A little side project of mine lately has been property investment, in the UK everyone and their brother has a little real estate action going on. It’s actually somewhat of a national past-time, with average property valuations across the country getting daily newspaper coverage, not to mention that you could spend your whole day watching property development related shows on TV. The property market here is like none other, particularly in London, when you have such limited land and continued immigration, property prices keep going up and up.
I’m more interested in the Canadian market though, specifically my hometown of Kitchener-Waterloo (“KW”), for the following reasons:
- “KW is Ontario’s ‘economic Alberta’” – According to the Real Estate Investment Network, the KW area is area is “the top place in Ontario to invest in real estate, with the most potential for future price appreciation of any area in the province.”
- Waterloo is the Intelligent Community Forum‘s (“ICF”), a nonprofit think tank that focuses on job creation and economic development, Intelligent Community of the year.
- A report by Re/Max predicts that property prices will increase by 5% in 2007
- Despite some predictions that population pressures from Senior selling their homes and fewer first time buyers, a recent CIBC report predicts that house prices in Canada will double in the next 20 years
- While the Canadian dollar has been gaining against the Pound lately, my money still goes a longer way in Canada than it would in the UK
- I found this great site, run by Realtor Mike, which lists investment properties, along with their expected rent, taxes, net operating profit and cap rate.
- My parents still live in the area… which means free property managers!
While I won’t be investing until I figure out where we’ll be moving next and what I actually want to do career wise, I’ve begun creating a spreadsheet that analyzes the returns on property investments. You can download it here (password is “executive”), I welcome any comments I can add into the next version.