Utility hikes are killing cash flows

Homeowners need to take immediate action to stop utility bills from eating into profits before they escalate again.

“My utility bills increased by 24 per cent during 2013 for waste, water and energy. That is a huge expense for any investor, and especially in regions where you can only increase rents marginally,” says Pierre-Paul Turgeon, owner of Matterhorn Real Estate Investments.

According to the Canadian Energy Efficiency Alliance, 75 per cent of Canadians believe in conserving energy is important but only 22 per cent are actively doing something to reduce usage.

Specializing in multi-family investments in Alberta, Turgeon advises other investors to consult with energy saving companies to reduce their bills.
“Cash-flow in multi-families is less than other properties so you need to save costs where possible,” he says. “The multi-family benefits from the multiplier effect so for every one dollar increase in rental income; that increases the value of the property by $16.”

Turgeon will discuss all multi-family investment opportunities and issues at the forthcoming Toronto Investor Forum event on March 22 and 23. The two-day event takes place in the International Centre.

Related Articles:  Banks have no clue on micro-condo market, argues leading agent

Stop following the crowd, the King says

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?