Located at 225 Wortley Road in Old South London Ontario, this core property compliments the existing lineup of solid performing investment properties operating in the best area of London Ontario – Old South.

This new 225 Wortley Road acquisition to our London Ontario property managment inventory represents tremendous value and opportunity.   An absolutely incredible location featuring a massive lot, structurally sound duplex, and the ability to add value via renovations were just some of the impressive factors that led to the acquisition.

As always, the price point for rent is incredibly good & represents great value for tenants…. In typical Brodylan White fashion, we are offering unparalleled quality living at a lesser price than our competitors.

Take some time to browse through our upcoming picture gallery on this 225 Wortley property in our find a home section.

Call Kerilee at 519-852-8600 now to schedule a viewing, this condo MUST be seen to be appreciated!

Available either January 1st 2010 or February 1st 2010.

Fabulous TWO bedroom TWO bathroom condo for only $825 plus utilities available January 1st or February 1st 2010…  You will LOVE it!

This perfectly maintained & impeccably clean building features controlled entry, fitness gym and sauna.  Located in a great London location near all amenities, this 7th floor condo unit offers FIVE appliances, fantastic views, and in-suite laundry…. all included in this bright and cheery condo!

Call Kerilee at 519-852-8600 today and schedule a viewing today!

That’s a common frustration shared with those who invest in real estate.

You work the numbers by tallying up all your mortgage expense each month, your property tax, your insurance, your property management fees, maintenance, and insurance each month (amongst all other possible variables).  Then you go on to estimate the monthly income (rent) in which the property would generate… only to find out that your calculated numbers don’t mesh or match.   You’re out a few hundred bucks each month.

Adding insult to injury, most of the time the numbers don’t jive because the property has a higher than average asking price…  A higher than average asking price as a result of the property being located in a highly desirable (and higher than average appreciating) part of town.  Meaning a higher than average future capital gain you would have realize by purchasing the property you’ve found.   You get the picture.   But the numbers tell you that you’re forced to pass on it because it screams negative cashflow.   In the end you walk away from that property, disappointed, searching for another lower priced (and likely lower appreciation potential) property offering you more sensible cashflow numbers.

But hold on. .. Don’t abandon that perfect property you liked so much quite yet.  Consider that a cash flow negative property becomes, in effect, cash flow positive by applying interest expense, maintenance and depreciation deductions to your earned income.  That is, the income tax paid today goes into capital gains tax deferred (until you’re in a lower tax bracket or never if you don’t sell).

Most property investors assume appreciation for in the long term.  It will happen since property is a real tangible investment and hence is indexed for inflation, although it’s not entirely critical to investing (see the blog post “How to Make a Million in Investing“).   For what it’s worth I’ve always assumed 5% long term in London, although some parts of London tend to appreciate faster than others (ie Old South).

The idea with the desirable property that just won’t seem to properly cashflow, is as follows:  I find a quality London Ontario home, for example somewhere around Wortley Village.  I pay out $1200 per month on the property (principle and interest mortgage payment, plus taxes, add in maintenance, management, etc).  I take in $975.   Now I’ve put myself in a negative cashflow position handing over $225 each month from my own pocket.   Of course I get to write off interest, and maintenance, and management, and taxes, and even depreciation.  That’s most of the $1200 (a little goes to principal repayment).   So, I end up paying $225 a month to my Brodylan White property manager, who then turns around and uses it to pay whatever shortfall I have.   That $225 is my net loss each month and I also add in a helping dose of property depreciation on top to increase it.

In the end, I’ve reduced my taxable income as a result.

Given the right tax bracket and the right numbers  one could certainly come out paying far less tax, by more than the $225 lost each month on the property… And that doesn’t take into account the potential capital gain, which obviously becomes more and more the longer you hold the property.

With a long-term perspective, many people have and will continue to capitalize on this.   Often these same people will even stay true to this strategy when the time does come to raise rents and enter positive cashflow territory.   They’ll re-mortgage the property when the interest expense gets too low, and then use the borrowed money for other investments.

Please understand that this certainly isn’t permission to rush out and grab a bad, money losing property just to be able to write expenses off.  This post isn’t to justify that behaviour.  Eventually you WILL have to either pay tax on free cash flow or pay some capital gains on sale, so rest assured the tax man will get his share.  The tax man is always out ensure his slice of the pie gets digested.  But that could be many, many years of tax deferral away.

Using Leverage and then taking it away strategy:

Now that the important tax ramifications of real estate investments have been discussed, as well as the importance of leverage, it should be tied into into the big picture highlighting the power of real estate investing.  I’ve always advocated that one of the best real estate investing strategies is to buy and hold several highly leveraged properties (I always suggest TEN properties) and then, in ten to fifteen years (or when you approach retirement) sell FIVE  properties and use the equity profit to pay off the other outstanding mortgages.

What happens is you end up going from 10 leveraged properties to 5 free and clear (no mortgage!) properties and collect, say, $7,000 or $8,000 per month (rising with rent increases each year to protect your purchasing power by fending off inflation).   Take it one step further, and insulate these 5 free and clear properties in a family trust, legally protecting them from the outside world and continually providing you with a legally protected steady and annually rising stream of income.

Your indexed pension at work just got hammered in the recent stock and mutual fund meltdown?  Consider the above real estate investing strategy today and contact us at Brodylan White to help you manage your way to your own indexed pension financial freedom using real estate.

This 229 Cathcart addition to our London Ontario property managment inventory was an easy decision.  Impressive layout, structurally sound, visually appealing, unbeatable location, and the ability to add value via renovations were all positive factors that factored into the the decision making process.  The 229 Cathcart property boasts 2 spacious units stacked on top of each other with the lower level consisting of 2 huge bedrooms, new bathroom and soon-to-be new kitchen all accessible with a separate private entrance.  The upper level is a beautiful three bedroom one bath apartment that must be seen to be appreciated.  Both units share a lengthy driveway allowing plenty of parking as well as shared laundry facilities, shared garage and fully fenced backyard.

Recessed lighting, new flooring and new kitchen will all be installed shortly offering our future tenant a luxurious unit that will essentially rival the best and newest condo units London Ontario has to offer.

The separating factor which proudly isolates this property from any competitors attempting to offer similar luxury accomodations however is the price point.  In typical Brodylan White fashion, we are offering unparalleled quality living at a lesser price than our competitors.

Take some time to browse through our picture gallery on this 229 Cathcart property in our “find a home” section and also be sure to check out our upcoming blog post  “Capital Gain Versus Cashflow – You Can’t Have it All”.

Be sure to check out the entire report which can be viewed here.

The London area real estate market continued to show signs of recovery in September, chalking up the third best sales total for the month.

The London and St. Thomas Association of Realtors (LSTAR) said 572 detached homes and 136 condos sold last month.

Total sales were down 7.8% from the 769 units sold in September last year. But LSTAR president Joe Hough said last September’s sales set an unexpected record for the month and came just before the market went into a prolonged downturn.

“That was our last hurrah. It was the best September ever so it’s good to see September 2009 back up there,” said Hough.

The only other year with better September sales was 2005.

Sales in St. Thomas market were especially good last month with 59 units changing hands, up 13.5% over the same month last year.

Year-to-date sales for London-St. Thomas are still down 10.1% compared to the same period in 2008. But home prices are back in the black with an average year-to-date price of $213,376, up 0.5% over last year.

Hough said London-St. Thomas has not seen the real estate rebound noted in some major Canadian cities because of the unemployment rate of 11.1%, the second worst if any major urban area in the country.

“Considering our (unemployment) numbers, we are in pretty good shape. It shows me there are people out there waiting to buy,” said Hough.

Reference: http://www.lfpress.com/money/2009/10/02/11248416-sun.html

All for only $***** a month!

Located only ONE block to Wortley Village…. London’s BEST location!

All rooms newly refinished, insulated, rewired with brand new flooring.

Two updated bathrooms, new kitchen, natural wood trim, natural wood fireplace mantel with gas insert, completely finished loft (for office or master bedroom!).

All windows replaced, large enclosed verandah, stamped concrete patio, oversize single garage with power (yours for $** a month).  Additional outdoor shed and professionally landscaped gardens.

Simply GORGEOUS!
Call us at 519-852-8600 today!

Newly Renovated 4 Bedroom Spacious House for Rent -

Completely renovated 4 bedroom house located at 129 Mount Pleasant.

Features stainless steel fridge stove & also dishwasher. Brand new completely renovated ktichen and bathroom. Incredibly clean with a massive park-like backyard.

Laundry in basement & plenty of parking

Under 1km from downtown and under 2km from university … a great neighbourhood and location… You’ll love it!

Here’s what has been done on the property:

Brand new kitchen, bathroom, & flooring, stainless steel appliances, Freshly painted in top quality Benjamin Moore paint, new windows, new front doors and rear sliding door added soon.

Brand new energy efficient furnace and air conditioning. Sparkling new light fixtures throughout. You’ll love it!
Email if interested or call Jessica at 519-852-7399 today!.

Entire 3 Bedroom HOUSE with partially finished basement. Washer & Dryer, Stove, Fridge, Forced Air, Central Air conditioning etc… In the HEART of Old South.
Short walk to Wortley Village, downtown,JLC (John Labatt Center) & Market.
Lots of storage & parking.

Call (519) 852-8600
Located in OLD SOUTH…. London’s best location.