where to invest

Rickson9

Senior Forum Member
Registered
When it comes to money, I don't care that I don't see, touch or smell most of it.

Maybe that's why people spend so much money on food.

Lol

I look forward to buying property in AB. I probably won't see, touch or smell those either.
 

CorySperle

Senior Forum Member
REIN Member
Well said! I doubt there are very many stories out there that mirror yours, and have heard of many folks being ripped to shreds investing south of the border. On the flip side almost anyone who is disciplined and follows a proven system like REIN in an area they know well (live in), is virtually assured success if they are patient.

Interesting perspective on AB. Some folks are completely gunshy and are waiting, others cautiously moving forward, others balls to the wall buying anything they can get their hands on. At what point are you at right now?
 

Rickson9

Senior Forum Member
Registered
Well said! I doubt there are very many stories out there that mirror yours, and have heard of many folks being ripped to shreds investing south of the border.

Seems unlikely unless they purchased before 2008. And almost impossible if purchased in 2009 and 2010.

...others balls to the wall buying anything they can get their hands on. At what point are you at right now?

Also seems unlikely that some are buying "anything they can get their hands on" in AB.

Still buying US property. Better yields. If Calgary or Edmonton goes over 9+ months supply, I'll be there.
 

REInvestors888

Inspired Forum Member
Registered
Good insights, gentlemen. It broadens perspective of many rookies and veteran investors as well.

Any thoughts on TransCanada pipeline to USA under Trump presidency?

Thanks for sharing........
 

Thomas Beyer

Senior Forum Member
REIN Member
It is still far too early and far too risky to buy in AB unless super good deals. Wait to 2018.

XL likely will get approved as well as Kinder Morgan Transmountain pipeline expansion to Burnaby, but not Energy East nor Northern Gateway. So likely two pipelines within 3-4 years, but oil price will stay muted as US cranks up the production.

The AB advantage is gone gone gone until 2020. Massive debt creation, higher electricity prices, inept government with sustained very noticeable anti-investment sentiment, muted oil prices, CO2 taxes, rising unemployment due to minimum wage increases, weak hiring, ex-migration, falling wages, bloated government AND slightly rising interest rates .. sorry I do not see ANY signs of upside here. Start buying when you see NDP exit signs (say due to merger of PC and WR - still a crap shoot) or oil sustainably above $60. Both of these signs are about 2 years out I'd say. Wait to buy until then. No rush to buy anywhere in AB as prices will remain flat flat flat (or up/down ever so slightly) for at least 2 more years.
 
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Advantage

www.bwpconstructionedmonton.com
Registered
Well done and good choice! My projects in Edmonton are down, but it's no worse than 2011. You get ahead by ignoring the naysayers and chicken littles out there and buy where it makes sense to you.



Didn't Warren Buffett say: "Be fearful when others are greedy and greedy when others are fearful".
 

REInvestors888

Inspired Forum Member
Registered
Didn't Warren Buffett say: "Be fearful when others are greedy and greedy when others are fearful".

For sure it's the way to go. However, I think it is more applicable to investors who got enough $$$$$$$$ and who do not need ROIs/Cash Flow to pay the mortgage.
 

CorySperle

Senior Forum Member
REIN Member
I didn't quote Warren Buffet, so I'm not sure why my name is attached to it. Whats the purpose of your post dude?
 

CorySperle

Senior Forum Member
REIN Member
I was referring to the gent ahead of you who misquoted me and provided no additional substance. But now that you mention it yours is equally as confusing.
 

Advantage

www.bwpconstructionedmonton.com
Registered
Cory,
You said you get ahead by not listening to the naysayers and chicken littles' of the world. In other words, don't give into the fear mongering. I agreed and used a quote from Warren Buffet to back up your theory.
What's confusing about that?
 

Thomas Beyer

Senior Forum Member
REIN Member
Asking "where to invest" is as nuanced as asking "what car to buy" or "what do you like to eat" .. as it is highly individual, depends on one's appetite for risk, one's ability to write a sizable cheque, one's ability to spend time researching an area, one's desire to spend even more time managing an asset impeccably once acquired etc ..

To make money in real estate you have to know a SMALL area of a city with upside very very well, and then specialize in an asset type, as one cannot be an expert in THs, SFHs, multi-family, mobile home parks, commercial office towers, retail strip malls, land development or ocean front acreages although all of them allow plenty of upside (or downside if done poorly).

As such, a better question to ask, for example in Edmonton is: I have $105,000 to invest and I am thinking to buy an up-down house in BonnieDoon (close to the new LRT) or in Millwoods (also close to the new LRT). Which one is better ? Or: will Calgary be better than Red Deer ? Or: AB is recovering. is it too early to buy now, better wait a year ?
 
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Oleksandr11382

New Forum Member
Registered
Tough too possible to do on any healthy Canadian City. Only in rough parts of certain US cities, smaller US cities or remote northern Canadian towns.

Or perhaps levered with double the mortgages ie $2-2.5M in assets with 500-700,000 in cash.

Most gross yields on houses are 4-7% in Canada, for example a house I am buying in Kamloops for 430,000 is $2200 or so a month or 5% or on Penticton where a 1/2 duplex for $305,000 is about $1600.

As real estate books recommend 10% gross yields, is it possible to get such numbers in Canada, especially nowadays?
 

Thomas Beyer

Senior Forum Member
REIN Member
As real estate books recommend 10% gross yields, is it possible to get such numbers in Canada, especially nowadays?
Not in large healthy Canadian cities. In some smaller far more risky communities with ex-migration or large dependency on a resource play: yes.
 

kfort

Senior Forum Member
Registered
The last two I bought in Saskatoon were:

34,200 / 323,000 = 10.6% (4yrs ago)
And
36,600 / 360,000 = 10% (this month)

Traditional rental. Non furnished. Suited houses with detached garages rented separately
 

Oleksandr11382

New Forum Member
Registered
The last two I bought in Saskatoon were:

34,200 / 323,000 = 10.6% (4yrs ago)
And
36,600 / 360,000 = 10% (this month)

Traditional rental. Non furnished. Suited houses with detached garages rented separately

Good for you. Here in GTA it's less then 10% , more like Thomas numbers.
Is it a single family or duplex/triplex?
 
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Willyboy

Frequent Forum Member
Registered
Good for you. Here in GTA it's less then 10% , more like Thomas numbers.
Is it a single family or duplex/triplex?

Don't bother, that was something from the past I mean the past decades when buyers used to cash flow and also pay off mortgages way faster. Nowadays, with hyperinflation in house prices and massive consumer debts and for those entering the market in our present time there's no 10% gross yields in most Canadian cities except maybe a few where properties are way cheaper but the potential of appreciation in there is not great. If you're lucky you're looking at 4% to 5% but if you do a risk study on all aspects for the long term you end up with 2% to 3%.
To sum it up for you, if it were't for price appreciation it wouldn't be as attractive or worthwhile an investment as many people think. So in my opinion you should have a bit of speculation in mind and do your due diligence as far as where or what cities are poised for future growth and from there you keep waiting till the property goes up in value but you might have to wait for a very long time possibly over 15 years.
This means you have to have either a secure job with some cash for rainy days or a big reservoir of cash.

Good luck!
 
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