Thanks for the invitation from Jonathan Huang, I attended a seminar jointly held by CIBC and Scott McGillivray the other day. I would like to share what I learned briefly in that night.
There are four fundamental factors when investing in a property:
- Positive cash flow,
- Market appreciation,
- Principal recapture,
- Renovation appreciation.
I understand the importance of positive cash flow, but in Vancouver real estate market, how much down payment you have in order to achieve that? And, is it still worthwhile to do so?
It is very hard to find “perfect” trades person in the renovation industry, what you can do is to try to minimize the risk. Here are three pieces of paperwork when dealing with a contractor.
- Scope of work
- Change work order
Avoid “HP” (hope & pray) strategy in you house project, good luck!