is important to remember that a mortgage is attached to an
appreciating asset. Historically, despite temporary dips,
real estate goes up in value over the years. The average house
price in Canada was about $60,000 in 1980 and just under $250,000
in 2006 (a luxury car that was purchased for $20,000 in 1980
would be lucky to sell for $2,000 today). With a bit of research
and due diligence, real estate is almost always a good investment.
Mortgages are usually the lowest interest loan that a consumer
has access to. The combination of the low interest, long-term
repayment schedule, and the appreciation in value in the
actual property offers a good opportunity for would-be investors.
Most <city> mortgage holders are resident owners who
no longer want to pay rent. They have decided that they
prefer to invest in themselves, rather than pay someone
Some Ottawa mortgages are taken out by real estate investors
who plan to cover their mortgage payments, property taxes,
and maintenance costs through rental income. They take advantage
of the fact that real estate rises in value over the years,
cover their costs by renting out the properties, and may
even generate a revenue profit. Many of these investors
began by taking out a loan on the equity built up in their
personal home and used it to leverage investment mortgages.
When possible, they take advantage of the tax breaks generated
by the Smith Maneuver.
If you have additional questions or would like to see if
you can prequalify for a mortgage
in Ottawa, please call Chad Robinson at (613) 288-5836
or use our Ottawa
Mortgages Directory to find a mortgage
broker or mortgage
bank specialist to help you.