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Investment and Mortgages Strategy

Investment

Many home buyers believed that mortgage is the only path towards ownership however; recent surveys revealed that mortgage is also being used as desired investment strategies for rich Canadians. The survey conducted by Investors Group discovered that about 67% of wealthy Canadians specifically those who have investable assets worth $500, 000 or even more with mortgages can actually pay of their residential properties in full if they op to.

 

A full 1/5th of rich Canadians are found to have mortgages amounting to $156,890. Peter Veselinovich, the president of Investors Group who is in charge in mortgage and banking operations states that there was a point when extinguishing a person’s debt was of extreme importance. This was specifically the scenarios in the past wherein interest rates were high and for the majority, servicing debt stops them from investing for future goals whether it was for education, retirement and the like.

 

Individuals are lucky enough because this is no longer the case today. Individuals can opt to keep their current investments instead of starting capital gain taxes. This simply means paying down mortgages more often is not really the best plan. Other uses of mortgages debts that are proven to be tax-efficient includes investing on assets that produces income like real estate and businesses,  investments  and other assets that may  result  to cash return. ‘

 

The lower interest rate setting is in need only of self-effacing return in servicing debts incurred when the assets are acquired. Normal returns on the other hand that are available to sensible investors will considered to be as the icing of the cake. Mortgages offer access to funds with reduced cost than other various lending facilities for the reason that they are viewed by the lenders as fully secured.

 

Other interesting information about the survey conducted by Investors Group are 32% of Canadians with highest net worth own additional  residential or commercial properties, 42% have amazing investment on rental properties and more than a quarter of rich Canadians having mortgages lack plans of becoming  mortgage free prior to retirement.

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