Spring is one of the busiest seasons in the real estate market, with buyers eager to find their dream home before summer.

Last issue we took a look at commercial investments and saw how they stacked up compared to residential rentals. And, we saw there were a lot of advantages for the commercial landlord. Not just in removing him from the oppressive control of the Residential Tenancies Act. But also, huge advantages when it came to cash flow and return on investment. Chiefly because many, if not most commercial tenancies are what we call ‘carefree net leases for the landlord’ or TRIPLE NET LEASES. Simply put, this means that all the expenses typically associated with rentals and borne by the residential landlord are passed on to the tenant in commercial situations.

Whenever we sit down to review the numerical sales data, month by month and year by year, we always look to see if there are any trends evident. I speak here both in terms of number of unit sales and also average residential sale price. And then we ask ourselves the question – “Why did this happen?”. What we are trying to do, of course, is extrapolate out and thus predict what will happen in the months ahead. We primarily follow unit sales and average residential sales prices. As I’ve said before, I don’t particularly track new listings coming in, because these numbers are unreliable. They include properties that expire and are re-listed as well as listings that are re-serviced. So, while available inventory is a useful barometer, new listings are not.

In Ontario, purchasing a home is often the largest investment you’ll ever make. Yet, even after diligent inspections, some problems-known as latent defects-may not reveal themselves until after you’ve moved in. Latent defects are hidden flaws not discoverable through a standard visual inspection. In this example we will consider electrical issues concealed behind walls, including outdated knob and tube wiring.

Improving your financial health is essential for long-term stability and peace of mind.

In our money machine seminars and as investors, the bulk of our attention has been focused on residential real estate investment. It’s the easiest to acquire, the easiest to finance and generally speaking the easiest to rent out and keep rented. After all, regardless of the economy we find ourselves in, people always need a roof over their heads. So, while in tough economic times, when many businesses are struggling, you might see a lot of ‘for lease’ signs on strip plazas and retail outlets, that’s not typically the case with houses and apartment units.