Oil prices not deterring real estate investors

Savvy buyers seeing increased opportunities

With oil prices still low compared to several months ago, real estate investors might be inclined to wait on the sidelines to see what happens. Yet that hasn't happened.

Instead, investors are salivating at the increased selection of revenue-producing properties coming to market and selecting the best ones to add to their portfolios.

Take, for example, a set of clients who were dipping their toes into the world of real estate investment when they attended Mortgage360's first Cash Flow Club meeting earlier this year. Not sure whether to invest in stocks, mutual funds or bonds, they quickly realized their money belonged in all three asset classes as well as real estate.

They have since gone on to rent out the condo they were living in and purchased an up-and-down duplex with a legal basement suite to rent out. They went from having no real estate investments to having two revenue-producing properties in less than 45 days.

Were they concerned about low oil prices? No. With housing being one of three basic needs, they know Calgarians are always going to need a place to live.

Furthermore, they understand that with rates now being even lower than when they first attended the Cash Flow Club seminar in January, it is a prime opportunity to purchase future income at a low price.

By purchasing today rather than waiting a year for prices to fall, they may end up paying slightly more for the property. But they will also reap the rewards sooner.

When the mortgage is paid off, the couple will earn a minimum of $24,000 in cash flow on an annual basis. If they waited a year to buy, they might have saved a few thousand dollars on the purchase price, but would have delayed that big payoff by a year.

With every Cash Flow Club session, Mortgage360 is seeing more savvy buyers come out of the woodwork. They understand that Calgary's market is the perfect storm of opportunity for real estate investors.
The time is now.

Mortgage360's next Cash Flow Club seminar is Tuesday, February 24th. Register in advance at
www. mortgage360.ca/cash-flow.

Nolan Matthias holds a bachelor of arts in Economics, is the co-founder of Mortgage360 and the author of The Mortgaged Millionaire. Call Nolan at 403-615-6132 with your questions or to set up an appointment with an Accredited Mortgage Professional (AMP).

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