Here is an interesting article about a real estate investor's confidence in the Edmonton market. The president of the Real Estate Investment Network, Don Campbell, says that Edmonton will be one of the fastest growing economies and populations in Canada over the next decade. See the full article in the Edmonton Journal at: http://bit.ly/9abFU2
Current market inventory in Edmonton: 7,252. Is it time to make your move? Call me today at 780-710-7669.
Real estate investor bets on Edmonton
Rising interest rates, tighter mortgage rules and worries of another housing bubble make it a bad time to invest in real estate, right?
Not so, says Don Campbell, president of the Real Estate Investment Network and bestselling author, who's just released his fourth book on property investment.
"If you're buying a mutual fund or a stock, you have no control," Campbell said.
"With real estate, you can buy it and add value. You can live in it, you can rent it out and most importantly, right now, for every one dollar you put into the market of your own you're going to be playing with four or five dollars because of the banks, and as long as you've purchased a positive-cash-flow property -- it takes care of itself.
"Your mortgage slowly gets paid down. Rent puts income into your pocket and you're leveraged."
He calls Edmonton an especially promising place to invest and puts his money where his mouth is -- most of his own investment properties are in the city.
In Campbell's eyes, it was even a good time to invest in real estate during last year's recession/housing correction because of less competition for deals.
"During these past 18 months, those of us who have been around a long time saw it as a raining-gold opportunity because suddenly a lot of people who weren't actually studying the market were scared out of it," Campbell said.
Not even rising interest rates deter Campbell from recommending investors buy revenue-generating real estate if you have at least a five-year window.
Campbell likes the slow and steady growth of the market in Edmonton these days compared with the real estate boom.
"It was so superheated. Everybody decided real estate markets have to go up 20 or 25 per cent or it's no good, but anybody who's been through the cycles knows that's impossible.
"If we get a market that goes up three to five per cent a year, everybody should be smiling. There's no inflation and everything's doing what it's supposed to do."
On the other side, he says Edmonton will be one of the fastest-growing economies and populations in Canada over the next decade, "so it's going to be pretty difficult to keep a cap on it."
In Edmonton, he suggests leveraging government money by looking for areas where the LRT or the Anthony Henday ring road is being expanded, where neighbourhoods are planned for revitalization or where a new downtown arena is proposed.
Campbell was in Edmonton this week to promote his fourth book, 81 Financial and Tax Tips for the Canadian Real Estate Investor -- a guide for using Canada Revenue Agency rules to best advantage.
"It's not how much you make in this game. It's how much you keep in your pocket, and unfortunately a lot of people who are doing it incorrectly are paying 50 or 60 per cent too much in tax."
Campbell says he donates his author royalties to Habitat for Humanity.