Hi everyone:

As we do every month, Winnipeg REALTORS® have issued their monthly real estate market update on MLS® statistics regarding the sales and listings of houses and condominiums in Winnipeg for September 2010.

[caption id="attachment_1191" align="alignright" width="240" caption="Photo by ryemang's photostream on Flickr"][/caption]

As always, these statistics cover the sales and listings for the entire south-east area of Manitoba, including Winnipeg, Steinbach, and all towns and rural areas in this vircinity. For a look at my own real estate market update of Winnipeg-only, see this Real Estate Market Update Video.

For the month of August, 2010, Winnipeg REALTORS® report that sales were down 12% when compared to August 2009, and dollar-volume was off 5%. Overall, however, dollar volume for the year was up 11% to this point, when compared to 2009. As well, the numbers of listings entered onto MLS®, at 14,843 so far, was up 15% when compared to the same time in 2009.

As usual, the most active segments of the market were homes in the $150,000 to $199,999 range, and the $200,000 to $249,999 range, which had 22% and 21% of the market, respectively. This is to be expected, as these usually represent the price ranges for 'first time buyers', who are after all the driving force behind the Winnipeg Real Estate Market.

Days on Market, which measured the time it take to sell a home, for residential detached homes was at 30 days, which is equal to August 2009, and 2 days slower than July this year. Of note is the fact that homes in the $150,000 to $200,000 range sold in only 20 days. Condominiums are still an excellent alternative for the first time buyer.

As for condominiums, the most active price ranges were in the $150,000 to $199,999 range, followed by the $100,000 to $149,999 range at 33% and 27% respectively. Average days on market for condos was 34 days, which is 3 days slower than July, but 6 days faster than August 2009.

For a complete look at the press release, click on Press Release 09-09-10 August 2010 MLS Statistics

If you're thinking of buying or selling a house or a condo in Winnipeg, call Bo Kauffmann of Remax Performance Realty for a realistic market evaluation. Call 204-333-2202 today.

Hi everyone:

I just came across an excellent resource for mortgage rate, interest rate, insurance rate and credit card rate information. Check out the blog at ratesupermarket.ca

This site features input by some very impressive contributors. While NO ONE can predict interest rates with 100% accuracy, being able to draw on the experience of some of the countries top mortgage experts gives ratesupermarket a nice advantage in this effort.

The site blog includes categories such as Mortgage Tips, Housing Market, Real Estate and dozens of others.

This month's Mortgage Rate Outlook predicts that fixed rates are expected to remain the same, 'with downward bias', and variable rates are also expected to remain the same.

This continues to be an excellent time to purchase a house or condo in Winnipeg. Inventory levels are up slightly, and due to summer vacations, buyer activity is down a little, meaning that your chances of finding and actually getting a house are increased.

If you're looking to purchase a home (house or condo) in Winnipeg, please call me anytime. Bo 204-333-2202

Hello Everyone:I just wanted to give you a quick look at the real estate market in one of Winnipeg's upscale neighbourhoods:  Lindenwoods and Linden Ridge.Currently, there are only 12 homes for sale in this prestigious area, ranging in price from $359,900 to $874,900.  in the past 31 days, 10 homes have sold here, ranging from $365,500 to $820,000 in price.Looking back to the month of June 2010, there were 18 homes sold in Lindenwoods-Linden Ridge, ranging from $319,900 to $625,000.  Of those, 6 sold ABOVE list, 6 sold BELOW list and 6 sold AT LIST price.During the month of July 2010, we saw 21 homes sold, ranging from $320,000 to $820,000 in price.  Of those, 16 sold BELOW list price while 5 sold ABOVE list price, although in most cases, the difference was small.As expected, during the July (and probably for August as well), bidding wars do slow down.  Savvy real estate agents take this into account when setting the list price of the home, as they can no longer count on 'multiple offers', and are well advised to set a more realistic asking-price for the home.If you are looking to buy a home or condo in Winnipeg, please call me for a copy of my Home-Buying Guide, explaining the process of finding, offering on, and getting a home in Winnipeg.If you are thinking of SELLING your Winnipeg home or condo, call me for a straight forward, realistic market evaluation and a look at my Customized Marketing Plan for your home.Bo  333-2202

Hello everyone:

Let's start with a "Note to Home-Sellers: STOP listing your homes for LESS than you are willing to ACCEPT!!!!"

So here is the scenario: I've got a buyer, pre-qualified and approved for up to $200,000. This week, we find a nice home, listed at $196,000. The home-owner has tried the "Showings Start Friday, Offers on Tuesday" deal, in an effort to bring in multiple offers and drive the price up. Alas, its July and they only had a handful of showings, and no offers.

So my buyer decides to write a very nice and clean offer, and we present it to the Listing Agent and the owner. My buyer is 'pumped'.... could this be the one? I'm excited too. ... Until we get the call that the owner has turned down the offer! And NOT JUST turned it down, but refusing to even counter-offer it. As the Listing Agent explained, the owner had her sights set on $20,000 more, and would not sell for the asking-price.

And so my initial caution from up top: DON'T list your home for less than you're willing to accept!"

I understand that there are times in the year when a low-pricing strategy will work. It's a pretty safe bet that, given our current market, if you list your home with a REALTOR® in the spring time, and the home shows well and is priced well, you're going to get multiple offers. Unfortunately, some agents rely on this strategy ALL YEAR LONG, but guess what: Marketing Strategies are not like Spandex pants: One Size DOES NOT fit all!

Even Winnipeg's hot real estate market will have slow times, such as July and August, and again in December-January.   a strategy which works in April or May, could backfire on you in July, when Winnipeg Home Buyers traditionally 'take a break', and instead of 35 showings, the home receives only 6 (or even fewer).

Experienced agents, who have been thru these seasonal cycles, understand this, and create special marketing plans for these situation. (Actually, the Marketing Plan should fit not only the season, but the type and style of home as well.... ONE SIZE DEFINITELY does NOT fit all situations).

Now for the good news: Just because the market is a little slower, does NOT mean you wont get as much money as your neighbour did in the spring!! It just requires a different approach, a plan that does not simply count on "Low-Price = Bidding War" type of thinking.

So if you are a home-owner thinking of selling their home, call me for your special and customized marketing plan. One of the first questions I will be asking is "When are you thinking of selling?"..... because the timing is an important factor in creating the proper marketing plan for your home.

Hello Everyone:

Do you own rental property, and feel that now is the right time to sell? You may be right, as property values have far outstripped our Province's controlled rent increases. As your rental income has increased by 2% to 3% each year, the value of the property may have incresed by around 10-15% a year.

Case and point: I recently listed a nice little house on Winnipeg Ave.

When I first saw this property, which had a tenant in it, the value would have been somewhere around $50,000, sold "AS-IS". The owners heeded my advice, gave the tenants their notice, cleaned and fixed the home up, and listed it for $89,900. In the end, it received multiple offers and sold for even more than that.

2nd case and point: I have a buyer for a condo in Lindenwoods. We were trying to get a look at this condo, which is tenant-occupied by a 'non-co-operative' (read: JERK) tenant, who keeps the place messy, and disrupts showings. This is not uncommon, as tenants quite often don't like the idea of 'their place' being sold, forcing them to find alternative accomodations. And so a condo, which should have sold quickly, has been on the market for 2-1/2 months, causing he owner grief and possible loss of money.

If you own property, and wish to sell it, call me first. Here is a short video on WHY it is in your best interest to sell the home WITHOUT the tenant in it.

Hi everyone: This has happened to me on a couple of occasions:  I meet with a new buyer for the first time, and we start to go over the buying process.  In this meeting, I explain what the market is doing, how best to write an offer, and generally discuss and describe the entire buying process. On more than one occasion, the buyer exclaimed:"We never knew THAT!".....  or, better yet: "Our LAST agent never explained THAT." In speaking to them further, I learn that they had been receiving listings from another agent, gone out to look at a few houses, tried to put in an offer and were promptly 'blown out of the water' by other, better prepared buyers.  So here is my point : FINDING a house or condo is the easy part.  The listings are out there, on MLS®, in magazines and newspapers and on the internet.  But FINDING is only a small part of what I do....  the key is in the PREPARATION.  To be blunt: We're not buying a pair of pants, a book or a loaf of bread.  We ARE about to invest hundreds of thousands of dollars into the real estate market, and we're doing it at a time when there is heavy competition for the same house we want to buy.  Being PREPARED is key to winning these multiple-bid situation. I have created a "Home-Buying Brochure" which helps my house and condo buyers understand the process.  A PDF version of this brochure is attached here for your information.  I do hope you find it helpful.  If you have any real estate related questions or comments, please call me anytime.  And of course, if you're looking to buy a house or condo, I'd love to help you FIND and GET the home of your choice. Click here to download your Free Guide:                          Bo's Home-Buying Guide

Hi everyone:

After issuing a market update for Lindenwoods I wanted to take a look at Whyte Ridge, another very popular Winnipeg neighborhood.

Currently, there are 9 homes for sale in Whyte Ridge, 8 of which are priced between 259,900 and $400K. The 9th home is over a million dollars.

In the past 30 days, a total of 9 homes have sold in Whyte Ridge.

For the 30 days before THAT, (between Feb 18th and March 18th), 7 homes sold in Whyte Ridge.

If you're thinking of selling a home in Whyte Ridge (or anyplace else in WInnipeg, for that matter), please call me for your market evaluation.

...and if you're thinking of buying a home or condo, in Whyte Ridge or other areas, please call me for a free consultation.

Bo 333-2202

Hi Everyone:

There is an old saying that goes: "Your home is never more exciting than the first couple of weeks on the market". So when you put your home on the market (and I mean the REAL MARKET, by LISTING IT with a REALTOR®), make sure that your home shows it's best.
Because here is a bit of reality: About 80% of your total showings are going to happen in the first 5 days...... This is very important to remember.
When you put your house on the market, there are any number of potential buyers who have been waiting for YOUR HOME. And they will rush in to see your home in the first few days, checking it out to see if it's worth competing for. If the buyers find fault with your home, they simply move on to the next one and MAY NEVER RETURN.
So it's very important to have your home as 'show-worthy' as possible. Here are a couple of simple tips to get you started:

1) CLEAN CLEAN CLEAN
Counters, bathrooms, carpets, lights, windows. Kitchen cupboards, sinks and the garage. Clean everything. Don't leave buyers with a bad impression.

2) DECLUTTER
Kitchen counters should be empty, except for perhaps those Tea-Sugar-Flour-Coffee canisters. Less furniture is better than too much. Box up everything you don't need. You could designate a room in the basement as the 'junk room' and move extra stuff into there.

3) PAINT
If there are any areas where the paint is fading or flaking, paint it. Stay away from the wild colors and stick to earthy, neutral tones. That "Bright Red" kitchen wall looks funky in a magazine, but is not everyone's cup of tea.

These are just a few things to get you started. If you're looking to sell your house or your condo, call me for more advice and to show you my marketing presentation.

Bo 333-2202

Hi everyone:

As a real estate agent, I receive many requests to "Send Me Some Listings". Many of my competitors are putting out ads that say "Call me for the latest listings", and it seems that the average house and condo buyer believes that this is all an agent does. In my humble opinion, FINDING the listings is just a small part: I think that PREPARING an EDUCATING the buyer to compete in today's market is far more important. This is also a reason why several buyers have recently come to me after working with other agents and seemingly getting nowhere.

Here is my list of 7 Reasons Why a house or condo buyer in Winnipeg should be working with their own agent!

1) Save Time

As their agent, I can show ANY listing to my buyer. Whether it's Re/Max®, Century 21®, Royal LePage® or any of the 180-plus brokerages in Winnipeg.

2) Save Money

Often, I may be able to save my buyer money when it comes time to make the offer. I may have valuable information regarding the listing of their choice, which can help the buyer make an informed decision.

3) Convenience

Every call a Listing Agent and wait for hours for a call-back? And then make the appointment according to the agent's schedule? By working with me, my buyers enjoy direct access, quick callback and convenient showing scheduling.

4) I Represent My Buyer

Did you realize that the Listing Agent works for the Home-Seller. Doesn't it make sense to have your own REALTOR® working for you?

5) Get Results

There are ways to win these "Bidding Wars", and yes, even ways to avoid them in the first place. Let me show you how.

6) Get the "Straight Goods"

You may not always like the answers, but you're gonna get 'em.

7) My service is Free

That's right. No gimmicks. In every case, the Home-Seller has already set aside the amount for a Buyer's Agent.

So if you're thinking of buying a house or a condo, please call me anytime. I'll make certain that you're prepared for the market, and represent you every step of the way.

Hi everyone:

In this crazy time of bidding wars (especially on entry-level houses) a first time buyer might consider purchasing a condominium for their first home. In fact there are many great reasons to buy a condominium, not just for a first time buyer. To see a list of reasons, read 7 Reaons

With 700-sq-ft bungalows selling in the south end of the city for over $200,000, there are a number of condominiums available for prices perfect for the first time buyer. To find out a little more, read Condos between 120K and 180K

As an example, an 800 sq ft apartment style condominium, with upgraded kitchen, bath, flooring, new appliances and much more, sell for approximately $160,000. And 1100 sq-ft townhouse condos, with c/air and insuite laundry can be purchased for approximately $165,000 to $170,000.

As an added bonus, although condominiums sometimes do receive multiple offers, these situations are far more rare, making condominiums an excellent choice for the first time buyer who need to put financing conditions into their offers.

Hi Everyone:

I've been invited to speak to a Heritage Group, comprised of retiree's who are interested in learning more about condominiums. In preparation for this presentation, I've examined some of the main reasons why condominiums in Winnipeg are popular, and some of the advantages that come with the condo life-style. So here we go:

1) A cost-effective alternative to houses

I've just listed and sold a 700 sq ft bi-level home which received 11 offers and sold for well over $200,000. No garage, no appliances included, nothing fancy...a good solid house with a few upgrades. By comparison, there are 1100 ft condos, with central air and central furnace, insuite laundry and all appliances that will sell for approx. $165,000. For First Time Buyers, who are sick of the bidding wars, this is an excellent alternative.

2) Lifestyle

Do you like to travel? Or perhaps you're both working full time and looking after the house and yard is a chore you simply don't have time for? Condos offer a simple 'lock-up-and-go' lifestyle. In many cases, your neighbours won't even know you're gone,....unless you tell them.

3) No Yardwork

Getting tired of shoveling all winter, and mowing all summer? Is house and yard maintenance weighing you down, or simply getting away from you? With Condos, you don't have to lift a finger. Walks are shoveled, grass is cut, garbage is picked up and halls and common grounds are cleaned and maintained. Just enjoy...

4) Security

Condos (especially Highrise Units) offer secure entrances, with security cameras and often even patrolling security companies. As a former police officer I can tell you that break-ins to high-rise condos are rare. While they DO occur, when compared to break-ins to houses, they are statistically insignificant. Piece of mind living in a secure condo.

5) Community

Many condo owners find that in a condo, their neighbours are enjoying a similar lifestyle, and so they have more in common with these folks. Many condos also offer "common-rooms" where people can get together and talk, or fitness rooms, pools etc etc. This is especially true for the 55+ buildings where all your neighbours are in a similar age group as yourself.

6) Lower Operating Costs

In most condos, especially in the highrise and townhouse variety, the building insurance is already included in the condo fee. As is the water-bill. And sometimes the heat and hydro as well. Building maintenance is included, so you dont have to worry about replacing a furnace, or the shingles or the windows. And if heat is NOT included, heating a 1000 sq ft apartment style suite is far less expensive than the average 1000 ft bungalow, often even as low as half the cost. (Thats because the units above, below and beside you help insulate you from the elements)

7) Benefits of Home Ownership

With some limitations, condo owners enjoy many of the same benefits as house owners. They can Live in the condo, Rent it out, Improve it, Give it away, Borrow Money against it and basically treat it the same as a house. The limitations (by-laws) are a two-way street: What some people see as limitations, others see as insurance against having a neighbour do something which would negatively affect YOUR property value. (Ex: Try selling your house after your neighbour has turned his driveway into a junk yard or used-car lot)

As a current owner of a condo, and past president of condo boards, I am able to talk about this subject with some level of knowledge and authority. So if you're thinking of a condo, in any style or price-range, please do not hesitate to call or e-mail me anytime.

Bo 333-2202

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I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Hi Everyone:

We've all heard about the 'bidding wars' or 'multiple offers' happening in Winnipeg. Its important to point out that the vast majority of these are happening in the 'entry-level' price ranges of between $150,000 and $250,000. It's easy to forget that right now, you CAN get some very nice homes in upper-scale neighbourhoods WITHOUT bidding wars. In fact, I feel that some of these homes are excellent value for the money. If you've been thinking of moving up to a larger home, here is some information for you:

Right now (mid-March 2010) there are 14 homes for sale in the Lindenwoods area, many having been on the market beyond their "Offers-On" dates, ..........so no bidding wars on these homes. These homes range is price from $329,900 up to $779,000.

Most interestingly, there are 7 homes in the $350K to $390K range, and some of these are well over 2000 sq ft. To receive a list of these homes, simply e-mail me at
boknowshomes@gmail.com

When you consider that smaller homes of approx. 700 sq ft can fetch a price of nearly $220,000 (without garages), it places some perspective on this matter. Add to this the fact that many experts believe interest rates may increase towards the middle of the year, NOW may be exactly the right time to move up to a larger home.

So if you've been thinking of moving up to a larger home in an upscale area, Lindenwoods or otherwise, please give me a call anytime. I'd love to help you find what you're looking for.

Call me anytime at (204) 333-2202 direct.

Are you looking for a house or condo in Winnipeg, and considering purchasing a "Private Sale? Here is a recent example of what happened, and a very good reason why buyers should be working with a REALTOR® when shopping for a new home

Home Buyers in Winnipeg have a new tool at their disposal: REALTORS® use the Keystone-Matrix system which is a huge help for home buyers. There are several neat features in this system.... Here is a look at one of those features.

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it's most often already sold or accepting offers. Open Houses can be very hectic, and you end up 'rubbing elbows' with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can't I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It's no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video. .

I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Winnipeg's Real Estate Market is always changing, and FAST. Prices and evaluations that were true a few weeks ago, are no longer accurate. New price-points are set on a weekly basis.
For a Free Market Evaluation, call me anytime. 204-333-2202

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it's most often already sold or accepting offers. Open Houses can be very hectic, and you end up 'rubbing elbows' with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can't I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It's no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video.

Here are a few of the most common questions home-owners have, and answers to them:

Q: What kind of questions should we ask a prospective Listing Agent?

A: Here is a guide to some of the important points to ask a Listing Agent. Please see the video in this post.

Q: How do we create a 'bidding war' for our house or condo?

A: There are several ingredients to creating a bidding war, including: Setting a realistic Asking Price, generating lots of Buyer Interest and also the status of the current market. For a video explanation, see this post.

Q: If we receive a full-price offer on our home, are we obligated to accept it?

A: No. If you were a store-owner, advertising a quart of milk for $1.00, you WOULD be obligated to sell at that price (or issue rainchecks), however home-owners are exempt from the laws that govern this issue. However, while no one can force a home-owner to sell at an advertised price, the question remains: "If he/she was not going to accept $220,000 for the home, WHY did we LIST it at that price?" For more indepth explanation, please watch the video in this post.

Q: Is there a difference between REALTORS®? I mean, they all provide the same service, don't they?

A: We are all called REALTORS®, we all place homes on the M.L.S.®, but that's pretty much where the similarities end. Just as no 2 lawyers are the same, no 2 doctors are the same, so we can quickly see the differences between Real Estate professionals. I always say: You hire a REALTOR® for one reason: To do the marketing and advertising for your home, and this is where a huge difference becomes apparent. To see my marketing plan, check out this video.

I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Hello Everyone:

Winnipeg REALTORS® have just released their official MLS® sales statistics for the sales during the month of February 2010. Sales and dollar-volumes are up, kept in check only by the lack of 'inventory' on the market.

For dollar volume, for example, this February saw the highest sales-amount for ANY February on record. The $150 million dollars sold surpasses the previous February Record, set in 2008, by a whopping 9%.

Furthermore, 44% of homes sold for "Above List Price", while coincidentally another 44% sold for less than list. (Call me anytime for a one-on-one personal explanation to this statistic). While the number of homes sold in February (712) is lower than past years, this is attributed to the fact that there are not as many listings available. Adding a personal observation, I know several clients who are just in the process of 'fixing' their homes and getting them ready, and I feel that this 'lack of inventory' is coming to an end fairly soon.

The average days on market is down to 29 day, for both houses and condos.

Speaking of Condos, 3/4 of condos sold were in the 150K to 200K range.

For a look at the press release, go here: Press Release for February 2010 MLS sales

Hi Everyone:

It's the start of the spring market in 2010 and home-owners are well advised to begin looking at 'listing' their home. Buyers are looking, and there are NOT a lot of homes on the market right now.
For example, in the Meadowood area of St Vital, which has 1784 houses, there are currently only 2 homes for sale. Which is why, RIGHT NOW is an excellent time to put your home on the market.

Hello Everyone:

Most of us are thankful for the low interest rates we are enjoying these days. But those low rates are a bit of a 'double-edged sword'. If we're borrowing money, we dont pay much interest, however if you're buying RRSP's or other investments, you'll know that you're getting around 2% return. Which is why some folks are thinking of investing in Real Estate.

For this purpose, the ideal way to invest is (in my opinion, anyway) to purchase rental property. Buy a reasonably priced house, rent it out for a few years and then sell it, hopefully for a profit. But even if you don't realize a huge profit a few years down the road, the tenants will be paying for the mortgage, and perhaps even put some money into your pocket along the way. Here are some of the 'numbers' you might be looking for:

Lets say you find a house for around $80,000 (NOOO, you WONT find that in S. St. Vital, so please don't even ask..lol). So we need to figure out what your true costs of this home will be. Here are some guides:

Mortgage Interest at 4.5%...(as an example).... $300 per month

Home Taxes. approx. $1200/year........... $100 per month

Home Insurance, approx. $600/year.......... $ 50 per month

So far, your costs of owning this home is approx. $450.00 per month. Keep in mind that although your mortgage payment will be substantially higher than $300.00 per month, since everything ABOVE this amount goes towards paying off YOUR house, it can not be considered a cost (or loss).

You should also budget for repairs and maintenance, as well as perhaps water-utility bills, as many times the rent includes water.

One other factor you need to decide: Will you manage this little enterprise by yourself, or do you want to go thru a Property Management Company? If you only have 1 rental property, you might opt to do it yourself, but there are many benefits to working with a Management Company. Some benefits include:

1) They find and pre-screen possible tenants

2) They handle all payments and enforce late fees, etc etc.

3) Tenants dont call YOU with problems but deal with the Management Company

Some property owners decide that, even if they only own one property, these benefits are well worth the 12-14% of gross rental income that they have to pay. So if YOU decide to go thru a management company, tack on another $100 per month to your expenses.

So we may be up to approx. $600/month to operate this $80,000 home, and any potential rent needs to, of course, cover this. In fact with Winnipeg's rental market in its current state, rental properties are few and far between, so you may find that this is easily attained. So if, for example, you're able to collect $750 per month (plus utilities), you're realizing a profit of $150 per month, or approx. 24% return on your investment.

Please keep in mind that these are very rough calculations, but many investors are finding this to be a better investment choice than RRSP's or bonds.

One other piece of information: With investment properties, most banks require substantially more than 5% down...some are asking as much as 50% down on homes under $80,000 in value, so a little homework will be required.

If you're thinking of investing in real estate, please call me anytime. I have contacts in both the Mortgage Industry as well as reputable Property Management Companies.

Contact me at boknowshomes@gmail.com

Here is my Website