Mastermind #5 June 1 2011
Happy Friday, sorry this post is a little late. It has been a crazy week to say the least. So, thanks to the big group that showed up for Mastermind. The morning was a little confusing because the big battery box that powers the swipe keys to open the office accidently got unplugged so we were all locked out until Wendy arrived. Stuff happens. So, if you missed our meeting, here is what we discussed;
One of our agents has a client who owns a condo outright and is considering either selling it, moving closer to downtown and buying a pre construction condo as an investment or buying a new place downtown and renting his existing home. We had a relatively lengthy discussion on this because the new construction market is not as profitable as it used to be. For the most part, it is almost impossible to buy a new condo and expect to see a monthly profit on it once it is rented. Investors are choosing condos where the monthly loss is minimal and it is now acceptable to purchase an investment property where the monthly loss, after mortgage, maintenance fees and taxes, is $200-300 per month. Obviously you are banking on capital improvement. If your plan is to flip the property after registration you should be skilled at playing this game because no one knows what the market will look like in 2 to 3 years from now. You need nerves of steel.
We also talked briefly about one of the items that came up in our Monday meeting. We had a gentleman from CMHC talk about their home improvement loans and he told us that over 65% of the homes in Toronto are 30 years old or older. Because the housing stock is as old as it is, Toronto spends upward of $8 billion on home renovations. Several agents thought that perhaps there was someway to incorporate this type of information into our marketing packages.
Our Mastermind meetings are a terrific way to talk about the daily trials and tribulations of being a real estate agent in Toronto. I encourage you to sit in when you can any Wednesday at 930am. Have a coffee and bring a topic to discuss.