal loans, and mortgages. ### View our webinar recording with Eva Wong and Scott Satov as they talk about the questions below: * What are the different kinds of debt and is there good debt and bad debt? * In an estimate of June sales numbers, Statistics Canada said that retail sales jumped 24.5% from May’s levels, which would bring spending back to pre-pandemic levels. In such a scenario, what should people do to make sure they are able to get debt at better rates and stay out of what’s harmful? *  As an individual borrower, what is the optimal level of debt, and would you like to share any best practices around how to manage high debt levels? * Will the debt/ mortgage approval get more difficult moving forward given the COVID environment? What options do people have? * Debt deferral – An estimated 700,000 Canadian households have deferred payments on their mortgages. And ~13% of consumers ― one in eight people ― are using their RRSPs or TFSAs to help pay bills, up from 4% at the start of the pandemic which clearly means a lot of people are under financial stress right now. What are your thoughts on deferring loan payments/ mortgage deferrals? * How can you leverage tech and new age debt instruments to your advantage for debt (including mortgage) planning. * At 1.76, Canada has one of the highest levels of private sector debt to disposable income ratio amongst developed economies, and this has been on an upward trajectory (this ratio was 1.07 in 2000) – how much of a concern is this for our economy and will this act as a drag on the recovery from Covid-19?  **Panelists** ------------- ### **Scott Satova** CEO @Loans Canada Scott is a serial entrepreneur and has been involved with financial technology companies for over 15 years. He co-founded VersaPay (TSX:VPY) and launched Loans Canada, the nation’s first and largest personal loan search platform, in 2012. He is also the President of Rebound Finance – the leading sub-prime loan and credit referral network in the USA since 2016. He is a licensed mortgage broker, and holds CA and CFA designations. He has completed a degree in Accounting from University of McGill. ### **Eva Wong** Co-founder & COO @Borrowell Eva is the Co-Founder and Chief Operating Officer at Borrowell, a Canadian fintech company that helps make financial stability possible for everyone. She has worked with both the private and not-for-profit sectors, including roles at The OTF Group (a Monitor spin-off), Maple Leaf Foods, UNDP and Oliver Wyman. Eva is an EY Entrepreneur Of The Year® 2019 award winner in Ontario, and was named one of the Standout 35 globally on the 2018 Women in FinTech Powerlist. She was also named one of 20 Canadian tech start-up founders to follow by Twitter Canada. Eva holds degrees from Harvard University and Smith School of Business at Queen’s University, where she serves on the Advisory Board. She has studied or worked in the US, Caribbean, Africa, Asia and Europe ### **Khushboo Jha** CEO @BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a bachelor's degree in architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: [Webinar – What do CMHC forecast and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) [The Power of Tax Loss Harvesting for your Investments with Parag Jha​](https://blogs.buyproperly.ca/lunch-learn-personal-finance-real-estate-and-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## CMHC Forecast: Impact on Real Estate Investors and Buyers Author: BuyProperly Engineering Published: 2020-07-15 Category: Events Tags: InvestmentAnalyst , VeritasInvestmentResearch , HousingOutlook , RealEstateBroker , WebinarRecording , BuyProperlyLimited , COVID19 , EconomicOutlook , MortgageInsurance , InvestmentFramework URL: https://buyproperly.ai/blog/cmhc-forecast-realestate-investors-buyers Webinar Recording brought to you by BuyProperly Limited. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/buyproperly-webinar-1715175858194-compressed.png) **Session Overview** -------------------- The COVID-19 pandemic has introduced unprecedented uncertainty to economic and housing outlooks. Home prices in some of Canada’s major urban centers could decline by as much as 12 per cent over the next 18 months before recovering completely in 2022, according to a new report from the Canada Mortgage and Housing Corp., the country’s federal housing agency. View our webinar recording with Nigel D’Souza and Brian Bell as they talk about the topics below. * Overview of May 2020 housing market stats and YTD highlights * What do the changes in eligibility rules for mortgage insurance mean for Real Estate Investors? * What is an effective framework in thinking through the impact of Covid-19 on the Canadian Housing Markets? * What do the latest numbers tell us about the state of the ownership and rental markets? * What indicators should buyers, investors, sellers be tracking to better inform their decision making? **Panelists** ------------- ### **Nigel D’Souza** Investment Analyst @Veritas Investment Research Nigel D’Souza is an Investment Analyst for Veritas Investment Research. Nigel’s coverage includes banks and life insurers. In 2019, Nigel was recognized by Refinitiv StarMine as the top stock picker among analysts covering Canadian banks and was ranked as the sixth overall stock picker among all analysts. Nigel is a CFA Charter holder and graduated with high distinction from the University of Toronto . ### **Brian Bell** President @Giraffe Realty Brian is the President and Broker of Record of Giraffe Realty. A senior executive with cross functional experience in financial services, insurance and real estate. He is a proactive strategic thinker with a proven track record of helping organizations achieve growth. Brian is a licensed real estate broker and graduated with a Masters from Queen’s University. He has also completed his MBA in Finance and Public Relations from Wilfrid Laurier University. ### **Khushboo Jha** CEO @BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor degree in Architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: [Webinar – What do CMHC forecast, and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) [The Power of Tax Loss Harvesting for your Investments with Parag Jha​](https://blogs.buyproperly.ca/lunch-learn-personal-finance-real-estate-and-investing) ​[Webinar – How much Debt is too much? Should you go for that extra credit card, or for a bigger house?](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How COVID-19 Has Affected Rental Prices in Canada Author: BuyProperly Engineering Published: 2020-07-15 Category: Insights Tags: property, Covid 19, landlord in GTA, rental prices, unemployment URL: https://buyproperly.ai/blog/how-covid-19-has-affected-rental-prices-in-canada With the rise in unemployment, a decrease in tourism, lack of immigration, and the overall economic slump the COVID-19 pandemic has caused, many have wondered how exactly will this affect the rental market in Canada. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/suzanne-rushton-edpul34xn7i-unsplash-1024x684-1715167491225-compressed.jpg) **Covid-19: Rental Trends** --------------------------- A recent report by [Rental.ca](https://rentals.ca/blog/rentals-ca-may-2020-national-rent-report) has shed light on COVID-19’s impact on the rental market. The report states that average rental prices for all property types in Canada have seen a decline, with rental prices for apartments and condos dropping 3.2% to 4.6% from March to April. Even major cities like Vancouver, Toronto, Ottawa, and Calgary have experienced this decline in rental prices. In fact, Alberta, Ontario, Manitoba, and Nunavut have exhibited the largest declines in average rental prices. Average rental prices dropped by: * 5.7% in Alberta * 4.6% in Ontario * 6.5% in Manitoba * 3.8% in Nunavut ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/fig7munis1-1715167493393-compressed.png) _Source:_ [_https://rentals.ca/national-rent-report_](https://rentals.ca/national-rent-report) _Source:_ [_https://rentals.ca/national-rent-report_](https://rentals.ca/national-rent-report) While most provinces have seen a drop in rent prices, Quebec, Saskatchewan, and Newfoundland and Labrador have seen an increase. However, Rental.ca believes this may be due to the “change in the breakdown of listings than any major increase in demand”. In addition to that, we also noticed the following trends in the rental market: * Rental apartments and condominiums with sizes above 800 square feet exhibited the biggest drops in prices which suggest luxury rentals are experiencing the brunt of COVID-19. * Some cities have seen double-digit declines in rental prices. York fell by 12.6%, Edmonton by 11.3%, and London by 11.3%. * With major events and tourism shutdowns, many furnished short-term rentals that are typically used as Airbnb units are turning over to long-term rental use. **Why is Average Rent Prices Declining?** ----------------------------------------- The change in the rental market is significant and thus begs the question, why? The changes in the rental market are due to a combination of factors that all resulted from COVID-19. #### Demand for Affordable Housing Demand for affordable housing is expected to increase due to the rise of unemployment, lack of immigration, and a decline in temporary foreign workers and students. Many immigrants, temporary foreign workers, and students rent when they are in Canada. With the travel halts and closed borders, the demand for rental units decreases. Moreover, according to a report by [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/200409/dq200409a-eng.htm), more than a million jobs were lost in March, with the majority coming from part-time, seasonal, temporary, and gig workers. These workers are typically renters, as such, with these job losses, decreased demand, and increased supply of rentals, prices have dropped. #### Increase in Long-Term Rentals Many short-term rentals are likely to turn into long-term rentals due to a lack of demand for short-term rentals. Like hotels, short term rentals provide people with a place to stay for a short period of time. People typically utilize this service for events, weddings, travel, vacations, work, and for a number of other reasons. But with COVID-19 and a nationwide shutdown, many people have put their gatherings, reunions, and events on hold. As such, short-term rentals, which are frequently found in metropolitan areas, are expected to turn their short-term rentals into long-term rentals. As a result, the increased supply of rentals in the market and slumping demand, rental prices are expected to drop. #### Pandemic Safety and Fear The fear of catching the virus has put a stop to many Canadian’s moving plans. Despite the availability of online pictures and virtual tours, many are still unwilling to move during this pandemic. Moreover, those willing to move may not be able to see the apartment of their choosing in person as there are tenants who are unwilling to open up their condos or apartments for public viewings, in fear of exposing themselves to the virus. This lack of movement in the rental market plays a role in the declining rental prices. ### **What Does This Mean For Landlords?** ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/what-is-fractional-investing-1-1-1024x576-1715167499769-compressed.png) While the decline in rental prices is a silver lining for renters during this pandemic, it yields a different response for landlords. According to [Toronto Storeys](https://torontostoreys.com/april-rent-canadian-tenants-coronavirus/), the Canadian Federation of Apartment Associations reported that landlords were set back 20% in rent with only 75% of tenants paying in full. With declining rental prices, landlords may be forced to reduce their prices in an effort to keep tenants despite partial payments. Some landlords may even decide to sell their properties, which may lead to a drop in housing prices as well.  ### **Future Outlook** While rental prices are currently experiencing a drop they are expected to recover eventually. According to the CMHC, as the economy opens up, the housing market, in general, is expected to bounce back by early 2021. However, the level of recovery will differ from province to province, city by city as prices are affected by a number of different variables. Guest Post by [loanscanada.ca](https://loanscanada.ca/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World Author: BuyProperly Engineering Published: 2020-06-30 Category: Insights Tags: hospitality, hotels, industrial, Market crash with COVID, office, realestate, retail URL: https://buyproperly.ai/blog/real-estate-sectors-potential-winners-and-losers-in-a-virus-hit-world ![Outlook For Real Estate During COVID-19](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/untitled-design-2-1024x451-1715167468063-compressed.png) Real estate is a catch-all term for owning assets that generate revenue. Consequently the nature of that revenue, the value of those assets will vary depending on the type of assets that are owned. For example, the revenue generated from an office space can be very different from that generated from a warehouse in light of Covid-19 given the typical response for disease prevention is isolation. Thus it is important to tackle each segment individually rather than a collective. There can be other differences between divisions like rural vs urban, Canada vs USA, and geographies dependent on certain sectors like Technology or Financial Services vs Manufacturing. But for now we will focus on typical sub-classes of real-estate. Office Space ============ ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/office-space-2-1024x513-1715167470907-compressed.jpg) **In-person vs remote**: In most cases work is generally more efficient in person rather than done remotely. This is a reason collaborative spaces were on the rise. There are some jobs that just become very difficult when done remotely such as certain services. So while remote office work is here to stay it will not replace all face to face interactions. Fall out of Covid-19 will definitely be there with increased remote work, but things should return to normalcy in the coming year or so. Companies will just be more flexible with remote work arrangements and flexible hours, especially with the adoption of flexible technology such as Zoom. The most adversely affected after Covid-19 would be large collaborative spaces – open offices that can cause the virus to spread rapidly. Flexible/ shared seating will be negatively affected due to rationale health concerns. Shares office space providers like IWG (Regus) and WeWork could struggle to get back to feet in the shorter term. Hotel & Hospitality =================== ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/kate-townsend-hec6zxdff0m-unsplash-1-1024x478-1715167472806-compressed.jpg) The current situation is not too different from the period after 9/11. The sector will look at a severe downturn in the shorter run with fewer people traveling either for leisure or for business. **Intrinsic human nature to travel:** Over time the situation will regain normalcy. There is an inherent interest in people wanting to travel, do business in other places. As with 9/11 business will regain momentum in the 1-2 year phase and could take 2-3 years to go back to what it was like before. **Informal housing:** Firms like Airbnb, could get adversely affected as people are more aware of the need for hygiene and cleaning of surfaces to avoid disease. Retail ====== ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/marcin-kempa-3slosn6dpoq-unsplash-1024x514-1715167474736-compressed.jpg) Next 1-2 years will be fairly challenging for the industry as all shopping moves online. Larger stores selling essential items like pharma may do better than those involved in discretionary spending categories dependent on unplanned footfall, like clothing and luxury. Some large stores will close, weak shopping centers that had been un-competitive, and not performing well could struggle in this phase and maybe even go into bankruptcy, even insolvency. We already see some examples like that of JC Penny. **Retail Space:** This would speed up the emptying of places that were not doing well. Newer retail models could emerge with focus on higher margin or higher value add. Commoditized products may move to be sold online completely. Online shopping is lower margin, and hence is not a proper replacement of all physical shopping, but many areas can be replaced efficiently. **Cross subsidizing offline with online:** Sellers carrying losses online will shut down and there will be a move to a few successful players – a concentration in the industry to those with the highest level of efficiency within a specific category. Residential =========== ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/chuttersnap-awlyctpgv4-unsplash-1024x463-1715167476831-compressed.jpg) **Online shift is challenging:** Single family homes could be impacted with unemployment, low levels of personal equity for loan deposits. Hence demand is expected to be lower in the coming year or so despite a low interest rate environment. **Millennial buyers and Generation Z:** Multi-family homes will struggle short term as this tends to be the starter homes for many younger generation buyers like first time home buyers. At the current rate of job losses, the demand for homes will depend largely on the pace at which the economy may bounce back. Also, in anticipation of falling demand, the supply in the coming years could go down, keeping prices stable or buoyant in the coming several years. This does not apply to housing that is already built up and ready to move in. Industrial ========== ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/chuttersnap-eqwfwhfqipg-unsplash-1024x437-1715167479069-compressed.jpg) **Both import and exports will take a hit:** Due to lowered consumption and sales, industrial demand will go down. The global economy according to the WEF is expected to shrink by ~3% this year (2020) and only grow ~5.8% in the coming year (2021). **Online demand will go up**: The demand for servicing infrastructure and warehouses will increase. All areas within the supply chain will be made robust. **Traditional retailers supply chain:** Businesses servicing traditional retailers will also not perform well as many themselves may go out of business. The companies servicing other industries like small business and retail will also perform poorly in the foreseeable future as these industries are not expected to perform well in the shorter term i.e. 2020. Overall, I highlight that these are only my views based on my experience and training within real-estate finance. There are many additional variables that need to be looked into while taking a decision in investing in real-estate and I encourage readers to do their own due diligence. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar – Tips and Tricks on how to navigate the current market. Author: BuyProperly Engineering Published: 2020-06-05 Category: Events Tags: InvestmentStrategies, MarketCrash , AssetRebalancing , EconomicOutlook , FinancialCrisis , 2008FinancialCrisis , MarketTrends, InvestorAdvice , PortfolioManagement , AssetAllocation , FutureForecast URL: https://buyproperly.ai/blog/webinar-tips-and-tricks-on-how-to-navigate-the-current-market Webinar brought to you by BuyProperly Limited.**​** **Key Questions:** ------------------ * How is the current crash in market different from that in 2008? what is the implication of that? * What are some things investors should do in the current market to make the best of the current scenario? * What are some things investors should avoid in the current market? * In the context of asset allocation/ portfolio diversification/ asset rebalancing – how should one act and not act. * What does life look like in a post-coronavirus world and when that might happen? **Panelists** ------------- ### **Bin Chang (**[**Profile**](https://www.linkedin.com/in/bin-chang-81445b17/) **)** Associate Dean Research at Ontario Tech University, Faculty of Business and Information Technology Dr Bin Chang is the Associate Dean Research at the Ontario Tech University. She obtained her PhD from the University of Toronto and MA from Queen’s University. She also worked at CIBC and the University of Toronto prior to joining Ontario Tech University. She was a board director in Angus Glen Rate Payers’ Association, member of the economic development committee of the Toronto Region Board of Trade and Ontario Tech University representative to the Toronto Region Financial Service Alliance. ### **Dr. Chinmay Jain (**[**Profile**](https://businessandit.ontariotechu.ca/people/faculty/finance-and-accounting/chinmay-jain,-phd.php)**)** Assistant Professor at Ontario Tech University, Oshawa Dr Chinmay Jain is an Assistant Professor of Finance at Ontario Tech University. Dr. Jain completed his Bachelor of Technology in Industrial Engineering from the India Institute of Technology, Kharagpur and earned his Doctorate in Finance from the University of Memphis, Tennessee. He received The Financial Review Best Paper Award for his co-authored research paper entitled: Shot Selling: The Impact of SEC Rule 201 of 2010. His research interests are short selling, market microstructure, and financial regulations. ### **Pouya Zangeneh (**[**Profile**](https://www.linkedin.com/in/pouya-zangeneh-b7002335/) **)** VP of Strategy, Scotiabank Pouya Zangeneh is the Vice President of Strategy at Scotiabank. He has completed his MBA from University of Michigan – Stephen M. Ross School of Business and M.A.Sc in Mechanical Engineering from McMaster University. ### **Khushboo Jha** ([**Profile**](https://www.linkedin.com/in/khushboo-jha-wharton/)) CEO, BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor degree in Architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: ​[Webinar – What do CMHC forecast and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) ​[Webinar – How much Debt is too much? Should you go for that extra credit card, or for a bigger house?](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) [Webinar – Are Millennials Killing the Banks and Traditional Financial Institutions?](https://blogs.buyproperly.ca/webinar-are-millennials-killing-the-banks-and-traditional-financial-institutions)​ ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Unlocking Financial Freedom: Innovative Strategies for Finance and Investing Author: BuyProperly Engineering Published: 2020-06-05 Category: Events Tags: FinancialPlanning , InvestmentStrategies, PersonalFinance, FinancialFreedom , ActiveInvesting, WealthBuilding URL: https://buyproperly.ai/blog/webinar-finance-and-investing-strategies ****Key Topics:**** ------------------- * How to create your own pathway to financial freedom by alternate strategies of investing * Active VS Passive Investing * Portfolio Diversification and how to rebalance your investment portfolio. **_Speakers_** -------------- ### **Dr. Chinmay Jain** **([Profile](https://businessandit.ontariotechu.ca/people/faculty/finance-and-accounting/chinmay-jain,-phd.php))** Assistant Professor at Ontario Tech University, Oshawa Dr. Chinmay Jain is an Assistant Professor of Finance in the Faculty of Business and Information Technology. His research primarily focuses on market microstructure, short selling, high-frequency trading, financial regulations, and cryptocurrencies. He teaches courses on corporate finance, derivatives securities, electronic trading and exchanges, international finance, fixed income securities, blockchain and cryptocurrencies. ### **Dr. Archana Jain (**[Profile](https://saunders.rit.edu/directory/archana-jain#)**)** Assistant Professor at Rochester Institute of Technology, Rochester, New York Dr. Archana Jain is an Assistant Professor of Finance in the Saunders College of Business at the Rochester Institute of Technology. Her research focuses on market microstructure, short selling, corporate governance. She teaches Corporate Financial Management, Financial Markets, and Investments. She has an MBA in International Business, has experience working in an accounting firm as well as working as a senior consultant in a Fortune 500 company. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: [Webinar – What do CMHC forecast and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) [The Power of Tax Loss Harvesting for your Investments with Parag Jha​](https://blogs.buyproperly.ca/lunch-learn-personal-finance-real-estate-and-investing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Webinar – Panel Discussion on Real Estate Market After COVID – 19 Author: BuyProperly Engineering Published: 2020-05-29 Category: Events URL: https://buyproperly.ai/blog/panel-discussion-real-estate-market-after-covid-19 ### View our webinar recording with **Jason M. Pereira** and **Harrison Milborne** as they talk about the questions below: * What is the effect of Covid -19 on demand for property in terms of sale/purchase and rentals? * How are job losses and mortgage defaults going to increase supply of properties in the market? * What is the outlook on property prices in the coming 3-6 months? * What is your take on mortgage interest rates and how will this affect demand and property prices in future? * What fundamental shifts can we expect in the industry in terms of process, behaviors and unit economics? * How long will it take for property prices to bounce back, if at all **Panelists**​ ----------------- ### **Jason M. Pereira (**[**Profile**](https://www.linkedin.com/in/pereirajm/)**)** Partner & Senior Financial Planner @ Woodgate Financial Inc. Jason M. Pereira is an award-winning Financial Planner who has lived and breathed topics related to financial planning for over 20 years. In that time, he has become a recognized writer, commentator, speaker, podcaster, teacher, and expert in the areas of financial planning, practice management, and fintech. He has also obtained two degrees, nine professional designations, been nominated for or won over 30 industry awards, and produced over 100 articles, podcasts, and interviews. ### **Harrison Milborne (**[**Profile**](https://www.linkedin.com/in/harrison-milborne-b2123b57/)**)** Director of Sales at Milborne Group, Toronto Harrison is the Director of Sales at Milborne Group with over 16 years of experience in the real estate industry ranging from Sales to Project Management. His approach for his clients is to help them achieve their real estate goals, whether that is for personal lifestyle or to build wealth with an investment portfolio. He holds a Bachelor’s degree in Community Design from Dalhousie University and is also a RECO registered sales professional. ### **Khushboo Jha** ([**Profile**](https://www.linkedin.com/in/khushboo-jha-wharton/)) CEO, BuyProperly Limited Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor degree in Architecture from Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Money Management During COVID-19: Expert Advice Author: BuyProperly Engineering Published: 2020-04-15 Category: Insights Tags: expert discussion, Market crash with COVID, Buying power, Diversification, Pandemic, panic selling URL: https://buyproperly.ai/blog/money-management-covid19-expert-advice ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/2-1715187778680-compressed.png) COVID -19 has been declared a pandemic by the World Health Organization, bringing instability to the world economy. The stock market is at the lowest, not seen since the 1987 market crash and industries are beginning to lay off workers leading to millions ending up jobless. Health experts around the world have advised being cautious to flatten the curve, but it’s also critical to be prepared for the outbreak if it becomes worse. People across North America are already stocking up on basic supplies in the event that they need to stay home from work for a prolonged period. Travel, conferences and sporting events have all been canceled for an unforeseeable future. We, at BuyProperly, spoke to experts from the industry about what should you do if you are worried about what the uncertainty could mean for your money and investments. Diversify your portfolio. ------------------------- If you could learn one thing from this downturn, it is the value of portfolio diversification, says Dr Chinmay Jain, Assistant Professor at Ontario Tech University. Imagine if you had put all your money in Delta airlines at a price which Warren Buffett bought it for ($46.40), your portfolio would have lost half of its value. People are selling their stocks now because of the panic, but no one can sell their houses where they need to quarantine themselves. > “Not only you need to diversify your stock portfolio, but you also need to consider other alternative assets such as real estate.” > > Dr Chinmay Jain, Assistant Professor of Finance ### Do not **sell** Two things people should not do in the current scenario. * Do not sell, it is the worse step to take in this environment. If you have something invested, do not panic. There are some opportunities, especially robust companies that lost a lot of value, buy into those. * Do not go with companies that have future growth but not a robust balance sheet. Don’t try to do anything speculative at this time unless you know what you are doing. This is my recommendation says Pouya Zangeneh, VP of Strategy at Scotiabank.  It seems tempting but it’s a bad idea. > “It is the time to rebalance your portfolio. If you have excess of bonds on your portfolio, one thing you can do is go sell some of your bonds, so that you have more liquidity and the ability to diversify into other investment avenues.” > > Pouya Zangeneh, VP of Strategy – Scotiabank ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/3-1-1715167568763-compressed.png) ### **Do not** panic. Markets are down and this is the right time to invest, believes Dr Archana Jain. >  “If you have cash (buying power), you might start investing now. You can invest a small amount every week. This will average out your cost.” > > Dr Archana Jain, Assistant Professor at Rochester Institute of Technology You may not catch the market at all-time low, but this is low enough to start getting in. The markets will start going up at some point. Investing in index fund, such as S&P 500 is safer than investing in individual stocks. Do not panic if the value of your investment is down. Do not sell! This correction was due at some point, the coronavirus may just have caused a steeper fall than expected. Focus on long term goals and you should be fine. ### **Focus on social** distancing. Financial markets are currently incredibly volatile as the whole world is trying to cope with the coronavirus outbreak. Economic activity in many countries has been severely limited and the outlook is unclear. For the investors this is a stressful time, however it is important to remember that investing is by nature cyclical, and crises are a part of it. People with a longer investment horizon, provided they don’t have additional current cash needs, should remember that the markets will eventually recover, as they always have, so it’s best to avoid haphazard decisions such as locking in losses by panic selling. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/copy-of-lunch-learn-personal-finance-real-estate-investing-6-1715167572562-compressed.png) Credit: Jordan Hopkins Credit: Jordan Hopkins The situation is different for those who were hoping to sell their investments within the next 1-2 years. They could consider extending that period, and for safety should keep a good portion of their savings in cash-like assets. > “Overall, it’s best not to check our investment account balance every day and focus on social distancing for now” > > Dr Karolina Krystyniak, Assistant Professor at Ontario Institute of Technology ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Power of Tax Loss Harvesting for your Investments with Parag Jha Author: BuyProperly Engineering Published: 2020-04-08 Category: Events Tags: InvestmentStrategies, #Webinar, TaxLossHarvesting , KhushbooJha , PolicyDevelopment , ParagJha URL: https://buyproperly.ai/blog/lunch-learn-personal-finance-real-estate-and-investing Webinar brought to you by BuyProperly Limited. Hosted by BuyProperly CEO Khushboo Jha, and featuring guest panelist Business Head of Godrej Properties Worldwide Inc., Parag Jha, this engaging webinar delved into an open and constructive discussion on the fundamentals of tax loss harvesting and its practical application in investment strategies. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/parag-jha-1715169487857-compressed.png) **Session Overview** -------------------- ### What is Tax Loss Harvesting ### How does tax harvesting work? ### Advantages and disadvantages of harvesting ### Where can you use Harvesting? ### How is it calculated? **Guest Panelist: Parag Jha, Business Head of Godrej Properties Worldwide Inc** ------------------------------------------------------------------------------- Parag Jha is the Business Head – North America at Godrej Properties Worldwide Inc. With an MBA in Finance and Strategy, he has a strong background in leadership positions within the banking and real estate sectors. Parag’s diverse skill set includes Business Management, Private Banking, Process Improvement, Policy Development, Sales Strategy, Digital Transformation and Technology, Family Office Advisory, Private Banking and Technology Consulting. ****Host: Khushboo Jha, CEO**** ------------------------------- Khushboo Jha is the CEO of BuyProperly Limited. She has an MBA from Wharton School, Univ of Pennsylvania, and a Bachelor’s degree in Architecture from the Indian Institute of Technology (IIT), Kharagpur. She has over 10+ years of experience at Amazon, Deutsche Bank and Accenture. She is a builder at heart and has built and launched two marketplaces within Amazon and has extensive experience leveraging AI for efficiency. She has lived and worked in US, UK, Canada, and India. Explore more insightful webinars on investment strategies and financial management by checking out our upcoming sessions, including: ​[Webinar – What do CMHC forecast and policy changes mean for real estate investors and buyers?](https://blogs.buyproperly.ca/webinar-what-do-cmhc-forecast-and-policy-changes-mean-for-real-estate-investors-and-buyers) ​[Webinar – How much Debt is too much? Should you go for that extra credit card, or for a bigger house?](https://blogs.buyproperly.ca/how-much-debt-is-too-much-should-you-go-for-that-extra-credit-card-or-for-a-bigger-house) [Webinar – Are Millennials Killing the Banks and Traditional Financial Institutions?](https://blogs.buyproperly.ca/webinar-are-millennials-killing-the-banks-and-traditional-financial-institutions)​ ​ ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## COVID-19, here is how to protect your savings in a contagious market! Author: BuyProperly Engineering Published: 2020-04-03 Category: Insights Tags: finance, investors, savings, GTA real estate market, Covid-19 Investments, Covid 19, Market crash with COVID, coronavirus, COVID-19, diversify, ETFs, gold, portfolio, S&P, Virus URL: https://buyproperly.ai/blog/covid-19-here-is-how-to-protect-your-savings-in-a-contagious-market The world is in lock-down. Most businesses which cannot move online are in stand-by mode or have shutdown till further notice. Simultaneously, the stock market is in correction mode, with the broad S&P index having lost more than 27% of it’s value in the span of less than a month. All as a result of a virus. Here we dive deeper into why this virus is different from earlier episodes. Below is a comparison between different disease outbreaks and the S&P. The long run average to compare to is 4.5% annually, considering a 70 year post world war period. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/s-2-1715167528300-compressed.jpg) _Source: https://www.marketwatch.com/story/heres-how-the-stock-market-has-performed-during-past-viral-outbreaks-as-chinas-coronavirus-spreads-2020-01-22_ According to the latest numbers (2 April 2020), Covid 19 has led to over 1,007,000 falling sick and over 52,000 deaths till now. In the same period, the stock market has declined significantly with the S&P 500 declining by ~27% from it’s all time high of ~3,400.There have been numerous previous disease scares and there seemed to be some correlation with the performance of the stock market, all depending on the severity of the disease and it’s impact in affecting consumption globally. Below is a graph depicting the housing market composite prices for Canada over a 15 year period. There seems little direct correlation of a disease outbreak and subsequent impact on real-estate prices. Traditionally real-estate has been know to be an asset class with lower correlation to capital markets (e.g. stocks and bonds). Some of it can be attributed to stocks being a virtual ownership of a publicly-traded company whereas real-estate investment typically being associated with asset ownership and possession. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/1-1024x339-1715167530550-compressed.png) _Source: https://www.crea.ca/housing-market-stats/mls-home-price-index/hpi-tool/_ **How could Covid-19 have a broader impact on the economy and consequently on stock and asset prices than earlier disease outbreaks?** _Disrupting the supply chain_**:** With the onset of the disease, crucial supply chains in China were disrupted immediately. The rise of the disease overlapped with the Chinese New Year meaning Chinese workers were unlikely to return to work in full capacity. This simply created supply side constraints in developed markets. Everything from consumer electronics to apparel to automotive was highly dependent on China and without supply, large companies, simply could not sell more. _Impacting consumption directly_**:** A quarantine like situation meant at first Chinese consumption would suffer but in the broader context global consumption would decline. Customers – holed up in their homes from the disease are highly unlikely to consume as much as in a regular economic environment. Industries like Airlines, Hospitality and Oil & Gas were particularly impacted – with business dropping off immediately with an indefinite future. _Bringing an abrupt end to a prolonged business cycle:_ Many global stock market indices hit all time highs, with the S&P 500 peaking at the 3,400 range in February 2020. More than ten years of a bull run with share prices growing at roughly 15% every year – roughly 3 times of the 70-year average (1950 to 2020), closer to 4.5%. Low interest rates and cheap capital had helped foster a bull run where share prices had become disconnected from profit, or revenue – business fundamentals. _Deeper understanding by investors_: In most cases institutional investors have in the past been less receptive towards diseases (including Zika and Ebola). While these big players drive volumes in the market and their bearish attitude could be an indicator of the scale of impact this virus could have. For the uninfected retail investor, it may be harder to see the concern with the same intensity as much as the well researched and globally connected institutional investors. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/2-1024x581-1715167532406-compressed.jpg) **_Source: https://www.macrotrends.net/2324/sp-500-historical-char_**_**t-data**_ **What is shaping this volatility in stock prices?** It is time of high market volatility. A major correction has already happened in stock prices and it could be a good time to get in, depending on your appetite for risk. A perpetually low interest regime means institutional investors have access to cheap capital and are constantly searching for higher returns. This leads to projects or initiatives being undertaken which would typically not be initiated in a down time. This also means investing in speculative assets some of which may or may not have merit, e.g. blockchain firms and cannabis firms. The low interest rate environment also means high levels of corporate and household debt, as it is just easier to borrow. While all of this sounds good, it also creates a moral hazard for institutional investors – a bubble of sorts forcing investors to take on more and more risk to get the same returns. A low interest rate regime should ideally bring the market back to a bull run soon after the bear run has ended. A lot of this would depend on other variables such as industry output, consumer sentiments and employment rate. For the retail investor, it is a good time to plan ahead – reflect on your own financial prowess and appetite, conduct firm due-diligence (basically analyze before you invest) and diversify. **What can retail investors do at this stage?** First of all, at the time of writing of this article, these are extraordinary times with a bear market and diminished economic activity. From a personal perspective, the best asset at this moment is cash and cash equivalents like funds in high interest savings accounts (explore EQ Bank or Motive Financial in Canada or Marcus by Goldman in USA). This allows for significant capital preservation in bear markets. But in case you are already exposed to stocks and similar assets, the best advise is to analyze on a case by case basis and what your opinion of the broader environment is. Below is a strategy for longer term wealth creation :- Think closely where your net-worth is spread out, which asset classes and their risk profile. Also consider what your objectives are with capital appreciation, the time period you are looking at (e.g. 6 months vs 5 years) and your risk appetite (can stand big losses or prefer a steady ship). I would also recommend creating a short term buffer, a rainy day account that covers you if unexpected expenses arise. After allocating your funds to rainy day and high interest savings account, start investing. Traditionally retail investors would normally put their risk capital as follows – % of their age in bonds and the rest in stocks. So, for example as a 40 year old individual, you would have 40% in bonds and 60% in blue chip stocks. This distribution is flawed as it ignores other asset classes like commodities (e.g. gold), private markets (invest in a private company), real estate and other financial products like options and crypto-currency. While it is advisable to still invest your risk capital in primarily stocks and bonds (40% to 80%), in these uncertain times, low correlation yet tangible assets like gold, silver and real-estate could be explored. For exposure to equities and bonds, Exchange Traded Funds (ETFs) are an ideal place to start as they allow you to track the market and minimize level of research you need to put into buying a share. There is also inherent diversification. An ideal way to start is to get a zero-fee account (e.g. Wealth Simple Trade or Questrade in Canada and Robin Hood in USA). Consider investing in tracker funds like the ones by Vanguard (list here – [https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns](https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns)). ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/add-a-heading-1-1024x427-1715167537136-compressed.png) Be mindful of the fact that each asset class has its own characteristics. While keeping cash is safe and liquid, it does not allow you to benefit from the value creation of companies. Real estate seems steady but   offers limited liquidity to the buyer, i.e. getting in and out is difficult and time consuming. Commodities like gold and silver are less correlated with the capital markets but often require specialized knowledge of what drives prices in those markets. What diversification really provides, is exposure to a range of asset classes, many of which may not move together. For example, while your stock portfolio may decline, price of your home and savings in high interest savings account may continue to increase. **How can I get exposure to real estate without investing millions of dollars?** Buying shares in real estate stocks, or REITs is one way. Alternate investing companies like BuyProperly can provide you the resilient exposure that you need to properly diversify. With as little as $2,500, you can get direct exposure to the property market and own a small portion of a condominium or a home. Best of all the approach is tailored for passive investors who do not have the time to analyze every property before buying or to physically manage tenants. As long as you are aware of the risks involved like low initial liquidity, potential returns and how such an investment matches your needs, it should work well. _\-The views and opinions expressed in this article are entirely of the author._ \-Gautam Siddharth --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What kind investor are you if you were busy hoarding Toilet Paper? Author: BuyProperly Engineering Published: 2020-03-19 Category: Insights Tags: Covid-19 Investments, Toilet paper short supply, Market crash with COVID, Diversification URL: https://buyproperly.ai/blog/what-kind-of-investors-are-you-if-you-were-busy-hoarding-toilet-paper Fear is contagious. If you were among the people who stock-piled hand sanitizers and Toilet Paper (really !!!) then you are probably similar in behavior to the investors who sell stocks at the earliest indication of a down market. Panic-investing and [panic-shopping](https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2020/03/13/moving-to-cash-and-panic-shopping.html) are both not a great idea. ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/copy-of-lunch-learn-personal-finance-real-estate-investing-7-1024x512-1715167513237-compressed.png) The market was down more than 10%on Monday – market “[circuit breakers](https://www.investopedia.com/terms/c/circuitbreaker.asp)” have tripped at a 7% drop for the umpteenth time this week. Intraday volatility is at an all-time-high. In the last one week, pundits have compared the big drops to comparable ones in October 1987. Stocks are down (-15% Year-to-date), Bonds down, even [Gold tanked](https://www.marketwatch.com/story/gold-futures-suffer-biggest-weekly-loss-in-over-8-years-2020-03-13) (-9% in a week). Cash was king, and we at BuyProperly like to believe so was Real Estate (Housing Price Index up 2% in Feb over Jan, prices up by 6% month-over-month in Feb). Over the weekend, [the Federal Reserve cut rates to zero and began a new round of Quantitative Easing (QE)](https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html) and Bank of Canada cut prime rates, with the Big banks passing the rate cut to the end customers. (separate thread on whether that’s a good idea and for whom!). However, there is one good thing that comes out of this unprecedented situation. It makes us re-look at our philosophy and strategy in life and in investments (also about toilet paper!). **Access to essentials** ------------------------ We cannot beat the virus until everyone is virus-free, which means we need to enable/allow everyone to have access to basics such as hand sanitizers. [Flatten the curve,](https://www.nytimes.com/2020/03/11/science/coronavirus-curve-mitigation-infection.html) is all about ensuring that the system works for the weakest link. Investments access for everyone is just as essential: Everyone needs to have access to all investment options including real estate. Companies such as [BuyProperly](http://buyproperly.ca/) allows everyone access to investments in real estate, which is great in turbulent times like the current one from an overall portfolio perspective. We are also working with our younger customers to figure out how we can support them in their journey towards their first home. **Portfolio diversification** ----------------------------- Investing is about risk return – balance. True diversification should factor in a risk-adjusted return and would imply having enough of stocks, bonds, cash, and real estate.  It is the right time to look at potentially re-balancing, both from work-life- (remote work) perspective and from asset allocation perspective. Rebalancing allows an investor to buy or sell assets in a portfolio based on under- or overperformance in a particular asset class relative to other asset classes. This activity essentially forces investors to buy low and sell high without emotion to maintain the original asset allocation. So, what should the strategy be, as the economy tanks to levels lower than some of the previous downturns? In the past downturn, I saw friends lose jobs, and saw those who kept their cool and behave rationally capitalize on the downturn. A lot of the great start-ups of today, Airbnb, Uber were started during the financial crisis of 2008-09. We, at [BuyProperly](http://buyproperly.ca/), believe we can turn to continue to do what’s best for our customers in these unprecedented times and emerge stronger at the other end and we believe we are well-positioned as of now. * Our transactions can be completed entirely online. * Our rigorous analysis on real estate versus stock market correlation, shows, that private residential markets have a stock market correlation of 0.2-0.3, compared to public REITs with a stock market correlation of 0.7-0.9, so our assets are fine for now. * We have run detailed analysis (both macroeconomic and fundamentals driven) and identified the top cities in Canada, and the top cities in the US to invest in and for our target cities we have a neighborhood-level analysis as well. So, if the real estate markets turn (we don’t expect this anytime soon)- we can easily acquire assets for our customers at deep discounts. This may be an opportunity to get good assets in the portfolio for all our investors, and since we start the fractional investing minimum at $2500, we really mean ALL. _Full disclosure: I have not sold any of my stocks, bonds, GICs, or real estate investments in the manic episode._ \-Khushboo Jha, CEO --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is the Toronto Real Estate market set to crash in 2019? Author: BuyProperly Engineering Published: 2020-03-15 Category: Insights Tags: Real estate, Toronto real estate, GTA house prices, Housing in GTA, Toronto affordability URL: https://buyproperly.ai/blog/is-the-real-estate-market-set-to-crash-in-2019 Real estate markets work in a cycle and has pretty much been on schedule in the past 100 years outside of circumstances such as the Great Depression and World War. The median cycle has been 18 years long. It was first observed by Henry George. He broke the cycle down into four phases – recovery, expansion, hyper-supply, and recession. ### Chart 1: Real Estate Cycle ![Rounded Rectangle: Real Estate Cycle](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/canadian-real-estate-works-in-a-cycle-heres-where-we-are-market-cycles-1024x576-1715167544970-compressed.png) [](https://betterdwelling.com/wp-content/uploads/2017/11/Canadian-Real-Estate-Works-In-A-Cycle-Heres-Where-We-Are-Market-Cycles.png) _Source: Mueller, Real Estate Finance_ **Phase One: Recovery** ----------------------- Most of us are familiar with what a recession looks like- we had one in 2008. High unemployment, decreased consumption, decrease in investments of all kinds- business, buildings. Phase one is the first phase after a recession. It is a new beginning but given this is the time right after a recession, people are risk averse, activity is low, unemployment is still high, and housing starts / new construction is low. If we look at this data for US you will notice that the situation looks like follows. Government intervention is often driving this new growth through lower interest rates, and other incentives to grow. This was the case for US in 20010-11. Vacancies that were the highest around 2008, beginning to reduce, which in turns means rents start to go up and housing prices start to go up as well, as the only inventory is that from previous constructions. ### Chart 2: US Median House Prices ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-1-1-1715167546866-compressed.png) In Toronto, this was the situation around 1995-97. This is when prices pretty much just recovered the losses after the 1989 peak. This is also when well capitalized developers begin looking for huge areas of land. For example, Concord Pacific bought the Toronto land used for City Place in 1996. ### Chart 3: Toronto Median House Prices ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-2-1715167548668-compressed.png) Phase Two: Expansion -------------------- Phase two is the expansion phase. In this phase, we will see occupancy begins to increase and exceed long term average, vacancy across residential and commercial starts reducing. With vacancies going down, rents start going up. Double digit rental growth in some markets right now. Besides seeing a growth in the building permits and housing starts one of the clearest signs of the expansion phase is the hyper growth of rents. And since most real estate expenses are fixed, every increase in rent leads to increase in profits. With increased profits, it will attract more builders and more building activity. New construction starts to pick up, unemployment begins to decline, and generally the economy is humming along. New opportunity brings in more immigration, and the cheap real estate/good business environment is perfect for creating a lot of jobs. The laws of supply and demand will eventually catch up and curb the rise in profits, but in real estate everything takes time. Building a new home or office or apartment takes time to build and actually bring it to the market. Before building, deals have to be negotiated, studies conducted, permits obtained and financing secured. Interestingly, banks are more willing to finance and have less strict rules during expansion than recovery, which means this phase will see more financing and hence actual project implementation. So what that means is by the time a meaningful amount of new inventory of houses come to the market and become available the overall economic expansion will have been well on its way for a good five to seven years. So, what that means is during that time demand has been able to far outpace supply and we’re starting to see that now which is going to lead to even higher occupancies and more and more increases in rents. In US, housing starts have still not warmed up to their peak levels and so US is well within this phase. ### Chart 4: US Housing Starts ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-3-1024x392-1715167550537-compressed.png) In Toronto, this phase started around 2015-16 in my opinion and is ready to transition to the next phase. ### Chart 5: Toronto Housing Starts ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-4-1715167552386-compressed.png) _Source: BuyProperly Analysis, CMHC rental market report data_ Phase Three: Hyper Supply ------------------------- As long as there’s upward pressure on rents new construction is going to look financially attractive and more money will start to pour into the market. More and more will want to own real estate and more money is going to pour into the market and not just for building new units but also for bidding up the price of existing inventory. Best indicator of hyper supply stage is an increase in the unsold inventory or the vacancy. This happens when new completions from the mid and late expansion phase start to saturate the market with a glut of new inventory that’s far more than what the market could actually support. Okay so what we’re looking at here is the vacancy rates for single unit rental properties according. This is the clearest sign of a shift in the market when rental growth decelerates. So, if investors pay attention to this and begin to factor the consequences of the upcoming inventory and choose to stop building and building into new investments it might soften the correction. But this practically never happens because in a frenzy during a boom there’s always more money pouring into new projects until it’s too late and the market then crashes, and we enter a recession. Rental Vacancy for US looks like the following and shows it has not yet had an upward trend and has some room for accommodating more property builds.  ### Chart 6: US Rental Vacancy Rates ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-5-1024x387-1715167554702-compressed.png) In Toronto, vacancy rates are at an all-time low of 1.1%, but are holding steady or looking to turn. With nearly 30,000 condos coming on to the market in 2019 and 2020, this should go up. Thus, Toronto is poised to enter the Hyper Supply phase, although it would be a few years before it hits the hyper supply peak as there is still room for demand to be absorbed. ### Chart 7: Toronto Rental Vacancy Rates ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/picture-6-1715167556326-compressed.png) _Source: BuyProperly Analysis, CMHC rental market report data_ Phase Four: Recession --------------------- The first sign of major trouble is the deceleration of rental growth. Now by the time the rental growth is at zero or even negative the next phase which is the recession phase will come soon. Here the transition from the hyper supply the boom cycle to the recession occurs when occupancy rates start going down. The long term averages the glut of new supply finally overpowers the market driving rents and property prices down and vacancies start to climb up and new construction stops, and the few new projects are going to start. But the many projects that started in the hyper supply phase are still going to be continuing to be delivered. The continued addition of inventory leads to lower occupancy and lower rents which reduces revenue for the property owners. Based on the economist's analyses and if the real estate cycle is going to follow its schedule of approximately 18-year cycle length, we should see US hit the peak around, 2024, and the downward cycle to start around 2026and ultimate bottom around 2030-31 In Toronto, the cycle is a little skewed given the inflow of immigrant population that has kept the demand for housing crazy. The actual cycle can vary based on not just country, but city, or metropolitan area, hence Toronto would end up having a different cycle than Missisauga or Ajax for example, though with slight variations only as the overall macroeconomic factors, such as bank rates apply to all of them. We at [BuyProperly](http://buyproperly.ca/) constantly analyze neighborhoods, cities and regions, to ensure we are tracking their cycle. Reach out to us for detailed reports on this at [info@buyproperly.ca](mailto:info@buyproperly.ca) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Artificial Intelligence is the Magic Brick in Real Estate Author: BuyProperly Engineering Published: 2020-03-15 Category: Insights Tags: Real estate, Artificial intelligence, finance, investors URL: https://buyproperly.ai/blog/artificial-intelligence-is-the-magic-brick-in-real-estate ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/orange-and-yellow-simple-swot-analysis-chart-1024x576-1715167522405-compressed.png) Buying a house is a huge financial undertaking, but itis even more of an emotional and social undertaking. In today’s digital era however, investors can take out some of the stress of this by leveraging data and machine learning.  Real Estate has been slow to embrace change, with agents quoting their 24 years of experience to provide recommendations. Things however are changing for the better in this space now. And while the comfort providing ability of an agent cannot be replaced, the decision making can be made more predictable, and reliable, by leveraging complete information available. **Leveraging Technology for Real Estate Investments** ----------------------------------------------------- Technology is in fact simplifying and empowering all phases of real estate investing process from Origination, Analysis & Due Diligence, Financing & closing, post-closing rental/ongoing maintenance and finally to exit through sale.  Let’s see how it has changed each of these phases. ### **Origination:** Nearly 95% of home buyers use the listing websites sites during the home search process with nearly half starting there. Although, buyer continue to find agents useful in leveraging their search (79% reported finding it useful) almost 88% find online websites the most powerful tool in their search, and nearly half closed on home they found in their online search. (Source: BuyProperly proprietary survey, Property Online, realestatesites.com). Artificial Intelligence approach allows websites to better match customers to their properties and investment units that are more likely to convert into sale.   In addition, websites often leverage chatbots to answer any questions users may have while on the website. Virtual tour software such as Pano2VR, RoundME, My360 allow customers to visit these houses virtually.  ### **Analysis & Due Diligence**:  This is the stage where most consumers depend on their agents, investment advisors to provide guidance on the right value of the property. However, with technology, customers can now estimate, potential rental earnings, net cash flow, expected mortgage monthly payments and make decisions on whether the financial aspects make sense given the details of the property. A lot of listing websites now provide these tools and widgets for free to their users. Sites like Zillow (Zestimate driven by MLmodel), and HouseSigma indicate the potential cash flow/ positive negative from investments in a given property based on the past sales, potential rental value and interest rates. A lot of these models work with the assumption that house prices are a function of both the features of the house and the suitability of the neighborhood and hence focused on intrinsic value (rather than market sentiment). BuyProperly uses its proprietary ML driven model to identify investment opportunities that have high value potential. This allows users to make decisions based on the intrinsic value of a property, rather than follow a greater fool’s theory (This finance theory says that a rational person may pay a price that seems “foolishly” high because one may have the expectation that the item can be resold to a “greater fool” later on) ### **Financing & closing:**  Automated platforms allow raising bridge loans (for home flippers), mortgage application and approval online to facilitate receiving financing approval in much shorter times. Companies like Blend, Lending Home, ### **Post-closing rental/ongoing maintenance:**  Online rental management platforms, allow for tenant verification, KYC done online through their database access, and allow tenants to raise tickets or talk to chat-bots for any issues. This significantly reduces hassles for landlords and improves satisfaction for tenants. Softwares such as AppFolio, ResMan etc. that allow property management in a seamless manner. Some softwares allow you to reach out to fixer crew (plumbers, electricians etc.) for a quick assignment. AI models are now able to better predict tenant churn, maintenance issues, building energy requirements, elevator usage in buildings as well as space utilization, giving a better idea of potential upcoming costs and issues as well ways to engage with users. **Exit &Sale:** This brings us back to the ML models driving estimates (origination models) that allow startups such as Open door, Offer Pad and now Zillow homes and other iBuyers to decide how much to buy from a seller for, but making the process simple, and automated for the seller. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Being a Long-Distance Landlord: Oh Lord! Challenges, Tips, and Strategies Author: BuyProperly Engineering Published: 2020-03-14 Category: Insights Tags: proptech, Toronto real estate, property management URL: https://buyproperly.ai/blog/distance-landlord-oh-lord ![](https://superblog.supercdn.cloud/site_cuid_clr64un7n466823mjbtfe8qff/images/compressed-1-1715180017001-compressed.jpeg) Some people buy property as an investment and put it up for rent, some people relocate to a different area or move to a bigger house and transform their previous properties into rental properties. While any investment comes with a risk, rental properties are nice to have in one’s investment portfolio. Regular cash flow, appreciation of the property, tax benefits are some of the perks of having a rental property. ​**The Complexities of Long-Distance Landlordship**​ ------------------------------------------------------- Owning properties at different places may seem like what celebrities do and something to aspire for. But for individuals, assuming you have the money, the time required to analyze and identify right properties to invest in, the hassle of finding a tenant and associated risk given regulations are geared towards tenants, the effort in property management, and dealing with taxes may not worth the trouble after all. If you think you have a great house or condo with no maintenance needs – wait till you become a long-distance landlord. ​**Essential Tools and Strategies for Successful Remote Property Management**​ --------------------------------------------------------------------------------- Investing in rental properties has some benefits, but like any long-distance relationship, being a long-distance landlord has its challenges. Here are some relevant tools and tips that you can leverage as a long-distance landlord to manage your long-distance relationship. ### **1\. The tenant screening process** Before choosing a tenant, one must do due diligence and gather all the information about the people who will be living the rental property. Any rental application should collect the prospective tenant’s contact information, credit information, employment history, references and income history. Warning: even with all the screening, things can go wrong. That’s where rental insurance comes in. Aviva, Manulife and others provide such a service. This is super critical and worth the money you spend for peace of mind through vacancy or bad tenants. ### **2\. Regular Communication** Like any other long-distance relationship, communication between the landlord and tenant can get tough. A long-distance landlord needs to communicate regularly with the tenants via email, phone or text message as they do not have the luxury to drop by and check the property anytime they feel like. The landlord and tenant should provide each other with an extra emergency contact in case either one cannot be reached at the given contact. ### **3\. Have someone local** Asking someone from the area to keep an eye on the rental property can prove beneficial, as, in case of any problem or emergency, the landlord will be updated by the friends in area on the issue. It is also wise to have a good rapport with the repair people, as they can give an actual description of what actually went wrong. ### **4\. Property Damage** Most tenants treat the property with respect and take care of it as their property, but sometimes even after all the screening, things don’t go as planned. Some scratches on the doors or walls are expected, stains on the carpet are also one of the typical damages to come across. But sometimes things can escalate to broken doors, appliances or even a window. Sometimes the tenants may repay for the damages; sometimes, they might leave the property and leave you hanging. ### **5\. Sudden evictions** There can be various reasons for sudden eviction, but it leaves the landlord in a volatile place. The cash flow suddenly stops and has to start the whole process all over again, plus the distance does make it any easier. [BuyProperly](https://buyproperly.ai) takes on the operating hassles and allows you to earn passive income, starting at $2500. So you can own your slice of every house and every city and earn passive income. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---