With escalating property prices across Canada (and the USA!), rental income often won’t generate positive cash flow these days. Some “gurus” suggest buying REITs as an alternative to purchasing income properties directly. Are REITs a valid option in the real estate investing game? I explore that question in this video.
Why Are You Looking For A Great Cap Rate?
Misunderstanding cap rate, short for capitalization rate, is a favourite pastime of many realtors and novice investors. Too often I witness a lack of understanding of investment analysis within the real estate agent community. My concern is that novice investors may be making purchase decisions with inaccurate expectations for return on their investments. This article examines the relationship between real …
Channel Launch
Channel Launch! Check out episode 1 on Bruce’s new YouTube channel. Headline: The 12 Reasons I’m Starting A YouTube Channel. Plan to cover common questions and issues in real estate for home owners and investors, open the hood on the industry machine, and give you a different perspective on many agent practices. Feel free to agree and disagree – but …
Real Estate Investing: ROI vs. Appreciation
This article is the first in a series examining and illustrating the impact of various factors on the returns generated by a real estate investment. If you remember one thing, let it be that the formula is more complicated than reported in the write-ups for virtually all investment property listings. For example, the “cap rate”, or the cash flow calculated …
Ottawa Neighbourhood House Prices 2018
This article contains the full set of charts to support my February 2018 email newsletter. If you’re interested in receiving complete monthly Ottawa real estate market analysis, why not sign up and try it out. You can always unsubscribe, and no one will hunt you down to find out why. You’ll find a subscription link at the bottom of this …
Ottawa Condo Prices – Older vs. Newer
Talking about Ottawa condo prices with one of my clients recently, I realised it’s been 6 years since I looked at the average selling price trend for older vs. newer condo apartments in Ottawa. Here’s the article from 2012: Are New or Re-Sale Condos a Better Investment? Fast forward to today; let’s take a look at the average selling price …
Another Cap Rate Abomination
Some day I will have to write the complete story on capitalization rates in real estate. Knowing me, that will be a long article. There are many angles to cover, from its use and mis-use, misunderstanding and misapplication to the basics of what it measures and what it means. Most importantly, I’ll aim to provide a practical guide to help …
Is That Basement Bedroom Legal?
Basement bedroom window size is an issue that often comes up during home showings and inspections. When buying a home: “Is that bedroom basement legal?” When helping a client prepare to sell their home, the question is, “Can we call this a 3+1 bedroom home?” Does the bedroom in the basement “count”? Is it legal? The answer is… it depends …
Multi-Family vs. Condominium Apartments as Investments
When it comes to building a portfolio of investment properties, there is something on the menu for every taste. To suit your specific tolerances and objectives, you will want to discuss the ins and outs in detail. But I thought it would be fun to write-up a brief table of ingredients for two types of residential properties that are at …
Rules of Thumb – How Far Can They Take You?
A client of mine who is mulling over the idea of acquiring some real estate for investment purposes, started doing some reading on her own and came across a piece about rules of thumb. She read, in addition to other bits of wisdom, that: The rule of thumb is that the purchase price of investment property should be 10 times …
Older or Newer Condo – Which Is A Better Investment?
Whether buying strictly as an investment or as a new place to hang their hat, my clients often ask me if a new or re-sale condo apartment is a better investment. Well, there are actually two slightly different versions of this question that I hear frequently: is a brand new condo purchased from the builder a better investment or is …
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