You will lean why real estate is such a great investment vehicle, why you want to invest in real estate for the long term, how to analyze a property, how to chose where to invest based on economic fundamentals, and how to be a successful investor.

1. Presented by: Sayo Nickerson and Matt Kerr
Team Nickerson at Re/Max Real Estate Services
and Village North Properties

2.  Why real estate is such a great investment
vehicle
 Why you want to invest in real estate for the
long term
 How to analyze a property
 How to chose where to invest based on
economic fundamentals
 How to be a successful investor

3. It’s more than just the money.

4. Why Do You Want More
Money?

5. KIPPERS
Kids In Parents’ Pockets Eroding Retirement
Savings

7. The Good Ol’ Days –
Freedom 55

8. The 90’s – Freedom 65
GIC Rates: 5-6%

9. Today – Freedom 105
GIC Rates: 1%

11. “The fact is, you're not really in the game of building wealth
until you own some real estate.”
David Bach. Author of “The Automatic Millionaire”
#1 New York Times Best seller.
“It’s amazing the freedom Real Estate provides if you step up
to the plate!”
Don Campbell. Author of “Real Estate Investing in Canada”

13. My Investment history…
First rental 2001
1st NEBC property 2012
First Vancouver Triplex
Now

18. • You can enjoy the
benefits without
having to sell
• You can add value to
your property
• It's a slow-moving
asset class that is
evenly priced

19. Cash Flow Mortgage Appreciation
1-3% Paydown 9-10%
8-10% (at 2% growth)
TOTAL RETURNS OF 19-23% PER YEAR!

20. Rental Income
Minus (-)
Expenses
Equals (=)
Positive Cash Flow!
Must be a positive number or you don’t buy!

21. Income:
• Monthly Rent
• Garage
• Laundry
Expenses:
• Management Fee
• Insurance
• Property Taxes
• Maintenance Fees
• Repairs and
Maintenance
• Utilities (gas, hydro)
• Vacancy Allowance

22.  25% down payment
= $50,000
 Mortgage of $150,000
 Rent is $1250 per mth

23. Cash Flow
Each $50 in Monthly Cashflow = 1.2%
Annual Return on your down payment
of $50,000

24. Good Ol’ Days - Interest Rates
and Mortgage Paydown
$960 $225
Interest Payment Principal
6%
% of Payment going to Principal
23.4%

25. Today- Interest Rates and
Mortgage Paydown
$709 $342
Interest Payment Principal
2.99%
% of Payment going to Principal
48.2%

26. Cheap Money from the Bank
Multiplies Your Earning Power
3% Interest
6% Interest
$709
$960
$342
$225Principal
48.2%
Principal
23.4%
Mortgage Payment on $150,000

27. Mortgage Paydown
Equity portion of your mortgage payments get
bigger with every payment!

28. Mortgage Paydown
$342 in Monthly Mortgage Paydown = 8.2%
Annual Return on your down payment of
$50,000

29. Appreciation
Each 1% Appreciation = 4%Annual Return

30. $50/Month
$342/Month
3%
1.2%
8.2%
12%
21.4%Total Return
Returns – 3% Appreciation

31. $50/Month
$342/Month
5%
1.2%
8.2%
20%
29.4%Total Return
Returns – 5% Appreciation

32. $50/Month
$342/Month
10%
1.2%
8.2%
40%
49.4%Total Return
Returns – 10% Appreciation

34. $200,000
Mortgage
Reduction
Growth of 3% Per
Year
$150,000
$412,000
What if I Invest $50,000 Today in an
Investment Property?
$150,000
Capital
Appreciation
($1000’s)
Years
250

35. Growth of 3%
Per Year
$2575
What Will My Rent be in 25 Years?
$1,250
Net Rent
after 30%
Expenses
$1800
Years
250
1.25
1.75
2.25
2.75
($1000’s)

36. Secure Your Retirement With 5
Properties
$200,000
$750,000
Mortgage
Reduction
Growth of 3% Per Year
$150,000
Capital
Appreciation
0
450
1000
1500
2000
750
($1000’s)
$9,000
Net Monthly
INCOME
25
$0
$2,060,000
Assuming at least break-even cash flow.
Years0

37. *Assuming rent today is $1250 and
grows at 3%. Expenses 30%.
$1800*
My Net Monthly Income From
One Property in 25 Years

38. $21,600 a year of Retirement Income
$1,800 per Month
or
$21,600 per Year

39. $108,000 a year of Retirement Income
$9,000 per Month
or
$108,000 per Year

40. Step Outside of Your Comfort
Zone

41. 396 sq.ft. Studio Loft in Gastown with Parking
Built in 1997. Concrete Construction

42. 2001: YES! 2014: NO!
 Price: $100,000
 Down Pmt: $20,000
 Rent: $750/mth
 Taxes: $39/mth
 Strata Fees:$89/mth
 Mortgage:$479/mth
 Repairs: $60/mth
 CASH FLOW: $83/mth
 Price: $240,000
 Down Pmt: $48,000
 Rent: $1,100/mth
 Taxes: $68/mth
 Strata Fees: $177/mth
 Mortgage: $910/mth
 Repairs: $88/mth
 CASH FLOW: -$143/mth

43. Look for regions with Positive Cash Flow &
the Highest Potential Appreciation.
How do we figure out where to invest?

44. Look to the Economic Fundamentals
GDP Growth
Job Growth
Population Growth
Increased Rents
Increased Purchase Demand
Increased Property Prices6
1
2
3
4
5

45. GDP growth in Western Canada comes from world
demand for our resources – the 4 “F”s
Oil and Gas Agriculture
Forestry Mining

47. VANCOUVER
 $8.7 Billion invested in Greater Vancouver for
2010 Olympics (3.5M people)
 $11.3 Billion contract awarded to North
Vancouver in 2013 to be spent over 30 yrs -
10,000 jobs
NORTHEAST BC
 $12 Billion invested in Northeast BC in 2012
alone (a region of 63,000 people)
 Petronas alone has invested $8 Billion into NE BC
Since 2012
 Site C Dam project estimated at $7.9 Billion

48. Site C Dam will create
33,000 direct and
indirect jobs!

49. Liquefied Natural Gas (LNG)

50. The Source of the Gas
Fort St. John
Dawson Creek

51. Northeast BC
Population Projection
Population of Peace Region
Currently: 64,000
2020 Forecast: 123,000
Source: North Peace Economic Development Commission

52. Drilling in NE BC 2007

53. Drilling in NE BC Today

54. The Future of NE BC

55. Estimated Capital Investment
0
5
10
15
20
2013 2018 2023 2028
3 LNG Export Terminals
Pipeline Construction
LNG Export Terminal
Drilling
$CBillions
YOU ARE HERE
SOURCE: ARC Financial

56. Direct Natural Gas Jobs
Northeast BC needs to fill a minimum of 20,000 new jobs
between now and 2020.

57. Diversified Employment Base
Source: North Peace Economic Development Commission 2014

58. Jobs Currently Available in FSJ and
Dawson Creek
2.4%
1.5%

59. Jobs Currently Available in
Vancouver
0.05%

60. Cash Flow keeps you in the
game!
Mortgage Paydown is your
ticket to long term wealth!
Appreciation is where you can
win big!

61. VANCOUVER – 4plex
 Price: $879,500
 Monthly Rent: $4,400
 Monthly Mortgage
Payment: $3,410
 Down Pmt: $175,900
 Cashflow: $-302 per
month
DAWSON CREEK – duplex
 Price: $385,000
 Monthly Rent: $4,000
 Monthly Mortgage
Payment: $1,489
 Down Payment: $85,000
 Cashflow: $532 per
month

63.  Sole Proprietor
◦ 100% ownership of the property
◦ 100% responsible for management of the property
◦ Highest risk, highest returns!
 REITs and Limited Partnerships
◦ Fund, money is pooled, can use RRSPs
◦ Greater security, lower returns

64.  Joint Venture
o when two parties come
together to equally benefit
from ownership in a piece of
real estate
o risk and reward is shared
o can be money/expert combo
or money/renovator combo etc.
o most important is that it be
win/win

65. • Good credit score and
income so you an qualify for
a mortgage (talk to Laura)
• Minimum of 20% down
payment or a joint
venture partner with $
• A good team of
professionals to help you
• A long term outlook –
minimum 5 years

66.  Talk to a mortgage broker to see if you can
qualify for a mortgage
 Figure out how much money you have to invest
 Do the research to determine an area poised for
growth
 Build a team to help you buy a property

67. Matt Marg Sayo Laurie Christina Doug
www.teamnickerson.com
604-263-2823
sayo@teamnickerson.com matt@teamnickerson.com