Vernon BC Real Estate Investing
Real Estate investing is very rewarding and it is the very best investment that you can make.
The Perfect Business
Finding a business that requires almost no capital and has excellent returns with almost no managerial responsibilities is next to impossible, right? Wrong! If you or someone that you know is currently renting, home ownership is the perfect business. With a small, or possibly no down payment as start up costs, a home of your own is possible for only $1000/month. As ridiculous as this sounds, the same condos rent for $1200/month. Thats right, a possible cash saving of $200/month. This does even include principle reduction on your mortgage which could equate to about $100/month. This means a monthly profit/savings of $300 per month. (approximate figures)
The start up cost can be repaid in a few years. After a time, you now own a business free and clear. This has been accomplished with no extra effort and a monthly savings of cold hard cash. Now you can sell your business tax free for a large profit, rent it out for extra income or use it for free! Where else can you find such an opportunity.
Everyone has to live somewhere which creates demand for your business. Yet it requires no extra effort except the decision to contact me and fill out some forms. If credit is a problem, often friends or relatives would be more than happy to help someone obtain their first home.
First time Buyers.
It is an important step in your life. You do not need to understand everything about mortgages and the other steps required to own, you can use me, a REALTOR(R) to help you through the process. There is never a bad time to buy. Ask me about my first home.
First time buyers often say things like ‘We are going to save a little longer’. Did you know that for the last couple of years you would have needed to save $2,000 per month just to keep pace with the market increase of a $200,000 townhome. The mortgage industry is very supportive and creative when it comes to you buying a home. You may be able to buy with ‘zero down.’ Stop renting. Buy now.
Your Primary Residence
Your Primary Residence is very likely the first and largest investment of your life. Take care of it. It will grow in value like any investment property. History shows that Real Estate doubles in value every ten years. For example, my parents bought a home in 1974 for $50,000, in the 80’s it was worth a hundred, in the 90’s it was worth $200,000 and now it is worth $400,000. Now use your equity to get further ahead.
Rental or Investment Property
Here is a simple scenario. (round figures) You purchase a $200,000 townhome with $50,000 down, carrying a $150,000 mortgage. The tenant pays your mortgage and in fact you may have a positive cash flow every month. In ten years your property is worth $400,000. Your $50,000 has become $275,000 (?) and your mortgage is still getting paid down. That is a pretty good return on your money. You can use the equity from your ‘principle residence’ and/or ‘investment number one’ to purchase ‘investment number two’ and so on.
‘Flipping Houses’ is quite popular due to popular TV shows but it is trickier. The costs to renovate have to be watched carefully and this is certainly easier for someone that will be hands on. In the end, if the profit margin isn’t there, you can consider keeping it as an investment property. The biggest mistake in house flipping is overbuilding for a nieghbourhood. Ask for my advice.
‘Spec’ Homes and Custom Homes
Building a new home on Speculation can be a reasonably quick return on your investment money. Unless you are a builder you will need to partner with a registerd builder. Choose wisely.
New homes are easier to build than renovations and sometimes the feeling of building something new is more rewarding.
Are you considering building a home for yourself? Do you need a builder? If you want to build your own home maybe you just want an advisor? Contact me for help.
From small subdivisions to major developments the reward can be huge personnal satisfaction and financial gain. My experience as a project Manager for a number of developments can help you through the political process and the construction process. However, this is a much more complicated process and far to involved to discuss here. Give me a call.