Do you want to become a mortgage investor? Mortgage Investment Corporations, or MICs, are one of the most popular choices for new investors who are aiming at higher returns with low risks. MICs offer portfolio diversification that helps investors to become a shareholder in a property without having to buy it.
Investors just need to pool their money in the MIC pool which is then transferred to eligible mortgage borrowers. Versa Platinum is a leading real estate investment company assisting investors in making a better real estate portfolio, along with earning profits in the form of quarterly dividends. If you are a new investor, we can guide you through the mortgage investments and help decide which property is the best to invest in.
Some Benefits of Investing in MICs include:
- Portfolio Diversification
Since investors’ money is pooled together and invested across multiple real estate properties, their portfolios are diversified across different properties and borrowers. By becoming a shareholder and owning a diverse mortgage portfolio, investors can mitigate any risk and avoid putting their entire investment in just one property. Investors are required to keep at least 50% of their assets invested in residential mortgages as part of their portfolio and add commercial property as well. This diversification helps mitigate potential risks associated with investment and ensures consistent returns.
- Consistent Cash Flow
There is a chance to earn consistent passive income by investing in MICs. By receiving quarterly interest payments on their mortgage investment, investors can generate steady profits. This means without having to actively manage their investment portfolio, investors can benefit from consistent cash flow. Furthermore, the income from MIC assets will not fluctuate as long as borrowers make their mortgage payments on time.
- Stable Returns
MICs often yield higher returns than those of conventional fixed-income investments, such as bonds or GICs. A MIC investment’s return will differ based on the MIC you choose to invest in. Stability and capital preservation are other benefits of well-managed MICs, along with fewer risks and a degree of investment security.
- Tax Advantages
Investing in a MIC may provide tax benefits as the dividends earned from MICs are less heavily taxed than other types of investment income. To fully understand the advantages and particular tax obligations in your province, talk to a mortgage investment consultant having experience in mortgage investment corporations.
So, these are some of the benefits you can enjoy by putting your money in a mortgage pool. If you are looking for a trusted MIC company in Abbotsford and want to invest in real estate, Versa Platinum is right here for you. Contact us to discuss your mortgage investment needs and get started today.
