There is no doubt that this has got real estate investors seeking out properties in Halifax and surrounding areas. The evidence is all around with Canadian Real Estate Wealth magazine, REINTM and Don Campbell showing the economics behind it and The Chronicle Herald newspaper publishing articles about why now is the time to invest in Real Estate in Halifax. All this coverage, however, has created five key challenges for the local investor.The good news is all of them are surmountable
1. Increased number of buyers from outside Nova Scotia. Once the national media and real estate investing organizations can see the benefits of a market, it doesn’t take much time for out of town investors to take action. For local investors the benefit is just that – local. Local knowledge, local Realtors, a local team of experts to help them. This allows the local investor to take action much quicker and grab that deal!
2. Availability of properties. Once a market becomes as attractive as Halifax is to investors right now the demand for properties increases and supply becomes shorter. For the local investor, this is the time to get creative about finding properties. Talk to everyone you can about how you are an investor looking for good properties – It will surprise you how many leads this can turn up!
3. Financing. This is not just a local issue but now that 20% down is becoming the norm for investors it can mean that you need more down payment to start with. Local investors can meet local mortgage brokers right now, meaning they can get the deal done quicker – an advantage in this market.
4. Procrastination. With the focus on good properties there is no time after you have done all your due diligence to wonder if you should really write an offer on that property. If you don’t take action and offer then someone else will. Ensuring you are truly ready and have all the necessary capital and team in place to buy a great income property will mean you start off on a path to success.
5. Down payment. Mortgage rules are always changing and now a 20% down payment means an easier financing path (well….maybe!). You need that capital ready to go once needed. In the local market, many people are now talking about investing in real estate, but they have no experience or knowledge. Now is the time to show how good you are and how you can help them through joint-venture partnerships. A true win-win deal.
Richard Killeen-Payne is a Halifax-based Realtor with Century 21 Team One Realty and co-founder of Invicta Property Investments. He will be speaking at the upcoming Investor Forum in Halifax, October 20, 2012
For more information or to register for the Investor Forum travelling conferences this fall, please visit www.theinvestorforum.ca
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