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Wednesday, 09 July 2008 03:06 |
BUILDING REAL ESTATE WEALTH
Many of today's financially successful individuals and corporations have used Real Estate as the foundation of their Wealth Portfolio. Since this is the case it would stand to reason that many people hold Real Estate as both a personal treasure and also a commodity. The purpose of this area of my website is to allow some introspection into the thought process of evaluating Real Estate as an Investment.
In a past professional career I was a trader of futures and options. I track Real Estate technically/physically based on certain criteria to best optimize geographical location purchases and sales. I utilize fundamental and technical analysis to try to discern an investment strategy for Real Estate. No tracking system is perfect but I certainly feel that I can take much of the guess work out of the forward curve of Real Estate markets.
EVALUATION CRITERIA
Market criteria are paramount in making your decision as to where to invest. You can follow a trend or, to maximize profit you can project the next location Real Estate is going to boom.
 There are 7 key factors in our analysis when deciding future Real Estate values in any given area. * Current Housing Costs * Mortgage Rates * Vacancy Rates * Rental Rates * Employment Rates * Average Incomes * Population Density * Proximity to Major Transportation Access (airport) * Proximity to Major Educational Centre (university/college)
RISK & REWARD
Most commodity traders follow a very specific corporate policy on risk AND reward. For example almost all traders have authority limitations placed on them by their employers, partners or bankers. Four your investment portfolio YOU will be your only judge of appropriate risk and reward.
Before getting involved in Real Estate as an investment you should set those parameters and then vow to follow your limitations. There are always exceptions to the rule but one thing is guaranteed: YOU WILL NEVER LOSE MONEY TAKING PROFIT. You must know when to buy and sell in markets to maximize your returns.
My goal in Real Estate is to help diversify all my clients and allow them to have Real Estate holdings outside of the family homes I sell/purchase with them. In markets such as Calgary where many homes have doubled in the last 5 years, there is an opportunity to use equity in current personnel property as leverage towards other investments. I believe the reward of purchasing Real Estate far outweighs the risk associated with those investments.
Please feel free to contact me for further information on Real Estate as an investment. I would be happy to explain my process in more detail.
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