Run on a Four Wheel Car instead of a mono wheel or a two wheel !
Get on a Fast Track !

Do you want to invest your money with the expectation to get a target minimum of 9% return over the years !

Do you want to have the above return while you are holding on to some Tangible Assets !

It only happens in real estate investments, the most preferred kind of investments for Canadians.

What is the Known Secret :

The First Wheel :
A 9% return you get over the years is after all expenses and debt services.

We call it a Cash On Cash Return of 9%.

The Second Wheel :
From the monthly mortgage payments being paid by the rent, you have a principal paid every month, it will be an average of 3 to 4% per annum based on your loan amount.

We convert this into a return on the amount of money invested, it will be a minimum of 5 ? 6% to your pocket.

This principal pay down gives you a return of say 5% per annum.

The Third Wheel :
Depreciation will be applied to all fixed assets. We call this Capital Cost Allowance in Accounting Terms. On an average, capital cost allowance will be a minimum of 3% a year on the building. We convert this into a return on the amount of money invested, it will be a minimum of 6%.

This Factor of Depreciation gives you a return of 6% per annum.

The Fourth Wheel:
Assume nothing happens and the economy is not much developed over time, the costs of inflation will still apply.

This Factor of Appreciation will be a minimum of 3% a year.

(using a very conservative approach)