June 2006 Volume 2, Number 6
In This Issue
· May House Prices
· Vera Biko
·
Real Estate Links
Stef Lukas, our Realtor
Nikki Harrison, 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
· May House Prices
· Vera Biko
·
Real Estate Links
Stef Lukas, our Realtor
Nikki Harrison, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
May
House Prices
So I just received the latest residential statistics package for May's Real Estate Sales. One word: WOW!
What have your other investments been doing for you?
I'm a bit of a math nut, so I apologize for this, but I thought it would be interesting to see what types of returns someone would have seen had they bought an average property last May and then sold it just one year later. I used $70,000 as a down payment, which is a typical 25% down purchase, as an average Calgary house value in May 2005 was $277,807.
This is where it gets out of control. That same average property sold for $396,694 this May. That is $118,887 more than the original purchase price. This results in a 170% return on your initial investment.
If you currently live in Calgary, do you have an idea of how much your personal residence is worth? If you have owned it for any length of time, the amount of equity you have may astound you.
If you would like a rough estimate on your home's value, just email me at bill@housez.ca with your address and I will research comparative sold statistics.
As an example, our personal residence was refinanced last year, so we could buy more properties and it really paid off. It was valued at $255,000 last year and now this year, it is estimated to be almost $380,000. We made $125,000 dollars for simply owning our home.
Now step out of the box and imagine if you had purchased a second or third investment property with us, as others did. I'm not saying all of our properties increased $125,000 last year, as that only happened to a few of them. But, just imagine that it only went up $70,000? Would you settle for that? You may want to ask yourself, "How much money have I let slip through my fingers in the last couple of years?".
Sort of makes you
think, doesn't it?
Vera
Biko
Karen and I have worked very hard for the last three years and we have seen some incredible results due to it. It won't bring back my Mother or give me any of the time we lost with her. On the other hand, it has also provided me the opportunity to give up my full-time day job to spend more time on Real Estate and with my family and friends. We have been able to reconnect with friends and family more in the last month, than it we have in over the last two years.
I guess the message is don't take what and who you have in your life for granted and if you have done your homework, maybe it's okay to take some risks in order to move you and your family forward.
I love being able
to take my Daughter to kindergarten and not have to worry about arriving
late for work! It's a little strange being one of only a couple of dads
who can do this with their kids, but I wouldn't give it up for the world.
I just wish Mom was still here to see it.
Buying Strategies
Earlier in the Newsletter I talked about refinancing our home last year and the amount of equity we now have. Did you know this can be a great way to buy additional property?
Your equity just sits there not doing a thing for you. Wouldn't it be great, if you could use it to earn money for golf, vacations, a big screen TV, or maybe your children's education?
There are a couple different methods to access your equity and one of the best ways is to use a secure Line of Credit (LOC) on your property. This LOC can be up to 75% of the current value of your home, including any mortgages you may have. If you would like a longer explanation, call me or email me and I can explain it in full.
For anyone who has owned an average home for a year or more in Calgary, this equates to approximately $50,000 or more, to use for further investments. However, as with any investment, there is always a certain degree of risk involved. If there is no risk, they call it a savings account, which are only risk free up to $100,000. Oh, and they pay you a whopping 1.5% interest, which is less than the yearly inflation rate.
Imagine if you had bought one of those homes last year that had increased in value by $120,000. It certainly beats 1.5% per year. Karen and Kim are looking at three potential investment properties this afternoon, while I slave away writing the Newsletter. Perhaps one will be the perfect property for you to join us in a Joint Partner Investment.
Summer is almost here and we have already had some incredible weather. With the kids out of school shortly, watch for some fast and furious action in home sales.
Have a great June.
Bill
& Karen Biko
Kat