SHARI JOHNSON Realtor - Tradewinds Realty inc Email: Shari@novascotialiving.ca
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Investing in Income property

When the time comes to re-sell your secondary property, any appreciation you gain over the original purchase price is subject to tax, although expenses for reasonable maintenance, repair and improvements can often be deducted before the gain is calculated.

Similarly, whether the income is earned from a portion of your principal residence or from a separate income property, any rental income you derive from your real estate holdings is generally subject to tax, less some of your operating expenses. As with any investment, planning is key to a successful income property. Be sure that your first step in your planning is to thoroughly investigate and understand the income and taxation implications of each strategy, so consult your lawyer, financial advisor and accountant before entering into any commitment.

Once you understand how earnings are calculated and taxed, the next step is to prepare your cash flow plan. Since it's operating as an investment, your primary consideration should be the property's ability to generate a positive cash flow, i.e. the profit left to you after all operating expenses have been covered. I can help you by offering mortgage financing options, helping you find a suitable property manager and find what rents are being paid in the market, estimating operating expenses, and much more.

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