edmonton real estate – Real Estate Investing in Any Market
With the recent downturn in the Edmonton real estate market, many people are thinking that buying investment property in Edmonton is a bad idea. Why buy a product that is dropping in value, right?
The recent influx of investors into the Edmonton housing market has shown us that it’s not for everyone. You have to handle it right; and do it systematically. Here’s some advice from 2 of the smartest real estate investors in the world…
“I buy property for the monthly income. The periodic property gains are secondary. Because my properties have positive cash-flow, I am less concerned by down turns and less dependent on upswings to make a profit.” – Robert Kyosaki, author of “Rich Dad / Poor Dad”
This caption, in a nutshell, defines how savy real estate investors around the world make a lot of money. it’s also the ideology that allows them to weather the bad markets and profit in the good ones.
Basically, these people buy investment property that they don’t have to put money into every month. The rent covers the mortgage, maintenance, and other expenses. The investor will even increase their down payment to get the monthly payments to where they want to be. This way, if the real estate values drop… the investor is still making a profit from the property and can afford to “Weather the storm”. Likewise, the investor doesn’t have to worry about the value going up to turn a profit. That’s not what it’s about for them.
“I buy property with the intention of never selling it.” – Walter Sanford, World Reknowned Real Estate Investor and Trainer
Almost as important as cash-flow, the type of property that you buy can be crucial. Buying a property with the intention of selling it right away will allow you to overlook certain aspects of the home, such as maintenance and cash-flow. But if you’re buying it to keep it forever you start to worry about things like a 5 year plan of maintenance and what the neighborhood will be like in 20 years.
As a real estate investor myself, I buy Edmonton investment property only when these 3 questions are answered with a “YES.”
1. Will it cash-flow right away?
2. Will I still want to own this in 15 years?
3. Would I sell this to a client of mine?
Question 1 is obvious. I want a monthly income from this property. In fact, I often put more than 20% down on the property to make it cash-flow in a positive manner. I would rather buy a $300,000 property with 35% down and a positive cash-flow than buy a more expensive home with less down payment and a weaker cash-flow.
Recently people have been buying the most expensive property possible, regardless of the cash-flow position of the property. They do this because a home worth more will show a higher return on property value increases. This is great… so long as the market goes up for them. It’s a risk, and one I’m not willing to take anymore.
Question 2 comes straight from Walter’s suggestions. I am only looking at rental property that will be still be good in 15 or 20 years. This means that I’m looking at newer homes, or condos with solid financial plans. I want to have an investment in 15 years… not a “tear down”. I find that the condition of the property is a bigger issue for me now, which means I’ll probably inherit fewer problems with the property.
Question 3 is my own. This forces me to take an objective view of the home. If it’s not good enough for my clients, then it’s not good enough for me. I take a great deal of pride in getting my clients the best home possible for their specific price point; but can easily forget to do the same for myself. So if I won’t put a client into the home… then I won’t buy it for myself. For your own “measure” ask yourself this: Would you let your own mother rent it from you? (This assumes that you like your mother!)
In a nutshell, here’s what you should be looking at when buying an Edmonton property for investment. Buy a property that will sustain itself so that you aren’t supporting it out of your own pocket every month. This will reduce your stress when your personal circumstance changes. Buy it with the intention of owning it long term. This will get you a higher quality property because you’ll be more selective about deficiencies and possible problems.
Finally, don’t stress about the property value on a month-to-month basis. If you follow the guidelines above, you’ll be making money every month in the form of money in your pocket. In 20 years you’ll have a nice piece of real estate that HAS GONE UP IN VALUE SIGNIFICANTLY and has no mortgage on it. Retirement anyone?
John Carle
John is a real estate agent in Edmonton, Alberta, Canada. He markets and sells homes throughout the capital region, including St. Albert, Morinville, Sherwood Park, and Fort Saskachewan. His knowledge and experience has garnered him the respect of agents and consumers alike throughout the area. In the past 10 years, John has helped to shape the face of Edmonton real estate.
John is a great resource for any home seller or real estate services. If you don’t live in the Edmonton area, he’d be happy to find you an agent that he would trust.
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Wildrose Alliance snags Tory insider for president – Yahoo! Canada News
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Thu Apr 29, 6:24 PM
CALGARY (CBC) – Longtime Progressive Conservative fundraiser and Ralph Klein insider, Hal Walker, is turning his back on the Tories to take over as president of the Wildrose Alliance Party.
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The Calgary-based real estate entrepreneur announced Thursday he is resigning from the board of directors of the Calgary-Elbow PC Association to become the interim head of the small-c conservative Alliance.
Walker was a Tory for 35 years, playing a central role in former premier Ralph Klein’s inner circle of advisers. But he said Thursday that Premier Ed Stelmach’s misguided policies are out of line with conservative values and have left the long-governing party “unsalvageable.”
“We have all witnessed the many well known public policy disasters by this government, from the botched royalty review, to the health-care mess, to the uncontrolled spending that is wiping out our savings and plunging us back into debt,” said Walker.
“But the common denominator in all these mistakes has been the failed leadership of Premier Ed Stelmach. I simply do not believe he is doing his job.”
Current Alliance president Jeff Galloway is stepping down to serve as vice-president of fundraising, clearing the way for Walker to run for a full term as president at the party’s annual general meeting in June.
“He brings a wealth of strategic experience in Alberta politics with him, said Wildrose Alliance Leader Danielle Smith.
Earlier this year, two PC MLAs from the Calgary area Rob Anderson and Heather Forsyth crossed the floor to join the Wildrose Alliance.
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Edmonton Houses: A Lifetime Investment
Edmonton is the spectacular capital city of Alberta, which enjoys a steady inflow of tourists all the year round. The ‘city of festivals’ keeps busy throughout the year and there is never a dull moment. It will undoubtedly be a wise move to invest in a house in Edmonton for the simple fact that the economy of the region remains stable despite the severe set backs all over the world.
Buying an Edmonton house can be a great investment because of the wonderful location abuzz with various cultural activities and a pleasurable experience as well. The nature trails over an entire stretch of 160 miles can certainly work up your appetite, which you then get to satisfy in any one of the numerous gourmet restaurants dotting the cityscape. Your real estate agent will be able to fill you in on the details and you might be surprised when you learn that the end of the year is specifically considered to be the most advantageous time for buying an Edmonton house.
If you look towards the real estate market in Alberta in general and Edmonton in particular, you will find that the lure of single-family homes still holds strong. A typical family home in Edmonton is considered to be reasonably priced at $500,000. An Edmonton realtor may be able to procure exactly what you want at an affordable price. However, you will be able to zero on in the ideal Edmonton house if you consider living in a condo as the supply currently outstrips the demand in this section turning it into a buyer’s paradise.
By: Dan Yurdiga
Article Directory: http://www.articledashboard.com
Dan Yurdiga is a renowned Edmonton real estate agent. With him around, you do not need to pore over the newspapers, drive around the neighborhoods, or browse through the Internet anymore to find the home of your dreams. A sound knowledge of real estate matters, experience in clinching lucrative deals and the trump cards that make him so successful and trusted a name in the Beamount real estate market.
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