As we work through our final Friday of the month, I can’t help but think about all the positive things that just keep happening.  Buyer confidence is solid; they seem to have a better understanding of the changes in the market and the leveling of prices.

Consumer confidence (i.e. buyers) drives the economy whether it’s clothing, holidays, trucks or Real Estate without buyers we have no economy.  So as you approach the end of the first month keep this in mind – we have 11 ½ months until Christmas lolol keep your confidence level up, stay focused and buy ,buy, buy!

Last night Team Cavaliere attended the Central Interior Home Builder’s Association dinner in Kamloops with guest speaker Trevor Linden.  Trevor spoke to us about leadership, motivation & teamwork, sharing many stories and experiences he has had over the years that have made him the man he is today.

For those of you who don’t know, Trevor Linden is a retired professional hockey player who has played for the Vancouver Canucks, the Montreal Canadians, the Washington Capitals, and the New York Islanders.  Trevor was drafted to the NHL 2^nd overall in 1988 and before being drafted he played for the Medicine Hat Tigers (WHL).  Trevor also participated in the World Cup of Hockey in 1996 and was a member of the 1998 Canadian Olympic team.

Trevor was introduced to leadership at the young age of 21 when he was named Captain of the Canucks, this made him one of the youngest captains in league history.  He shared his feelings about this and said at the time he did not feel he had set out to be a leader but that changed pretty fast!

The tough decision to leave the NHL was made 3 years ago by Trevor, he gave us a lot of reasons for leaving.  He feels that hockey has changed so much because of competition and he was ready to explore new things, for the first time in his life he had to think what he was going to do.  Trevor said he “ate, slept and breathed” hockey from the time he was 5.

This winter for the first time he hasn’t felt like something is missing and this is partly due to the fact that Trevor is enjoying a successful career as a Real Estate developer/investor and a recently started Health Club business.

A few of the key points that I took from the event were goal setting, now that I think about it Vince has been harping on me about my goals and dreams all month!  The message Trevor finally got through to me without me even knowing it was the same message we have been discussing around the office for quite some time.  Secondly, Do whatever it takes to get the job done! He used an example where his team was at training camp for the World Championships and SteveYzerman (a legend in the hockey world) was prepared to do whatever it took to be on the team and it started with Checking his ego at the door.  For those of you that know Vince, this is one of his favorite sayings.  Thirdly, Trevor talked about true leadership and what it means to be a leader.  He told us that leadership is often lonely and always difficult but if you trust your judgment and believe in yourself you will be successful.  Everyday at RCR-Team Cavaliere I see Vince & Katrina and the rest of our team making difficult decisions both from the brokerage point of view as well as guiding our buyers and sellers and it can often be a challenge.

Our Summit for Success 2011 ended on a really great note, Trevor’s message tied in perfectly with the theme of our day.

-Laura

As a follow up to yesterday’s post; the mortgage rule changes created a bit of a frenzy among people in the Real Estate community (particularly Realtors & Mortgage Brokers).  For whatever reason every time there is a change to interest rates or mortgage rules it is promoted as doom and gloom.  As I posted yesterday the changes that the Government of Canada will be implementing March 18, 2011 are positive.  Yes the changes to buyer qualifications means that they are buying less of a house BUT the truth is many buyers unfortunately over extend themselves.  I am not trying to lecture people on their wants and needs or how they should spend their money but all too often, over my 20 year career, I’ve seen buyers push themselves to buy the “perfect” house.  As a result they become “house rich and cash poor”.  Most buyers fail to anticipate the added cost of buying a bigger home and/or spending more money.  Some of the pitfalls are fairly straightforward: bigger home = higher taxes, as well some of the incidental expenses such as heat, insurance, etc cost more.

One of the positive changes to 30 year amortization is that buyers will save thousands and thousands of dollars in interest surcharges. I refuse to buy into the theory that the amortization change will push first time buyers out of the market simply because they will qualify for less.  In the Kamloops area there are over 160 properties for sale under $300,000.  What will push buyers out of the market is negative reporting and incomplete information.

Wondering how this will affect you? Give us a call 250-374-1925

Most of the reports we are getting indicate yes, however, if I had a crystal ball it would tell me that prices will remain stable for the next 12-24 months, at least in B.C.  With our current political situation and a looming election in 2012/13 I think I am being realistic.  Certainly some markets are going to experience growth but I am projecting the overall Real Estate market to have moderate increases not because I don’t have confidence in the economy, again, I am just being a realist.  We are currently about 50% of our way through what people might refer to as a recovery; remember Real Estate usually works on a 6-8 year cycle so if our collapse happened in ’07 / ’08 we are only 3 or 4 years into our “down cycle”.  Statistically the median price in the Kamloops area has fluctuated very little over the last couple of years.  That’s all the more reason to think stability will be the continued trend.  So, if you are a buyer get yourself pre-qualified, lock in your interest rate and start shopping.  If you’re a seller spruce up your home efficiently, clean up the clutter, paint a few doors and call me for an updated home evaluation.

I can’t believe it’s January 5, 2011. Time sure flies when you are having fun. Yes I said FUN! They (who ever they are) say that as we get older we mature. Funny thing is mature sounds old. Truth is I only feel old when I look in the mirror. You’re asking yourself what this has to do with Real Estate in the Kamloops area…nothing really, except, if you’re planning to simplify, planning to slow down, planning to buy home or simply planning to retire in the Kamloops area.

While I’m far from “retiring” it’s never too late to plan for the day when you can sit on your recliner and just chill. While I don’t see myself just sitting around my Kamloops home when I retire, it sure would be nice to do that (once in while) without worrying about how I will fuel my retirement lifestyle in the beautiful Thompson Valley when I finally retire.

As I sit in my home office today, watching the snow fly, I find myself reflecting on 2010 and trying to plan for 2011…yes planning. As crazy as this sounds, I’ve always taken a few days at the beginning of each year to work on my Personal Goals & Business Plan (I think of them as my Life Plan) Ever since I can remember I’ve taken this time to plan. When I have my goals written down I share them with my wife, friends, business colleagues and my mentors.

According to My Webster’s English Dictionary plan is defined as: a scheme or idea; a drawing to scale of building; a diagram, map; any outline or sketch. (planned) to make  plan of; to design; to arrange beforehand, intend; to make plans.

While planning strategies are different for everyone, I utilize many of the words used to describe the word plan.  Over the years we’ve be inundated with the importance of setting goals. If you’re like most people you’ve probably got a 2011 New Years Resolution. To you I say…GOOD LUCK. Unfortunately most people talk a big game when it comes to goals or resolutions. Fact is, there’s better than a 90% chance that you will never achieve your goals or resolution. Sorry to be so blunt but it’s the truth. WHY? Simply, most people don’t have the discipline to formulate a strategy for achieving their goals.  Goals need to have a clear action plan, they need to be realistic, and there has to be some form of accountability.

To show you how serious I am about planning for success, I’ll share with you a few of my 2011 personal & business goals. (In no particular order)

1)     Complete a Mini Tri (Swim 750m, Run 5k, Bike 20k)

2)     Run 10k in Iceland (August 2011)

3)     Three romantic getaway weekends away with Katrina (not including current holiday plans)

4)     Expand RCR Building (500sq ft)

5)     Add 4 independent agents to River City Realty

While the above goals appear vague, they each have a tangible plan. For example, I’m currently swimming 2x a week as well I’m registered for swimming lessons at the end of January to improve my swimming.

2011 is shaping up to be a great year, if one of your goals for this year is buying an investment property in Kamloops, or anywhere in the world, give me a call, I can help. If you need a small kick to get going in the right direction email me your 2011 goals and I’ll help hold you accountable.

Recently one of our team members had a break in at her vacation property, with the holiday season upon us this got me to thinking about how you can keep your home and family safe.  When you’re leaving your house for an extended period of time or even just a few short days make sure you arrange to have someone you trust take care of the little things!  The person with your extra key should be someone who has your best interests at heart.  Here are some of the things that will need to be taken care of while you are away:

1. Shovel your driveway – ‘tis the season and nothing says nobody is home better than a driveway full of snow and no tire tracks!
2. Pick up your newspapers/mail – Another option is to call and have the newspapers and mail stopped for the duration of your trip.
3. Keep your radio on – Invest in a small radio that doesn’t use too much power and keep it on at all times.  This will make it sound like someone is home and hopefully deter potential invaders.  Invest in automatic timers and set them up for your lights particularly the front porch and living room.
4. Hide your valuables– This doesn’t mean under your bed!  Make sure gifts are in a hard to find place and that the tree isn’t in view of the window with presents beneath it.
5. USE your alarm system – Many homeowners take their alarm system for granted.  Turning your alarm on, even on short trips, is a very smart thing to do.  Choose a code before you leave and make sure everyone in your family and your trusted friend knows the code and password.

Happy Holidays,

From your most trusted Kamloops Real Estate team.

Wow what an incredible week in the ‘loops and in the province for that matter.  Carole James has resigned as the leader of the NDP; all things considered equally it’s probably not much of a surprise considering she has been in power for two elections without any huge success. At the risk of sounding bias, I didn’t actually think she was capable of running our province; her campaign was focused on negative attacks not positive solutions.  We’ll touch more on this in future blogs.

With the turn of the economy and the tightening of the financial purse strings we’re starting to see more and more foreclosures.  This past week we were involved in our second court ordered purchase in the past couple months.  For purchaser’s buying Kamloops foreclosure properties this will be a huge opportunity for savvy investors and developers/contractors alike.

A few months back a very significant Kamloops Real Estate development, Mission Hill, went into foreclosure.  The Kamloops Daily News has done a three part series on the developer and the consequences and potential benefits of foreclosures.  The link below will take you to one of these stories where I summarized the current Kamloops condominium market and the future implications and benefits of the foreclosure.

http://kamloopsnews.newspaperdirect.com/epaper/viewer.aspx

Here are the final 2 points in our Maximizing your Real Estate Investment blog series.  If you have questions please feel free to call us.

YOU MAKE MONEY IN REAL ESTATE WHEN YOU BUY – NOT WHEN YOU SELL:

When you buy the right property at the right time you will make money.  The shrewd investor is looking for the best time to BUY properties – not the best time to sell them.

Often the best opportunities for investment purposes can be found in the city’s least desirable neighborhoods.  The chances of good returns are less in places where everyone wants to live and better in the places perceived as “less desirable”.  Look for houses that need “lipstick”, as Vince likes to say; minor improvements that do not require a lot of money but make a large impact on appearance like paint and carpet.

Vince recommends that you don’t buy the best house on the street but instead, after buying a house, work to make it the best on the street.  Sell it once your goal has been achieved.  Also, don’t buy too much house and leave yourself house rich and cash poor.

The difference between the purchase and selling price is pure profit.  When you buy a cheap home and fix it up you are creating equity by default.

The most important point of all this is to be objective.  Assess properties realistically and compare them with others on the street, in the neighborhood and in the city.  Check your ego at the door and make decisions based on reason, not emotion.

SURROUND YOURSELF WITH A TEAM OF PROFESSIONALS YOU TRUST:

When investing in Real Estate you should not go it alone.  The Kamloops Real Estate market can be a complicated, risky place to venture money and mistakes can be costly.  Sometimes it pays to have good advice and expert help.

To go it alone does not make sense.  Make sure that all improvement work is done properly; hire reputable contractors and builders.  Make sure that the person/company you hire has proper credentials and are WCB approved.  Trying to cut corners on renovations by hiring under qualified people will not save you money in the end.  When you have the job done right, you will make more money.

It is very important to build good relationships with lawyers, notaries and accountants, all the professionals who are part of the process.  Hire them before you need them, not after and make them a part of your everyday plan.  The same goes for mortgage brokers and bankers.  These “money people” are crucial to successful investing; you want your bank to know who you are. They can help you.

Often people will overlook Home Inspectors as part of the equation but a good inspector can pay his fees several times over by identifying problems with the house before they become major.

Don’t forget Real Estate salespeople.  90% of all Real Estate transactions involve a Realtor.  Realtors make the process easier, especially for beginning investors.  There are lots of savvy pros out there.  It’s a competitive field and failure to play the game right can cost you money.

When planning the biggest investment in your life why trust it to people without the required skills?  Building a team takes time and patience.

Here are the first 2 points in the Maximize your Real Estate Investment series, we will cover the remaining 2 pts in our next blog.  For more information please do not hesitate to call Vince at the office 250-374-1925

DEFINE YOUR OBJECTIVE:

The most important step in the investment process is the first one, before you get to the end you have to think about the beginning.  Vince recommends you begin with asking yourself what is your objective?  Without a clear sense of direction, there is little chance of success.  Some questions to ask yourself when defining your objective are:

• What do you want from Kamloops Real Estate?
• Are you looking for a place for you and your family to live?
• Do you want to do a “fix-and-flip”?
• Are you looking for a long-term rental investment?
• What are your timelines?
• When will you get in the Kamloops Real Estate market and when will you get out?
• Where is your money coming from? i.e. will you use savings or will you leverage equity in your existing properties?

Getting answers to the questions will help build a plan that will guide you towards success.  The easiest way to get the answers to these questions is to talk to people who have already been successful, just make sure the person you are seeking advice from has a positive track record.  You will be surprised how much you can learn over lunch.

CONSIDER REAL ESTATE A LONG-TERM INVESTMENT:

For the most part, quick flips are not profitable.  While numerous television programs capitalize on the concept of the “fix-and-flip” to create engaging entertainment, the fact is, in the Kamloops market, it is difficult to find the right properties and flip them to make money.  The main reason for this is it is not possible to amortize the costs of Real Estate investment over a period of weeks.  There are many costs associated with Real Estate transactions aside from the cost of home improvement.  Year to year, as the Kamloops market increases, this helps reduce the impact of these costs but it takes time.

Equity builds as you pay down your mortgage.  People who try to play across too short a cycle can sometimes get burned when the markets crash.

Typically, Vince advises, Real Estate markets follow a fairly predictable cycle with corrections coming along every five to seven years.  The Kamloops Real Estate market went through just such a correction over the last 18 months, with prices falling 10% to 25%.  Investors wanting to offload properties were burned as well as owners with high mortgages who needed to sell.

Vince also was caught by the downturn as he played the Kamloops Real Estate market but he adjusted his strategy and made the properties in his portfolio long-term holdings.

It’s not about timing the market, it’s about time in the market.  Vince was caught, it can happen.

Vince did a presentation recently at the Kamloops Canadian Home Builder’s Association trade show on Maximizing your Real Estate Investment; the presentation was later featured in Kamloops Daily News by Robert Koopmans.

Vince bought his first house in Kamloops 20 years ago, a run-down fourplex in a rough neighborhood where the tenants were less than stellar.  At the time the interest rate was 12.5% and the idea of making a profit seemed a long shot but with a plan Vince made it happen.  The ups and downs of today’s Kamloops housing market might make the idea of Kamloops Real Estate investment seem too risky to bother but arming yourself with proper information and a good strategy can make it possible to find success.

There are four key guidelines Vince recommends you follow to maximize your returns when investing in Kamloops Real Estate.  Over the next 2 – 3 blogs we will summarize Vince Cavaliere’s blueprint for success and cover the 4 key points to help YOU maximize your Real Estate investment.  If you would like to know more about maximizing your Real Estate investment or if you have any questions please don’t hesitate to call us