As a real estate Investor for over 20 years, I have learned many lessons on what and where to buy for the best returns on my investment. One trend that became obvious to me was to understand where the big development money was going and to simply go there.
True personal story: As a newbie investor, I got lucky as I hadn't learned all my real estate wisdom yet. About 20 years ago I bought vacant property in a sleepy little town called Squamish, BC with the hopes that one day I would build a house and retire there. I never speculated as to what the property might appreciate to in the future simply because I bought it for personal reasons. During the 10 years that I held property there, I noticed that large retail players were moving to town: Walmart, Home Depot, Canadian Tire and others. With this Big Money investment came significant appreciation of my property. Why? Because the Big Money goes where growth is happening, and where growth happens, jobs happen, and demand for homes follows. Demand for homes pushes the price up and it's as simple as that. Wow! What a great lesson I learned: Follow the Big Money.
So where is the really Big Money going right now in the Province of British Columbia? One particular area with unprecedented levels of investment currently being made and scheduled to be made is the North. There are billions of dollars slated for various projects which are already driving demand for housing. Anyone "in the know" with feet on the street up North see the infrastructure being implemented, and improvements to transportation happening in order to prepare for the growth. Take for example the Kitimat LNG project. Although the "final approvals" haven't been made, there is a HUGE amount of activity and spending already going on so that when the approvals are made, the project will hit the ground running. There will be an estimated 4,500 jobs created by this one project alone, and in a town of approximately 9,000 people, that is a 50% increase! Not to mention there are about 17 additional major projects under consideration in the Kitimat area.
I've learned that investment in real estate in resource towns is all about getting inbefore the final decisions are made because once the decision is made, the prices have already risen. So if you're tired of your single digit returns on your hard earned money, follow the Big Money and make Big Money by investing in a rental property in the North. I have properties in the area that are generating 12% to 22% returns. Click HERE for an example of a 3 bedroom & den single family home that you can invest in for under $70,000. This home is projected to generate $870 / month in positive cash flow, is fully renovated, fully furnished and already tenanted. How does it get any better than that?
Cheers to Big Money