What are you doing to stand out! 5 Ways to do just that!

1. Look at what you can do to attract the quality higher paying tenants.  Attracting the right tenant is easy with a clean, well cared for unit, a location close to amenities, schools, transit, and good value for the money. Advertising and the words used are keys to promoting your property as the best thing since sliced bread. Showing the tenants that you care about them and that it should be treated as well as if it was their own, is vital to the success of maintaining a long term relationship with that tenant. A business relationship based on mutual respect is what you are going for.

2. How can you attract long term equity building tenants? Having quality units, one that you are proud to say you own. You don’t need to spend thousands of dollars to make a property look good, just some attention to the unit while vacant is the best time to get those minor repairs done.

3. Where can you reduce costs to spending for the unit? Property management fees could be one way. If your tenants are paying for their own utilities great if not…they should be. Do you have any leaks in bathrooms or kitchen that may be increasing your water bills? Are your mortgage rates been looked at and decreased? Now is the time to talk to your banker to negotiate a better rate.

4. What can you improve on for the unit to build equity and get those quality tenants? Curb appeal, curb appeal, and curb appeal! The next item is having a sense of Security of the area, unit, then quality of the home, then price. Renovate strategically to achieve higher ROI.

5. Is your system replicable? Are you verifying the information the tenant gives you? Is your system working for or against you? Check into what the tenant is telling you. Check references, and treat your investments as a business. This individual will be renting from you for a long time and you will want to ensure you have the best possible candidate in your unit.

Curb appeal, renovated suites, and a systematic tenant approval process will get high quality people and lead you on a path of getting what you want while creating a win/win for everyone involved. Your tenants will be happy, your investors or you will be happy, and most importantly you now will have an investment that increases in value and cash flow over the long term.  Darcelle Runciman © 2009.

WANT TO USE THIS ARTICLE? You Can simply include this blurb with it. : Darcelle Runciman is the COO (Chief Operations Officer) of Hemlock Investments a real estate investment company, a Business Mentor and a Contributing Writer of The Power of Women United a book about Confidence, Success, and Networking. Hemlock Investments works hard for you so you don’t have to. Visit her website at www.hemlockinvestments.ca or call 613-921-2535.

Even though Canada’s economy is linked to the U.S  it certainly doesn’t mean that we are on the same path, especially when it comes to real estate. Yes there has been a slow down. That is good considering where housing prices vs. affordability was heading. Compared to 2007 which was the Tiger Woods year in real estate, anything comparable could look like a downturn. Canadians should feel secure about our housing market long term.

CMHC (Canadian Mortgage and Housing Corporation) has been a force of stability in providing home insurance, and our banking system resisted handing out mortgages to anyone with a pulse over the last years, unlike in the U.S.

There are many variables to what has occurred in the U.S and global markets over the last year. However here are some Canadian facts to consider; The International Monetary Fund recently ranked the Canadian Banking System as the most stable and secure in the world. The U.K and the U.S ranked 40th and 44th respectively.

Housing Affordability typically should not be more than 32% of a borrower’s gross annual income. If we look at a standard condo in Alberta for example, the affordability index was 28.2% in quarter 3 of 2008, and 30.9% in Ontario in that same quarter. (Source: Statistic Canada, Royal Lepage, RBC Economic research) So homes are still affordable. From 2007 to 2008 when looking at average housing price decrease it has been a minimal $10,000. Not too bad when you are looking at longterm holds anyway. There are many areas in Ontario that are still getting big business investment dollars and new inovative projects on the go. The techtriangle being one of them. Darlington Nuclear Plant is looking to fill 1,300 jobs. Our national average for sales on the MLS (multiple listing service) only fell 4.7% per cent last month. Compare this to the 33% in Phoenix, or 32% in Las Vegas and comparably we are doing well. In Canada ”At the end of the day we will have outperformed much of the rest of the world, certainly the rest of the G7″  BMO Sheery Cooper said Jan 7,2009.

Benjamin Tal, leading economist said “Is this a crisis? No. Is it pretty? Still no, and you will lose 2 years of price appreciation. But this is part of the economic cycle. Canada never had a subprime problem in the league of the U.S, which means a market correction here will be more moderate.”

For investing in real estate, long term hold is what we are looking for and areas with a future.  Real estate is still one of the safest long-term investments a family can make. 2009 may very well be a slower year than our booming 2006-2007 however NOW is the time to buy when certain stronger markets are low, and knowing that the strength of Canada as a whole. Understanding you have to buy in specific markets in specific towns. Know what to look for in terms of the fundamentals of real estate and markets, political climate, job growth, transportation etc. Or work with a team who assesses all angles and has an exit strategy, and knows what your money can do for you.

Leverage- we use leverage to maximize the return on investment (called ROI) For example most people think that buying an investment home requires lots of money. Let’s use an example; the way most people have been shown how to buy property is this….they take 1 dollar lets say and use that dollar to buy the property.

Now… what if you took that dollar and split it into 4 quarters…. Then you could take those 4 quarters and put each of them on a property as a downpayment and use the banks money to leverage the rest. This would be smart especially if you have tenants which are your most important asset taking care of that mortgage and carrying costs for you.

-So the reality is that if you know what is out there for you, you can actually have multiple properties all with that $1. That is the power of leverage.

What’s best for you. Simply put. Real estate investing is something everyone can considered by everyone as an a way to expand your portfolio for investments. If you approach it with a system or using a professional who understands what is necessary. Many people today are not thinking ahead about tomorrow. Your future is in your hands, and taking care of it financially is the best way to take care of your family and loved ones in your life. When looking at real estate as an investment make sure that you know your credit score which you can get off the web for around $21 dollars, and keep track of it every 6 months. It does not cost you points to look at your own score. When looking for financing remember that every time you go to a different bank there is a 3 point hit on your credit. This is why going to a mortgage broker can work well. If you invest on your own, make sure to do a lot of due dilligence on the property, area, tenants if already there. You do not want to take on someone else’s problems. It can be overwhelming but with help or advice, you too can work towards your financial freedom through real estate as another form of income, and equity building.

Check out www.hemlockinvestments.ca/events  for our fundraising informational seminar on investing. 80% of Profits go to Habitat for Humanity.

Cheers to a successful investing year!

Working with a realtor, designer or home stager helps to assist you in the decision process of what is the best investment in your home. Once the emotional & lifestyle decisions are made as discussed above, a practical approach to getting your house ready for sale or to stay can be implemented.

To prepare your house for sale, it may be beneficial to purge any clutter that may block potential buyers from seeing your homes features. Small repairs should be completed, such as holes in screen doors, loose trim or flooring, light bulbs replaced, windows cleaned, grass cut, fresh paint, etc.

Renovations can be costly if done incorrectly. With proper planning, a financial return is guaranteed. Kitchen and bathroom renovations will usually give you an 80-90% return on your initial investment.

If you are an empty nester, at the end of your mortgage or simply love your location and you want to stay in your home, you may decide renovating makes sense for you. Now you can make different choices for your products because you are staying and will get to enjoy them for the long term.

At the end of the day…home is where the heart is…enjoy your home!

Written by Cindy L. Dow, Designer

Check out Cindy’s website www.interiorsbycindy.com