| RISKS IN REAL ESTATE | ||
|
“Prices have moved up 10 per cent in the last six months, so people are worried that if they wait for the perfect house, it won't be affordable,” says Mr. MacKay, whose client offered $62,000 over the asking price on the Commercial Drive home, but landed near the bottom of the pack because her offer was contingent on getting two weekdays to finalize the financing. “So if someone is offering on a house that's $950,000, but they can afford $1.1-million, they think they'd better pay it now because that house will cost $1.75-million before they know it.”Still, experts say that even though Vancouver posted record sales in August – a whopping 117 per cent over the previous year – the overheated market is not likely to last. The backlog of buyers will purchase homes, and more sellers will enter the market, marking a return to a more balanced situation.
05
Aug
Canadian Snags 37 Units From Foreclosure
Author: admin / Category: Arizona Real Estate, Canadian Real EstatePHOENIX-For the second time in two weeks, a bulk condo deal in foreclosure has ended up in the portfolio of a Canadian buyer. Les Hartland of Condo-Condo Holdings Inc. in Calgary, Alta., paid Corus Bank NA $4 million to acquire 37 units from the 80-unit Biltmore Palms condominiums in an off-market transaction.
The transaction for the units at 4343 N. 21st St. comes less than two weeks after another Canadian buyer, Jeff Appleton, bought the remaining 186 units out of foreclosure from the 276-unit Hawthorne on Third Avenue. In the came of Biltmore Palms, a San Diego, CA investor had bought the 10-year-old asset, known at the time as Andover Square, for $12.45 million, but was only able to sell 43 units following the conversion.
02
Aug
Why A Remodeler’s Warranty is Critical – 6/1/2009 – Professional Remodeler
Author: admin / Category: UncategorizedAs real estate investors, we’re often looking to make sure that any capital improvements we make are going to be worth the investment. Generally speaking, we want to make sure that our investment will be paid for by our tenants over the period of 2 to 3 years. So, we don’t want to be having to pay out more money to fix issues with that investment over the 2 or 3 years, or it ends up taking longer to pay off.
This is where a tradesperson’s warranty comes in very handy. Ideally you should be looking for tradespeople that warranty their work for a period or 2 or 3 years, or even longer if you can get it.
This brings up another topic for real estate investors. Just as professional tradespeople need to have funded reserves to cover their warranty work, we should also have funded reserves to pay for repairs, and to make capital expenditures. If we don’t, we’ll quickly become don’t wanters that ultimately will be trying to find someone to buy our properties that will insist on discounting the value. Don’t make yourself a don’t wanter. Do the right thing.
For the tradesperson, there’s benefits as well. Please read the following article from Professional Remodeler magazine for more info.
What kind of warranty does your company offer?
…
Often, a one-year warranty is looked at as a “must provide” to clients, and companies breathe a sigh of relief when that year goes by without a call.
via Why A Remodeler’s Warranty is Critical – 6/1/2009 – Professional Remodeler.
21
Jul
LaSalle says European comm. property sector stabilised | Currencies | Reuters
Author: admin / Category: European Real Estate, International EconomyLaSalle Investment Management on Monday said investor sentiment in the European commercial property sector had stabilised, that repricing had found a floor and that there was rising interest in the UK market.
In its 2009 Mid-Year Update, the U.S. real estate investment firm said, looking forward to 2010, investors should capitalise on the reversion to more sustainable pricing in commercial property, although deals will need to withstand falling rents.
This could be achieved by long leases or by picking properties that were so attractive to occupiers that they will weather the recession without this protection, LaSalle said, adding retail offered the best investment prospect.
via LaSalle says European comm. property sector stabilised | Currencies | Reuters.
McKinsey & Company’s report, The Case for Investing in Energy Efficiency, shows that US$170-billion can be invested in energy efficiency projects globally for 13 years with an average internal rate of return (IRR) of 17%, which will generate US$900-billion of annual savings by 2020.
Just how good an investment is energy efficiency? To benchmark it, the long-term average return for investing in the stock market is 10% and for real estate, 16%. So energy efficiency gives a better rate of return than the two things we’ve always been told generate long-term, proven returns.
03
Jul
Avoid GST Pitfalls in Real Estate Transactions | Carters Professional Corporation
Author: admin / Category: Canadian Real EstateUNDERSTANDING THE BASICS OF G.S.T. IN REAL ESTATE TRANSACTIONS
1. G.S.T. applies to every sale of land unless an exemption applies.
2. G.S.T. is payable on the earlier of the transfer of title or possession, except for possession of a condominium.
3. The vendor is required to collect and remit G.S.T. subject to certain exemptions.
03
Jul
Alberta remains best place for real estate investors
Author: admin / Category: Alberta Real Estate, Canadian EconomyWhen it comes to the housing market, E-town still rules.
That’s the word from Don Campbell, president of Canada’s Real Estate Investment Network.
The popular author, consultant and public speaker says Edmonton remains the best place on the continent to invest in residential real estate. It’s a claim he first made last August, shortly after oil prices peaked at$147 US a barrel, and Alberta was rolling in energy riches.
Despite a sharp drop-off in oil and gas prices since, and a big slowdown in new oilsands projects, Campbell hasn’t flinched. He insists Edmonton will emerge from the recession stronger than ever.
“According to our research, Edmonton is still the No. 1 place for long-term investing in real estate in North America, absolutely,” says Campbell.
02
Jul
How to invest real estate | The Commercial Real Estate Fallout: Profiting From the Death of the Shopping Mall – Contrarian Stock Market Investing News – Featuring Bargain Stocks
Author: Daniel / Category: US EconomyAnd therein lies the problem: Less employed workers means less discretionary spending, less homes being built, bought and sold, less trips or none to the local mall, less warehouses needed, less manufacturing, less transportation… all resulting in a big pullback in GDP.
Consumers are spending less, not more. When they do spend, it’s on staples: food, gas and clothing.
| THE LYNES’ ROAR | |
|---|---|
| Volume #2 Issue #6 | 2009 |
|
Recap to Apartment InvestingFurther to the last issue, we are so passionate about apartment investing that we can’t help to share a few more jewels with you. PHYSICAL ANALYSIS: In-suite conditions must be livable, clean and functional with a good efficient layout. Common areas, roof, mechanicals; security is key as everyone wants to be safe while they are sleeping. FINANCIAL ANALYSIS: Check lease provisions. Ensure terms are properly enforced with background checks. Historical data should have three years of operating history; a major upturn just before being placed on the market should be a concern. Almost everyone lies about their utility costs, so ask for the utility bills. TIMING VS LOCATION: If you buy the property right in the wrong location, you can still get hurt. The physical location will help us read the demographics. TIMING VS VALUE: If you buy cheap enough, if the market tanks I will still be okay? Not really true. If the market takes a dive, you could have a serious challenge getting your project to fill. The key is that if you are cashflowing in a property you don’t have to sell even if the market is down. Therefore, you have to buy right, at the right time, in the right location with the RIGHT TERMS.
|
Master Your Invisible PowerWe feel fortunate to have attended the world-famous seminar “The Millionaire Mind Intensive” by T. Harv Eker’s team. To master the inner game of wealth, you should read Harv’s book: Secrets of the Millionaire Mind.
There was one exercise that made some people in the audience and Julia cry. In the end, Julia was taught to let go of her pain from childhood experiences owing to her mother’s extreme dominating and abusive behaviors. People who have to be right are usually the most miserable. Research shows that 47% of all cancer is related to unresolved anger. The seminar trainer, Doug Nelson, says it best: “everyone does their best they can at times. We don’t necessarily forget, but we do necessarily forgive”. If you are ready to experience a life-changing journey yourself, please call or e-mail us as we have received some free tickets from the event. Managing Your Credit ScoreA credit score is a number that lenders use to help them decide “if I give this person a loan or credit card, how likely is it that I’ll be paid back on time?” It essentially dictates your finances. Most of us don’t know this number until we apply for a loan. Julia has met a lady, who got declined for a mortgage because she had been paying everything in cash and had not established a credit history in her life. FIND OUT WHERE YOU STAND: Request a copy of your report from the three major credit reporting agencies (CRAs): Equifax, TransUnion, Experian. FIGURE OUT THE FACTS: One late payment on your Visa can stay on your report for up to seven years. If you find any discrepancies, you need to fill out a dispute form and send it back to the CRA by registered mail. Fortunately, the law states any item not being verified as accurate must be removed from your report. CLEAN UP: Set up a plan to eliminate existing debts. Clearing up debt can take time. Remember that you have the right to add remarks to your file. Take the opportunity to defend yourself and point out the good areas of your report, such as highlighting a loan or a mortgage that was paid on schedule. PROVE RELIABILITY: Taking out a loan that you don’t need and then paying it back in a short span of time can prove that you are a good credit risk. TOO FEW OR TOO MANY: The ideal position is to have a few lines of credit, never more than you could afford to pay off on your income, and with none of them maxed out. Cancel old cards that you never use. Don’t ever max out one giant line of credit by putting your entire debt on it. This is akin to killing the goose that laid the golden egg. “Holding on to anger and resentment is like drinking poison and expecting someone else to die.” - Unknown Daniel Lynes and Julia Lee Lynes |
We are in a recession. Maybe it will become a greater recession. We don’t know. But it is a time of credit contraction instead of credit expansion. A $5 shirt? A $10 pair of shorts? That is a sign of deflation. A few months ago, these same clothes may have had designer brands on them – Diesel or Polo Ralph Lauren, perhaps. Excess capacity was created by excess credit. That is what happens in an expansion. Manufacturers borrow to increase capacity, so they can sell more products to credit-addled consumers. Then the excess capacity dooms them. They put out too many goods and too many services. When demand falls along with incomes and housing, prices fall too. A couple of our readers share that their line of credit (LOC) has been revoked by their bank, because they have not used it for many years. If you are relying on your LOC as a contingency fund, be aware and be prepared. Ideally, the purpose of a LOC is to buy income producing properties that create positive passive income every month.
The Passing of a Legend
Each of us has a personal money and success blueprint already engrained in our subconscious mind. It is this blueprint that is running our financial life. Yet, we might not know how to reset it for success. Our comfort zone is in direct proportion to our income zone. We should have an active income as well as a passive stream of income: real estate, storage, Internet marketing, etc. Millionaires are good money managers. Yes, we are excited to start using an excellent and easy money management system. You can too!