Who wants to be a millionaire? Everybody! REC understands that one of the most accessible and viable means to million-dollar ends is smart, successful real estate investment. They also know
The Million Dollar Plan
Dated: June 1 2021
Who wants to be a millionaire? Everybody!
REC understands that one of the most accessible and viable means to million-dollar ends is smart, successful real estate investment. They also know that all-important goals require a plan that’s both fool and market-proof. The appropriately named “Million Dollar Plan” measures market variables, accounts for potential risks and damages and operates on coveting insider information and insights to ensure that any client at any experience level can achieve their completely attainable financial aspirations. Keeping your eye on the prize has never been more critical. It’s imperative to start with the end; calculate the necessary annual income that will make your retirement a happy one. REC helps you create a plan that spans the course of the next two decades to steadily build your net equity through stable and safe real estate investment ventures.
REC recommends that your first investment, naturally, be your primary residence. Advising clients to stay at the lower end of their financial comfort zone, REC creates an adjustment period for new investors to learn the ropes of this more economically disciplined lifestyle. Keeping to a tighter budget also allows clients to save the mandatory ten percent of their income, allowing them to allocate those funds towards later diversifying their investment portfolios and RRSPs. Considering your options for a primary residence, choosing a detached or semi-detached property gives you the option to rent out spare rooms or space, significantly reducing your expenses and bringing in some extra cash.
Let’s jump ahead three to five years. You’ll be happy to see your property itself has appreciated anywhere between twelve and twenty percent, setting you up successfully for the plan's exciting next phase. After refinancing your mortgage, put your tax-free equity toward the purchase of a pre-construction condo. Purchasing in the pre-construction stage guarantees a stable, fixed price with the developer and gives you ample time to come up with the required deposit. You’ll enter into an incredibly advantageous stage of passive investment; your property value will be increasing without any anxieties caused by tenants, mortgage payments, or liabilities. Instead of flipping the property to another buyer in a few years, REC recommends closing on the property yourself, preparing it for rental, and continuing to pay your mortgage with the help of your tenants.
Around the ten-year point, you’ll be thrilled to discover that you’ve accumulated at least six figures in equity from your primary residence and income properties. You've also acquired enough knowledge and experience to continue to invest in developments with the advice of your team confidently. The conservative calculations made behind the scenes at REC will generate astounding results, something that will be reflected in your net worth at any point in the ten, fifteen, or twenty years!
Simeon is a 15 year Commercial and Investment Broker, with a strong and established presence in the GTA. He is the Co-Founder of REC Canada, an award winning Real Estate Firm whose fabric is made of o....
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