I was hoping to sell my property as I\m relocating out east for a few months or so..but I\ve had to lower my intial price 40,000[its a twn home in westsprings calgary]I\m having a hard time selling or even finding a renter...what does everyone think about holding on to the property for a year renting it out and perhaps next spring selling it?
QUOTE (mozsmen @ May 23 2008, 12:59 PM) I was hoping to sell my property as I\m relocating out east for a few months or so..but I\ve had to lower my intial price 40,000[its a twn home in westsprings calgary]I\m having a hard time selling or even finding a renter...what does everyone think about holding on to the property for a year renting it out and perhaps next spring selling it?
I think its a good idea. If you use proper marketing techniques, you really shouldn`t have a hard time finding a renter.
I think its a good idea. If you use proper marketing techniques, you really shouldn`t have a hard time finding a renter.
QUOTE (DaveRhydderch @ May 23 2008, 01:10 PM) I think its a good idea. If you use proper marketing techniques, you really shouldn`t have a hard time finding a renter.
Hi,
Here are the facts about Calgary real estate today:
"There is today on the Calgary Real Estate Board`s MLS system 2,370 listings that are vacant, another 1,045 are tenant occupied and 714 out of the total of 10,563 have been on the market over 100 days. In the last two days 367 of those listing changed their asking prices."
- quoted from Jerry Carlton (Realtor - REIN Member)
"Those numbers will increase before they start to come back to reality. The market pendulum swung so far the other way in the a HUGE sellers` market that the momentum has swung it strongly back into the HUGE buyers` market."
- quoted from Don R. Campbell (REIN president)
"The city`s vacancy rate is projected to rise to 2% this year, up from last year`s 1.5%, the Canada Mortgage and Housing Corporation said in a report released yesterday."
- quote from The Calgary Sun (Apr 12, 2008 issue)
<http://calsun.canoe.ca/Business/2008/04/12/5266631-sun.html>
It is quite obvious that the rental market is VERY GOOD for investors. A 2 per cent vacancy means out of 100 properties for rent, there`s only 2 that are vacant. This vacancy shows properties that are currently in transition. In short, we have no vacancies in Calgary.
Now that you are armed with those hard data, you can make an informed decision on what to do.
Cheers!
Hi,
Here are the facts about Calgary real estate today:
"There is today on the Calgary Real Estate Board`s MLS system 2,370 listings that are vacant, another 1,045 are tenant occupied and 714 out of the total of 10,563 have been on the market over 100 days. In the last two days 367 of those listing changed their asking prices."
- quoted from Jerry Carlton (Realtor - REIN Member)
"Those numbers will increase before they start to come back to reality. The market pendulum swung so far the other way in the a HUGE sellers` market that the momentum has swung it strongly back into the HUGE buyers` market."
- quoted from Don R. Campbell (REIN president)
"The city`s vacancy rate is projected to rise to 2% this year, up from last year`s 1.5%, the Canada Mortgage and Housing Corporation said in a report released yesterday."
- quote from The Calgary Sun (Apr 12, 2008 issue)
<http://calsun.canoe.ca/Business/2008/04/12/5266631-sun.html>
It is quite obvious that the rental market is VERY GOOD for investors. A 2 per cent vacancy means out of 100 properties for rent, there`s only 2 that are vacant. This vacancy shows properties that are currently in transition. In short, we have no vacancies in Calgary.
Now that you are armed with those hard data, you can make an informed decision on what to do.
Cheers!
R
Howdy, sounds like you have a decision on your hands... now before you just jump in and `rent it out`, you may want to ask yourself a few questions, because being a landlord is not as simple as it may sound. Couple of questions to ask, because renting out a property is not for everyone...- Is the property a good candidate as a rental? Have you analyzed the competition in the area? What are comparable properties renting for, and how do you stack up?- Have you analyzed the numbers? I believe you mentioned that you could rent it for $1,500. What if your expenses when you factor in everything (taxes, mortgage, insurance, management, vacancy, repairs and maintenance etc.. etc..) is $2,200/ month. How does this impact you? What do your numbers tell you? What is your cash flow on this property (insert your numbers)?- Re-evaluate your timelines, a 1 year window of time is WAY TOO SHORT to consider if you are looking to rent out your property. Within most investors portfolios, it is a minimum of 3 years before you start to see any significant results.
- Are you prepared to take on the business of owning and operating a Real Estate rental business? (Even if it is one property- one with $400,000 in assets that generates $18,000 in Gross revenues (insert your numbers)) Are you able to emotionally separate yourself from the property and treat it as a business transaction?
Becoming a landlord you have to treat it like a business (because it is- even if you have only one property), you need to base your business on 3 key pillars
- System (do you have a system to effectively manage your property?)
- Relationships (Do you have a network of people whom you can go to on your team?)
- Follow-through (Do you have what it takes to stick it out for at least 3 years... preferably much longer!)
I am not trying to discourage you from renting your property out, as building a Real Estate business has been the chosen vehicle for myself and many investors to create substantial long term generational wealth.... but you need to be prepared, educated and supported before jumping in.
I just want to manage your expectations from the beginning, as I have bought many a property from part-time *landlords* who were only wanting to rent out their property for a year, and after that year was over they became very motivated sellers, and I do not want that to happen to you.
Sorry if this post does not give you clarity as to a decision, I guess my bottom line advice would be
If you plan to rent out your property HAVE...
- Help - surround yourself with a good team
- A Long Term Plan - with a one year time line you may be ok... but what if it is not long enough?
- A good system to manage your properties - With a good system (or professional manager, who has a good system) they can help smooth out the day to day operations of your rental business.
I could go on further here, but I think I have given you some questions to ask yourself
Best of luck.
- Are you prepared to take on the business of owning and operating a Real Estate rental business? (Even if it is one property- one with $400,000 in assets that generates $18,000 in Gross revenues (insert your numbers)) Are you able to emotionally separate yourself from the property and treat it as a business transaction?
Becoming a landlord you have to treat it like a business (because it is- even if you have only one property), you need to base your business on 3 key pillars
- System (do you have a system to effectively manage your property?)
- Relationships (Do you have a network of people whom you can go to on your team?)
- Follow-through (Do you have what it takes to stick it out for at least 3 years... preferably much longer!)
I am not trying to discourage you from renting your property out, as building a Real Estate business has been the chosen vehicle for myself and many investors to create substantial long term generational wealth.... but you need to be prepared, educated and supported before jumping in.
I just want to manage your expectations from the beginning, as I have bought many a property from part-time *landlords* who were only wanting to rent out their property for a year, and after that year was over they became very motivated sellers, and I do not want that to happen to you.
Sorry if this post does not give you clarity as to a decision, I guess my bottom line advice would be
If you plan to rent out your property HAVE...
- Help - surround yourself with a good team
- A Long Term Plan - with a one year time line you may be ok... but what if it is not long enough?
- A good system to manage your properties - With a good system (or professional manager, who has a good system) they can help smooth out the day to day operations of your rental business.
I could go on further here, but I think I have given you some questions to ask yourself
Best of luck.