Perception

[rosecorp]

Garth Turner: www.greaterfool.ca is a daily blogger,former MP,is all for doom and gloom in Real Estate.

Information,should be peeled like an onion,not just jumping or running on headline news.
All comments or compliments would be appreciated on the above blog(on daily basis),from a real estate investor viewpoint,
as we have so many knowledgeble Individuals on this forum,it would really help keep Perceptions and Knowledge for all class of
investors in the right mode.

On a personal note,I believe in real estate investing,but also believe,diversifying into some other asset classes is a good idea,
I remember last March talking to one of the Experts at a Rein Forum,I was run down by the expert ,when talking about returns on
RRSP,when investing on shorter term ,in stocks(a bargain at those times) or real estate at that time,Garth Turner at that time
advocated for buying some stocks,as they were really undervalued,I hate to admit he was right ,compared with
some investors purchasing properties in Grande Prairie,where values are still struggling,so if somebody did an RRSP mortgage on a
property in Grand Prairie last year,the house would be negative equity.(Note:This is my personal experience,reader might not agree with me)

Friends, I firmly do believe,over a period of time most of the investments,erase the pain only if we can sustain the investment.
So,perception is really important but with the right information and knowledge.
Good Luck Investing and I hope,we get the lots of feedback on the blog,as it would help in peeling the onion of Information.

Regards,

Roy

 

[gwasser]

QUOTE (rosecorp @ Jul 21 2010, 08:08 AM) Garth Turner: www.greaterfool.ca is a daily blogger,former MP,is all for doom and gloom in Real Estate.

Information,should be peeled like an onion,not just jumping or running on headline news.
All comments or compliments would be appreciated on the above blog(on daily basis),from a real estate
Good Luck Investing and I hope,we get the lots of feedback on the blog,as it would help in peeling the onion of Information.

Regards,

Roy


Hi Roy,

There is a lot of discussion on this forum regarding investment alternatives. Just check the many posts on option trading or comparison between real estate and stock market. If you are interested in diversified investing you could have followed the link on many of my postings to my blog "Canadian Diversified Investor".

But overall this is a forum about real estate investing and there is a wide range of opinions. Obviously the overall tone is positive; why would one bother with this forum if one did not believe in the merits of investing in Real Estate?

Personally, I do not follow Garth Turner, but he seems to be very good at upsetting people and creating sensationalist headlines. I have read some of his stuff and I was not impressed. But then, probably many people say the same of my insights. It is all in the eye of the beholder.

 

[housingrental]

After reading what you`ve linked to I don`t see why people show so much hate to Garth Turner... Its all very reasonable, and while not guaranteed certainly possible...

 

[REINteam]

My personal opinion, not that of REIN™...this is just Ray talking here, is selling doom and gloom or general negativity is EASY...you`re primarily selling people into fear and inaction which bring you, the seller, minimal repercussions AND people in general buy into fear and love not having to do anything.

Granted I don`t follow Garth Turner, so I cannot comment on his suggestions for stocks. But, saying he was right...how right was he? In 3 years what will we say IF GP real estate is up significantly and those stocks he suggested tank? I guess my point is he may be right for a period of time, but is it long term? REIN™ subscribes to long term wealth creation and we know real estate is a fantastic tool for creating such, hence we take action and buy...and not every year is great, rent can go down, maintenance can pop up, but if managed properly and bought well it works.

Back to the blog in questions and my initial point of selling negativity is easy...

Example: Garth Turner tells you Real Estate is a bad investment so you don`t buy any

-You are comfortable b/c you found an easy out from taking any action
-It`s easy, you don`t have to do a thing
-IF real estate goes up you won`t blame him for anything, missed opportunity sure, but odds are you won`t remember anyways and you`re already sold on RE being a bad investment
-IF real estate goes down you both feel like geniuses, but once again, all real estate doesn`t go down together, so even though you feel smart someone somewhere is making money in real estate

No hate for Garth here, I`m sure he has logical reasoning for what he preaches, he`s not a dumb guy and in the end it sells.

My 2 cents

 

[Berubeland]

Garth Turner has some VERY good points. He`s a product of the overheated Vancouver market. Can anyone here say that buying a house in Vancouver makes a whole lot of sense with a 0% down like many first time buyers have been doing?

The first thing Don`s books talk about is finding properties with positive cash flow. How many investors in Vancouver or even Toronto have found cash flow there?

Appreciation is a great thing but can only be counted as a bonus. Properties must be bought on the fundamental value of the cash flow of the asset.

Garth also says some ridiculous things, such as sell your house because when the market goes down you`ll lose all your appreciation. I think a personal residence`s primary use is to keep the snow off your head, but that`s just me.

 

[markl]

We are finding Cash Flow properties in Toronto.

Sorry to high jack the thread just needed to mention that.

 

[bizaro86]

QUOTE (markl @ Jul 22 2010, 05:48 AM) We are finding Cash Flow properties in Toronto.

Is that when using rent-to-own or with straight leases? Are we talking larger multi-family? Just curious because that doesn`t quite fit with the consensus view around here. So if the consensus (or my read of it) is somehow mistaken, I`d be very interested in finding out how and why.

Regards,

Michael

 

[housingrental]

Cash flow is often a function of debt structure..... A good chunk of multi-family Toronto landlords have low leverage on purchases

 

[bizaro86]

QUOTE (housingrental @ Jul 22 2010, 09:42 AM) Cash flow is often a function of debt structure..... A good chunk of multi-family Toronto landlords have low leverage on purchases

If that`s how he`s defining it, then I understand completely. I find anytime the conventional wisdom has a flaw in it, there is something to be learned, and those lessons often prove profitable into the future.

I meant cashflow in the "standard 20% down" sense, although I tend to evaluate properties I buy myself with a theoretical 0% down, to ensure that I`m earning a return on my downpayment cash.

Regards,

Michael

 

[terri]

QUOTE (housingrental @ Jul 22 2010, 08:42 AM) Cash flow is often a function of debt structure..... A good chunk of multi-family Toronto landlords have low leverage on purchases
I calculate in the interest on my down payment so leverage so basically all my numbers are calculated based on 100% financing and yes, Mark is right, it is possible to find cash flowing properties in Toronto.

 

[Berubeland]

I didn`t say it wasn`t possible, I found one myself this spring a big fat 12% cap. (Once Rented) 7 apartments and 7 store sold for 1.2 million.

My question is how many investors are finding them?

 

[housingrental]

Interesting.....

Post info ; address, work needed, current numbers, etc..