Investors

At Considerate Property Management Inc., we have opened our doors to offer this valuable and straightforward Investor Service.We took note of the growing need in Fredericton to communicate honest, no-nonsense information about successful real estate investing, and here we are.

When buying a property, you receive both capital gains and income returns. With our Considerate Management Investor Service,we ensure that you receive the best and most profitable; this is not just a number crunching service! Come to us with the intention of investing in real estate, no matter your experience with and knowledge of real estate; that is: who to talk to, who is reliable, who you can trust and so on. Our service simplifies the process by putting you in contact with a team of tried, tested and true real estate agents, mortgage brokers, lawyers, home inspectors and, of course, property managers. We take the guess work out of what will be your most important and lucrative investment ever! So, there is no more need to find such an investment daunting or unsavoury. Our service streamlines property investing, making such an opportunity easy and reliable.

The aim of this service is to deliver what works, then to implement the procedures necessary to make you a successful investor!

The aim of this service is to deliver information about what works (and what doesn’t) in property, then to implement the procedures necessary to make you a successful investor!

Let us look at an example. Imagine that you purchased an average priced duplex property in Fredericton in June 2003. With the benefit of hindsight, let us look at how your investment would have turned out assuming:

Purchase price: $160,000
Cash invested:(5% downpayment) $8,000
Mortgage amount: $155,240
Interest rate: 5.62%
Term: 5 Years
Closing costs: $2,400
Average gross rental income: $1,800
Income frequency: Monthly
Occupancy Rate: 98.00%
Duration of analysis: 5 Years
Realtor fees upon future sale: 3.00%
Annual appreciation rate: 3.00%
Property expenses, including management fees: $3,000.00

 
Over that five-year period you would have:

Received $105 840.00 in rent
Paid $15,000.00 in property costs
Paid $33,778.00 in interest costs
For a total net rental income of: $57,062.00

 
In June 2008 your property would be worth $185 484.00 resulting in $16,679.48 in capital gains1 should you sell at this point.

Based on this input, your after-tax internal rate of return on your real estate investment would be approximately 122.8% over the 5 year term of the investment (24.6% per year)2.

It is not very often that you hear of any other investment type offering this rate of return is it?

It becomes apparent that investing in real estate is one of the most lucrative investment opportunities and that such an investment is hassle-free when placed in the capable hands of Considerate Property Management Inc.

Keep in mind that we have developed this valuable investment service precisely because these numbers may seem confusing. We are the medium through which you come to understand property investing. You will not only develop confidence in your decision to invest but also in our ability to provide a smooth, hassle-free method of making you a profitable property owner faster with none of the difficulties associated with being a landlord.

Here are some other factors to consider when looking at investing in real estate. Depending on your personal investment strategy, these factors are important and worth your consideration as we guide you through the process:

Location

  • The better the location, the better the chance of capital gains. For example, a property that is close to amenities such as schools, parks and shops stands the best chance of increasing in value.
  • If you are looking to bank on location, you may be likely to shop for the worst house on the best street (not necessarily advisable when looking for a good renter).
  • The real estate agents used by our company are excellent advisors in this area and will easily be able to find what you are looking for.

Tenants

  • The type of property that you are looking to buy will dictate the type of tenant that you are going to attract. For example, a one-bedroom studio apartment downtown is not built to cater to a family – so the proximity of schools is not likely to be as important.
  • All manner of tenants will apply to rent your property, but the real challenge is to find the right tenant for the right property. Considerate Property Management Inc. pre-qualifies tenants; this is essential to your success..

Property

  • The construction and condition of the property is also important. Brick homes are generally worth more than their weatherboard counterparts; period style homes offer emotional charm which generally ups the price, too.
  • Being a savvy investor means making sure that you know what you are buying.
  • Considerate Property Management Inc. deals with Home Inspectors who have great reputations and who have been in the business for many years serving our community.

The Numbers

  • There is no point in buying a property under a buy-and-hold strategy (most typical for rental properties) if you cannot afford to own it for the long-term. That is why it is important to avoid buying on emotion and gut feeling. Instead, focus on the facts. This really means that you complete a full analysis of the numbers – a part of our full service investment opportunity.
  • We can also calculate the effect that a change in interest rates and/or a movement in rents will have on your profit margin and ability to hold on to the property if it starts producing a loss.

Even if you are not ready to invest or do not yet own any properties, we are always more than happy to answer any questions you have and to discuss any concerns you may have as a potential landlord!

Be sure to spread the good news about Considerate Property Management Inc. by recommending us to your friends!!!

If you have any questions anytime, please contact Adrian Butts – Property Manager at 506 449 2644


  1. Capital gain = (Price Sold – Agent’s Commission at 3%) – (Price paid + closing costs)
    = ($185,484.00 * 97%) – ($160,000.00 + $3240.00)
    = ($179,919.48) – ($163,240.00)
    = $16,679.48
  2. This information may help you analyze your financial needs.
    Hypothetical illustrations may not provide historical or current performance information.
    Past performance does not guarantee nor indicate future results.