What would you do if you had to invest money in the Canadian property market in 2011?
My investments for 2011 will consist of several things: specifically, detached residential properties in areas of sustained growth, commercial retail plazas in redevelopment areas and my all-time favourite, private financing.
Many people have heard that they must keep a balanced stock or mutual fund portfolio; well real estate investments are no different. My portfolio will be able to weather the worst of storms as it is balanced through all three main areas of the market, and is secured by solid, tangible real estate.
What do you think will be the biggest challenge facing investors in 2011?
The biggest challenge for investors in 2011 will be the same challenge it always has been - money. Getting the financing for the projects or properties they want to invest in has, and always will be, the biggest challenge for most investors. With many financial institutions tightening their lending policies, investors will be forced to seek alternative sources of financing for their lucrative projects. Those who are in-the-know will use the services of their trusty mortgage broker to seek out these sources. It is here, in these times, that investors will realize the true value of their team.
What are your tips for investors in 2011?
Tip 1. Stay focused and stay in the game: Many people out there (who are not in real estate) will tell you that you're doing it wrong, or that it's a bad time for the market... Blah, Blah, Blah.
Don't let those people get you down. What are they doing to make money? Investing in mutual funds? Ha! If you keep focused on the task at hand, and see your project through to the end, more often than not you will reap the rewards. A good source of constant motivation is your local Canadian real estate investment group or club.
Tip 2. Have a reserve: The worst thing you can do to ruin a project is to run out of money. You will absolutely destroy your hopes of making a profit if you don't either have a reserve fund set out at the beginning, or have access to money if you should need it.
Tip 3. Diversify: You really don't have to only invest in one type of property, or for that matter, one country. There are many opportunities available for investors that can allow you to leave the confines of Canada and have the potential to yield larger than average returns.
Don't be afraid and don't tune it out. Hear the presentation, ask your questions, research the opportunity, review your contracts and pull the trigger.
For more insight into the market of 2011, pick up a copy of our January issue, on newsstands now.
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
Deen Bissessar, Broker of Record, CANREIG Realty Corp. helps you make sense of the coming 2011 market.