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Victoria Real Estate Investors Club Newsletter
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HOLMES CONSTRUCTION
250-508-7032
250-588-4684
New Constr, Renovations,
Retrofit Old Windows with Thermal Units,
Project Management and Consulting
Serving the Island since 1982
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For Sale
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Apartment Building  | $859,000
12 Unit apartment
building in Port Alberni.
Well managed building with good numbers.
Check it out!
www.avrilarts.ca
Shirley Avril
savril@telus.net |
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Cheri Crause
Royal LePage Coast Capital Realty
1933 OAK BAY, Victoria
250-592-4422
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Nanaimo
Meeting
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Farming for Properties
Julie Broad
of
revnyou.com
Tuesday April 6
7-9pm
Beban Park Rec Centre
Room 8
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Hi Folks, I'm writing this in Phoenix, AZ. Being able to visit this beautiful city for fun feels good. Yesterday my exercise routine was hiking to the summit of Squaw Peak in Phoenix Mountains Park (and back down). This great park and little mountain is right in the city, on the border of Scottsdale. D has shown me a few of the great places here. It's very easy on the eyes, lots of low profile, southwest-style dwellings and big sky in all directions. This trip is a manifestation of goals we set back in 2005.
There's lots of learning available in the news items to the left of this article. Check out the Opportunity and a great article on RRSPs below too.
The Frantic Hunt article is a clear demonstration (to me) of why there should be a "How To Buy a House" course at the local community college. It should be a pre-requisite to any house purchase activity. Emotional transactions seldom go well (unless it's love). There's your free business idea for the week. Realtors take note: learn to create an uplifting experience for your buyers!
The Eye US Investments article is a GREAT rundown of the tax reporting requirements for Canadians buying US properties via their business. Having an accountant who does Cdn and US taxes (and keeps up-to-date on both contry's tax laws) goes a long way to keeping the risks low IMO.
The Mortgage Planning article goes over most of the points to consider. The key point IMO is What's Your Overall Goal for having a property? Then the decision about the mortgage becomes so much easier.
The Bad Investment article has a stupid title that's all about drawing readers in for a hard-to-understand effort that's best left to economists to interpret IMO. The last paragraph is the only common-sense data in a long a boring effort. Data junkies will love the stats.
The Half-price Homes article is one interpretation of many about Cdns investing in US real estate. I've spoken with many club members about this subject. The comments range from "what are you waiting for?!?" to "I hear it's dangerous". My opinion revolves around "What's Your Goal?" and "Assess the Risks". Does owning US RE fit in with your investing goals and your emotional connections to places? The emotional stuff is in your heart (Men, learn to talk to your heart, it's valuable conversation). The investing goals take work to create that will pay many dividends in the future (in my experience). Make goals or coast along. It's a simple choice. Pick one and have fun with it!
The speaker at the March 30 meeting, Jon Murray, will give his experiences on investing in US properties. The reason I invited him is that he has experiences and an opinion, not just an opinion. Also, he bugged me until I said yes. Great negotiation technique!
There's an evening event coming up on April 6. It's the Victoria Real Estate Wealth Expo. Wealth By Design is putting it on, It starts at 6:45pm, is at the Delta Victoria Ocean Pointe ballroom, has 3 speakers and I recommend it.
Gord Knox
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Tuesday March 30 Meeting
Investing In the U.S.
Speaker: Jon Murray of Jowen Investments & Consulting Ltd
Jon has recently been leading groups of Canadian investors down to Las Vegas and Phoenix to investigate and purchase properties.
At this talk he will reveal
· Can any Canadian Citizen invest in the US?
· What are the tax implications when investing in the US?
· Why I currently invest in the US and NOT in Canada
· Is this the bottom of the market?
· How hard are the properties to rent?
· Why are the opportunities too good to pass up?
· How long will this market last?
· Why isn't everyone doing this?
Comfort Hotel
3020 Blanshard St
Victoria BC
7 - 9 pm
$15 at the door (no charge for annual mbrs)
after-meeting meeting at Redd's down the hall |
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The Fallacy About RRSP's Every Real Estate Investor MUST Know
By Dave Peniuk
Very few Canadians actually understand what their RRSP is. And I am pretty sure if they did they wouldn't be investing money the way they are investing money today. I am also pretty sure there would be a lot more real estate investors taking advantages of mortgages within RRSP accounts!
It really is the "Fallacy of the RRSP Investment". You see, a fallacy is "an incorrect or misleading notion or opinion based on inaccurate facts or invalid reasoning". Your RRSP in and of itself is NOT an investment.
It is a special type of account that can hold funds in it and the funds in it are tax deferred (thus, you can write-off your contributions to it and the returns are not taxable either - UNTIL you begin withdrawing the funds).
But, and this is very important, the RRSP is not an investment. The GIC's, Mutual Funds, Stocks, Bonds, Mortgages (yes, you can invest in a mortgage through you RRSP account) are the investment.
I want to inform Canadians (and even our US counterparts with their IRA accounts) that they need to educate themselves and take more control of their money. If you do not know, unequivocally, what investments you have within your RRSP (or RESP, LIRA, RRIF, etc.), and what is their NET RETURN to you, then you need to take a good hard look.
And you know what I am excited about? Really excited about? I am excited about the fact that I know how to use the cash in my RRSP's and how I can help others use the cash in their RRSP's to invest in mortgages (and with it the knowledge of what the NET RETURN will be because it's a mortgage!! - you know, like the ones that you pay the banks hundreds of thousands of dollars in interest??!?!).
Now, I am not giving advice, as I am not a "Licensed Investment Salesperson" at one of the financial institutions (many Financial Advisors were called this until 2008), but I am letting you know you have other options available to you in your RRSP accounts. And, I urge you to find out:
What are you invested in within your RRSP (RESP, RRIF, LIRA)
What are your NET returns (this is your total return less all the fees charged by your Advisor, or Mutual Fund, or admin fees..)
If you have a Financial Advisor, Planner, Broker, ask him or her to explain how your investments are doing in REAL CANADIAN LANGUAGE
Ask your Planner what they are invested in and see if they are invested in any of the same products they suggested you invest in
If you do the above, and are able to get a real handle on the investments within your RRSP (or IRA), then you will be well on your way to taking real control of your money....because hey, no one and I mean NO ONE will (or more importantly SHOULD) care more about your money than you!
Dave Peniuk is a real estate investor who has made it his mission in life to help other real estate investors avoid the traps and pitfalls he stumbled on when he began investing in real estate in 2001. Get his free real estate investing newsletter at http://www.revnyou.com and you'll also receive a complimentary copy of his Real Estate Investing Starter Tips Guide.
Article Source: The Fallacy About RRSP's Every Real Estate Investor MUST Know
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OPPORTUNITY
Listen up: if you get into this deal with Cornell and he ends up owning your house, car, debts, job, company, bail bond, etc. don't skype me begging for advice 'cause I warned you to check him and the property out thoroughly first!
Cornell Pidruchney says:
I have a Nanaimo house with suite under contract to
purchase for $314K by way of assumption of existing mortgage and nothing down!
I am seeking either a JV partner to
qualify for the mortgage, or to sell this deal for a cash fee or series of
monthly payments. I am open to any creative deal! If you know anyone interested, please ask
them to contact me directly.
Here are the details:
Nice house in good area of Cinnebar (Located on Roberta Road East,
in south Nanaimo),
close to schools, shopping and convenient highway access.
½ acre lot, 2-storey house, about 2,600 sq feet total size
on both floors. House is about 30 years old. Lovely huge backyard with great view and gardens, with
well-built garden house (small shop). House carport converted into nice
workshop!
Good condition overall, but needs $5K of paint, carpets,
etc. to make it really pretty, as the owners had dogs and it needs some
clean-up.
Upper Suite: 3BR, 1 bath up and full kitchen, living
area, dining nook, nice large deck off kitchen. Area roughed-in for
separate Laundry attachment.
Potential Upper Rent: $1,200 - $1,400.
Lower Suite: Separate entrance, 3 BR, 1 bath, full
kitchen, living room, laundry installed. Potential Lower Rent $900 - $1,000.
TERMS:
Price $314,000. (current market value is $310K -
$330K)
Down payment: Zero
Completion Date: 16 APR 2010
Purchase by way of qualification and assumption of existing
$314,000 mortgage.
Terms of existing mortgage: 5 year fixed mortgage,
Term ends 01 MAR 2013. Interest rate 5.66%
Monthly payment: $1,676 (principle & interest)
Taxes: $233/month
GREAT CASH FLOW!
THIS IS NOT A LEASE-OPTION AND REQUIRES A
MORTGAGE ASSUMPTION OR NEW FINANCING.
Cheers; Cornell
Direct: 250-756-9239 Toll-Free:
1-866-756-9239
Fax: 1-866-756-0150 cornellp@4pillars.ca www.4pillars.ca
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