When you invest in a piece of real estate, the price you pay up front is about a quarter of the total worth of the property. With stock, if you want an investment worth $25,000, you pay $25,000.

* Your tenants are going to pay down your principal balance, essentially buying the investment for you.

* Each time you make a mortgage payment, your ROI, Return on Investment, will increase.

* Your property’s worth is going to increase, so you’ll be getting a return on the growth of the property total value.

* Property appreciation is taxed at 50% of regular income as a capital gain until it is sold.

* Leverage – Real estate investments may be leveraged. Banks are willing to lend an investor 75% or more of the total investment price. For instance, if a property is worth $100,000, you’ll be able to buy it with a $25,000 down payment… possibly less if it’s CMHC insured!

* Appreciation – When a market has strong fundamentals, property tends to increase in value each year while the debt owed on the property decreases.

* Cash Flow – A sound property will cause a positive cash flow from the beginning of the investment and continue to increase over time as the mortgage is paid down and rents rise.

* Predictability – Real Estate is far more predictable than stocks, which means less risk.