What to Buy?

[loewencc]

Looking to purchase a property in High River Alberta... the quastion is what? There seems to be a few ways to go with the properties available and I just can`t decide which way is the better way to go (Long Term)
A Newer Condo (2 bedroom)
A shanty Shack on HUGE lot (needs tlc)
A 5 bedroom `trailer` upgraded on a huge lot.

Isn`t it always better to own the land when you buy? I have been hesitant with condos in the past.
But its nice and new and may attract a better clientel.

Shanty shack would definately rent as is and cash flow...nicer lot, better side of town, future re-development opp??

Trailer would rent... and really cash flow... re-sale would be tougher.

What are the most important factors when trying to decide which way to go when all are in a similar purchase price range? Any feedback would be much appreciated
Corene Loewen

 

[MonteDobson]

I would suggest either the condo or shanty shack and scrap the trailer.

Trailer`s are hard to finance and re-sale may be tough.

Condo`s typically provide a lower maintenance cost than a house, but condo fees can eat up cash flow.

With The Shack, it sounds like you should be able to rent out easily and can add some value by renovating/upgrading.

Main thing is "shoot the puck" and go for it!!

 

[DonCampbell]

I also recommend that you look elsewhere than the trailer (depreciating asset).

Take out the Property Analyzer form and find out which one is going to be the easiest one to make positive cash flow from and pick that one.

Best choice is get both, however if I was to have to choose, I would go with the cash-flow property.

 

[GSI]

QUOTE (loewencc @ Apr 3 2008, 12:05 PM) Looking to purchase a property in High River Alberta... the quastion is what? There seems to be a few ways to go with the properties available and I just can`t decide which way is the better way to go (Long Term)
A Newer Condo (2 bedroom)
A shanty Shack on HUGE lot (needs tlc)
A 5 bedroom `trailer` upgraded on a huge lot.

Isn`t it always better to own the land when you buy? I have been hesitant with condos in the past.
But its nice and new and may attract a better clientel.

Shanty shack would definately rent as is and cash flow...nicer lot, better side of town, future re-development opp??

Trailer would rent... and really cash flow... re-sale would be tougher.

What are the most important factors when trying to decide which way to go when all are in a similar purchase price range? Any feedback would be much appreciated
Corene Loewen


Hi Corene,

My question to you would be... are these the only 3 properties to purchase in High River? If you`re working within a specific price range, don`t rule out creative ways to finance or purchase. If you think your options are limiting you to only a few choices, perhaps you could widen your target by including properties a little higher in value and see if the seller would hold a second mortgage or similar financing. That could open up your options.

Condos can be good. I prefer 3 bedrooms to 2 as they are easier to rent. perhaps a Town House with yard where you own a proportional piece of the land, or 1/2 duplex. Keep in mind you don`t have to buy 1 of the 3 you`re looking at either. You can broaden your scope and potentially find something better.

When you look at the `shanty shack` look at the zoning and see what you are able to build on it. Even if you don`t intend to build, the future buyer may well do so. If you have a lot that can hold 1 or 2 properties or multi-family use, then it might be a good candidate. Don`t look at it just because it has more land than another place- land use (zoning) is critical. Find out what it is before moving forward on it.

Getting into action is key- but knowing WHAT to take action on is essential.

Thanks