What happens when everyone exits edmonton?

[francisheng]

I had this thought while chatting with a friend.

In rein, we talk about exit strategy and how important it is.

Edmonton is the top of the top ten towns list, which means there are a lot of people buying up edmonton, which is really great.

But what happens when most of us recognizes the exit time and decides to sell during the same period? On top of the numerous listings already in Edmonton, will that mean during exit time, we might have a harder time to exit due to all the increased competition built up over the years?

Note: Assuming that the 3,000 members have 3 properties in edmonton each. That will be an additional 9,000 listings on top of how man more there are in Edmonton at exit time.

Interested to know any thoughts. Please contribute.

 

[DonCampbell]

Good question,

Sounds like you`re thinking that a real estate market turns, and fundamentals change like a stock market.

Luckily it NEVER happens that way, people achieve their financial Belize at different times, as a matter of fact Members are continually buying and selling even right now when it is a buying time. In fact not a year goes by that a few REIN Members don`t sell everything and go and live their Belize. Real estate is just a tool to get to a financial level of freedom. Sophisticated investors don`t ever shoot for the peak.

Members have been riding fundamental waves for even longer than we`ve been called the Real Estate Investment Network, and throughout that time, market fundamentals have shown `sell` signals when Members got out of markets, with no affect on the overall market.

The key to remember is Fundamentals (instead of emotions) take years to shift, it is not like the stockmarket where everything turns in one day. There are always years in which to be selling your properties, not as if I will stand at the front of the room and say "HEY everyone it`s time to sell!" Fundamentals just don`t work like that. We will continue to tellthe good and bad economic stories of every region as it comes, we will discuss the region`s specific economics vs the rest of the country at their local Quickstart Live program and investors will use our research combined with their own knowledge combined with their goal to buy and sell so it fits their needs.

The important piece to remember is that these decisions are based on something, the 12 Fundamentals we detail at Quickstart... not emotions.

Thanks for the great question, keep your eyes on the behind the scenes research!

 

[MikeMcCrae]

Also, one needs to have a plan to get out (long term plan) none of us wants to sell a dozen or two houses in one year. The tax man would get more than his share. Planned entrance and planned exit along with the REIN fundamentals will make you as successful as you would like to be.

 

[DonCampbell]

So true Mike. A long-term purchase and long-term exit plan is required for sure for tax planning and business planning

 

[joeiannuzzi]

QUOTE (francisheng @ Feb 20 2008, 10:39 PM) I had this thought while chatting with a friend.

In rein, we talk about exit strategy and how important it is.

Edmonton is the top of the top ten towns list, which means there are a lot of people buying up edmonton, which is really great.

But what happens when most of us recognizes the exit time and decides to sell during the same period? On top of the numerous listings already in Edmonton, will that mean during exit time, we might have a harder time to exit due to all the increased competition built up over the years?

Note: Assuming that the 3,000 members have 3 properties in edmonton each. That will be an additional 9,000 listings on top of how man more there are in Edmonton at exit time.

Interested to know any thoughts. Please contribute.

This is the exact same question I had when I first joined REIN. The key to remember is that no two investors are alike. We are often told to buy low and sell high but the reality is that most investors buy high and expect to sell even higher! Most investors will only get into something when it is too late to make money. This is not based on fundamental investing but rather emotional reasons. As long as you follow the fundamentals that are mentioned in REIN and have an exit strategy and solid marketing which is unique to your situation, you will have no troubles selling even if there are 9,000 listings.

 

[ChrisDavies]

I`d asked my Dad this same question too, and his anwser was exactly what Don and Mike said.

Another thing to consider is that investors only make up ~4% of the market.

 

[francisheng]

That is excellent. Thank you Don for the insight. I have lots to learn. (I am getting so much out of last week`s BC Quickstart.)

Thank you Mike, Joe and Chris for your insights as well. It is through such interaction that we all learn so much from each other. I hope to see you at any REIN event one day.

Now, time to get back to the research.

Have a great weekend!

 

[GregGillespie]

QUOTE (ChrisDavies @ Feb 21 2008, 06:20 PM) Another thing to consider is that investors only make up ~4% of the market.

Hi Chris,

Is it that we investors only make up 4% of the market or only 4% of Canadians own investment real estate? I recall Don mentioning that 40% of the listings in Edmonton right now were vacant or tenanted which would suggest that the 4% that we belong to (as investors) currently make up a much larger share of the current real estate market.

Is this what you were referring to?

Greg

 

[ChrisDavies]

QUOTE (GregGillespie @ Feb 26 2008, 07:31 AM) Hi Chris,

Is it that we investors only make up 4% of the market or only 4% of Canadians own investment real estate? I recall Don mentioning that 40% of the listings in Edmonton right now were vacant or tenanted which would suggest that the 4% that we belong to (as investors) currently make up a much larger share of the current real estate market.

Is this what you were referring to?

Greg

It one Don mentioned, so perhaps he can clarify, but I was under the impression that it was 4% of transactions were for investment properties. It does make much more sense to say that 4% of Canadians own investment real estate. I don`t have a source handy, but I`ll try and find some hard numbers later.