A special welcome to the hundreds of new subscribers to this newsletter who are tapping into the unbiased research and tools of Don R. Campbell and REIN™. We're sorry to have kept you waiting for this edition, we know many of you look forward to the newsletter every month. However, we promise it will be worth the wait. There was late breaking news and we just had to wait for all the details, as you know there is nothing more frustrating that getting half the information. So keep reading and you'll find the exciting news we kept you waiting for.
In this edition you will discover some important market shifts and a very special summer Real Estate warning. Make sure you read the whole message. There are 4 key parts:
#1
First off a big thank you to all who have helped the book Real Estate Investing in Canada to become a Canadian best-seller. As you may know, partial proceeds from the sale of this book are going to support Habitat for Humanity, so they also thank you for your support of this book. If you haven’t yet got a copy, you can still get a 30% discount at www.amazon.ca/realestate. A great summer read for you and your friends.
#2
Hype and baloney – we continue to see Real Estate Investors being pushed around, sold bad information, and getting emotional with myths and misconceptions. We see writers, 'gurus,' media and people off the street using incorrect stats and data to get all worked up about the so-called "Real Estate Bubble." Back when the last bubbles existed (Vancouver & Toronto), we told REIN™ Members that it was time to get out... we used real life stats and research that clearly defined that there was a bubble back then (that was then, this is now).
The market fundamentals don't change – and TODAY’s market fundamentals are clearly showing that there is not a current Canadian Real Estate Bubble – despite all the hype and baloney that has been flying around lately. Our research has been backed-up by key economists at TD Waterhouse, and RBC Economics. If you look at CANADIAN specific numbers and remove emotions, then you can clearly see what the market is doing.
Over the last couple of months we have been sharing with the Members of REIN™ across the country the significant facts so they too can see that the current bubble talk in CANADA is a myth. HOWEVER, please note, that does not mean to say that ALL markets are poised for increases over the long term. Many parts of Vancouver's market are overheated, as well as select pockets within the City of Toronto. In order to get good solid long-term returns on your Real Estate, please focus on the fundamentals as described in my book Real Estate Investing in Canada (beginning on page 37)... and only invest in ares where the fundamental score-card is showing to be strong.
Here is a link to additional Canadian Specific Real Estate Bubble Research:
Canadian Real Estate Bubble Research: www.td.com/economics/topic/cg0405_housing.pdf
Housing Affordabilty: www.rbc.com/economics/market/pdf/house.pdf
Please feel free to forward this e-mail to any of your friends of family who are interested in Real Estate. Help them become informed.
Special note on the BC marketplace: be aware of long-term problems that will be occurring in central BC with the massive pine beetle outbreak. We will see issues starting to rise about 5 years from now for the areas around Prince George and towns supported by forestry in that region. This has not been talked about much, what with all the Real Estate frenzy that is occurring in the area. However, it is not an issue of if it will become a problem, but when (increased unemployment, decreased productivity and GDP growth, mills being shut etc). If you insist on investing in that area, please follow this critical issue as it will directly affect your Real Estate (in addition to the 12 fundamentals described in Real Estate Investing in Canada).
#3
CONGRATULATIONS go out to the Members of the Real Estate Investment Network. They just held a very special All-Day event - The Billion Dollar REIN™ Celebration. Yes, that's right, the Members have surpassed $1 Billion of Real Estate purchased! An exciting achievement for all involved. Proving, once again that a long term outlook, not a get rich quick mentality, is the best path to wealth and freedom.
#4
SUMMER REAL ESTATE WARNING. Ah yes, summer holidays. Pictures of relaxing times, in relaxing locations. But there is one thing that crosses the mind of many, during every single summer and that is the 'dream' of owning a property where you are holidaying or in any tropical area. This, of course, is driven by emotional ties to the area... but it is important to remember that reality is VERY different when you are not on holidays, the towns change character, the Real Estate may become a financial burden, or even worse.
Many of us have been trapped with this false sense of 'investing' while on holidays, and even more have been trapped by the 'Buy In A Tropical Location Before It Is Too Late' syndrome. I admit it, I've been there, along with many others. But be VERY careful – it is easy to let emotions get in the way of the facts. Learn from others' mistakes. For instance:
LOCAL RECREATIONAL PROPERTY
Demand (and prices) for recreational Real Estate, invariably spike during the summer season, lots of people let their emotions drive their decisions (that's why you'll see so many "For Sale" signs during the summer holidays). If you are feeling that you want to buy – a good thing to do is to return to the area in the dead of winter, when purchasers are few and far between and are vendors much more motivated. It will also give you more of a perspective on the area. Remember, fundamentals drive long-term profits.
TROPICAL REAL ESTATE
Tropical Real Estate is the easiest sale on earth. A picture of swaying palm trees, the promise of getting in before the boom hits, a beach at your door-step. A TRUE emotional sell. I've seen people purchase Real Estate in Central American or Caribbean countries who have only ever visited there once (holiday syndrome) or even worse, not at all. The promise of quick riches is such an alluring sales pitch, that people actually look for ways to justify to themselves that they should buy. PURE EMOTIONS – NOT FUNDAMENTAL INVESTING.
Sure it is fun to say "I own Real Estate in (name your country)," sounds kind a cool to your friends and family. However, the reality is often not so cool. Anything 'far away' has an appeal – but it is absolutely critical that you do even MORE due diligence than if it was in your own country. I've traveled extensively in Central America, from Panama straight up to Mexico – and let me tell you, if you don’t have the right legal team, and direct personal local knowledge (not someone else's knowledge & contacts – your own) you can get yourself in HUGE trouble very quickly.
Here are some very basic rules for Tropical Real Estate:
Rule #1 TITLE & EXIT STRATEGIES HEADACHES:
Who holds the actual title to the property? You or a local 'representative'? Remember, the key to any Real Estate deal being profitable is your ability to get out quickly and easily when you need to (or when the market says so).
Rule #2 GO THERE – NO MATTER WHAT!
There is often a HUGE difference, especially in Central America, between the picture you have in your mind of the property – and the reality of the property. What is completely unacceptable up here is very often normal down there. You’ve got to see it and live it BEFORE you buy it. The promise of a 'new development' or new airport or many other promises are often empty… sure things may be on the books but in these Tropical countries you are never sure of when things will get started and more importantly, finished. Don’t let yourself be caught as the 'last fool.' When you are down there you will, in almost 100% of the cases, be shocked at how much less expensive a similar property is being sold to the local market. Mark-up, when it is being sold to Northerners, is HUGE. The flights are long (and often brutal) and you want to know if you would be willing to do these trips every time a problem crops up. It may sound like the 'local representative' will be taking care of it, yet YOU are the ultimate owner and 100% responsible for your investment.
Rule #3 PROPERTY LAWS DIFFER!
Buying down there is a completely different world than buying up here. It is YOUR job to get YOUR OWN lawyer/solicitor (not the one used by the seller). It is also your job to learn all of the ins and outs of the market laws. There are laws that govern how close to borders and shorelines you can own property (not too close in many cases). There are laws regarding restricted uses of properties. Often, the land registry is not up to speed, so are you really getting what you're paying for? You’ve got to go there to make sure. How is money being transferred to you, what types of communications will be forthcoming from the property manager or developer? What are the dispute procedures (there will be disputes)? And one that MANY over look is: What are the squatters' rights for the area? These can vary from town to town, and are critical unless you plan on living down there 12 months of the year. Did you know, that in some jurisdictions, squatters can lay claim to your land or house, in a very short time if you haven’t been there. That could mean an awful lot of LONG flights to sort out issues.
Learn the local laws and customs (often very different), learn how you can get out of the investment (sales restrictions in the future) and most of all remove that 'tropical paradise' or 'lake front summer' picture from your head and look at the property for what it is: an investment.
Have an amazing month, relax, enjoy and of course, keep your eyes peeled for key, fundamentally strong Real Estate deals. Hope to see you at the next REIN™ Workshop in Vancouver August 23rd, Toronto August 26th, Edmonton August 30th or Calgary August 31st! If you are not yet a Member of Canada’s most successful and by far, longest running Real Estate Program, now would be a great time. Call Deb at the REIN™ Office today 1-888-824-7346 for all the details. Or if you prefer, go to www.reincanada.com and click on Membership Details to see all the benefits that REIN™ provides you across this amazing country of ours!
Welcome to the new REIN™ Members in Korea, Japan, Brunei, Cypress, US and Canada. It's your time to take advantage of the country with the strongest fundamental Real Estate Market in the world… and as our resources get more in demand around the world, our fundamentals continue to get stronger.
Sincerely,
Don R. Campbell and Your REIN™ Team
LATE BREAKING NEWS
REIN™ Coming to OTTAWA?
Since the release of the book, we have fielded requests from almost every major city across Canada to either come speak or open a new Chapter of the Real Estate Investment Network... The OTTAWA group has leap-frogged all other cities in Canada to be the next selected city to host the REIN™ meetings... If you know anyone in the Ottawa region interested in becoming part of Canada's most successful network of Real Estate investors please forward this email on to them.
For all the specific details please click on the following link (make sure you listen to the radio interview I did discussing the state of the Ottawa Real Estate Market). www.ontariorein.com/index.php?function=viewcategory&categoryid=41
P.S. Full Cases (22 copies) of Real Estate Investing in Canada are now available at 50% off retail (only $17.49 / book) + shipping. If you are interested in sharing copies with your friends, clients or support team please call Kim at the REIN™ office 1-888-824-7346 today (case lots only - special deal just released by the publisher).
P.P.S. If you have registered your book, but have not yet received your CD, don’t worry. Due to the overwhelmingly positive response to the book, the first batch of CDs are gone. However, you don’t have to wait any longer, we have posted the audio CD directly on the web so you can download it today. Click on the following link: www.realestateinvestingincanada.com/Canadian-Real-Estate-Bonus-Success-Tools.aspx
P.P.P.S. This summer, take advantage of the ACRE System Home Study Program, designed for Canadians by successful Canadian Investors. This 9 CD Program is now in it’s 13th year as Canada’s leading Real Estate home-study program and you can receive a special discount and have it shipped to you immediately: click here for all the details: https://www.reincanada.com/shoppingcart/productdetail.jsp?itemID=14 And of course it is risk free with a full 100% money-back guarantee. Enjoy the summer and expand your knowledge, set yourself up to have an amazing 2nd half of the year.
P.P.P.P.S. Remember Ottawa has been the next city selected to host the coveted REIN™ meetings, click on the following link www.ontariorein.com/index.php?function=viewcategory&categoryid=41 to view all the details.
Please feel free to forward this e-mail to any of your friends of family who are interested in Real Estate, especially those in the Ottawa area, help them become inform