Wow, it was another exciting month in Calgary's Real estate Market. Real estate prices are continuing to rise like there is no tomorrow with a bit of assistance from the volatile stock market. Earlier this week when I had tuned into the business news all I could hear is how the stock market has done it again. The biggest drop in one day since 911, leaving people staring like deer in a headlight and asking the question of now what? The stock sell off had started in the Asian markets, continuing to Europe and finally it finished in the North American market. Millions of people worldwide were going to bed not knowing what they're going to face the following day. Should I sell my investments now to minimize my losses or wait and maybe it will recover in the long run?
Over the last couple of years in Calgary, more and more people had decided to inject some of their savings into the real estate market. Especially after the dot.com bust in the early part of the millennium. Including myself and many others were getting tired of the continuous fluctuations of the stock market. It was extremely stressful to wake up everyday and hoping that nothing bad is going to happen in the stock market and not being able to control my investments differently than buy or sell. As history has already provided many examples to us about how a company could disappear overnight and completely wipe out your investments, yet I have never seen a house disappear from the face of the earth so suddenly. If it did by some unfortunate event, usually an insurance provider has reimbursed the owner.
Piece of mind - is the first thought that comes into my mind when I think about real estate as an investment vehicle. Security, predictable future and leveraged growth are the number one reasons why many choose to invest in real estate. According to Andrew Carnegie 'Over 90% of all millionaires become so through owning real estate'. Now that's a powerful statement. Let it sink in for a minute. Even if you are somewhat skeptical about the future of Calgary's real estate market we cannot pass by such an important statement and not to acknowledge it as part of a major footprint of success.
Real estate values go up for many reasons. The number one cause of increasing real estate prices is the scarcity of supply or where the demand of the influx of people to a geographical area will outperform the supply. The good news for us in Alberta is that our provincial government has done such a great job of creating an economical atmosphere for business that there will be new business opening up and moving to this province for many more years to come. Not to mention the billions of dollars of projects already in the books that requires a constant feed of new employees from outside of Alberta.
Why real estate vs. the stock market? Unfortunately, many media outlets don't understand the concept of the power of leverage when it comes to calculating actual ROI (return on investment). Every time I look at a news clip or read an article in the paper where they are comparing the performance of real estate prices to the stock market, I am ready to kick something to calm my frustration. The secret of many successful investors comes from directly applying the power of leverage. It doesn't matter what kind of business we are talking about. If you want to be successful, you will need to find a way of multiplying your knowledge, power and time. If you choose to invest in stocks, you will get your returns one on one. Meaning that if you invest $1,000 and that particular stock goes up in value by 10% your ROI will be $100. When you put your dollars into a piece of real estate, the banks will usually require 25% of your own money and they will put up the remaining 75% of the purchase price for you. The beautiful part of this arrangement is that if the purchased real estate increases by 36% like it did in 2006 than your ROI will be 4 x 36%. Now that's the true power of leverage.
Real estate values most definitely won't be increasing by 36% forever. However even if we make a very conservative assumption of prices to only increase by 6% annually than you are still anticipating a 24% ROI. In many of my client's opinion it sure beats any of the G.I.C. investments available today.
Right, but I am not cut out to be a Landlord. What if the tenant doesn't pay or damages the property? What if...? Excuses can be created in every situation in our lives just to rationalize why not to do something. Sometimes to move ahead in life, we need to get a little more comfortable with being uncomfortable when we decide to get involved with new ideas. However, if you prefer not to deal with tenants you can completely circumvent that challenge. Once again, if we examine some of the other evidences that successful people have left behind we can easily find the solution to this problem. You not only need to leverage your money, you will also need to leverage your time and knowledge by hiring the right professional to be on your team of success. Can you imagine Donald Trump taking phone calls at 2:00a.m. about a leaky toilet? Or personally collecting his rental cheques every month from his tenants? I didn't think so. So, why do you think that you need to do it all alone? Why not do exactly what some of the major players in this investment business have already done? If it worked for them why wouldn't it work for you?
It's absolutely essential to hire the best professional experts on your team of advisors to propel your investments to the top and not to leave anything to a chance. Some of the professionals you should absolutely consider on having on your real estate team are Property Managers, Accountants, Contractors, Lawyers and knowledgeable REALTORS® who will not only advise you but allow you to stand on their shoulders and push you up to achieve your goals.
I truly believe that everyone can succeed at investing in real estate if one puts their mind to it. But it's up to you to decide and take actions. You owe it to yourself to further explore the possibilities of investing in real estate. As you are probably aware, real estate is and has been a solid blue chip performer over the long term (after all they're not making any more land!). posted by www.JoeSamson.com
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Joe Samson is an Alberta based real estate professional and licensed member of the Real Estate Council of Alberta - Proudly representing MaxWell Canyon Creek Realty. Joe began building his personal real estate career in 2000 and hasn't looked back since. Using unique real estate strategies he managed to help countless clients of his to become on route to be financially independent and happy home owners. At that time, Joe worked as a Project Manager for a major International gas compression manufacturer. After regular business hours Joe managed to dedicate a large amount of his time to his passion - Real Estate. Joe spent countless hours educating himself of "how to buy, where to buy and what to buy" while minimizing risks and maximizing returns. Then he took that knowledge and began working with clients who were interested in purchasing revenue-producing real estate using his own unique strategies. Over the years, Joe has dramatically increased his personal net worth, along with that of many of his clients. And now, with his real estate knowledge and experience backing him, Joe has left his safe/secure job to dedicate his time to growing his Real Estate experience and helping others become financially independent by sharing with them his "real life" Real Estate strategies. The foundation of his business really is "You Can Have Anything In Your Life... Just Help Enough Other People Get What They Want." And due to this commitment, virtually all of Joe's business comes from repeat or referral clients. To better support his clients, Joe constantly shares his knowledge with others to assist and guide them in their Real Estate & Wealth Creation. Joe Samson's background, experience, energy, ability and honest hard work will be key factors in building your wealth, investment confidence and eventually your financial independence! Joe is adamant about always putting his client's interests first and realizes that the level of service offered to clients dictates the level of success you will attain. "don't worry about making the sale - concentrate on providing great service and in giving helpful advice the business will follow" , says Joe. A motto he has lived by since the day he began his real estate career. Joe incorporates the services of a trusted team to enable him to bring a whole new level of service to his clients and offer attention to detail in all aspects of the real estate transaction. Trust and Integrity Joe's success comes from taking the time his clients need to make the right choice. Joe is there every step of the way, providing top-notch professional service while at the same time helping to make it an enjoyable experience. Joe gratefully acknowledges the super support he has received from his past clients who have recommended him to their family and friends. The trust and confidence they placed in him when they purchased or sold their home is reflected through these recommendations. Integrity is everything to Joe. He does not hesitate telling his clients the pros as well as the cons to every home buying or selling opportunity. Call Joe today at 403-278-8899 or at http://www.JoeSamson.com . When the world is moving at speeds too fast to comprehend, it's important to keep pace with the competition or risk being left behind. If you plan on buying or selling Calgary real estate, let Joe Samson use his unique real estate systems to maximize your opportunities. He uses all the technological advancements to provide his home sellers and buyers with an extra edge in a competitive market. He makes a point of always staying connected with their clients so that timely decisions can be made effectively. While Joe may lead the way in high-tech conveniences, he still understands that nothing can replace good old-fashioned personal service, hard work and dedication. Buying Calgary Real Estate? Joe will provide you with useful real estate information about the buying process, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed real estate decision in today's Calgary real estate market including school information, amenities and communities. He showcases all the current Calgary MLS listings online from the Calgary Real Estate Board MLS database. These real estate listings are of new and resale Calgary homes, town homes, condos and land with maps, satellite maps, photos and some with floor plans! He offers free relocation services and in-house mortgage brokers to make sure you get the lowest interest rates in town. FREE automatic Calgary Real Estate updates on a daily basis so that as new homes for sale come on the market you are immediately notified by email! "
