If you are looking for a more balanced investment portfolio than traditional stocks, bonds and mutual funds provide, then investing in a rental property may be an option. A key point here is to have an investor mindset versus speculating or flipping. An investor is a person who wants to buy, rent and hold properties for the long term, 10-25+ years or more. These are the types of people I work with and who I help succeed in their investment choices.
Investment in Vancouver Real Estate is as old as the practice of land ownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs.
My personal strategy is to think long term, to be patient and NEVER get spooked by the economists and mainstream media reports that the market is about to take a dip. What the value of your property does from one month or one year to the next (short term) is irrelevant or as Warren Buffet calls it “Static”. You're an investor (long term) and not a speculator, and as long as you have the investment property rented you're doing just fine. With the high cost of property in Vancouver and depending on the type of investment property you are buying - a studio, a 1 bedroom condo, or a Vancouver 'special', unless you are putting down 20% or more you may need to supplement what you are collecting in rent to cover all your expenses.
Perhaps the biggest difference between a rental property and other investments is the amount time and work you have to devote to maintaining your investment. When you buy a stock, it simply sits in your brokerage account and, hopefully, increases in value. If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it’s you who gets the phone call. If you don’t mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands, for a price, of course.
I have always managed all my own rental properties and strongly feel that this is the best way to go for a number of reasons, least of which is the monthly fees a property manager will take off the top. I can provide my clients what few other Vancouver Realtors can and that’s over 25 years experience managing my own rental portfolio.
I’ve always recommended a long term strategy…making money via other people (our renters) paying down our mortgages. I like to focus on the fundamentals of real estate investing – buying a good property, in an area that attracts a good base of tenants, and renting it out for a long period of time.
Employing a Buyer’s Agent for your purchase is critical. However sometimes a buyer will go directly to the listing realtor and try making their own deal, instead of employing a Buyer’s Representative. They seem to think that they’ll be able to get a better deal. I’m here to tell you there wrong and here’s why
Sellers sign an Agency agreement with their listing realtor. That binds the listing realtor by law to work in the best interest of the seller. Its called fiduciary duty.
Negotiable commissions? Buyers seem to feel that because the listing realtor doesn’t have to “share” the commission with a buyer’s agent, there’s more room for the buyer to get a better deal. The fact is, some listing agents will reduce their commission by a small amount but it doesn’t compare to the amount a dedicated and experienced buyer’s agent like Owen should be able to negotiate for you.
Successful real estate investors know the benefits of using an experienced and knowlegeable real estate advisor and so should you. Vancouver real estate is full of potential, I never stop studiying listings, neighbourhoods and buildings. I will provide my expert investment analysis on every transaction.
-The best part of employing Owen as your buyers agent IT’S FREE It dosen’t cost you anything. The seller pays all the commission.
A simple, straightforward blueprint for creating financial independence through real estate & dividend growth investing. Including how to develop a long-term investor's mindset in order to create a reliable stream of passive income for life.Learn More