In 1993 I found myself out of work with an investment property that was breaking even. I was living on a boat down in Port Credit Marina. The bubble burst and like thousands of others I lost tens of thousands of dollars. What did I learn that is actually relevant and useful today and for you?

Well the biggest thing in relation to real estate is that all appreciation is speculative. I had a conversation that turned into an argument with a fellow investor from Alberta. He was trying to convince me that Alberta's economic fundamentals pointed to a boom that will not stop and that cash flow is irrelevant because the property will appreciate so fast. Now from the data he presented, it looked tempting. And yes I am believer in economic fundamentals, but I learned my lesson. All apperception is speculative. My point simply is this....do not invest in a investment property that does not cash flow (breakeven is ok as long as all diligence has been accounted for) when appreciation is the only thing making you money.    

MANA REAL ESTATE GROUP

Your Full Service Real Estate Team for the Barrie, Orillia, Midland-Penetang, Collingwood, Innisfil, Wasaga Beach, Alliston, Owen Sound, Parry Sound, Muskoka, Gravenhurst,  Bracebridge, Honey Harbour, and Parry Sound areas

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