Real Estate Investing 101

Even as Ottawa’s new condo market slows, fat and heavy from a glut of new units, I am still solicited for advice and opinion from those looking at condos as an investment.

As a licensed professional I can only provide direct advice to clients, but my general thinking on real estate as an investment is best summed up by the time tested strategy of Warren Buffett, investor extraordinaire:
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
In fact, although Buffett is a value investor, I believe that most of his philosophy can be applied equally to real estate:
“The investor of today does not profit from yesterday’s growth.”
“Investors making purchased in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company [or condo] to catch up with the price they paid.”
“Most people get interested in stocks [or real estate] when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”