I haven't been posting much lately as I have been very busy with loads of corprate Christmas events (no complaining here:) but I've just found a good news story and figured it was time to get posting!
Edmonton resale house sales were up 6.9% over October. I certainly agree with these findings as November was a very busy month for me! Hopefully this trend continues and the spring brings a healthy and robust housing market here in Edmonton!
On another note, financial blogger, Frugal Trader, has blogged some pertinent points about purchasing a rental property that he wrote in 2007. While the post is a little old, the information is still very relevant. If you are considering purchasing a revenue property it would be a good idea to go through this list of rules from someone who has been doing this sort of thing for a while, and according to him very successfully.
Here is a breakdown of his rules:
1. The property must have a positive cash flow from the date you purchase it.
2. Purchase a home in a nice neighbourhood, one with typically low vacancy rates.
3. Buy properties that are in good shape and move-in condition.
4. Try to find a deal, a home under market value.
He doesn’t seem to give an opinion on what type of property is best, apartment style condo, duplex, townhouse to detached single family home. With a townhouse or apartment you won’t have to worry about an exterior maintenance which is great but you will have to pay a condo fee so be sure to include that cost when you calculate your monthly cash flow on the property.