FINA 210 Study Guide - Final Guide: Income Statement, Landspace, Canada Revenue Agency
6 Dec 2016
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Real estate investment outperforms stocks and bonds with lower risk. Minor players: notary/lawyer, real estate agent/broker, contractor/inspector. Major profit = capital gains(selling price original cost) Longer you keep it, the higher the capital gain. Golden rule of real estate: leverage = time + options. A good broker will save 5x the cost of their fee. The rei cycle experiences excess when supply of properties is high; this results in a decrease in property values and indicates a good time for you to buy, but not to sell. Several factors affect the real estate market, such as interest rates, taxes, legal restrictions, local or provincial economy, population mobility, vacancy, property location, and public opinion of the property. Can borrow money for s/t (1 to 5 years), 6-10 years = intermediate or l/t (10+ years) Leasehold says how long tenant can use property. Investor = landlord, bank uses property as collateral (insurance), govt gains property tax or cap. gain tax.
