Real
Estate Investing in Canada
"To change your results, you must change your actions"
"Real estate investing is a journey, not a destination, we need
to enjoy it every step of a way"
12 factors that affect the real estate values (up or down) in a town.
These are:
1. Mortgage interest rate
--> Since my goal is long term investment (at least 5 years), low
interest rates are more of a neutral thing. Why?, low interest rates
drives properties upwards, BUT, allow more renters to become
homeowners also. What to do? Buy properties during low interest
rates and hope that a year from now, interests rates will go up (a good
thing for long term investors). However, be extra careful as low
interest rates translates to more property bidders.
2. Increase in Average
Income --> as average incomes increase, so do real estate
values. Go to www.rbc.com/economics to determine Ott's
affordabilibty index. Current AI = 41.3% (standard 2-storey) and
AI=31.8% (standard townhouse).
What to do? according to the book, look for a town which have an
25<AI<36. I wonder where can I get infos about different Ott
cities?
Ott areas having incomes on the increase:
1.
2.
3.
3. Watch out for major
announcements of new jobs or major new business moving to an area.
4. Ripple Effect
--> when a specific area1 has boom in prices, the sorrounding areas2
follows, though often not at the same rate as the area1.
5. Areas with positive business atmosphere...hmmm Ott I guess since its
both a govt and hi-tech offices out here
6. Transportation Expansion
!!!! Dont buy on the announcement, buy after the work
begins so you know if going to happen
7. Buy areas in
transition, for example in Greenbank
Property Goldmine Scorecard! Use it wisely!
Good information for buying rental properties
http://www.firstrentalproperty.com/how-to-buy-your-first-rental-property-step-one/
For every property..you must complete all of your due diligence and
number crunching before you buy it. NO EXCEPTIONS!!!!