Campbell’s Recipe For Success
Campbell’s Recipe For Success

Campbell’s Recipe For Success

April 16, 2010 Brantford Expositor

To paraphrase Mark Twain, the reports of a housing bubble in Canada are greatly exaggerated.

The reports have been circulating since early this year — reports I found unconvincing, which is shared by Don R. Campbell, author and president of the Real Estate Investment Network™ (REIN™).

“There’s not a bubble, but there are over exuberant markets in Toronto and Vancouver, especially in condos,” said Campbell during a stopover in Calgary last week. “Those markets have superseded the economic fundamentals that are supposed to support them, but it doesn’t mean the market will collapse.”

Campbell has launched his new book, 81 Financial and Tax Tips for the Canadian Real Estate Investor, from which he makes no money — Campbell’s forwarded all royalities toward Habitat For Humanity. Coupled with contributions from REIN™, they’ve raised more than $525,000 to build homes for those in need.

“My wife and I make our money in real estate,” he said. “And about 90% of our holdings are in Alberta.”

For me that’s enough reason to seek his advice about buying properties for profit.

“Always do your homework. Not every neighbourhood and property is a good investment,” said Campbell. “It’s more than a property. You’re buying a business and renting the air between the walls to a customer who happens to be a renter.

“You have revenues and expenses like any business and you have to run it that way.”

When’s the best time to get into real estate?

“People think real estate is about timing, but, in fact, that is not right,” said Campbell. “If that was right, you would have bought when your dad bought, when houses cost $30,000 or $40,000. An investor has to look at long-term trends. Give yourself a minimum of a five-year window, have a plan for five years.

“Look for long-term economic fundamentals and where they are pointing. Look into the future, not the past. Look for a region where migration, jobs and incomes will be strong.

“Look for major transportation changes that will give better access to neighbourhoods. These are factors that really drive real estate markets.”

Campbell doesn’t think new mortgage regulations coming into effect April 19 will have much effect.

Any other tips?

“Never invest based on tips, which is ironic coming from me,” said Campbell. “You can use tips to augment your strategy, for example, if you hear that your brother’s sister-in-law says her dad is buying in such and such a neighbourhood, do your homework before joining in, especially if someone is trying to sell you properties.”

It’s all about the homework, or as Mark Twain said: “The trouble with the world is not that people know too little, but that they know so many things that ain’t so.”

Campbell’s Recipe For Success was last modified: May 21st, 2010 by admin
 

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