• Edmonton Real Estate Investing

Edmonton Real Estate Investing

Investing vs Paying Off Your Mortgage Faster, Which One Is Right For You

Investing or paying off a mortgage faster is one of the biggest questions many people want the answer to. It's a question most people struggle with on their quest for financial freedom. The truth is the answer to this question depends on different factors. Each situation is different, and you must understand your situation before you make a decision. If you'd like more information on whether you should invest your money or whether you should pay off your mortgage faster then you'll find this information valuable. In this post, we’ll take a look at why it might be better to pay off your mortgage first in some situations, how to do it and why it might sometimes be a better option to invest your money first. 

Should You Pay Off Your Mortgage Faster?

For many people, the dream is to get out of debt and start...

Study The REIT Market Before Taking The Plunge

So you’re looking into investing in a REIT. Just as in any financial enterprise, doing a bit of investigation before taking the plunge could help you get the maximum return. One decision you’ll be faced with is whether to make that REIT a private or public one.

Having an RIET, or real estate investment trust, is one way to diversify your financial holdings. Investors are becoming more interested because of the current state of the housing market and its ups and downs. They are also taking a second look because firms such as Allied Properties REIT are making plans to expand into Western Canada, to the tune of $21.3 million.

The primary difference between public and private REITs is their individual structure. A REIT in a public offering takes its valuation on a property’s current market value. That means if an announcement comes along that causes that particular market to decrease and you invest in that particular REIT, you aren’t necessarily...

Investment Risks Worth Thinking About

When investing in real estate no one really wants to think about risk any more than they have to. But it is best to know the potential problems and risks that you take when you sign on that dotted line. Here are some to pay special attention to.

Looking at Economic Risk

Canada’s economy and the real estate market are in good shape, much better than that of other global markets. Foreign investors are increasingly turning to Canada as a place to safely invest funds. Domestic investments are also doing well. Still there are risks to consider.

One is the interest rate. Right now and throughout 2013 the rate is expected to remain low. The rate has been low for quite a while and we need to avoid becoming complacent. Eventually things will start inching up. For now the Bank of Canada’s governor Mark Carney has decided to leave the rate at one percent. The risk is that when the rate starts to go up, it will go up too quickly and do some serious...

Could A Real Estate Slowdown Actually Help Investors?

While we’re becoming accustomed to the stories about slower home sales and declining property prices, it doesn’t all have to mean bad news. If you are an investor thinking about getting into the property game, these very things that are making some people nervous could actually give you a leg up on your venture. There are ways that the downturn can really work for you.

Property is Less Expensive


Property prices across Canada are dropping. If you have your own capital or a way to finance your purchase, this may be the time to act. First-time homebuyers may be put off by the downturn, particularly if they must use conventional financing. But, look beyond the media hype and you might find a silver lining, favoring investors.

Rental Market is Stronger


Some potential home-buyers are choosing until the market stops dropping and instead are staying in the rental market. That’s good for you if you are buying rental property. Currently...

Investment Opportunities Near Arena, Airport Projects in Edmonton

Edmonton’s proposed downtown arena may still be an undecided issue, but if it does happen, real estate investors might want to check out the local neighborhoods for property up for sale. That arena will spark a wave of redevelopment, and if you already own a bit of property, you will be in the driver’s seat. The same could be said with neighborhoods near the airport property project, another controversial issue.

Don Campbell, somewhat of a real estate guru and author of a book called “Secrets of the Canadian Real Estate Cycle” is encouraging potential investors to take the plunge. If these projects go ahead, and that is likely, then Edmonton’s economy would pick up substantially and neighborhoods surrounding these projects will find their property values increasing.

This is on top of the fact that Edmonton is already in an economic upturn. Campbell notes that real estate cycles usually have a gap of between 18 to 24 months after an economy...

Vendor Take Back

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A VTB is not some sort of STD, it is a term used in Real Estate which stands for "Vendor Take Back Mortgage". Better stated, a VTB is when the Seller of a property is willing to offer some or all of the financing on that particular property.

There are many different forms of VTB's, we have helped Buyers purchase a home where the Seller acted as the bank and held the entire mortgage. Other times it has amounted to 95% of the property value, but more often it amounted to 80% of the property value. Other main factors to consider with a VTB are the interest rate, amortization and term (length) of the financing. We have seen Sellers offer 6% interest rates all the way up to 9% rates. The amortization is usually between 25-35 years with a term of 1-5 years depending on the Seller's situation....

What is a SIMO?

A “Simultaneous Close” or SIMO is when you “buy” a property on paper, and sell it to a buyer on the same day.

Here is a step by step on how to set it up.

1. Find a property, and get it under contract. Some important things to include in the terms are the following:

  • Make sure you leave yourself some time to find a buyer, make your conditions period at least 2 weeks long, with a closing of at least 4 weeks.
  • Under terms, explain that you need access to the property within 24 hours notice for showing to other investors, inspection, etc.
  • Give a small deposit, and make sure that you write in that your deposit is refundable.
  • Indicate that you have the option to market the property.

2. Once you have the property under contract, have your REALTOR® and lawyer review the documents. It is highly recommended you use a real estate specific lawyer for this type of deal. If you are unsure,...