Once real estate is considered as part of the mix, it becomes important to evaluate the current real estate market, and determine the appropriate timing for investment. At this time, the situation is extraordinary in terms of offering real estate opportunities and financing options that were not available in the past. So it's an ideal time to carefully consider your options, and how they fit the short, medium, and long-term situations of upfront costs, projected earnings, and retirement income. For example, let's say you are considering investing in an additional property to earn rental income and long term equity. As long as interest rates remain low, you may be able to negotiate a very favourable loan, borrowed against your current home equity, for a down payment on a rental property. If you buy wisely, the rental income could cover a sizable amount of the carrying costs for both the down payment loan, and the new mortgage payments. As you pay down your debt, your rent is increasingly converted into income. You can then choose to further increase your short term income when it's time to renew your loans by spreading the reduced debt over an extended time, or continuing to pay down debt and build equity faster. Better still, you can project your own personal needs and interests, and consider the type of home you may eventually want to move into. After analyzing the various costs, consider whether you could use it as an income property until such time as you decide to move in. Then you can sell your current home when the market plays to your best advantage. < Previous Page Page: 1 | 2 | 3 Next Page > Peter Kunz Tel: 416.229.4454 x263 Fax: 416.229.6480 peterkunz@royallepage.ca 169 Willowdale Avenue Toronto Ontario M2N 4Y7 Copyright ©2009 Peter Kunz. All rights reserved. Royal LePage Partners Realty is an independently owned and operated brokerage.