The Power Of Property
Quite simply, property is one of the soundest investments available. On average over the last 30 years, property values have doubled every 7-10 years and rental income has doubled every 9-12 years.
Irrespective of the peaks and troughs of the last 30 years, property has historically risen in value nearly every year since records began. While historical performance is not a guarantee of future growth, any downturn in the property market can be managed, using techniques which made profit in the 90's despite the market.
Property simply has many more options than traditional investments, coupled with the fact that our investment strategy is simple; we only buy property if is financially advantageous. We never purchase property based on emotion - it is a mathematical process. Simply put: 'If the math doesn't work, we don't buy!' Our strict purchasing criteria and huge network of agents and experts, ensures we can secure excellent purchases in many areas. By purchasing property under market value, we are able to retrieve our acquisition costs, sometimes within a matter of weeks, to allow the same fund money to be used again and again.
Generally, you buy real estate with financing and that gives you a leverage of four or five to one on your money.
Example Property |
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| Purchase Price | 253,000 |
| Monthly Expenses above mortgage | 260 |
| Expected Rent | 2,000 |
| Renovation time(months) | 4 |
| Reno Cash Required (no legal) | 21,900 |
Historical Market Analysis - Calgary |
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| Year | Average Residential Combined Price | Percentage Increase from year prior | Cash Cost @ 25% down | Five Yar equity (cash) | Five Year Total Return (50/50 Split) |
| 1968 | $19,450.00 | ||||
| 1969 | $22,235.00 | 14.32% | $5,558.75 | $18,132.00 | 164% |
| 1970 | $22,770.00 | 2.41% | $5,692.50 | $28,560.00 | 251% |
| 1971 | $23,645.00 | 3.84% | $5,911.25 | $46,609.00 | 394% |
| 1972 | $25,360.00 | 7.25% | $6,340.00 | $47,161.00 | 372% |
| 1973 | $31,270.00 | 23.30% | $7,817.50 | $49,456.00 | 314% |
| 1974 | $40,417.00 | 29.25% | $10,104.25 | $49,143.00 | 243% |
| 1975 | $51,330.00 | 27.00% | $12,632.50 | $49,249.00 | 192% |
| 1976 | $70,254.00 | 36.87% | $17,563.50 | $44,564.00 | 127% |
| 1977 | $72,521.00 | 3.23% | $18,130.25 | $35,866.00 | 99% |
| 1978 | $80,428.00 | 10.90% | $20,107.00 | $20,910.00 | 52% |
| 1979 | $89,560.00 | 11.35% | $22,390.00 | -$336.00 | -1% |
| 1980 | $100,579.00 | 12.30% | $25,144.75 | -$17,336.00 | -34% |
| 1981 | $114,838.00 | 14.18% | $28,709.50 | -$24,702.00 | -43% |
| 1982 | $108,409.00 | -5.60% | $27,102.25 | -$13,105.00 | -24% |
| 1983 | $101,338.00 | -6.52% | $25,334.50 | $2,174.00 | 4% |
| 1984 | $89,224.00 | -11.95% | $223,006.00 | $22,370.00 | 50% |
| 1985 | $23,244.00 | -6.70% | $20,811.00 | $44,282.00 | 106% |
| 1986 | $90,136.00 | 8.26% | $22,534.00 | $36,962.00 | 82% |
| 1987 | $95,304.00 | 5.73% | $23,826.00 | $32,317.00 | 68% |
| 1988 | $103,512.00 | 8.61% | $25,878.00 | $28,760.00 | 56% |
| 1989 | $111,594.00 | 7.81% | $27,696.50 | $21,274.00 | 38% |
| 1990 | $127,526.00 | 14.28% | $31,881.50 | $4,426.00 | 7% |
| 1991 | $127,098.00 | -0.34% | $31,774.50 | $7,545.00 | 12% |
| 1992 | $127,621.00 | 0.41% | $37,905.25 | $15,664.00 | 25% |
| 1993 | $132,272.00 | 3.64% | $33,066.00 | $25,061.00 | 38% |
| 1994 | $132,868.00 | 0.45% | $33,217.00 | $33,242.00 | 50% |
| 1995 | $131,952.00 | -0.69% | $32,966.00 | $44,353.00 | 67% |
| 1996 | $134,643.00 | 2.04% | $33,660.75 | $47,447.00 | 10% |
| 1997 | $143,305.00 | 6.43% | $35,626.25 | $54,752.00 | 16% |
| 1998 | $157,353.00 | 9.80% | $39,338.25 | $53,811.00 | 68% |
| 1999 | $166,110.00 | 5.57% | $41,527.50 | $56,691.00 | 68% |
| 2000 | $176,305.00 | 6.14% | $44,076.25 | $74,636.00 | 85% |
| 2001 | $182,090.00 | 3.26% | $45,522.50 | $164,583.00 | 181% |
| 2002 | $198,057.00 | 8.77% | $49,514.25 | $158,900.00 | 160% |
| 2003 | $211,164.00 | 6.62% | $52,791.00 | $145,793.00 | 138% |
| 2004 | $222,801.00 | 5.51% | $55,700.25 | $134,156.00 | 120% |
| 2005 | $250,943.00 | 12.63% | $62,735.75 | $106,014.00 | 84% |
| 2006 | $346,673.00 | 38.15% | $86,668.25 | $10,284.00 | 6% |
| 2007 | $356,957.00 | 2.97% | $89,239.25 | $0.00 | |
