“Canada is a great market,” the seasoned negotiator and executive VP for the Trump Organization told CREW, just ahead of the event focused on raising funds for children’s causes. “And it seems to be getting hotter.”
That may, in fact, be an understatement, with near-double-digit price increases in Toronto helping lead the national average to year-over-year gains. That’s even as other world markets, including the U.S., suffer setbacks.
Strong demand with limited supply is the primary challenge facing most investors across the country. The phenomenon makes Ross’s advice on negotiations, planning and corrections all the more useful.
Tips from George Ross to Canadian investors
Move the negotiations beyond price: You have to know what the seller really wants. Investigate the seller’s motivation; get the inside knowledge; talk with people who have already dealt with that particular seller. It’s not usually just about money. Sometimes the seller is looking for extra time (before closing) or publicity or is interested in a property swap. Find out.
Map it out: Investors need to create a timeline for every property. Are you going to hold it forever or sell it in five years? You don’t want to be reactionary, only coming in the market when something has happened.
Construct your reasoning: Anything you have now that is already built will always afford you an advantage over what has yet to be built.
Loosen up the purse strings: Increase the budget if you have to. It’s always better to pay a little more for quality properties. Don’t just look at acquisition costs.
Ross on a Canadian correction: Listen. There is always going to be a correction. You are never going to know where the highs are and where the lows of the market are.
Rosss's word to the wise: Buying vacant land. I’m not saying that’s the way to go, but you need to consider it.
Ross on tenants: You have to be able to identify who it is you are trying to attract.
Ross on charity: For those who have done well, it’s always good to give back.
Ross will deliver that message as part of the fundraising dinner at Hamilton’s Liuna Station, presented by G.S. Maher/Queensbury Securities and Powergroup Communications.
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