East Versus West

[KimReedSmith]

I am new to REIN.



I have read Real Estate Investing in Canada and in the process of reading two more of Don's books.



I attended the last REIN monthly meeting in Calgary and will be attending the ACRE Live in Calgary next month.



Getting started in this I am looking to gather as much information as I can.



I am originally from the East Coast and will be moving there in the future (12-16 months), probably to the Halifax area.



Looking for help on my game plan while I am still in Calgary and going forward with my move.



With the time left in Calgary should I be looking at investing while I am still here? Looking at what the pros and cons of investing in Real Estate here are, but then moving across the country?



Looking ahead to moving - how do I go about looking at properties (getting the ball rolling before actually moving) to the Halifax region.



Though new to this I am very eager to learn and dedicated to the process.



Any help/information will greatly be appreciated.



Thanks.



Kim

 

[richardkp]

Hi Kim,

Firstly congratulations for getting involved with REIN and going to an ACRE. As a beginner there is no better start to RE Investing!

There are lots of people in Calgary who are REIN members to help you
out while you are there to get your investing off to a flying start.
Seek them out at the ACRE event and ask them lots of questions - then
listen and make notes.



Secondly congratulations on moving back to Halifax Smart move I can tell you with everything going on here. There are a few good realtors in the area that will be able to get you setup for listings that are in your chosen location and property type.

On our website there is also a free report on Halifax and what is happening here as well as updates on our blog. This is also a good article in Canadian RE Wealth that we did on Halifax.



If you want to have a call or email me I will go into more detail than there is space here for on Halifax!

 

[RedlineBrett]

Hi Kim,



My advice would be not to buy anything until after you feel you know enough about the real estate investment game and the local market you want to invest in to be comfortable making decisions.



A month is a long time - you should be able to do most of it within that window. I would think you should be able to buy something before you leave, but I guess it depends how busy you are.



While you are here you should be assembling your team to operate your investment business when you are in Halifax. So your realtor, mortgage broker, property manager etc.



A good consultation with each of these parties will give you a solid foundation from which to plan your acquisitions. While you are in town you'll be able to see a lot of property, investigate local communities, local zoning issues etc. Will definitely make it a lot easier for you than doing so at a distance.

 

[Thomas Beyer]

Do you own your own home ? If not, get one if you think you'll be in it for 4-5 years, and perhaps sublet a few rooms or the basement in an up/down property. Tax free investment if you buy in a growth city, such as Calgary or Halifax. I personally would not buy in Calgary if you are in Halifax until you have a complete team, like a PM, realtor, broker on your team. Even then it takes a lot of time and that is hard from afar with a 4.5h flight.

 

[Sherilynn]

I wouldn't buy in a different province until I was comfortable with real estate investment in general and had a team in place (as Thomas suggested).



Your comfort zone is a primary consideration here. Most new investors (and many seasoned investors) like to be able to drive by their properties now and then or have a hand in their operation (with renovations, for example). But if you invest in another province, you must completely hand over the reins to someone else.



If you are uncomfortable with that prospect, then you should stick closer to home for now.

 

[GarthChapman]

Kim, if I were you I would be thinking about buying now in the Maritimes to get in before the ship-building boom hits. You ought to be able to build a very nice portfolio of rentals on that economic fundamental alone!

 

[RedlineBrett]

Garth! long time no see! Great to see you here again

 

[richardkp]

[quote user=GarthChapman]Kim, if I were you I would be thinking about buying now in the Maritimes to get in before the ship-building boom hits. You ought to be able to build a very nice portfolio of rentals on that economic fundamental alone!


There is a significant uplift in sales activity going on here right now that is definitely driven by the ship contract.

We have a great future here that is also driven by other major contracts as well - Shell offshore exploration contract worth $970Mn. The issue is finding the great properties now! There is a lot coming onto the market just waiting for investors who are not doing the research and due dilligence to buy it based on speculation. Exactly what Don said would be happening.

 

[Niwasa]

Hi Kim



I am from Dartmouth Nova Scotia and new to REIN. I am planing to attend ACRE at calgary in march too. hope we can meet at the ACRE meeting.



Shantha

 

[KimReedSmith]

Hi Shantha,



My wife and I look forward to meeting you at ACRE.



Kim

 

[KimReedSmith]

Thanks for the response Brett.



I am not looking to rush into anything until I am ready and comfortable like you mentioned.



I currently own a townhouse in Royal Oak in the NW.



I think ideally I would like to hold onto this property when we move and have that as my first rental property.



I will be flying to Halifax this summer for a wedding but also for jobs and finding a place for ourselves to live in.



Between now and then I will study the area as much as I can, along with starting the process of building my team. Hopefully all goes well and we will be able to meet face to face with everyone this summer and look at properties in the area.



Thanks.



Kim

 

[KimReedSmith]

Thanks for the help Thomas.



Right now I live and own a town house in Royal Oak that we have been in for just over three years.



Ideally when we move I would like to keep this property as my first rental property.



I hope to build my team and have them in place by the time I fly to Halifax in August for a wedding.



While in Halifax I will hopefully be doing job interviews, meeting my team, looking at properties, and a place for myself and my wife.



Can you give me more information about tax free investment when you buy in a growth city?



Thanks.



Kim

 

[KimReedSmith]

Thanks Sherilynn,



I appreciate the info.



What you suggest also seems to be the theme of everyone else's responses.



Understand your area, build your team, and go from there.



Thanks.



Kim

 

[KimReedSmith]

Thanks Garth.



The ship building along with the Shell offshore drilling make it a great time.



Since the ship building deal was announced last October things have already appeared to pickup as it will be approaching that 12-18 month time line.



As I am very new to this I must learn/study the area, start to assembly my team (while still here in Calgary) and get the ball rolling.



Any tips for assembling your RE team in another province - NS - when living in Calgary?



Thanks.

 

[Thomas Beyer]

Get an understanding of areas first. Drive around a lot. Ask lots of questions .. 6 or more local experts minimum, as no one has all the knowledge. Then pick an area and a realtor to look for a specific deal within your $ range. A residential property you live in is tax free on exit, unlike a rental property.

 

[gwasser]

Hi Kim,



I have been reading this posting stream with some concern. The main reason is your own level of investment experience. You seem to be just beyond the starting gates. This is a time to build your financial base and to learn. So joining REIN and being active on the forum is a brilliant move on your part.



But... running a long distance rental operation is not easy. I owned a condo in 1982 which I was forced to rent out during a major economic downturn. A nightmare, I tell you. I went nearly broke. That was while living in the same town. After a couple of years, I was so traumatized that I sold at the first possible opportunity without being 'under water on the mortgage'. It was a learning experience from the school of 'Hard Knox'. I also, came accross a potential tenant who after a while converted into my current spouse of 25years plus and we compounded the profits with some kids - hmmm... is that good? . I still believe strongly into that 'nothing you do is truly for nothing'. But sometimes it would be great if life was a bit easier.



Now, looking back, I wished I never sold that property which was worth around $60,000 when I did and now it appraises for around $250,000. That is not counting the paid out mortgage and other benefits of rental income. But... would I have been able to hold on?



Would you be able to hold on to your condo? As a minimum you would need a property manager - you can't call the plumber in the night or check the unit in case of an issue. How about finding tenants which is an art on its own? Since you have no real team in place and you have no system to deal with the unavoidable tenant and building issues, I think you should not hold on to that condo.



If you start out in this business do it where you can get to the property easily. Much less risk! Halifax sounds to be a city of decent economic fundamentals.If that is where you live, I suggest, then that is the place to start buying your first rental properties. But are you truly ready to own an investment property in addition to a residence? Sounds like you would have two mortgages to pay. Can you take care of that financial burden when you have vacancies? What if you lose your job? What if you lose your job and... have a vacancy?



First build a financial rock solid base. Focus on your own home, as Thomas suggested. Pay off the mortgage and then... go for that rental property. You could use an LOC on your home for downpayment - a side benefit is that the interest on the LOC would be tax deductible (as you use it for investment).



In the meantime keep on studying investing including RRSPs, stocks and bonds. Diversify but don't diworseify. If you don't know that term, why not start reading 'One Upon Wall Street' written by investor legend Peter Lynch. And for some 'bread-and-butter' personal finance lit read the Wealthy Barber by David Chilton. Of course, don't forget REIN and Don Campbell.



Hope this helps,

 

[JerryCharlton]

Lots of great advice in the REIN forums and the stories.....

I love reading the stories of.. this is what I did.... but don't do that...... do this instead...... Learn From My Mistakes!

Don't Make Your Own Mistakes!

We all have lots and lots of those stories. Otherwise we wouldn't be Real Estate Investors.

Make Mistakes, Make Lots Of Them, Make Them Quickly, Embrace Every Mistake as the Learning Opportunity it is!

Besides.. they're really only MISTAKES if you make them twice! right......

 

[richardkp]

[quote user=JerryCharlton]they're really only MISTAKES if you make them twice!


Well said...and as Russell says "stand on the shoulders of giants" ie. use the connections you make on myREINspace and ask lots of questions as we are more than happy to tell you our mistakes so you don't do them!