Is “As Is” a Good Financial Move?

16Sep08

In some cases, you’ll see homes being sold “as is.” This means that you have to buy it exactly as you see it. There are no allowances for problems, you can’t negotiate because the windows are sixty years old, and if the home has been damaged, you won’t get a further reduction in price. Moreover, should a later inspection uncover serious damage you weren’t aware of at the time of sale, you’re out of luck when you attempt to recover your costs. So, are homes like this even worth a look? Absolutely.

When individuals simply want to sell a property, they’d frequently rather sell it in the current condition than try to make repairs before the sale occurs. For example, say an aging couple has decided to move to a nearby retirement village. In most cases, they no longer notice things like cracked plaster or aging floors. They simply want to leave the home and let the buyer take care of things. In many cases, homes like this aren’t in unrepairable conditions. It simply takes a bit of work to get them ready for the market again. The great thing about homes being sold in “As Is” condition is that they’re significantly less expensive than others on the market. You could easily make a heft profit simply by doing some minor repairs.

The danger here, though, is that you must know what you’re getting into before you sign a contract. Be sure to request a home inspection so you that you’re aware of any serious structural or foundation problems before you buy. Sure, an “As Is” home may look like a great deal, but if it’s structurally unsound, it could be condemned before you can ever get your first set of contractors in to have a look.


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Flipper or Landlord?

15Sep08

In past posts, we’ve devoted quite a bit of time to discussing how to get your team together to get started in the world of real estate investment. Once you have decided to start, though, and you have team members in place (or at least a few in mind), where do you go from there?

The key to any investment is to have a plan in place before you move forward. One key component of your plan should be how you plan to use your investment. While there are lots of ideas, you have two primary choices in the world of real estate investment:

  • Turn your purchase into rental property and become a landlord
  • Flip your home (on any timescale) and sell it for a profit

Before you can even consider making a property purchase, you should have your plan in place. One of the best parts about real estate investment (as opposed to other types of investment) is that a back-up plan or a back-up plan for your back-up plan is pretty easy to come buy. After all, you own a physical piece of property, not a sheet of paper that says you ‘own’ part of a company. As a result, even if your primary plan is to turn your purchase into rental property, if you need to sell it for some fast cash at some point, that’s always an option.

Before you decide which will be your primary plan, though, do some research. Both options are equally difficult ones. Renting a property in the Edmonton real estate market is a phenomenal idea. There are lots of potential tenants. Being a landlord, though, comes with its own set of rules and regulations. There are permits to file, tenants to please, and lots of overhead.

Flipping, on the other hand, has headaches of its own. It requires a huge time commitment. You’ll have to build a team of contractors to work with. There are always going to be set backs in budget and timeline. Moreover, you may have to deal with market fluctuations in a way that landlords just don’t.

Both real estate investment methods are great ideas. Investing in the market is easily one of the most stable ways to provide for your retirement or your child’s college fund. Before you start talking to your team, though, make sure you have some idea of where you’re headed with your project.


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It Doesn’t Show Signs of Stopping . . .for Women

04Sep08

With the news release of strong August numbers from the Realtor’s Association of Edmonton comes phenomenal news for women. Not only will the market remain strong in the coming months, but Marc Perras, president of the REALTORS® Association of Edmonton, suggests women are increasingly responsible for the market’s well being.

“Sales will increase from demographic changes such as more single women buying houses and condos,” Perras said in a recent news release from the association. While that’s encouraging for women in the Edmonton real estate market, it’s great news for women everywhere.

Women are typically reluctant investors for many reasons, but one of the biggest it the lack of support they recieve for their investments. It takes time, patience, and hard work to learn the world of real estate investment, but in the end, those who do take the time see some serious profits as a result. It certainly isn’t easy, but it’s more than possible, and your best first step is to surround yourself with help and learn as much as you can before you get started.


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Finding the Right Time to Sell

28Aug08

Investments are designed to give you a profit, and investing in real estate is little different. You buy a property with the understanding that you will eventually want to sell it. The tough part, though, can be understanding when the time is right for a sale. Here are some guidelines that may help you decide if now is the right time to sell your investment.

  • You’ve found a property that looks like a better investment. If you find a property that is worth significantly more than your initial investment, the smart move is to sell your first investment, and head for the better one.
  • The tax benefits are no longer significant. Some real estate investors experience great tax benefits for a period of time. Once those benefits have expired, it might be time to get rid of the property.
  • You’ve already gotten as much profit as you think is possible. The Edmonton real estate market is in fine form these days, and if you think that your investment property is worth as much now as it is ever going to be, it may be time to sell.

When you are prepared to sell your investment property, having the right team to help is essential. After all, it’s important to get as much as you can from your investment, and little things like professional real estate photography and the right marketing techniques can make all the difference. For a few selling tips, take a look at this video, then take a moment to contact us.


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Clearly the Best Place in Canada!

28Aug08

While many investors are initially unsure of their investments, those who have a bit of faith in the Edmonton real estate market have finally been vindicated. Canada’s Real Estate Investment Network recently suggested that Edmonton beat even Calgary in the battle of the best spot for an investment property. With thirteen total spots on the report cited as great places to invest, many were thrilled to learn of Edmonton’s status.

The report went on to suggest four of Edmonton’s bedroom communities as great places to invest as well. Both Sturgeon and Strathcona were rated as the tenth best places. Devon was ninth. St. Albert was rated as fourth.

Report author Don Campbell said “Edmonton remains at the top of all lists of best places in which to invest, whether you are talking provincial, national or worldwide,” and that has many folks excited to begin the process.

If you’re ready to get started, take a moment to visit with us today.


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Investing Internationally

22Aug08

Perhaps one of the best aspects about real estate investment is the idea that you can invest anywhere in the world, even if you aren’t local. This can be quite helpful if the market you’re in has taken a turn for the worst. Whether you live across the border in the U.S. or you’re as far away as Australia, you can be part of the growing Edmonton market, and that may mean a good return if your market isn’t as hot as it should be right now.

Before you get started, though, there are several things you should consider.

  1. The rules for international investment work a lot like the rules for local investment. You have to have a team of professionals to help you not only understand the laws in the area, but also just to properly accomplish the transaction. This discussion may help explain the team approach a bit better.
  2. With international investment, currency exchange rates can be your best friend or they can really damage your profits. Understanding the currency and the foreign exchange market is essential before you start making purchases.
  3. Remember that there are still some professionals who feel bias toward women investors. The adage that “Women will never understand investing” is a prevalent one that crosses international borders, so as you try to find your team to help, make sure that’s not a problem for them.

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The Numbers Remain High!

21Aug08

An August news release by the Realtors Association of Edmonton suggests that the numbers of August continue to make Edmonton one of the best markets in the country. With sales up by 186 units this month alone, the inventory peak we saw in May is steadily declining. While Edmonton was once only the tenth highest priced market in the entire country, it’s now the fifth, helping to ensure investors can expect great returns in the months to come.

Whether you’re thinking of buying your first home or you finally want to join the real estate investment market, numbers like these make it clear that Edmonton and the surrounding area are the place to get involved with real estate.

The first step toward real estate ownership for any reason, though, is to assemble the right team. The chances are good that you’ll need someone to help with financing, and on top of that, you need individuals to help you find the perfect property in the perfect area. Real estate truly is a group effort, and we’d like to be able to help. If you’re ready to get started, take a moment to view this discussion on Edmonton Real Estate and how the team approach can help.


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Looks Like a Bargain? These Steps May Help You Decide

18Aug08

These days, many buyers think a bargain is possible if they buy a home that needs renovations.  Unfortunately, even in Edmonton, this isn’t always the case. Buying a home with problems you believe you can repair often involves hidden costs you may have failed to estimate at the outset. As a result, getting a great return on your investment won’t always be as easy as you’d hoped.

First, take a look at the house carefully. Think about the current problems, and add the selling price of the home to the renovation estimate costs. Try to estimate high when it comes to these costs, and if labor is involved, be sure to include that as well. From there, think about what the home’s selling price might be after you’ve made the renovations. Look at other similar homes in the area to help you determine this number. Subtract the cost of your purchase price and renovations from the home’s potential selling prices to come up with a good number for your offer.

Second, be sure your contract includes an inspection clause. There are several things you could have missed in your own evaluation, and understanding whether the home has serious structural damage, overwhelming plumbing problems, or something similar may be the key to helping you decide whether this is truly a project you want to get involved wit.

Finally, be sure that you have the funds to handle your renovation projects. If they’re fairly minor repairs, a major credit card should help with the funding. If, though, you have extensive work to do, you may need to take out a renovation loan through a mortgage broker. To learn more about funding your investment property, take a look at this helpful video.

For more great tips, be sure to keep an eye on our blog in the days to come.


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Considering Your Needs

13Aug08

Finding a great home is a difficult prospect for many people. After all, only you can decide what is most important as you’re searching for a house, and understanding both your wants and your needs before you ever begin the process is absolutely essential. One of the first things you should do before you ever meet with a realtor is make a mental list of what you’d like to see in your dream home. Here are a few things you may want to consider.

  • The feel of the home is essential for ensuring you’re in love with your new home. Several things help to factor into the feel of any given property. The space available in each room, the height of the ceilings, even the type of flooring used can all have an effect on the home’s feel. Those looking for something that feels luxurious, for example, might want to go with an open floor plan, higher ceilings, and indulgent material choices for the floor like Brazilian hardwood.
  • The location of a home is equally important. While being near the Edmonton area may be a must for your line of work, deciding whether you’d like to live in Edmonton or in a carefully planned community near Edmonton like Spruce Grove will help make your decision a bit easier. Edmonton has a lot to offer, but so do the smaller communities around it, and deciding between the city life and one just outside the city is crucial to your housing decision.
  • The bonus items a given property offers can help you make your final decision as well. After all, if you imagine a boat in your future, a three car garage may be one bonus you’d like to consider. Love music? A built-in audio system may become important in your final choice.

Buying a home is a big investment, and making sure that you’re in love with every aspect of the property can help make the process easier. Take a look at your real estate options on our site.


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Raising the Bar

11Aug08

Home ownership in the Edmonton real estate market is a fantastic opportunity. Not only are there some great ‘feel good’ aspects involved with owning your own home, but the financial benefits are overwhelming too. From the property appreciation you are certain to experience as you own your home to the potential tax benefits of owning property, your home will pay for itself in more ways than you can imagine. As you decide to start down the path toward home ownership, though, it’s essential that you get a home you love, and for many these days, that means a custom-built luxury home.

While many buyers simply look to the first listing they see, taking your search one step further may provide you the peace of mind you need with an investment the size of a home. Custom-built luxury homes often mean the exact floor plan you need. Additionally, with amenities like three car garages, built-in audio systems, and more, you’ll have everything you need to truly enjoy your home. Take a look at one selection in this video.

If you’re in the market for a property that truly meets your needs, take a moment to contact us today. We’ll help you not only find the best home for you, but the best community as well.


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