I written here before about my not believing in “credit”. A lot of people over the years have advised me to build “leveraging” into my investment strategy and mathematically it’s easy for me to agree with them.
But my investment strategy (yes, they are unique to every investor) based on my low tolerance for “risk” really just comprised of owning three properties.
I’ve had to sell a couple in order to own properties of superior “value” in superior “locations“.
My plan is not made up of all those lofty projections that gamblers in real estate throw around.
With so many Toronto condos being of such poor quality (specifically with “sound attenuation” issues) it’s just not a commodity that I would invest in and if I wouldn’t do it myself, I would advise others to go into speculating on upside growth in the residential pre-sale condo market in Toronto.
My plan involved buying on high end residence that I would keep permanently, using it initially as a principal residence and then turning it into a rental income property down the road when finances allow.
I would buy a lesser price point income property and then buy my permanent residence and have all three properties paid for. Just ahead of my retirement age, (65) I actually had my strategy fulfilled.
I was let down by Tower Hill Developments when my dream home unit in Churchill Park Condo with its panoramic view of the city that was to be my “principal residence” forever, turned out to be a nightmare!
So, I waited a year for the lease on my townhouse at College Park was over and moved back into it but only after having sound-proofed the walls. As I said, most condos in Toronto have serious sound issues!
In my luxury million dollar residence in Churchill Park Condo, I could hear my neighbour above me going to the bathroom each night (all night)! It doesn’t seem to matter how much you pay, you find the same thing!
And why not, the Building Code has not changed in the forty years since I entered to condo business.
I decided to buy a detached home but when I saw what a million dollars buys you these days in this city, I concluded to go where the luxury homes are and quickly discovered that Oakville is the place for me.
And I managed to find a quality new build residence at Lakeshore and Bronte where I can walk by the lake, walk to dining, entertainment, grocery stores and a quaint little main street reminiscent of a small town.
So, my dream is almost complete in that I will have my home in Oakville (a magnificent detached 2800 square foot gem) with no mortgage, and my townhouse in College Park with no mortgage and delivering solid monthly cash flow.
I am looking for one rental income property now which is probably in Oakville. I’m also looking at small town Ontario as a potential investment in mixed use commercial/residential properties on main streets.
But note. I don’t have mortgages on anything. I own my car, I own my home, I own my investment property, I carry no credit card debt, I pay my taxes and my world does not hinge on “credit“.
I know those investors leveraged to the eye-balls don’t sleep as well as I do at night. I see the market as teetering on a very fine threshold which is “subsidized mortgage interest rates on the taxpayer’s dime to drive employment in the construction sector and thereby generating economic stability (employment) and income (taxes).
Yet, here we have Greece about to crumble. Puerto Rico about to crumble. Detroit in shambles, and other major American states, city’s, municipalities, school districts, alarm bells all blaring! America with mulit-trillion dollar deficits and printing money like crazy, and even good old conservative Canada carrying huge deficits!
My question is “that if I get it . . . . why can’t governments with their armies of highly educated and highly paid professional people get it“?