August 2006 Volume 2, Number 8
In This Issue
· Market Snapshot
· Family Time
·
Fall Strategic Plan
Real Estate Links
Stef Lukas, our Realtor
Richard Anserson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Llisting Service
The Multiple Listing Service
Contact Us
In This Issue
· Market Snapshot
· Family Time
·
Real Estate Links
Stef Lukas, our Realtor
Richard Anderson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
Market
Snapshot
For those of you who have been keeping track, there has been a blip on the radar. Prices actually fell in July, versus the previous months of continual increases. Now watch for all of the panic talk to begin.
The newspapers will start off the panic with such headlines as: "Is the Housing-Boom Bust?" For all of you readers, please be aware, this is just the market catching its breath for a month or two due. Once it slows down for a month or two it will start to ramp up again in the fall.
What you are seeing now, is greed affecting the market and causing people to list their homes at outrageous prices. Also, people are seeing the price their neighbour's house was sold for and rationalizing that if their neighbour sold their place for $350,000, then they can list theirs for $425,000. However, they're not very motivated to sell and won't budge on their price, but if they get it, they will take it and run.
One of the measurements that shows this is the increased amount of time that properties are staying on the market. Two months earlier, it took an average of only 17 days on the market for a property listed on the MLS to sell, now it is up to 28 days. With the recent over-inflated prices, we can expect to see the days on market to continue to grow.
Watch over the next month or two to see if things slow down a bit, but
hang on until the last months of the year to see another big price jump.
Family Time
For those of you who don't know us personally, the Biko Family had a little accident pop up in our life. At the beginning of July, our youngest daughter fell through the screen window of our second story home and landed on our concrete deck.
After a harrowing three days for us, she made what can only be described as a miraculous recovery. Some broken bones in her face and in her heel, but no serious or permanent injuries. She has bounced back to being herself in no time flat and seems to be even more energetic than ever.
As much as Real Estate is our lives, our business, and what we do: Family is by far the most important. We have now altered our hectic schedules to fit more time into our week to include family activities. So my point to everyone out there is don't let a wake-up call hit you in the face like it did us.
Take a weekday afternoon off to go to the zoo or have a family shopping afternoon, just don't waste the time you have, especially if you have young kids. That is time you just cannot get back.
Fall Strategic Plan
Earlier in the Newsletter, I explained that the market is hitting a short plateau, but what use is this knowledge to us? If we know this will be rather short-lived and that prices will move upwards again right after the plateau, we then have a great advantage over someone who isn't seeing the big picture.
The old mantra of "buy low and sell high," will ring truer than ever before, probably starting in late August or early September. With the over-priced properties on the market that may not be selling immediately, there will always be people who need to sell right away. Sometimes people have other properties they purchased or have just been built, they may have job transfers, divorce, or a multitude of other reasons.
When the market becomes suddenly softer, many of these people will become much more motivated to deal, offer some type of special term, or even perhaps a price discount. With the huge price increases over the last six months, they will still walk away with a great deal of equity, but it will also provide an opportune time for investors to buy property that perfectly fits into the renovate/repair and resell category.
Our plan is to purchase a minimum of two or three properties to renovate over the next sixty days (or even more properties, if possible) and complete the projects to have them ready to sell by late November or even into January. These types of opportunities are perfect for people who want to invest with us as hands-free partners.
With a minimum investment of $15,000, you would receive a 15% per annum, return on your money. We utilize this capital towards down-payments, assumptions, and renovations to complete the projects. After we complete the renovations and sell the property, you receive back your initial investment plus all of the interest you earned during that period.
Through long-term relationships with our contractors, lawyers, realtors, and brokers, we are able to take care of all the little details. It's these relationships and our experience that ensures our projects are efficiently and properly completed in a cost-effective manner. We maintain our knowledge by continuing to stay on top of what is happening in the Alberta Real Estate market. With this knowledge, we have the capability to take action and as a result, offer great returns for short-term investing. For more information or if you would like to discuss this further, call me at 403-870-4663 or email me at bill@housez.ca.
I look forward to seeing you take action as well!
We have had an unusual summer so far, but our plans continue to come together. We have some thoughts on what will happen by fall in Calgary and always enjoy sitting down with people to talk shop.
As I continually enjoy asking, if you think there are any other subjects that I should address, or if there is anything I have even talked about too much, please let me know. As the Newsletter evolves from year to year, your input helps to shape it.
Have a great August and enjoy the rest of your summer.
Bill
& Karen Biko
Kat