How to Shop for Student Residence Real Estate
Smart international parents purchased property for their sons or daughters while they
studied in Canada or the USA. These real estate purchases in good locations provided a
convenient and safe student residence for their children.
North American Real Estate has price cycles that last 5 to 10 years. The secret to smart
investing is to buy during a low price cycle and sell during the high peaks. Many parents
have enjoyed the North American price rises from 1989 to 1997 and again from 1999 to 2006.
Most of the last two cycle price increases have been in the 40 to 200 percent range.
Many of the parents who enjoyed good timing had their $200,000 condo or townhouse rise to
$400,000 over the entire cycle period. When the parents calculate the cost of tuition, food,
clothes, books and expenses over the usual four years of university many still made a profit
or they can just count the education cost for their children as free.
This type of longer-term intelligent investing keeps the rich families rich and enables
them to grow richer every year.
The only secret to renting is to rent (for self use) when the prices slide and you are
waiting for the prices to bottom before purchasing or rent (to tenants) if you have a
property are waiting for prices to rise to maximize your capital gain before selling.
(fall 2006) Recent real estate commentators have stated that some USA and Canada local
real estate markets have either slowed, topped or cooled and require careful analysis
before making any purchase decisions. If the lessons of the last two real estate cycles are to
be used then renting can be an excellent option if prices are sliding but not yet at the
(2009 Update) Many real estate analysts say the absolute bottom was October 2008 - and the bottom
may last another year or two. If you have cash this may be the time to look for bagains. You will
have to wait 5 to 10 years for the up cycle to mature.
(2010 Update) This looks like a two bottom recession - yes the prices are still moving lower and will
stay this way for another year or so. The only good thing is that if you do buy now there are
mortgages available if you have an established cash flow.
(2013 spring update) Florida real estate reports a 6% increase in prices - first uptick since 2008. This may
be a fuzzy signal that the double-bottom has ended. We just have to see when there is a real raise.
There are two Canadian real estate bubbles - Toronto and Vancouver - which did not crash and burn in 2008. They did
slow down and cooled but did not crash. Parents looking for student residences in these two locations may
have to use a different strategy as properties may not show a huge rise from a crash as in many USA locations.
(2014 spring update) Unemployement is keeping prices from rising. Lower wages and less jobs equals a slower
growth for real estate prices. The Toronto bubble is still in place with prices too high for normal middle class purchasers.
There are many Homestay education services and projects that real estate investors can
utilize to earn money. Homestay projects require the correct form of real estate
and a zoning category that allows for this business activity.
All homestay businesses are service and cash flow based and require day to day management and
supervision. The earnings tend to average about $1,000 to $1,500 a month per dedicated bedroom and are an
excellent part-time business and investment.
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