Fundy Capital Management Inc.
real estate investment and asset management



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CORPORATE PROFILE
WHY REAL ESTATE?
INVESTMENT OPPORTUNITIES
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CORPORATE PROFILE
Fundy Capital Management Inc. is a real estate investment company focused on ownership and management of residential real estate across Canada.
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INVESTMENT OPPORTUNITIES
Fundy Capital Management Inc. is currently seeking investment capital as part of its growth strategy.
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CONTACT US
Need to contact us? Here are our snail mail and email addresses and our phone and fax numbers.
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WHY REAL ESTATE? LONG-TERM INVESTMENT



WHY REAL ESTATE?
Real estate presents two basic advantages over other forms of investment: firstly, land is indestructible and buildings semi-permanent; and secondly, the amount of land available in most populated areas is limited. It is traditionally less volatile than many other investments and if purchased carefully can be as secure as a government bond with a greater return.




WHY REAL ESTATE? DIVERSIFICATION



A well-balanced portfolio should contain not only stocks and bonds but also real estate to ensure stability of income, growth and safety in any economic situation. Real estate can also be an excellent investment for retirement or estate planning.




WHY REAL ESTATE? FAVOURABLE TAX ASPECTS



  1. A profit from the disposition or sale of real estate is treated as a capital gain and taxed accordingly.
  2. The benefit of Capital Cost Allowance (depreciation) as a fully tax deductible cost. The depreciation expense allows one to defer income taxes.
  3. Interest on funds borrowed for the purchase of investment in income-producing real estate is tax deductible.



WHY REAL ESTATE? LEVERAGE



One of the key benefits of real estate is leverage or, in other words, debt. The investor borrowers to purchase a property and controls and owns the investment without putting up all the cash required. Debt also creates a hedge against inflation because one gets to make future mortgage payments with cheaper dollars.




WHY REAL ESTATE? RETURN ON INVESTMENT



Real Estate returns are obtained in a number of ways including the following:
  1. Annual Cash Distribution - These are cash flows available after all annual expenses including mortgage interest and principal repayment, but before deduction of depreciation. Generally, for the first several (one to three) years, the amount of depreciation allowable to be claimed exceeds the amount of income that is taxable thus the project's cash flow can be distributed through to the investor with significant tax advantages.
  2. Capital Appreciation - This is simply the amount the project has increased in value. This return is the primary focus of the purchase of real estate, i.e. selling it for a profit.



WHY REAL ESTATE? TROUBLE-FREE INVESTMENT



The objective of a trouble-free investment is to minimize the time spent by the investor in monitoring the investment. One of the benefits of promoter-sponsored real estate investments is that the investor purchases not only the promoter's recommended property but also the promoter's advice, expertise, professional management and track record.




WHY REAL ESTATE? BUY LAND, THEY'RE NOT MAKING ANY MORE OF IT!



"Ninety percent of the world's millionaires have acquired their wealth through real estate."
from An Introduction to Real Estate Appraising
the Appraisal Institute of Canada 







© FUNDY CAPITAL MANAGEMENT INC.