March 2006 Newsletter

Making A Profit In Real Estate!

Owning a home is a great investment strategy in this current Real Estate market.
There are few other investments that offer stable and dependable long-term returns
that this tangible and enjoyable asset can. Today’s favourable interest rates make
buying real estate an even more attractive and affordable option.Here are a few options to consider to best
profit from your real estate investment:

$ Partial Rental Property - If you are able to qualify for a larger mortgage, a good
way to quickly build your equity, and with a minimum investment on your own part, is
to buy a property that has rental capability. One choice is a property with a separate
apartment, or just a few extra rooms that may be suitable for a student during the
school year. Be aware that rental income is taxable. It may be possible write off your
operating expenses, including repair and maintenance necessary to maintain the
rental unit. Consult with a lawyer, accountant  or other financial advisor to ensure you are taking
full advantage of this option.

$ Additional Property – If financially capable, purchase an additional property
as a rental unit, having your tenant pay off your mortgage while your asset
appreciates in value. It is crucial that you look into all the aspects of managing
a rental property before making the final decision. Will you be able to find reliable
tenants who will respect your property and pay the rent? What amount of rent do you
need to charge to cover your costs? Is this rent competitive with other rents charged
for similar accommodations in your area? Can you be available to handle unexpected
maintenance and repairs, or will you contract such work out to a professional?
What are your legal obligations as a landlord? It is important that all these
questions must be answered before you make your decision.

$ Quick Flip - In Canada, you can typically sell your principal residence without having
to pay capital gains on the profit you might realize from the sale. However, be aware
that any profit you make on the sale of a second residence, vacation property or
an income property is usually taxable. If you’re thinking of buying and then reselling
a home in a short time frame just to turn a profit, be sure you are educated with
the facts first. Consult with a tax account to ensure you are taking full advantage of
this option.

Looking to try something new?
Grilled Dijon Herb Pork Chops
• 1/4 cup (50 mL) Dijon mustard
• 2 tsp (10 mL) olive oil
• 2 cloves garlic, minced
• 1/4 tsp (1 mL) each salt, pepper and
dried thyme
• 1/4 tsp (1 mL) dried rosemary,
crumbled
• 4 pork loin chops, 1/2 to 3/4 inch (1
to 2 cm) thick
_________________________
In shallow glass dish, whisk together mustard, oil, garlic, salt, pepper,
thyme and rosemary. Add chops, turning to coat; let stand for 15 minutes.
Place chops on greased grill or in grill pan over medium-high heat;
close lid and cook, turning once, for 8 to 10 minutes or until juices run clear
when chops are pierced and just a hint of pink remains inside.
Serves 4