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For those of you that follow the "next month's newsletter"
title at the bottom of each newsletter, you will have
noticed that this issue was supposed to be about
"Grow-ops: How to Spot Them, and How They Affect You."
Well, I wrote it - but I had a quick change of heart and
decided that it would be our topic of discussion for next month.
I want to address a subject that we seem to be
discussing more and more as of late. It seems that
with Canada's booming economy and the housing market
strong and steady (many property values rising), many
homeowners are finding a new question or problem, with
their newfound and still growing equity. "What can
I do with the equity in our house? I mean, it's
just sitting there."
More and more Canadians are taking the equity from their
homes, and investing it. Is this the right thing
for you to do? Who knows? There are a ton of
different investment vehicles, and if you so decide to
access the equity from your home to invest it, how do
you know which investment is the right one? If the
housing market has proved to be one of the great investments thus
far, why wouldn't you go with what you have experienced?
What about the idea of a revenue property? This
might be a good idea for some of you, and maybe
not such a good idea for others. Whichever
investment vehicle you choose, how do you go about
accessing your equity?
There are a few ways, and some of them are better than
others. Some folks are turning their whole
mortgage into a line of credit and utilizing the
"interest only" payment structure. Maybe
refinancing all your current debt into a fixed term, and
leaving only a portion of your mortgage re-advancable
with interest only payments, is attractive to you.
Perhaps leaving your mortgage alone is the answer, and
obtaining a line of credit is the way.
We'll guide you down the path of least resistance to the most sensible way to
utilize the money in your home.
The real component to consider here is that what ever
amount of "house money" you invest, you're getting to
double dip because those investment dollars are tax
deductible! (See
www.smithman.net for more information on mortgage
tax breaks. I found this website to be very
informative)
Of course, as with any investment, there is a certain
amount of risk involved. If there wasn't, it
wouldn't be called an investment - it would be called a
"sure thing". The idea of "smart" investing however, relies on the fact that it is as calculated as
possible. Canada's economic engine is firing on
all cylinders, and is not expected to slow down anytime
soon.
Again, as this was a growing and hot topic of discussion
for the past month, I felt it was necessary to change
the direction of this newsletter - I hope you don't
mind. I'm leaving opportunity for you. If
you've thought about it in the past, or are not sure how
much equity to use, let us know. We'll be more
than happy to discuss it with you. The power in
opportunity may be lying in your home!
Sincerely,
DAN MASS,
AMP Broker/Agent
Canada First Mortgage
direct:
403.294.0033
cell: 403.710.1505 fax: 1-866-902-4910
email: dan@canadafirstmortgage.com
website:
www.canadafirstmortgage.com
Box 32 Site 15 RR9 Calgary, Alberta, Canada T2J 5G5
242058 Whitepost Lane Calgary, AB
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