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REIN Top 10 Town in BC and How to Capitalize on Them

CanadianIce

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Feb 15, 2015
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So I live in a duplex in Victoria that I also own and am saving up to buy my first pure investment property. I work two jobs and cut expenses manage to save and invest $4000 to $5000 a month. In about 18 months there will be over $100,000 to invest in New West or Surrey or somewhere like that. But there is the question of what value and type of property to purchase for long term appreciation?

$75000 will be 20% of a very small condo and possible to purchase in about one year.

$100,000 will be enough for a $500,000 condo and possible to purchase in about 18 months.

Or, I could wait about 2 years, and assuming no major upward jumps in property values, and purchase a property for $600-700,000 if the bank will finance it.

Many things to consider, but I just can't get a good lock on whether it is better to buy a humble property early or a more ambitous one a little later. Generally, what does everyone suggest about this issue?
 

Martin1968

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Jan 22, 2017
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I want to give you a big thumbs up on working the 2 jobs and saving that much money per month.
Excellent!!

I'm not as knowledgable on the Vancouver area market so will leave the comments to others.

However, just because a city is in the top 10 doesn't necessarily mean that it is the only place where money can be made. I would look at places like Nainamo or other cities in the lower mainland, not necessarily on the report but enough economic spinoff and in general a better bang for your buck.
All depends what you want to get out of it as far as return concerns.
 

CanadianIce

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Thank you for the encouragement. Really appreciate it. You know, back in 2007 the year my son was born, I bought the Acre system book and planned out my personal Belize for my family and myself. Ten years later after moving across the country, a dream come true, I happened to open that book again to see I had never followed through on buying any investment properties. This was because I reasoned, rationally but not optimally, that a pension might give financial independence about as fast as real estate and more easily. Later as I got older it became clear that the independence that real estate provides is worth more than pure gold itself, and that combined with private business (one of my "jobs" is a growing small business) is enough to live on far earlier than waiting for a pension. I do regret not dedicating to investment real estate sooner after that goal of 2007, but the lateness does fuel the drive. Thank you again for the thumbs up!

Good point about the other cities. Staying on the Island would be more convenient and easier to manage for sure. Properties are also cheaper up island than the mainland and that might make it possible to buy a larger investment, if that is preferable.

As far as returns, that is a good question. I have a long term goal, and certain enjoyment of the investment process, but it's not easy to see what makes a meaningful shorter 3-5 year goal from real estate that does not detract significantly from the longer term one. One short term goal might be to live on a new separate property away from the tenants, lol. What about you? How do you see yourself benefiting from real estate on the 3-5 year time line other than the money itself? I guess it makes sense to "scaffold" the benefits from the end all the way back to the short term.
 
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Martin1968

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Ok, so do I understand it right that you are owning a full duplex (Victoria) and live in half and rent out the other half? My advise would be to indeed purchase your next personal residence to (at first) live in and that has options to rent out, for example another duplex or (potentially) suited house and repeat the process. As long as you have the family on board of moving a few times in the future. Good way to start building your real estate Portfolio.

When you are in bizz for yourself you learn pretty quick to look ahead long term, knowing that no one is taking care of your (extra) pension for you. There are many ways of doing that, for me personally I found RE the most Exciting and fun of them all, but we did not neglect other things such as education saving plans for our kids as well as maxing out TFSA etc. Seeing that we started some things at our kids birth (RESP), or when we had cash available to stash away (TFSA), I would think we are talking about 15-25 year plans. Not 3-5 years. (Glad we did it early on, with 2 out of 3 kids at college/Uni level, it's costing a lot!)

I have always called myself a small business operator as well as calling myself a small RE investor now, however I'm proud that since starting REI in 2008 I have been able to build up a portfolio that is giving me everything that I was looking for within my strategy. CashFlow, Mortgage Paydown and Appreciation. And still growing, however patiently waiting for the right opportunities.
It has worked for me and my family. I actually have to say it has exceeded my expectations.

Now, there are many different ways of REI, many great examples on these forums or in the real estate Magazines of people that have done very well.
What I like about what you are describing is just hard work, old fashion saving up for DP and move onto next investment. Seems like you are making good money! Forget about 3-5 years, don't try to force acquisition with high debt risks or expensive creative financing. But definetly have a plan and goal and work within that.

Cheers!
 

Devin Roberts

Devin Roberts - Brent Roberts Realty
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Nov 17, 2015
Messages
126
Hi there,

Congratulations to getting to the position you currently are. You are in a great spot financially to begin investing. It is kinda like the game of monopoly. Should you buy the cheaper property or save up for the boardwalk? Like you said “assuming no major upward jumps in property values”. Land is king and therefore will be worth more, but the matter of affordability in the next 2 years does not seem to be present. So you might spend time saving up and then you find you can’t afford that detached house, and should’ve invested in a condo 2 years ago.

It is particularly hard to estimate what will happen in the market.

The route to take depends on yourself and what you are looking for a place. Highest ROI? Least amount of work? Etc.

Feel free to message me. I would love to hear what your investment goals are and find what’s right for yourself.

Cheers


Sent from my iPhone using myREINspace
 
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