A few months after I got my real estate licence, my husband and I bought a piece of vacant land in a subdivision that ultimately went bankrupt. Prices dropped to about 25% of their original value and it’s taken 18 years for them to come back up to what we paid. That was an incredible lesson. Vacant land is a cash cow. It takes your money and gives you no return except for a speculative increase in value which is a risky game to play for the wannabe investor. Since then, I’ve learned a great deal from my clients over the years about how to buy investment property. The key is leverage and return of course. If the income from an investment property pays the expenses, then value doesn’t matter nearly as much down the road.
So, after years of helping other people find these gems, my husband John and I finally did it! We bought a very lovely, two storey, 3 bedroom townhome with a new kitchen, six appliances, a private garden and a gorgeous flagstone patio in Collingwood which we will now set out to rent to a perfectly lovely person or family who’ll care for it like their own. They won’t have pets (okay, maybe a fish or two), they won’t smoke, they’ll love to garden, they’ll always pay their rent a day or two early and they’ll love to garden too. (Hey, it is possible you know…) Will this plan work out? Check back here often and I’ll report on our progress.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg