Advantages of Being a Landlord

The decision to become a landlord is not one you should make lightly. If you are looking to invest in real estate, there are quite a few things to consider. It is true that becoming a landlord can be a lot of responsibility, but there are also tons of advantages which may not be known to new investors.

Wealth building: If you hold on to property long enough, it will almost always go up in value. This is termed “appreciation” and is a good way to increase your net worth.

Cash flow: If managed properly, a rental property can bring in a steady stream of income from AAA tenants.

Investment diversification: A diversified investment portfolio is one of the most important rules of investing. Owning a property, which tends to be lower-risk, is a good way to diversify your investments.

Leverage: In real estate, a little cash will go a long way – unlike other types of investments.

Being your own boss: There can be a lot of personal satisfaction that comes with being your own boss, especially for those who love independence in their work lives.

There are also tax benefits to owning a property. Here are some of the things you may be able to write off as a landlord:

  • Interest: Mortgage interest payments on loans and interest on credit cards related to rental activity can all be deducted.
  • Repairs: The cost of repairs to your rental property is fully deductible.
  • Travel: Landlords can deduct travel expenses related to the rental activity.
  • Depreciation deductions: landlords can also deduct the depreciation value of their house over 27.5 years, even while they are increasing in value. This will help save some of the positive cash flow without having to owe income taxes.
  • Property taxes: You can deduct property taxes that relate to the rental property for the period that it is being leased.

As mentioned, this is not a decision that should be made quickly. Potential landlords have to ask themselves if they really feel suited for the job. Additionally, certain factors need to be looked into. For one, it is important to calculate the expected cash flow that will be generated from the property (taking into account vacancy time and other expenses).

As always, it would be best to speak to an expert real estate agent about questions or concerns. So, if you have questions about becoming a landlord, we’d love to help! We offer a full range of services for our landlord clients and can make the transition as easy as possible for you. Call us at (416) 929-1660 or email us at resupport@axoncapitalrealty.com to begin discussing your options.

Sources:

http://www.thestar.com/business/2013/05/09/money_monitor_is_being_a_landlord_right_for_you_.html

http://www.marketwatch.com/story/the-tax-advantages-of-being-a-landlord-2013-04-23

http://www.nolo.com/legal-encyclopedia/landlord-benefits-renting-property-29596.html

http://www.nolo.com/legal-encyclopedia/landlord-pros-cons-29494.html

Benefits of High-Floor Living

Condo hunters are bound to face this age old adage: to live above 10 storeys or not to live above 10-storeys high?  Seriously though, apartment complexes in ancient Rome grew to ten storeys and higher, so there’s nothing too new about the concept of high floor living!

In a vibrant city like Toronto, condo development is at a fever pitch, and it seems like a new skyscraper is built every other week.  So, for any new condo hunters out there trying to decide between living up high or closer to the ground, we bring you some important news: according to a recent study, living on a higher floor could mean a longer life.

Amazing, right? We promise this is not just a hunch- it’s scientific. Living on a higher floor could substantially decrease the likelihood of developing many fatal diseases.

A study by scientists in Switzerland was conducted by analyzing more than 1.5 million people living in buildings with 4 floors or more.  The result? They found that the chance of dying from serious lung disease was 40% greater among residents who lived on the ground floor compared to those with an apartment on the 8th floor or above.  For heart disease, mortality rates were 35% greater among those at ground level and for lung cancer the risk of death increased by 22%.

The researchers concluded that pollution was a huge factor in this decreased risk to disease, but also that exercise was a positive influence on health. (No way! Who would’ve thought?!)

Beyond these enlightening health benefits, there are some other factors that you might want to weigh when considering if a high floor level is the right choice for you!

Pros of living higher up:

  • Less chance of dying from lung disease
  • Lowered risk of dying from heart disease
  • More secluded
  • Less traffic/street noise
  • Less pollution
  • More exercise (if you walk up the stairs and boycott the elevator- hint: do it!)
  • Better views
  • Better security (less exposure to and risk of crime)
  • Did we mention you are less likely to be exposed to FATAL diseases??

Cons of living higher up:

  • Higher cost
  • More secluded
  • Scary for people with a fear of heights
  • Less likely to go outside as often
  • Takes (marginally) longer to get outside
  • Temperature (because higher floors are exposed to direct sunlight for long periods, it will probably get pretty hot up there- but we’re assuming those who can afford sky rise condominiums have A/C)
  • Unless you have a big balcony, you won’t have access or exposure to much greenery
  • More difficult to bring things in and out (ie. Groceries, moving boxes, furniture, etc.)

Considering all of the above, would you live on a higher floor?  Let us know below!

We hope we’ve helped you gain a little insight on what you value in a condo most!

Sources:

http://scottandkat.ca/life-on-a-higher-floor-means-a-longer-life/

http://mindshapedbox.wordpress.com/2011/10/04/high-floor-high-life-what-changes-as-you-climb-upwards/

http://www.dailymail.co.uk/health/article-2328400/The-secret-long-healthy-life-A-HIGH-rise-flat-People-live-eighth-floor-22-likely-die-early.html

http://apartments.about.com/od/apartmenthunting/a/whichapartmentfloor.htm

http://news.menshealth.com/live-on-the-ground-level-read-this/2013/05/28/