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Surrey demand for land!

I’m sure you’ve noticed that the newspapers say “Surrey Booming!” or “BOOM from Vancouver Market!” Or maybe “The Fraser Valley market is red hot.” Well, due to the increase in population and the decrease in the supply of land, real estate prices go up. This is a natural law of the world. Many communities have slow or no growth because they cannot meet the rapidly expanding needs of their community. With our government, this is not the case. Our government understands that restrictions on land availability mean new development. This causes the value of the land to rise in value in the Fraser Valley real estate market. Real estate is a good that the public needs. Other investment commodities are not as reliable because they are not a public necessity. Sometimes people will live in the lower part of the continent and will want Vancouver Island as a refuge. Vacation properties or places of retirement create a higher demand for land. And so the cycle continues. You can see why real estate can be a solid investment for your Canadian dollars.

For all the reasons outlined above, it is clear that buying a new home in British Columbia has the potential for an attractive return on your investment. Before and after taxes. In fact, some of the tax advantages of real estate investments include the following:

(i) tax-free capital gains on your primary residence

(ii) the “ability” to write off your primary residence suite rental income against your household expenses.

(iii) Reduce home business income to your household expenses.

(iv) Tax rate of reduction of 50% of the capital gain of your investment in real estate

(v) To forgive the depreciation of the building with the income.

(vi) Much, much more! (contact your local real estate agent for more information)

A prudent Fraser Valley investor can generate positive net cash flow for you every month. Not only can money provide you with additional money in the lower part of the continent, but the fact that you have a positive cash flow is a factor that automatically increases the value of income by acquiring real estate.

Check out our 10 key investment strategies

1. Researching the market before making any decisions would be a great start! Consider at least three possible investment opportunities.

2. Buy specific types of properties that are in demand. For example, a single-family home with a spare basement for income is a great solid asset. Condominium, duplex, triplex or four-plex. Don’t buy an apartment building until you have the experience of several smaller properties.

3. Strive for “balanced” cash flow. In other words, AVOID DEBT! Cover all your cash flow expenses such as mortgage payments, taxes, property management, and tier fees. Also make sure the insurance and repair is paid for.

4. Budget a “what if” plan in case you have a vacancy for more than 2 months.

5. Make sure you have competent property management. Either hire a property manager or do it yourself.

6. Keep rents at market highs and manage expenses to keep them at market lows.

7. Always view and inspect your property before buying. Check all financial information and get guidance from your realtor in the Fraser Valley market.

8. Maintain a minimum of 3 months of operating expenses as a reserve fund for unexpected expenses such as repairs or vacancies.

9. Buy property within 4 hours of driving distance from where you live. That way, you can easily control your investment. Stay within Richmond, Burnaby, Vancouver, New West, White Rock, Langley, Maple Ridge, Aldergrove, Abbotsford, Mission, and Chilliwack. Beyond that (hope and Vancouver Island) maybe too long a road for an investment property.

Give yourself a realistic time frame to achieve your investment goals. Real estate cycles are 5 to 8 years and sometimes longer. Be patient!