I’ve been very fortunate with my past real estate investments. My Vancouver condo, and farmland near Yorkton, SK have altogether made me over $75,000 in pre-tax capital gains, at least on paper. 😉 Not too shabby considering how 5 years ago I still had student loan debt and a negative net worth. 😛
Researching a New Investment Idea
Recently I was brainstorming ideas for my next investment. Stocks are pretty volatile these days due to lower commodity prices like for oil, wheat, coal, and base metals. 🙁 Residential properties also seem kind of flaky at this time because we don’t know whether or not the trusted Fed will tighten its monetary policy next year or open the gates to even more quantitative easing. 😕 So it’s hard to find under valued assets these days.
However, I was recently browsing the MLS database on realtor.ca, which of course is accessible to the general public. And I came across several listing on the outskirts of Regina, Saskatchewan that caught my attention. These listings are for undeveloped plots of land, near the Regina International Airport (Code: YQR.) The size of each lot for sale varies from 2,000 ft2 (185 m2) to 10,000 ft2 (929 m2) or more, so they’re large enough to build an apartment or restaurant on. Here’s an example of one of those properties I might be interested to buy.
I like how it says right in the listing description, “Investment opportunity only.” haha. As an investor, how can I pass up this incredible offer? 🙂 For simplicity sake we’ll label these listings as “commercial” properties for now because they’re not really residential. What I also like about this opportunity is that the property tax is very low because these are simply flat, empty land waiting to be developed on. And many of these commercial plots are not even within the city of Regina.
Regina residential real estate is really heating up, but these vacant commercial properties outside the city boarders are selling for $20,000 for a small lot, to $100,000 for a large lot, which is pretty darn affordable. 😀 With an unemployment rate of just 3.5%, which is literally the lowest in the country, Saskatchewan has been, and will continue to be the driving engine of economic growth in North America. I won’t be able to rent this land to anyone if I buy it. But if I make this investment right now and just hold onto it, I don’t see how I can possibly lose money 5 or 10 years down the road. 😉 Except of course I can’t invest right now because I don’t have any money. 😡
Regina Can Wait.
I only have about $2,000 in my bank account, but I need at least $20,000 to purchase a plot of vacant land. Normally I would just borrow money from the bank (leverage) and go ahead with the investment. But since I blogged about abstaining from using new debt for the rest of this year, I’m actually not able to invest in this opportunity right now. But that’s alright. There’s always next year. 🙂
Random Useless Fact:
Hunger kills way more people than Ebola, but it’s not considered a significant problem because rich people can’t die from it.