Real Estate Market Update: How Passive Is Your Passive Income?

Passive income, or cash flow one, is received on a regular basis as a result of an idea, business, or ownership of something. The income is a by-product of work upfront with minimal or no work afterward. This idea of having income or cash flow without even having to lift a finger all while relaxing on a beach with a cold drink in hand, is what motives many of us investors to invest in real estate. But is this a reality? How passive is your passive income portfolio? If your income portfolio has a number of … [Read more...]

Real Estate Market Update: Mania, Peak, Bust

Thank goodness September has arrived! Don't get me wrong, I love summer and all that goes along with it; hot summer days, beach time, grilling, and of course, my favorite water sport kitesurfing (which is much more enjoyable when it is 30 degrees and the water is warm). As wonderful as summer is, September brings back schedules, a refocus on business, and more importantly for me, a renewed interest in the real estate market. All eyes will be watching the fall market because of the changes we have seen over the last … [Read more...]

Real Estate Market Update: Unemployed Again

Have you ever been unemployed? My first and only experience of unemployment was when I was 20 years old while working at the Calgary Zoo constructing a primate pavilion. At the time, I believed that my job was super secure; in fact, I had asked my boss a month prior to my layoff about my job security since I was looking to buy a car and get my first car loan. Wow, what a surprise that cool fall Friday when four other fellow employees and I were pulled into the boss’s office and given an envelope with a layoff … [Read more...]

Real Estate Market Update: Beer, Boots, Beards, Tattoos, And “Keep It Weird”

My wife and I just recently returned from a wonderful vacation in Hood River, Portland, and Manzanita, Oregon. While in Hood River and Manzanita, I kitesurfed—both were amazing spots for kiting—and then we spent two days in Portland. Throughout our stay in the beautiful state of Oregon, we encountered beer, boots, beards, tattoos, and the “keep it weird” slogans. With well over 225 breweries in the state, it was not hard to find a watering hole to enjoy a nice cold one. Many of the local patrons and … [Read more...]

Real Estate Market Update: Stuff Blows Up

  When rates go up, stuff blows up! Does the real estate market blow up when rates do? It really depends; it depends on supply, demand, the market trend, but mostly it depends on the strength or weakness of the drivers in the marketplace. The drivers are the return on investment, average rents, average income, availability of financing, gross domestic product, real estate values, and real estate affordability. Each of these drivers has made headlines over the last number of years in British Columbia. The … [Read more...]

Real Estate Market Update: What Is In A Failed Listing?

I recently was going through some previous blog posts and came across a blog I wrote back in November of 2013 on failed listings. In the fall of 2013, the failed listings were still on the decline, which was good; the less failed listings the stronger the market is. Have a read through the 2013 blog and look at the current graph of failed listings. The market continues to show its strength despite the many influencers (interest rate hikes, mortgage rule changes, government tax policy, and unaffordability talk) that … [Read more...]

Real Estate Market Update: Jealousy Tax

I was recently at a real estate event where a CPA (Chartered Professional Accountant) was sharing the impact of the new Federal and Provincial taxes on ownership of real estate, investing in real estate, and passive income from the ownership of real estate. The presenter asked if anyone liked paying taxes, so I shot up my arm and nodded yes. My reasoning? If I am paying taxes, I must be making average or better than average income. This is not a new concept for me. When I began my real estate career and investing … [Read more...]

Real Estate Market Update: Investor Or Speculator

  Are you an investor or speculator? Both are professions open to all. Both require no formal education, credentials, or licenses. And both draw quick assumptions in one’s mind. An investor is seen as an individual that has done significant risk and financial due diligence before entering into a deal, while a speculator carries a stigma. The stigma of an irresponsible risk taker, an opportunist, or an individual who is dangerous to the marketplace. For me, a simple but useful way to think of the … [Read more...]

Real Estate Market Update: Back to the Future

What would it be like if we were able to turn back time? To take all the knowledge we have today and go back to the future as if we were Marty McFly from the blockbuster movie Back to the Future. I can certainly think of several things I would do differently; decisions, choices, and actions that I made, especially in my younger years. When it comes to real estate, there would be properties that I would have bought and properties that I would have never sold. We all have those would-have, could-have, should-have … [Read more...]

Real Estate Market Update: Roosters & Mother Nature

I just returned from a wonderful family vacation on the Hawaiian island of Kauai. We explored the entire island by car, foot, boat, and helicopter. What an amazing and beautiful place! Kauai is so stunning that Hollywood has filmed some of the biggest blockbuster movies here on the island: Jurassic Park, Pirates of the Caribbean: On Stranger Tides, Raiders of the Lost Ark, 6 Days/7 Nights, Soul Surfer, The Descendants, and many more. The locals love to share where these movies were filmed, as well as which actors … [Read more...]