Book says real estate always a good long-term investment
February 25, 2009 NICOLE MCLAWS SUN MEDIA
For long-term investment purposes, you can't beat real estate -- even in today's economy.
According to Don R. Campbell, president of the Real Estate Investment Network and author of Real Estate Investing in Canada 2.0, it's always the right time to buy, as long as investors do their homework.
"People need to be realistic," he says. "The last three years in Alberta have been the Tiger Woods years of real estate. No matter what you did, you won, but that can't sustain forever."
Indeed, the bloom is off the rose in Calgary's real estate market today, with many buyers hesitant about putting their money where their mouth is.
Campbell, however, says that hesitation is unfounded, as "the book is designed to work in hot or cold markets."
And Alberta, he says, is one market that won't remain cool for long.
"Alberta still has the three things the world is going to need when the recovery hits. It has food, fuel and fertilizer and those are the things the world needs and needs in abundance," Campbell says.
"This next 18 months will feel like an emotional and economic roller coaster, but if you're realistic, you'll find you can make money in an up market, a down market or a flat market."
What it starts with is accepting that real estate investing is not for everyone.
While it's bound to make money over the long term, people looking to make a quick buck are sure to be disappointed.
"Look at your financial goals," Campbell says. "Think about what you really, really want with your money and once you've figured that out, go to the next level. What investment will let you have that freedom? For 75 percent of people, it's a piece of real estate."
The reason, he says, is it's the only investment that is controlled by the investor.
"You can add value by doing light renovations, by making it more energy-efficient, by increasing the rent," Campbell says. "You have direct impact over what the property is going to do over five or 10 years.
"If you have a window of less than five years, though, real estate is not for you. Real estate is not get rich quick --it's a business, a long-term outlook."
Ideally, he says, the market should be neither too hot, nor too cold, and should be increasing by 6% annually.
However, he adds, in economies where things aren't perfect, it's still possible to find the right property. All it takes is a little legwork, know-how and patience.
"The book forces you not to buy poor pieces of property," Campbell says.
Real Estate Investing in Canada 2.0 is available on amazon.ca as well as major book stores in Calgary, with all proceeds going to Habitat for Humanity.