Local Kitchener Waterloo

Bauer Lofts Condo in Waterloo Ontario for rent

Luxury Loft Living in the heart of Uptown Waterloo

You can rent a cool, spacious modern condo in Waterloo’s hottest new development, the Bauer Lofts.

If you’ve been waiting for the right building to call home, your search is finally over.

Your new home is located above Vincenzo’s and other premier retail & markets shops, and features premium finishings such as:

The Bauer Lofts is a historic site - originally home to the Bauer factory - and is one of the most desirable new condominium developments in the Waterloo Region.  The project sold out before construction started (although there are a handful of units now available again through the builder - contact us for information on these investment opportunities)

For more information, and to schedule a viewing, email me, or call me at 519 570 4447

Great Kitchener Condo For Rent

Are you looking for a new place to rent, or now someone who is ?

If you are, this condo is for you.

This Open Concept floorplan two bedroom Condominium in the beautiful family neighborhood of Forest Hill has all the space you and your family or partner need.

 

Conveniently located just minutes from schools, grocery store, gym, restaurants, pharmacy, convenience store, pizza place, Tim Hortons, major shops, Big Box stores, a major bus line, and the expressway!

This is a clean, freshly painted condo in a professionally managed building, in a safe, park like setting, with secured entry is perfect for you to call home.

Your new  home features a large kitchen, open to the spacious living room, a great Master bedroom, an additional bedroom (or home office), and in suite washer and dryer.

The condo has a private parking spot and a spacious storage locker. Rent is only $900/month, which includes water and all condo fees.

This unit is ready for you immediately.  Contact me via email for more information. 

 

Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy.

Benjamin works with people from all across Ontario, Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo.

He’d love to answer any questions about buying, selling and owning a residential, or income & investment property in the greater Waterloo region.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

 

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007

Real Estate Investment Tip: Raising Rent in Ontario

Real Estate Investors in Ontario know there is a cap on an annual rent increase.  This is governed by the Residential Tenancies Act, 2006. 

Did you know that not all rental properties are subject to this ?  Our clients are investing in Kitchener Waterloo properties with an important piece of knowledge - Do you know it ?  Watch the video below to find out!

 

How much can you raise rent every 12 months on a residential tenant ?  Depends !

 

Do you have questions about being a landlord ? Email Benjamin at Benjamin(AT)BenjaminBach.com  with your questions!

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Related Links:

Ontario Residential Tenancies Act, 2006

Landlord and Tenant Board

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a residential, or income & investment property in the greater Waterloo region.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007

A Few Reasons Why People Invest in Real Estate

Real Estate is Easy to Understand

- You buy a property, and someone either works in it, or lives in it, and pays you rent.  That’s the business model.

Real estate is an Investment you can see & touch

- You can physically inspect the quality of the real estate asset you’re investing in. You can walk the neighbourhood, talk to the neighbours, and see what the ‘facts on the ground’ are before investing. 

You can Leverage your Equity when Investing Real Estate

- Most people don’t pay all cash when they buy a house - they have a down payment, and borrow the rest as a mortgage.  This means you can leverage your capital and purchase 3-10 times as much value (i.e.If you have $25,000 you can likely purchase a $100,000 property), with the bank or a lender loaning you the rest.

There is a constant demand for real estate

- People need shelter.  Real Estate is where you live and work.  The chance that people in our Canadian climate will no longer need to live indoors is slim to none. Until then, they need somewhere to rest their head, and it might as well be your condo.

You can improve the value of your investment with sweat equity

- Real Estate offers you the opportunity to physically improve the property, thus increasing the value of the asset.  If you take a property that is renting for $1000, and maybe only needs new flooring and a coat of paint to raise the rent to $1200, you have increased the value of the property by tens of thousands of dollars (depending on the income to price ratio in your area)

Try doing that with your Nortel stock.

Your Real Estate Investment can put a roof over your head if needed

- Many people make their first investment in Real Estate as their first home.  They’re putting their money into an asset, and they can also enjoy the benefit of living in their own home. 

Real Estate has a basic value

- There is only so much land in the world - and with the exception of a few places like Dubai, they aint building any more of it.  When you own a property, there is value in the building, and in the land.  The building may come and go - eventually needing to be replaced after many decades or even centuries in some cases - but the land will always be in demand.

 

What are some of the reasons you like to invest in Real Estate ? Leave them in the comments or email them to me!

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a residential, or income & investment property in the greater Waterloo region.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007

Kitchener Waterloo Real Estate Investment Market Update

There is lots of talk about the economy these days. We keep hearing about the Wall Street Bailout, the economic issues in the US credit and equity markets, and the downward pressure on housing prices in some areas of the USA.

Recently, I find myself being asked by investors the question of whether what is happening south of the border is affecting Real Estate in the Kitchener Waterloo market.

Now, I know the old saying “When the US Sneezes - Canada Catches a Cold,” and clearly the health of our economy is tied somewhat to that of our largest trade partner, the USA, but recent activity in Kitchener Waterloo seems to be bucking the trend.

In September 2008, the number of residential units sold increased 11.4% from September 2007. The value of these residential sales was $134,753,742 last month, compared to $120,205,358 in September of 2007 -a 12.1% increase in the dollar volume of all residential sales for the month.

Year to Date, the total dollar value of all residential sales has increased by $14,871,289 over the same period (Jan-Sept) of 2007.

Residential is not the only asset class that’s showing strength in the Waterloo region real estate market. Investors have also been trading Multi Family units with greater volume than last year; September 2008 multi family sales (dollar volume of sales) were up 32.6% over September 2007, and year to date about $15 million in additional multi family property has been bought & sold ($85,413,829 [2008 YTD] vs $70,769,850 [2007 YTD]) compared to last year.

What about average sale price in Kitchener Waterloo ?

Great question! Let’s have a look:

The average sale price of a detached residential home was $293,690 in September 2008, compared to $285,638 in September 2007.

The average sale price of all other types of residential property (semi detached, freehold townhouse, condominium unit, co-operative, link, recreational or mobile home) climbed to $192,869 (YTD 2008) from $179,464 (YTD 2007) - an increase of 7.5% year over year.

Kitchener Waterloo continues to show why strong fundamentals drive a growing real estate market. KW has great employers, fantastic employees, and is a great place to live. All this contributes to economic growth - more and better jobs - which draws people to the area.

As Dr. Sherry Cooper, Chief Economist, BMO Capital Markets said, “We expect growth in Waterloo-Guelph to exceed both the Ontario and Canadian rates over the 2009-12 period.”

Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate
Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

Why People across Canada Invest in Kitchener Waterloo Real Estate

"We expect growth in Waterloo-Guelph to exceed both the Ontario and Canadian rates over the 2009-12 period"  - Dr. Sherry Cooper, Chief Economist, BMO Capital Markets.

(source: body soul and spirit)

This year we’ve been fortunate to work with great people from across the world buying and selling real estate in Waterloo region.  Calgary, Alberta; Vancouver, British Columbia; Eastern Europe, the Middle East, Guelph, Cambridge, Toronto, London, Montreal - just to name a few.

When we speak to clients, we ask them why they’ve decided to invest some of their hard earned investment capital into Kitchener Waterloo, Ontario, instead of a property in their home town or country.  We hear a variety of responses from: Affordable purchase prices; low vacancy rate; great student rental market (with some great opportunities right now); growing, young & diverse economy; proximity to Toronto and Major US Cities via the 401 highway - just to name a few, again.

Last week BMO published a report with some great information on why Waterloo Region is attracting so much attention from Real Estate Investors.  The report detailed some of the investments being made into the region, as well as some of the reasons that the rate of growth is predicted to exceed the nation’s.

In Kitchener, the University of Waterloo’s School of Pharmacy building will open this year, and construction will start this year on a new medical school. Both are part of the University of Waterloo’s new Health Sciences Campus in downtown Kitchener. A new recreation centre with twin ice pads, boxing facilities and indoor walking track opened this year. Fairview Park Mall recently received a $33 million makeover. St. Mary’s General Hospital will complete a 115,000 square foot addition this year, part of a multi-year $90 million renovation and expansion program. Grand River Hospital will renovate its intensive care unit and construct a new mental health unit, starting this year. The City of Kitchener is spending $46 million to convert the former BF Goodrich plant into its new central maintenance facility. It is hoped that work will begin this year on the $90 million Centre Block redevelopment. This project would include two residential towers, public parking and retail shops. Also, there is a $100 million proposal to redevelop the former Sportsworld site, with offices and small retail shops. 

 

In Waterloo, Conestoga Mall is undergoing a $50 million renovation and expansion. Construction will begin this year on the Balsillie School of International Affairs in downtown Waterloo. Two new buildings are being built at the University of Waterloo’s Research Park: the $8 million first phase of the Research Accelerator Centre and the $20 million InnoTECH building. The University of Waterloo’s School of Optometry is getting an addition to be completed in 2009. There are also a number of other building projects at the University of Waterloo. Future projects include a $25 million joint city/YMCA library and recreation centre. A proposal has been made to redevelop the Canbar site — a $200- to-$250 million project including a 280-room hotel, apartment and condo towers, and office and retail space. Preliminary discussions are taking place about a possible new law school in downtown Waterloo.

Outside of the major cities, the largest project is a $29 million arena and recreation centre in Elmira, which is to be completed in 2009. A $200 million gas-fired power plant in Waterloo Region southeast of Cambridge has been proposed.

Municipalities within the region are rushing to make more industrial land available. In Guelph, the first phases of the city’s Hanlon Creek Business Park, which will eventually have more than 350 acres of serviced land, will be available later this year. In Cambridge, the city plans to start bringing the Boxwood subdivision in the Cambridge Business Park to market in 2008, with 150 to 170 acres of developable land. In Kitchener, an additional 30 acres will be available at the Huron Business Park in late 2008. Meanwhile, in Waterloo, there are no city-owned industrial lands available as the city conducts a strategic review.

 

In addition, properties which were sitting idle for longer periods are now being redeveloped into condos, such as the former Arrow shirt factory in Kitchener, the former Tiger Brands knitting factory in Cambridge, and the former Bauer Industries plant in Waterloo. There are also plans in the making to redevelop the former Canbar (Canada Barrel) property in Waterloo into mixed use (hotel, residential, office, retail) and the former Lafarge property in Guelph into commercial space.

…

Third, the area has a relatively youthful population and strong net inmigration. The population of the area
is expected to continue to grow faster than both Ontario and Canada over the medium term. This, in turn, will support residential construction and retail sales.

Fourth, the excellent educational institutions in the area are a source of strength. The University of  Guelph, the University of Waterloo, Wilfrid Laurier, University and Conestoga College are all top-ranked  institutions in Canada and, in some fields, the world. All have strong connections to the business community through their co-operative education programs. Further, these educational institutions have been good incubators for new companies through their research programs.

Fifth, the area’s industrial mix positions it for growth. The advanced manufacturing, information and communications technology (including computer and electronic equipment), and biotech clusters, in particular, have strong growth prospects.

The government of Ontario has targeted advanced manufacturing, in which the Waterloo-Guelph area has
particular strength, as a priority with its $500 million Advanced Manufacturing Investment Strategy.

…

Kitchener By Night

 

The Province of Ontario recently passed the Places to Grow Act, which provides a legal framework for
growth planning in Ontario. Waterloo-Guelph is part of what is called the outer ring of the Greater Golden Horseshoe. There is limited room for growth in the inner ring of the Greater Golden Horseshoe. Surrounding the inner ring is a greenbelt, which the province plans to maintain with limited development. Therefore, growth in the Greater Golden Horseshoe will leapfrog the greenbelt over the next twenty-five
years into the outer ring. As development leapfrogs the greenbelt, the population of Waterloo-Guelph  will expand rapidly.

The population of the Greater Golden Horseshoe is projected to rise 48% between 2001 and 2031, from 7.8 million to 11.5 million. The population of Waterloo Region is projected to rise 60% from 456,000 in 2001 to 729,000 in 2031. The population of Wellington County, including the City of Guelph,1 is projected to rise 65% from 195,000 to 321,000. As the area expands, major transportation projects are already in the planning stages. A new Highway 7 between Kitchener-Waterloo and Guelph is being planned, at a cost of $300-400 million. Construction could start as early as 2011. Also, Waterloo Region is considering a rapid transit rail line. The first phase, at a cost of over $300 million, would run from  Waterloo to Kitchener. A second phase would continue to Cambridge.

Waterloo-Guelph has developed a reputation for innovation. Its entrepreneurial spirit has allowed it to
reinvent itself over the years. Old companies close their doors, but new ones are continually opening up. Waterloo-Guelph is leading the charge from the old economy based on traditional manufacturing to the
new economy based on high technology and services.

For the full report click here to email me.

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate
Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

 

 

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

Good Debt, and Kitchener Waterloo as an Investment Destination

A few conversations going on around the Internet today . . . Jump in - either here or at the original blog posts (click through the links to get there).

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Brian Brady thinks Canada is headed for a Real Estate slowdown, and he asks a local for some ‘on the ground’ reporting.

In Canada’s ‘Wealth Building Guy’ Defends Kitchener Waterloo Real Estate, I tell Brian why I think that Kitchener Waterloo offers Real Estate Investors a great place to let their equity grow at accelerated rates, and why I feel Canada’s economic situation is very different from what we’re seeing in the US right now.

…There are three major post secondary institutions in Kitchener Waterloo, with a medical school almost completed.

…

We are the heart of Canada’s Hi Tech sector (the Blackberry everyone loves is made in Waterloo, 5 minutes from my office)

We have a very strong FIRE [Finance, Insurance & Real Estate] sector.

We have a VERY diverse economic base.

When I spoke with Benjamin Tal last month, a head Real Estate analyst in Canada, he singled out Kitchener Waterloo as the bright spot for Real Estate investors in Ontario. I agree, and my clients do too - voting with their wallets.

People from Toronto, Montreal, Vancouver, Calgary, New York, California and recently even Kuwait are attracted to our low prices and great economy. Condos from 130Ks (they’re nice!), newer single detached homes in *nice* areas from the $230,000s - and we’re less than 1 hour away from Toronto, and Pearson International Airport. [ed: Waterloo Regional also flies to international destinations]

Just like in the US, there are some areas where, to me, prices feel high. But Canadians as a whole have not embraced the sub prime lending that the US has seen in recent years, and *most* Canadians aren’t buying huge homes they can’t afford, without equity. Clearly, there are always some who do, and independent of the economy, they’ll get burned, almost every single time.

Investors in Canada should be looking to areas where they can get a great, reliable, steady return on their investment - Kitchener Waterloo fits the bill in every regard, and you don’t need to plunk 35% down like most of us Canucks would have to when buying stateside.

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At AgentGenius we’re having a great discussion on Good Debt vs Bad Debt, prompted by Seth’s blog this morning. 

I said… 

Bad Debt = borrowing to buy a depreciating asset or experience (shoes, boat, car, most vacations)

Good Debt = borrowing to buy things which increase in value (real estate, businesses, collectibles) or increase your value (targeted education and training, for example).

Pay off your bad debt ASAP. Take on Good Debt, in small doses, after loads of education.

Jennifer in Louisville added "They get told by the media and self-proclaimed “experts” that they should cut up their credit cards, and get rid of all their debt so they can be financially sound. When in reality, most persons that are considered wealthy (other than by lottery winnings, or inheritance) - had to go into debt at some point to get their product/business off the ground."

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Ben Asks:

Have you had to shift your paradigm about debt to include Good Debt ? 

How did YOU do it ?

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada - and recently, the world! - helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

Vacancy Rate Falls in Kitchener Waterloo - Again

The downward trend continues for real estate investors in Kitchener-Waterloo, Ontario.

Luckily its a downward trend in vacancy rates my clients are currently experiencing.

More specifically, ‘Vacancy Rates (%) in Privately Initiated Rental Row and Apartment Structures of Three Units and Over’ in the real estate investment properties they’re acquiring.

CMHC (Canadian Mortgage and Housing Corporation) released their Spring 2008 Rental Market Statistics (you can read it as a very long PDF at this link), containing a wealth of information on vacancy rates, availability rates, average rents etc., all broken down by geographic area and type of property.

The Private Apartment vacancy rate in the Kitchener Waterloo CMA (which includes Guelph, Guelph-Eramosa Township, Cambridge City, Waterloo City, Kitchener City, North Dumfries Township, & Woolwhich Township) is 2.0%.

This is in contrast to the apartment vacancy rate in Ontario, which now sits at 3.1%.

Several cities, including Hamilton, Windsor, and Oshawa, are now showing vacancies rate higher than the provincial average.

Kitchener Waterloo is the tightest rental market [ed: lowest vacancy rate] in Ontario, next to the Sudbury CMA.

We’re seeing a very strong demand for clean units in good locations - but that seldom changes.

What are YOU seeing on the ground?

Has renting your units become easier in recent months ? I’d love to hear what you’re experiencing in the market.

–

Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada - and recently, the world! - helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

On Cap Rates and Capital Growth

Last week, a prospective investor from Stratford, Ontario - a picturesque town about 30 minutes from Kitchener Waterloo - emailed a question to me. 

She asks, "What is, and how do you calculate a Cap Rate ?"

Great Question.  Cap Rate, short for Capitalization Rate, is a rule of thumb (a rough calculation) that compares the net income of a property relative to the market value. 

Net Income means the income left after paying the operating expenses and taxes on a property - it usually will not include servicing the debt - or the mortgage payments. 

A property listed for $1,000,000 with $80,000 in net rental income (so, this might be $120,000 in gross rental income, and 40K in expenses like management, property taxes, utilities, hydro, maintenance, vacancy allowance, reserve fund contributions etc.) would have a cap rate of 1,000,000 / 80,000 - or 8%.

After I answered her question, I cautioned her against relying on the cap rate to evaluate a solid investment property.  It seems conventional wisdom still says that a high cap rate is the golden turkey of Real Estate Investing.

I like disputing conventional wisdom, so I told her:

Cap rate doesn’t take into account financing options, location, condition, vacancy, zoning, permitted uses, property type etc., so it’s not usually a precise analysis relied upon by investors and real estate investment professionals.

A high cap rate is preferable every time….  as long as the property is in great shape, well located, attracts good tenants, and will let your capital appreciate at a healthy, and optimized rate.  Now… if you’re chasing a 11% cap rate, and buy a property in need of some work, in the area of town that isn’t the greatest…  it could cost you a fortune over the long run.

The cap rate doesn’t consider the age of the house, the condition, the location, the vacancy rate of the area, the potential future use of the home, the prospects for appreciation of your capital (i.e. what really matters).

An investment property with a 7% cap rate in great shape, in an in-demand neighbourhood with solid prospects for appreciation and growth, is preferable (to me and most of my clients) to rental home with a 11% cap rate in need of work, in a sub-great area of town.  Does this make sense to you ?

As Jeff Brown said this week:

If growth is your primary goal, acquiring double digit cap rate properties will almost always have the following two consequences:

1. Your cash flow will increase, relative to your last property.

2. Your capital growth rate will simultaneously decrease, as most smallish residential income properties sporting high cap rates are in lower demand areas.

THAT’S WHY THEIR CAP RATES ARE SO DARN HIGH. [emphasis mine]

Don’t chase cap rates; find opportunities for your capital to grow at an accelerated rate.  That way, when you decide to stop working at your job you are wealthy enough to do whatever you want. 

That’s why most of us are investing in real estate in the first place, right ?

–

Kitchener Waterloo’s Favourite Real Estate Agent* wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from across Ontario and Canada helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying or selling a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

*Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

Would you rather have 1 condo in Kitchener Waterloo or 2 ?

That’s the question I found myself asking after completing a quick analysis I did for a client looking to invest some equity in the Kitchener Waterloo Real Estate market. 

With an initial $30,000 to invest, coming from non-performing equity ("dead money") in their principal residence, we have a few options.  Naturally, we want to pick the option that maximizes return while minimizing capital risk (i.e. we want to make money while preserving the capital we’ve investing)

My client wanted to know what effect different down payment amounts would have on the growth of his family’s equity.  Should he put more down, or less? 

Good question!

I explored two scenarios for what real estate property he could acquire with that initial investment: 

Scenario 1 had the client acquire 2 condominiums in Kitchener Waterloo for around $130,000 each, with a 10% downpayment.  Accounting for closing costs, we’re going to say the initial investment in each condominium is $15,000, which lets us acquire two units with the initial $30,000 equity.

Scenario 2 has the client use the same $30,000 to acquire 1 condominium in Kitchener Waterloo, with a more traditional 20% downpayment - $26,000 + closing costs.

Scenario 1: $260,000 in property.  Scenario 2: $130,000 in property

In Scenario 1, you’re looking at between $20-50 a month negative pre tax cash flow per unit; Scenario 2 yields about $50 a month positive pre tax cash flow, after accounting for condo fees, tax, and mortgage payments (which are a bit higher in Scenario 1 since you’re borrowing more, and are likely incurring mortgage insurance premiums). 

In the grand scheme of this client’s family income & tax considerations, $50 either way doesn’t make a big difference each month.

Fast forward a couple of years.  Say the value for these condominiums have risen 10%, not an unreasonable assumption given the past performance, and prospects for growth in the Kitchener Waterloo real estate market.  What do the two scenarios look like?

Scenario 1: 2 condominium units, each worth $143,000 ($130,000 initial price plus 10% appreciation, or $13,000)

$23,600 returned on initial $30,000 investment, for a 79% ROI 

Scenario 2: 1 investment condo worth $143,000

$14,200 returned on initial $30,000 investment, for a 47% total ROI

Even after accounting for the positive cash flow from Scenario 2, and the negative cash flow from Scenario 1, Scenario 1 - acquiring the condominiums with 10% down to maximize the growth of capital - yields a significantly higher ROI - return on investment.

My client can acquire twice as much real estate investment property with the same amount of equity, and significantly increase his capital growth rate.

Most people don’t realize how much money they’re leaving on the table by not ‘optimizing’ the growth rate of their equity.  Many people just don’t know what they don’t know.  By educating yourself before you acquire your first investment property, or before you buy your next rental home, you will dramatically increase your returns and the rate at which you build your family’s wealth.

Don’t be like most people - be like my client: have your equity working hard for you.

Sign up now for my FREE Millionaire Real Estate Investment workshop, February 7th @ 7pm and learn proven strategies and models to acquire a Millionaire’s real estate investment portfolio.

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Kitchener Waterloo’s Favourite Real Estate Agent* wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from across Ontario and Canada helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying or selling a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

*Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008

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