Property Investment is similar to stock trading, such that you buy low and sell high.  Remember, you buy at low price for properties only for properties with long-term growth potential.

  • Look in good area.  Check the school ranking, public transit, crime rate. You may want to use these site as your tools http://www.fraserinstitute.org , http://www.vsb.bc.ca/schools/default.htm, or seach a school locator from google.  My guideline is poor schools mean a poor neighborhood.  The worst house in the best street values far more than the best house in the worst steet.
  • Look for strong tenant Market.  Check the local demand for rent
  • Always make sure the rent is more than your monthly mortgage payment.  check the price / monthly rent ratio.  This depends very much for interest rate.  This is your investment asset, not liability.  Don’t run the risk of draining your cash flow.
  • Know your expenseses to own the investment.  This includedes but not limited to the recurring cost mortgage payents (Principal and interest), property tax, Insurance, maintenance, vacancy.  This also includes upfront closing cost like property tansfer tax, lawyer fee, etc
  • Do not overpay.  Ask for a Comparative Market Analysis  and a Tax Report from your realtor. or use other online services from http://www.bcassessment.bc.ca/, http://www.landcor.com/  although these 2 online services values are usually under the market price, but it gives you an idea of bottomline.  Remember you are an investor who aims to buy at low price
  • find motivated seller.  Is the property on market for a long time, or is there a reason for urgent selling?  Talk to your realotr.
  • look for freehold.  (WATCH OUT for leasehold property !  They would kill your investment)
  • buy house this type of  property has land value
  • The property must be able to be flipped or held ?  Flip if you can sell high before closing.  Hold if your rent is enough to cover mortgage and other expense.  Never buy a property that you cannot flip nor hold.
  • Never fall in love with investment house!  If the price and condition not work out, you should move on to another.  It’s just a business proposition.