In the Ottawa Real Estate Market, we the industry professionals have a common prayer, "Oh Lord bring back the good market and I promise not to waste the opportunities this time." Well it would appear that our prayers have been answered with the latest Seller's Market however not without its penance. Consider this: for every dollar lost in the market is a dollar gained by someone else. More often we here investors lementing over lost opportunities that they wished they would have jumped on or kept longer as prices soar. It is all a matter of perspective as failing to plan or lack of action by planning to fail can be deadly to your financial future. With inflation rates expected to rise, doing nothing is not an option. In our opinion, there has never been a better time to buy real estate.
Considering that one man's trash is another man's treasure. We endeavour to source out opportunities for our clients and assist them in planning their next move toward financial independence and a securing a profitable portfolio. Meeting our clients needs or exceeding their expectations is impossible if they don't know what they want.
What to look for? What seems like a milestone of a property or money pit for one property owner can be a buying opportunity for another. Finding the right investment property for you depends entirely on your long term objectives and the model you have decided to follow. Taking stock on your resources is the place to start when making the decision to hold or flip. If you are a trades person, you definitely have the advantage for a fixer upper. If working with the city and rezoning,a bungalow with severance potential is probably best for you. Stick to what you know and enjoy. Do not shy away from a challenge worthy of your energy but know what is beyond the scope of your capability and what should be left to the whales among us. There are very few air chair investments save and accept the tax shelters of the late '80 which were not so great. My point is, if you're going to roll up your sleeves and being hands on, should always be worth it.
Questions to ask yourself:
1) How much cash down will I need and for how long?
2) Can I refinance and take my investment out any time soon and do I want to given interest rates?
3) Does the property require work and can I do it myself to establish sweat equity vs my hourly rate for my day job and what I like to do in my time off?
4) What is my projected return on investment short vs. long term?
5) What is my PITA factor due to driving time, dealing with tenants?
6) Have I accurately and fairly estimated the risks given the timing i.e. vacancies, collatoral damage, delays and escrow?
7) What is the short and long term upside or profit and where does it max out?
Taking a hard look at your opportunity costs is an important factor that is often over looked. If you don't enjoy planning your project and putting considerable time, energy and resources into your project, you may want to take a pass. Doing something well means doing it equal or better than others would. Dropping the ball half way down the field is just not an option. Conversely, finding that balance is equally important because over improving an investment property as if its your own home, is an expensive lesson is "Pride Management".
Having evaluated and mapped out your investment MODEL in advance, we advice you assemble your TEAM OF PROFESSIONAL ADVISORS starting with us as your Realtors. Getting prequalified is the key to being able to beat out your competition by being in a position to making an unconditional if you are comfortable with that. Remain light on your toes and able to react quickly when an autible is called on the field. Definition: Footbal term meaning to change a play at the line of scrimmage by calling out a predetermined set of signals. Note that this change in direction is not a 180, it would still be a plan, just plan B or C that should still make good sense by setting a play in motion that still leads you to Victory. Good athletes practice all the time and focus just as much on going thru the motions as the win. Practically speaking that means checking the interest rates, previewing properties, gathering information and knowing when to take appropriate action. A good Realor is like a coach who motivates and conditions you, prepares and points you in the right direction for success. We sell a home every 4 days. Our combined 45 years experience has made our clients millions. We can do the same for you.
For a confidential, wildly informative and invaluable consultation, contact Dan Salhany or Mary Caird today! That's 613 850-2020.
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