February 13, 2006
 REAL ESTATE – A VIABLE ALTERNATIVE INVESTMENT
From childhood, we have been taught the importance of saving, putting aside funds for “a rainy day.” However, as we mature, we realize how inflation can erode the value of the dollar, causing the funds saved today, to be more often than not, worth less in the future. Therefore, in order to maintain or increase our purchasing power, the astute investor looks beyond the traditional savings and investment instruments which may provide some income, but no growth or capital appreciation. One asset class receiving increased attention for these enhanced returns is real estate.
As you are probably aware, many have attained significant wealth through real estate investment. Property prices in our local market, like so many others, have risen over the long term by substantial amounts and continue to grow at a rate which far surpasses that of inflation. In this regard, investors are looking at portfolio diversification, through investment in real estate while at the same time managing their risk.
Some of the benefits of allocating part of your investment portfolio to real estate include:
- Inflation hedge
- Risk management through diversification
- Supplemental income such as rental income
- Collateral
- Tax benefits
- Less volatile than other investments such as shares
- Availability of cash through equity financing
- Psychological comfort
When seeking financing for your real estate investment, here are a few tips to consider:
- Shop around for competitive rates including legal costs, closing costs and insurance
- Choose a financial institution that can provide financing for the full period over which you wish to borrow
- Choose a financial institution that has a proven track record in the business
- Consider the financier’s ability to provide personalized banking solutions and other services
At Clico Investment Bank (CIB), we can provide financing for your second mortgage in real estate. The Bank will be happy to meet with you to discuss your investment in commercial property, land or renovation of your home, as well as your other financing needs.
CIB, more familiarly known as “the house on the corner” with a reputation for exceptional customer service and private banking, also provides installment loans, advances, purchases of income flows, leasing, revolving loans and project and contract financing. You can call us at 628-3628 for further information.
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