October 28, 2011 -- If you are considering the purchase of your first home you’re probably aware that like many of life’s milestones, there are many things you must consider.
Understanding conditions in the real estate market is a good first step. Current conditions in the Greater Toronto Area resale market remain quite favourable for people looking to take the first step onto the property ladder.
The housing market in the GTA continues to be supported by improving economic conditions which have led to sustained job creation, a lower unemployment rate and accelerating income growth. Financing remains affordable as well. The average interest rate for a five-year fixed rate mortgage is very low from a historic perspective.
While it’s important to consider these fundamentals, it is also crucial to closely examine your individual circumstances, especially when determining what you can afford. Financial institutions will help you determine what you can afford by calculating your Gross Debt Service (GDS) ratio, an amount that includes monthly mortgage, tax, and utilities payments and a portion of condominium fees (if applicable). Your GDS ratio normally should not exceed 32 per cent of your gross monthly income. A lender will also look at your total debt picture by calculating your Total Debt Service (TDS) ratio, taking into account all obligations such as your monthly mortgage, car loan, line of credit and credit card obligations. As a rule of thumb, your TDS ratio should not exceed 40 per cent of your gross monthly income. Be sure to explore of the financing options available through different financial institutions.
When determining a price range it’s important to realistically consider miscellaneous monthly expenses, and to account for costs associated with the transaction including home inspection, survey and legal fees.
Once you’re ready to begin your search, enlist a REALTOR® who will commit to representing your interests in writing using a Buyer Representation Agreement. More information on this important document can be found at www.BRAFirst.com.
To find a home suited to your lifestyle, be sure to explore a number of different housing types and neighbourhoods with your REALTOR® before narrowing your search. REALTORS® have access to information on market conditions in individual neighbourhoods, on future development plans and on a range of local amenities.
Your REALTOR® may also provide information on a number of available government programs to help make your purchase more affordable like the Five Per Cent Down Payment Program, the RRSP Homebuyers’ Plan, the First Time Home Buyers’ Credit, Land Transfer Tax rebates and more.
Once you have found the right fit, your REALTOR® can use their expert negotiation skills to help you achieve a favourable agreement.
Specialized skills and knowledge make your REALTOR® an invaluable resource, buoying your efforts as you navigate through one of life’s most important decisions.
For more information on the home buying process, market updates and neighbourhood profiles visit www.TorontoRealEstateBoard.com
Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.
Saturday, October 29, 2011
Friday, October 21, 2011
Using A Realtor To Buy A New Home
President's Newspaper/Magazine Columns
Toronto SUN Column (as it appears each Friday in the Toronto Sun)
October 21, 2011 -- I recently read an article, in a Toronto news paper, that got me thinking about the experiences of home buyers purchasing newly built condominiums. The article detailed home buyers who had bought a newly constructed condominium, from floor plans, but, unfortunately, once the unit was built, they were disappointed when they realized that one window looked at a brick wall, the floor was laminate and the balcony was “more of a ledge.” This article is a good reminder that there is a lot to consider when deciding to buy a newly built condominium.
Condominiums are regulated by the provincial Condominium Act. In recent months, there has been some talk about the need to reform this law, in part to provide better consumer protection. There is no doubt that the Condominium Act does need reworking but “caveat emptor” or buyer beware can go a long way to help home buyers considering any property, including newly built condominiums.
When buying newly built housing, there are many things to consider. Firstly, when you walk into a new housing sales office, please realize that, often, everyone working there is working on behalf of the seller/builder. If that is the case, you may have discussions with them, but their fiduciary duty is to the builder, not you as the Buyer. With this in mind, you do have the option of working with a REALTOR® and entering into a Buyer Representation Agreement, to authorize them to work on your behalf in any Purchase.
At any time that you work with a licensed REALTOR® they must disclose, to all parties, on whose behalf they are working, in writing. For years, I have been hoping that the Government of Ontario would make disclosure part of all sales that happen in the Province. Currently only REALTORS®, who are licensed under the Real Estate and Business Brokers Act 2002, must do so. Consumers would be better protected if other parties that are involved in real estate transactions, including lawyers, private sellers and new construction on-site salespeople, were also required to do so. It’s only fair: anyone acting on behalf of someone else should have to disclose their relationship with the Buyer or Seller.
Secondly, a very important thing to know is that all Buyers of newly built condominiums are entitled by law to a 10 day cooling-off period, during which time they can cancel their agreement. This is a good time to peruse all documentation and take it to a lawyer for review. When dealing with condominiums, it could help to use a lawyer who specializes in Condominium Law. The lawyer may have good advice on stipulations that you can add into the contract to better protect yourself.
Thirdly, understand what you are buying:
•Make sure that a condominium suits your lifestyle. Do you have a good sense of the reality of a 665 square foot property with two bedrooms and two bathrooms? If you have house-sized furniture are you ready to sell it all to make this type of new space liveable.
•Be diligent in getting the details. If the plans show nine foot ceilings, is that in all of the rooms? Where will the heating, cooling, and water be located for the apartment below and above? Ask for the full building plans so you can see where the bulkheads are planned.
•Understand the status of the neighbourhood. Is it a stable neighbourhood with little re-development or is their significant development on-going, or coming, that could change the nature of the area, and affect things like the view from your unit. The municipality’s Official Plan and Planning Department staff can help you look into the future to get an idea of what may be coming.
•Be realistic in your expectations for the property’s value; use common sense. Getting caught up in hype and speculating that your unit will increase dramatically in value from the time you purchase until construction is complete could leave you disappointed.
Finally, be sure to consider all of your options. For many home buyers, newly built housing is the right choice; however, if you are the type of person who likes to “kick the tires” before buying, purchasing a re-sale property might be a better option for you.
Newly constructed housing is an important part of the real estate market. It fills an important niche and is the right choice for many people. However, as with any major purchase, it is important that you take steps to look out for your best interests. Go the extra step to make sure that you understand what you are buying, and consider working with a REALTOR® who can provide assistance and advice during the purchase of your new home.
Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.
Follow TREB on www.twitter.com/TREB_Official, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel
Toronto SUN Column (as it appears each Friday in the Toronto Sun)
October 21, 2011 -- I recently read an article, in a Toronto news paper, that got me thinking about the experiences of home buyers purchasing newly built condominiums. The article detailed home buyers who had bought a newly constructed condominium, from floor plans, but, unfortunately, once the unit was built, they were disappointed when they realized that one window looked at a brick wall, the floor was laminate and the balcony was “more of a ledge.” This article is a good reminder that there is a lot to consider when deciding to buy a newly built condominium.
Condominiums are regulated by the provincial Condominium Act. In recent months, there has been some talk about the need to reform this law, in part to provide better consumer protection. There is no doubt that the Condominium Act does need reworking but “caveat emptor” or buyer beware can go a long way to help home buyers considering any property, including newly built condominiums.
When buying newly built housing, there are many things to consider. Firstly, when you walk into a new housing sales office, please realize that, often, everyone working there is working on behalf of the seller/builder. If that is the case, you may have discussions with them, but their fiduciary duty is to the builder, not you as the Buyer. With this in mind, you do have the option of working with a REALTOR® and entering into a Buyer Representation Agreement, to authorize them to work on your behalf in any Purchase.
At any time that you work with a licensed REALTOR® they must disclose, to all parties, on whose behalf they are working, in writing. For years, I have been hoping that the Government of Ontario would make disclosure part of all sales that happen in the Province. Currently only REALTORS®, who are licensed under the Real Estate and Business Brokers Act 2002, must do so. Consumers would be better protected if other parties that are involved in real estate transactions, including lawyers, private sellers and new construction on-site salespeople, were also required to do so. It’s only fair: anyone acting on behalf of someone else should have to disclose their relationship with the Buyer or Seller.
Secondly, a very important thing to know is that all Buyers of newly built condominiums are entitled by law to a 10 day cooling-off period, during which time they can cancel their agreement. This is a good time to peruse all documentation and take it to a lawyer for review. When dealing with condominiums, it could help to use a lawyer who specializes in Condominium Law. The lawyer may have good advice on stipulations that you can add into the contract to better protect yourself.
Thirdly, understand what you are buying:
•Make sure that a condominium suits your lifestyle. Do you have a good sense of the reality of a 665 square foot property with two bedrooms and two bathrooms? If you have house-sized furniture are you ready to sell it all to make this type of new space liveable.
•Be diligent in getting the details. If the plans show nine foot ceilings, is that in all of the rooms? Where will the heating, cooling, and water be located for the apartment below and above? Ask for the full building plans so you can see where the bulkheads are planned.
•Understand the status of the neighbourhood. Is it a stable neighbourhood with little re-development or is their significant development on-going, or coming, that could change the nature of the area, and affect things like the view from your unit. The municipality’s Official Plan and Planning Department staff can help you look into the future to get an idea of what may be coming.
•Be realistic in your expectations for the property’s value; use common sense. Getting caught up in hype and speculating that your unit will increase dramatically in value from the time you purchase until construction is complete could leave you disappointed.
Finally, be sure to consider all of your options. For many home buyers, newly built housing is the right choice; however, if you are the type of person who likes to “kick the tires” before buying, purchasing a re-sale property might be a better option for you.
Newly constructed housing is an important part of the real estate market. It fills an important niche and is the right choice for many people. However, as with any major purchase, it is important that you take steps to look out for your best interests. Go the extra step to make sure that you understand what you are buying, and consider working with a REALTOR® who can provide assistance and advice during the purchase of your new home.
Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.
Follow TREB on www.twitter.com/TREB_Official, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel
Friday, October 14, 2011
You Become What You Believe from Ophrah Winfrey
Dear Friends,
Thanks so much for showing up for Lifeclass. I gotta say, the webcasts are so much fun, a real sweet spot talking to and hearing from you, exchanging ideas about things that matter. How do you know you're in your sweet spot? Whatever you're doing gives you energy instead of depleting it.
Last nite before the webcast I was exhausted and blurry eyed from Africa jet lag and then became so energized from our conversations with Iyanla and all of the "angry" people. I was up past midnite tweetin'. Every night new insights, but tonight "You Become What You Believe" will be especially helpful I think to people feeling blocked.
Wishing and hoping and wanting isn't good enough. You've got to believe THEN have your every action move you in that direction. Actions have to be in alignment.
Hope to see you for Lifeclass at 8/7 central, then LIVE on the webcast afterwards. That's when the real party starts.
And don't forget the Life Work on Oprah.com...really thought provoking.
And yes it is private just for you.
You Become What You Believe.
Thanks, see you tonight.
Thanks so much for showing up for Lifeclass. I gotta say, the webcasts are so much fun, a real sweet spot talking to and hearing from you, exchanging ideas about things that matter. How do you know you're in your sweet spot? Whatever you're doing gives you energy instead of depleting it.
Last nite before the webcast I was exhausted and blurry eyed from Africa jet lag and then became so energized from our conversations with Iyanla and all of the "angry" people. I was up past midnite tweetin'. Every night new insights, but tonight "You Become What You Believe" will be especially helpful I think to people feeling blocked.
Wishing and hoping and wanting isn't good enough. You've got to believe THEN have your every action move you in that direction. Actions have to be in alignment.
Hope to see you for Lifeclass at 8/7 central, then LIVE on the webcast afterwards. That's when the real party starts.
And don't forget the Life Work on Oprah.com...really thought provoking.
And yes it is private just for you.
You Become What You Believe.
Thanks, see you tonight.
Tuesday, October 11, 2011
See You Monday Night
Monday, October 10, 2011 1:41 AM
From:to evelynorjalo@YAHOO.CA
Dear Friends of Fall,
On my way back from Africa, where I've spent the past week teaching my soon to be graduating 12th graders, everything I wish someone had told me before I graduated. I bow to teachers everywhere who care about their students, prepare the curriculum and do their own homework to make sure they are prepared. It's a lot of work.
I received this email from one of my students today which makes it all worth it:
Mom Oprah I would like to thank you so much for the wonderful, exciting and mind blowing workshop on life and it's ways. I thank you for taking time out of your busy schedule to come to South Africa, far away from your home. I have learned so many life lessons that I surely will be taking along with me through the many years to come. The one lesson that I definitely learned was that "It is okay to make mistakes". The reason it struck me so much is because I have had a shadow belief where I believed and told myself that I need to satisfy others and show them that I am good. What I did not realise along the way, is that I then stepped away from certain opportunities because I was too scared to take risks and to make mistakes and disappoint others. But after Life 101 I now know that IT IS OKAY TO MAKE MISTAKES. Another lesson that I learned is that other people will have their opinions about me and I will need to learn to give meaning to it or not.
Thanks M.
Wow, that warmed my heart.
That one email made the whole exhausting week to the bottom of Africa so worth the trip and rewarding. I'm not a good sleeper under normal circumstances. So my body does not adjust to time change well. So it's been a sleepless week. I had meeting after meeting...then taught class in the late afternoon, so girls wouldn't miss their regular classes.
Mistakes mean move in another direction. And other people’s opinions don't define you. Finding the courage to create the life you say you believe in, building from strength to strength, not giving away your power, especially not doing stupid things in the name of pleasing other people. That was my focus for 12 graders.
I'm returning to U.S. excited to be starting Lifeclass 8/7 central this week on OWN. Followed LIVE on the Web. I hope to see you on Facebook, Oprah.com...and if you have it the iPad app.
For Lifeclass we're moving on to even bigger lessons that speak to the power of the heart.
How not to be controlled by your ego. Letting Go of the past. Allowing the Truth of your life to set you free. Using your strength as a weapon against defeat. And Joy Rising moments that will remind you to feel and create your own.
All things I've learned and continue to grow and expand my understanding of how life works.
I want your world to open up, and you be enhanced, and stimulated by new ways of thinking about yourself.
Doing this on TV and the Web is a bold move. I know it. But what would life be without taking a risk!
See you Monday nite
Oprah
From:
Dear Friends of Fall,
On my way back from Africa, where I've spent the past week teaching my soon to be graduating 12th graders, everything I wish someone had told me before I graduated. I bow to teachers everywhere who care about their students, prepare the curriculum and do their own homework to make sure they are prepared. It's a lot of work.
I received this email from one of my students today which makes it all worth it:
Mom Oprah I would like to thank you so much for the wonderful, exciting and mind blowing workshop on life and it's ways. I thank you for taking time out of your busy schedule to come to South Africa, far away from your home. I have learned so many life lessons that I surely will be taking along with me through the many years to come. The one lesson that I definitely learned was that "It is okay to make mistakes". The reason it struck me so much is because I have had a shadow belief where I believed and told myself that I need to satisfy others and show them that I am good. What I did not realise along the way, is that I then stepped away from certain opportunities because I was too scared to take risks and to make mistakes and disappoint others. But after Life 101 I now know that IT IS OKAY TO MAKE MISTAKES. Another lesson that I learned is that other people will have their opinions about me and I will need to learn to give meaning to it or not.
Thanks M.
Wow, that warmed my heart.
That one email made the whole exhausting week to the bottom of Africa so worth the trip and rewarding. I'm not a good sleeper under normal circumstances. So my body does not adjust to time change well. So it's been a sleepless week. I had meeting after meeting...then taught class in the late afternoon, so girls wouldn't miss their regular classes.
Mistakes mean move in another direction. And other people’s opinions don't define you. Finding the courage to create the life you say you believe in, building from strength to strength, not giving away your power, especially not doing stupid things in the name of pleasing other people. That was my focus for 12 graders.
I'm returning to U.S. excited to be starting Lifeclass 8/7 central this week on OWN. Followed LIVE on the Web. I hope to see you on Facebook, Oprah.com...and if you have it the iPad app.
For Lifeclass we're moving on to even bigger lessons that speak to the power of the heart.
How not to be controlled by your ego. Letting Go of the past. Allowing the Truth of your life to set you free. Using your strength as a weapon against defeat. And Joy Rising moments that will remind you to feel and create your own.
All things I've learned and continue to grow and expand my understanding of how life works.
I want your world to open up, and you be enhanced, and stimulated by new ways of thinking about yourself.
Doing this on TV and the Web is a bold move. I know it. But what would life be without taking a risk!
See you Monday nite
Oprah
Saturday, October 1, 2011
How we built our million-dollar portfolio from scratch
Written by Shane Buckingham
With four properties already in their portfolio, Richard and Jane Killeen-Payne tell how they built their wealth from the ground up.
Shane Buckingham explains
When the Killeen-Paynes arrived in Canada after selling their home in the United Kingdom more than four years ago, they really had all the money they needed to get started in real estate investing. They had sold their home at the height of the British housing market, and had converted their savings when the exchange rate was C$2.32 for every Pound-Sterling.
With more than $200,000 sitting in their bank account, the Killeen-Paynes knew they had two options. "We looked at that pool of money," Richard recalls, "and we said, 'OK, we can either pay off our mortgage and live mortgage-free, or we can actually choose to do something different."
Richard who still works as a chartered accountant knew he and Jane could invest a good portion of the money in stocks and bonds, but he wanted to get better returns. So they began looking into real estate investing. There was, as there is now, plenty of real estate books dealing with the U.S. market, but the Killeen-Paynes wanted to learn a truly Canadian approach.
That's when they found Douglas Gray's book How to Make Money in Real Estate and Don Campbell's book Real Estate Investing in Canada. "As soon as I read Don Campbell's book, I was in. As an accountant it was all about the numbers; it was all about economics, and that's what the book explained," he says. "So Jane and I really looked at real estate in Canada and looked at our money in the bank and said, 'Yeah, this makes sense.'"
Solid buy in Halifax
In October 2008, the couple purchased a 3,900-square-foot triplex in the Hydrostone neighbourhood of Halifax near Dalhousie University. This investment has been nothing short of stellar.
Today, their one-bedroom unit rents for $795 a month, while the other two two-bedroom units, rent for $1,700 a month each, leaving them with $1,100 a month in cash flow. This impressive income generation is supplemented nicely with the property's steady appreciation over threeanda half years, going from $475,000 at the time of purchase to $595,000 today is absolutely my best investment because it produces the best cash flow.
And if I sold it today, it would get me really good appreciation," Richard says. Owning this property has given the Killeen-Paynes even more than just money; it's taught them nearly everything they needed to know about real estate investing, especially property management. "It's a real benefit to manage your first property.
I'm a firm believer that you need to understand how to run your first property like a business. Then for all of your future properties, even though you won't necessarily have to be a property manager, you'll know all the skills you need in a property manager."
Getting connected
The couple knew it would be challenging to continue investing in Halifax since duplexes and triplexes were then selling for $500,000 to $600,000. But they also knew they would need some help to get started in a new community.
So in April 2009, Richard attended a Real Estate Investment Network (REIN) event in Toronto. Once there, he was surprised to learn that many REIN members own properties in different provinces from which they live.
"I was just blown away. I thought how on earth do you own a property in Alberta when you live in Ontario? But they told me it was really easy and it's not as hard as people think. You just need the right team." Richard was hooked. He joined REIN and began looking for properties in communities outside of Nova Scotia.
Investing in Hamilton
At the time, Hamilton wasn't REIN's top investment city, but Richard was convinced that the economic fundamentals were sound. Hamilton was creating jobs, attracting in-migrants and had plenty of renters. Undeterred by the time of year, the Killeen-Paynes in July 2009 bought a 2,000-square-foot duplex in Hamilton for $225,000. The investment paid off nicely. Today it generates $780 a month in cash flow and has appreciated $40,000 since they bought it.
Again departing from their strategy, the Killeen-Paynes then bought a townhouse on Hamilton Mountain. "I thought we'd give it a try," Richard says. The couple didn't invest in the property, however, without doing their due diligence.
They hired a quality property manager they met at a REIN event in Toronto and scrupulously went over the condominium board's minutes. The board checked out all right and had plenty of money still in reserves. Plus, the condo fees were only about $200 a month when comparable complexes in the area were charging $400 a month.
The Killeen-Paynes now have their eye on some student-rental properties in the Westdale neighbourhood, but they're not making a move until they know what type of new rental regulations the city intends to introduce.
Getting professional
With four properties in three cities, the Killeen-Paynes knew they'd have to take their investing to the next level. So on Dec. 3, 2009, the couple started their business, Invicta Property Investments. "The reason for the business was not only to give it a separate entity but at the same time it was to create a brand around what we were doing," Richard says. "We felt that identity as a business and the name that goes with it was important going forward."
While Richard runs the numbers and searches for new properties, Jane takes care of the marketing, the website and advertising.
The mother of three left behind a career in nursing to spend more time with her children, who are 10, eight and three years old, and to help develop Invicta Property Investments into a viable business. "She's made a dramatic leap from being a registered nurse certainly in my eyes," Richard says.
"And a lot of people give really good feedback about her blogs, articles and the marketing she does for the business. I don't know how she manages to do it all, but she does a great job."
Marketing with Jane
The company logo and name, which Richard admits were Jane's ideas, really represent the couple's business philosophy. "We had a short list of four or five names and Invicta came out on top," Jane says. "It's a Latin name that means unconquerable, undefeatable and unstoppable, and we chose it basically because it encompassed our values."
In Britain, these values guided Jane in her job as a nurse looking after people who had undergone cardiac surgery. She admits after 10 years, her job had become physically and emotionally draining.
So she decided to become a qualified home-stager and interior designer. But when she arrived in Canada in 2007, she felt she "wasn't ready to close the door on nursing." A few months after getting certified as a Canadian nurse, Jane realized her initial feeling was right: she was done with nursing. "It really worked out for the best.
Giving up the nursing really helped because it made me sit down and really focus on the business and actually learn everything I could about marketing." Jane, now a self-taught marketing expert, has established a sense of professionalism in every area of the company she operates.
Their website looks clean and modern and Jane regularly posts news articles, blogs, Facebook comments and Tweets - something Jane never thought she'd end up doing. "When I first found out about Twitter I thought it was just a complete waste of time. But you get really hooked," Jane says.
"I just think it's great for visibility. We're able to position ourselves as experts and deliver education solutions to people who post queries. So from a marketing point of view, I think it's just absolutely incredible."
Now the couple, who own all of their properties, are actively looking for joint-venture partners to expand their already impressive portfolio. The plan, Richard says, is to get up to eight properties before calling a quits on the nine-to-five work life.
"Once we get to seven or eight properties, then we'll be at a stage when we can actually take an objective view as to earned income from my job compared to the passive income from the real estate and decide. And for me I know it's going to be an easy decision. I know it's going to be real estate investing."
THIS IS SO INSPIRING!
With four properties already in their portfolio, Richard and Jane Killeen-Payne tell how they built their wealth from the ground up.
Shane Buckingham explains
When the Killeen-Paynes arrived in Canada after selling their home in the United Kingdom more than four years ago, they really had all the money they needed to get started in real estate investing. They had sold their home at the height of the British housing market, and had converted their savings when the exchange rate was C$2.32 for every Pound-Sterling.
With more than $200,000 sitting in their bank account, the Killeen-Paynes knew they had two options. "We looked at that pool of money," Richard recalls, "and we said, 'OK, we can either pay off our mortgage and live mortgage-free, or we can actually choose to do something different."
Richard who still works as a chartered accountant knew he and Jane could invest a good portion of the money in stocks and bonds, but he wanted to get better returns. So they began looking into real estate investing. There was, as there is now, plenty of real estate books dealing with the U.S. market, but the Killeen-Paynes wanted to learn a truly Canadian approach.
That's when they found Douglas Gray's book How to Make Money in Real Estate and Don Campbell's book Real Estate Investing in Canada. "As soon as I read Don Campbell's book, I was in. As an accountant it was all about the numbers; it was all about economics, and that's what the book explained," he says. "So Jane and I really looked at real estate in Canada and looked at our money in the bank and said, 'Yeah, this makes sense.'"
Solid buy in Halifax
In October 2008, the couple purchased a 3,900-square-foot triplex in the Hydrostone neighbourhood of Halifax near Dalhousie University. This investment has been nothing short of stellar.
Today, their one-bedroom unit rents for $795 a month, while the other two two-bedroom units, rent for $1,700 a month each, leaving them with $1,100 a month in cash flow. This impressive income generation is supplemented nicely with the property's steady appreciation over threeanda half years, going from $475,000 at the time of purchase to $595,000 today is absolutely my best investment because it produces the best cash flow.
And if I sold it today, it would get me really good appreciation," Richard says. Owning this property has given the Killeen-Paynes even more than just money; it's taught them nearly everything they needed to know about real estate investing, especially property management. "It's a real benefit to manage your first property.
I'm a firm believer that you need to understand how to run your first property like a business. Then for all of your future properties, even though you won't necessarily have to be a property manager, you'll know all the skills you need in a property manager."
Getting connected
The couple knew it would be challenging to continue investing in Halifax since duplexes and triplexes were then selling for $500,000 to $600,000. But they also knew they would need some help to get started in a new community.
So in April 2009, Richard attended a Real Estate Investment Network (REIN) event in Toronto. Once there, he was surprised to learn that many REIN members own properties in different provinces from which they live.
"I was just blown away. I thought how on earth do you own a property in Alberta when you live in Ontario? But they told me it was really easy and it's not as hard as people think. You just need the right team." Richard was hooked. He joined REIN and began looking for properties in communities outside of Nova Scotia.
Investing in Hamilton
At the time, Hamilton wasn't REIN's top investment city, but Richard was convinced that the economic fundamentals were sound. Hamilton was creating jobs, attracting in-migrants and had plenty of renters. Undeterred by the time of year, the Killeen-Paynes in July 2009 bought a 2,000-square-foot duplex in Hamilton for $225,000. The investment paid off nicely. Today it generates $780 a month in cash flow and has appreciated $40,000 since they bought it.
Again departing from their strategy, the Killeen-Paynes then bought a townhouse on Hamilton Mountain. "I thought we'd give it a try," Richard says. The couple didn't invest in the property, however, without doing their due diligence.
They hired a quality property manager they met at a REIN event in Toronto and scrupulously went over the condominium board's minutes. The board checked out all right and had plenty of money still in reserves. Plus, the condo fees were only about $200 a month when comparable complexes in the area were charging $400 a month.
The Killeen-Paynes now have their eye on some student-rental properties in the Westdale neighbourhood, but they're not making a move until they know what type of new rental regulations the city intends to introduce.
Getting professional
With four properties in three cities, the Killeen-Paynes knew they'd have to take their investing to the next level. So on Dec. 3, 2009, the couple started their business, Invicta Property Investments. "The reason for the business was not only to give it a separate entity but at the same time it was to create a brand around what we were doing," Richard says. "We felt that identity as a business and the name that goes with it was important going forward."
While Richard runs the numbers and searches for new properties, Jane takes care of the marketing, the website and advertising.
The mother of three left behind a career in nursing to spend more time with her children, who are 10, eight and three years old, and to help develop Invicta Property Investments into a viable business. "She's made a dramatic leap from being a registered nurse certainly in my eyes," Richard says.
"And a lot of people give really good feedback about her blogs, articles and the marketing she does for the business. I don't know how she manages to do it all, but she does a great job."
Marketing with Jane
The company logo and name, which Richard admits were Jane's ideas, really represent the couple's business philosophy. "We had a short list of four or five names and Invicta came out on top," Jane says. "It's a Latin name that means unconquerable, undefeatable and unstoppable, and we chose it basically because it encompassed our values."
In Britain, these values guided Jane in her job as a nurse looking after people who had undergone cardiac surgery. She admits after 10 years, her job had become physically and emotionally draining.
So she decided to become a qualified home-stager and interior designer. But when she arrived in Canada in 2007, she felt she "wasn't ready to close the door on nursing." A few months after getting certified as a Canadian nurse, Jane realized her initial feeling was right: she was done with nursing. "It really worked out for the best.
Giving up the nursing really helped because it made me sit down and really focus on the business and actually learn everything I could about marketing." Jane, now a self-taught marketing expert, has established a sense of professionalism in every area of the company she operates.
Their website looks clean and modern and Jane regularly posts news articles, blogs, Facebook comments and Tweets - something Jane never thought she'd end up doing. "When I first found out about Twitter I thought it was just a complete waste of time. But you get really hooked," Jane says.
"I just think it's great for visibility. We're able to position ourselves as experts and deliver education solutions to people who post queries. So from a marketing point of view, I think it's just absolutely incredible."
Now the couple, who own all of their properties, are actively looking for joint-venture partners to expand their already impressive portfolio. The plan, Richard says, is to get up to eight properties before calling a quits on the nine-to-five work life.
"Once we get to seven or eight properties, then we'll be at a stage when we can actually take an objective view as to earned income from my job compared to the passive income from the real estate and decide. And for me I know it's going to be an easy decision. I know it's going to be real estate investing."
THIS IS SO INSPIRING!
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