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I cover over 81 sq.miles to find you a home.
Coquitlam 58 sq. miles
Port Moody 9 sq.miles
Port Coquitlam 13 sq miles
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(604) 618-8108
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Vattoy's Views
Want to Invest in Real Estate But Not Live
In It?
By Barrie Vattoy
Prudential Sterling Realty
Turn on any financial news program and at some point you'll
hear the experts extolling the virtues of diversification. Real
estate has long been considered a conservative, long-term strategy
to growing wealth. While some seasoned real estate investors make
it look easy, to be successful, beginners should follow some basic
principles.
- Learn all you can. Before committing your cash, you should
have a fundamental understanding of real estate. For example,
be aware that, in general, investment properties are not liquid
investments. Barring exceptional circumstances, real estate
does not sell at a moment's notice. It could take days or months
to sell a property, depending on the strength of the market
in a particular region.
- Consider cash flow. You'll need to have enough capital on
hand to cover any short-term losses due to vacancies between
tenants.
- Start small. Look into buying a single family home or a duplex.
Leave large apartment buildings and commercial properties to
the pros.
- Inquire at the local Chamber of Commerce about companies relocating
into or out of the area. Company movement is one indicator of
demand for rental and/or office space.
- Find a property that will be in demand. Look for a moderately
priced home with three or four bedrooms, two bathrooms, and
a garage that sits on a quiet street.
- Research the property. The most common way first-time investors
lose is by failing to investigate a property thoroughly. Look
beyond the front door. Investigate the reputation of the school
district, the crime rate, and plans for expanding a nearby highway
or developing vacant land. Ask a local real estate professional
about the area, its history, and how fast (or slow) properties
are moving.
- Inspect the home you're considering for signs of water damage,
such as stains on the ceiling and crinkling or gathering wallpaper;
open and close every door and window; and check all electrical
sockets by plugging in an appliance. Get an independent home
inspection, roof inspection and termite inspection. Unexpected
repair costs can eat away resale profit. Because even the best
inspection can't always predict problems, try to set aside some
of the rental income for unexpected repairs.
- Spend time driving the streets of the neighborhood noting
the condition of other properties. Are lawns maintained? Are
roofs in good shape? Are homes kept up?
- Be ready to make fixes quickly and respond to the renter's
needs. If you're not prepared to be a hands-on landlord, consider
hiring a property management firm.
Remember, investing in a property is much different than living
in one, and while emotion and attachment can be prime motivators
when it comes to homes, it is return on investment that counts
when investing in real estate.
Do you have questions about Real Estate Financing?
Your One-Stop Source - Click
Here!
Prudential Sterling Realty
# 226-3355 North Road
Burnaby, B.C.
V3J 7T9
Fax 604-939-1797 Page: 604-618-8108
e-mail info@vattoyviews.com
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