The subject of wealth building will surround you as you get older. Wealth building basically means growing the net value of your combined assets as a whole. You can certainly derive excellent wealth building benefits which grow over time through Ottawa condo and property ownership.
Build Equity And Gain Wealth
There are 2 ways you can gain wealth through condo ownership. When you pay down your mortgage, that is when you first start building equity. This is due to the fact that a fraction of your payments towards your mortgage each month helps lessen your total debt. Initially, you will be mostly paying interest on your mortgage loan, especially in the first couple of years. After that, more of your mortgage payments will go towards paying off the primary loan. Without realizing it, a $350,000 loan you took out many years ago will have only $60,000 left to pay off.
Secondly, the value of your Ottawa property will appreciate over time. Depending on the current market trends, your property will rise in value with each passing year. Though it may decrease in value at times, real estate values almost always increase if you wait through the down times. You can find condos in certain parts of the country seeing their values skyrocket by up to 15 percent or more in the present market condition. Real estate investment and profit is a hot topic among Ottawa property owners.
An Illustration Of Wealth Building
To illustrate how owning a condo can be beneficial, let’s examine the following example. Suppose you purchased a Ottawa property 5 years ago without a downpayment at a price of $500,000. Ten years later, you find that after consistently paying your mortgage you have an outstanding loan amount of $150,000, and at the same time, the value of your condo has risen to $700,000. When you deduct the current value of your property with the amount you have paid so far for the house which is $350,000, you will see that you have gained a net asset of $350,000. You would not have gained this wealth of $350,000 if you have rented a condo during this time frame. Owning a condo can indeed be advantageous.
Owning a condo is a good way to increase your wealth and assets and if you have yet to buy your own Ottawa condo, this is the time to start searching for one. I can help answer any questions at any time, so please don’t hesitate to give me a call.
HomeLife Capital Realty Inc., Brokerage*
