Hear Hot Property with Ozzie Jurock every Saturday morning between 8:30-10 am on CKNW AM980
Tip of the Week:
Investing in the US
JREI has its own view. We like the idea of investing in the US. We recommended Washington in 1995 (what a deal that was!) and in 1999 and then again in 2005.
We like cities that have both a local market ( inward migration remains strong, employment base is good, vacancies are low) AND a snow bird market… A Canadian buyer market. Who hasn’t dreamt of owning in Phoenix or Scottsdale?
So, my investment group is looking at 3 markets primarily:
Primary: Phoenix, Scottsdale, Las Vegas (yes Nevada is the highest foreclosure market, but also 5000 people a move to Las Vegas…and prices are (now) cheap and locals are depressed!)
Secondary: We also are looking at Austin and Houston.
Thinks to watch out for:
1. Buy 'A' and 'B' areas
2. US dollar is a gamble…if it goes back up…quick flips will not work
3. You cannot do any renovation yourself. You can’t paint, cut the grass or even collect the rent...yep.
4. You may have to declare your world income (in California)
5. You may have trouble getting financing. Canadians will NOT get an investment mortgage form a regular financial institution. They will get a 2nd home mortgage (you must have a home in Canada) but then you must stay in that second home at least 3 weeks a year!
6. Look for strong employment base, inward migration, low vacancies (as an investor)
7. Stay out of limited partnerships where you have not researched quality of owners/operators.
8. Whatever you buy – go see it!