Edmonton Real Estate Investors Association Message Board › E.R P I A minutes of April 10, 2012

E.R P I A minutes of April 10, 2012

Kathy C.
KathyCallfas
Sherwood Park, AB
Post #: 30
Edmonton Revenue Property Investors Association- minutes of April 10, 2012
We met at 7:00 upstairs in Rosies south side Bar and Grill. Jim Whitelaw our Vice President introduced Brent Davies our president. Jim suggested we all make use of our ERPIA website. Brent gave us a handout and class on “Finding Cash Flow in Real estate.” He also gave us a number of forms to assess your proposed Real estate purchase and make sure that the positive cash flow will be there.
A traditional buy and hold strategy relies on cash flow and appreciation to get you to your goal.
On investing, as Warren Buffett said, you only find out who is swimming naked when the tide goes out. Seems like Bernie Madoff was swimming naked.
In Real estate, screen cities and neighbourhoods. Edmonton is among the top 10 places to invest in Real Estate. Remember the 8% rule ( It was the 10% rule in earlier times). The rent should be .8% monthly of the purchase price. For example, if you are planning to purchase a $150,000 condo x .008 = $1200.00 month rent.
Some things to consider: Affordability index; political support, economics - help for new business. New infrastructure? Is the area attractive to young families? Are interest rates low?
Re rent to own. New legal contracts now prevent tenants from suing as they did in the fifties. Basement suites are O.K. in Edmonton as long as they meet the minimum standards. First time buyers can purchase a home or even a 4 suite building with 5% down.
We had an economic update as well. Home prices are up 1.3% while condo prices are down 1.4% month over month. Average days on market now 53 days.
Buy/sell info before the meeting concluded.
Katherine Callfas
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