The Burrard Street Blog

Today’s entry is the first of a series on the different aspects of an apartment that give it the “wow” factor we’re all seeking. We start the series with a look at something that seems to be slowly disappearing below 30 stories in the downtown core, and that is a breathtaking view.

So often we hear about granite this and stainless steel that, it becomes easy to forget about another very important part of your home: What you have to look at every morning. I’m not talking about your spouse (that is one view I can’t help you change) but rather your condo’s view. Whether it is of the mountains, the ocean or the city, when you’re purchasing a home you may be looking at that same view for 10, 20 or 30 years and it needs to inspire you. For me, view and location are the most important aspects of a home purchase (assuming of course it has granite this and stainless steel that, great amenities and friendly neighbours). One could say a magnificant view is quite the panty dropper, while an unattactive one is a definite price dropper.

The Mountain View
For some nothing is more majestic than a view of the beautiful North Shore Mountains. It may be their size and strength as, unlike housing prices, they have remained constant for thousands of years. Some enjoy being reminded of mother nature and all her possibilities; perhaps looking out each morning to check the snow conditions and decide if they should call in sick and hit the slopes.

The Ocean View
Similar to its partner the mountain view, the Ocean View offers one a sense of just how great mother nature is, a reminder of how small we are compared to the earth which we have the privledge to inhabit. Also in common is the sheer beauty of the view on a perfect summer afternoon, sails riding high as the sea is alive with boats. Personally, I have never found mountain or ocean views very appealing after sunset.

The City View
To me their is no greater view than an impressive city view. While a view of the mountains or ocean may make one feel small compared to mother nature, sitting atop the city at 30 or 40 stories looking down can make a man feel like a king. What better way to start your day than to look out of your floor to ceiling windows and see all the people you need to meet, stores you can shop at, buildings you want to buy and restaurants you plan on trying? To me there is no comparison, well unless of course you can have all 3.

The Rooftop Garden
I used to live in the Electric Avenue building on Burrard and Smithe. My suite was on the top floor and as such it had access to what I liked to call the John Kalovich floor which provided semi-private access to a 360 degree rooftop garden. The view in my corner suite was fantastic but couldn’t compare to this. In the mornings I’d complete my runs by climbing the 24 stories of stairs to the garden, and I can tell you there is no better feeling in the world (yes I was listening to eye of the tiger, and yes I made a habit of proclaiming I was the king of the world while looking down on the city).

It may not always be possible to find the absolute perfect view you want, in the building you want. This is where the 360 degree rooftop garden comes into play. By having communal rooftop areas a building allows more of its residents to live like kings, even if its only for a few hours a week. As an ambitious up and coming investor, having a rooftop garden on your own home allows you to take a few minutes each day to look out over the city you want to one day own and feel inspired, taking that feeling with you for the rest of your day.

At the end of the day one has to ask, what is a view worth? Some tell me a view is everything to them, while others proclaim their blinds are closed all day anyhow so why waste the money or spend more time in an elevator than neccessary? Whatever you decide on your view, look into the surrounding airspace rules and make sure it is yours to keep. The beautiful view from my former corner unit in Electric Avenue will be no longer when the 40 story condo across the street completes sometime in 2009.

“It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.”
-Donald Trump

There is no doubt that some of the wealthiest people on earth made their money through real estate. Building wealth through real estate can give you financial freedom and more time to enjoy living! This is part one of a series of articles I will be writing on real estate investing for Canadians, expect at least one new article on the topic every two weeks. If you’re tired of hearing about other people making money in our amazing real estate market now is your chance to step up and get into the game.At the most basic level there are only 2 ways to make money through real estate: Rental income and capital gains. Understanding these basic concepts is fundamental in becoming a successful real estate investor.Here are some quick definitions:
Rental Revenue: This is the money you receive from tenants living in your properties. This is taxed by the government the same as any other income.

Capital Gains: This is the money you make from increases in your properties value when you sell. Income through capital gains is taxed less than rental or employment income and is only paid when the property is sold. You do not pay capital gains tax on your primary residence.

An investor usually earns income (or attempts to) from both sources. A property bought to earn a monthly income (often referred to as a revenue property) will often increase in value (resulting in capital gains when they eventually sell). Properties bought to be resold because they are expected to increase in value are also usually rented out to help with mortgage payments.

Some other terms you should know:
Cash Flow: This refers to actually money coming in and out. If your property generates more cash per month than it costs you it is said to have positive cash flow.

Equity: Equity refers to your ownership in a property. If you put $30,000 down on a $300,000 property you have 10%, or $30,000 equity. If that property goes up to $425,000 you now have 36% or $155,000 in equity. You can see how one is able to turn a small investment ($30,000) into a large profit($125,000).

Look forward to future articles covering everything from increasing your leverage to using options to make money with minimal risk.

 This site is a great place to post opinions, ask questions or recommend learning materials.For more reading on real estate investing I recommend:“Real Estate Investing in Canada: Creating Wealth with the ACRE System” by Don Campbell. It starts with the basics and is written for Canadians by Canadians. This book covers a lot of the little details. For the big ideas behind many successful real estate investors I recommend anything by Trump or Robert Kiyosaki. 

My business coach forwarded this video to me and I had to share it with everyone.

This clip got me thinking about how our minds work. We direct our subconscious in one direction and it does whatever it must to keep us on track. When deep down we want to sit on the couch and be lazy, or fail financially out subconscious will come up with any number of logical reasons for us to follow that route. Perhaps your parents always tought you money was the root of all evil, your subconscious will come up with 100 reasons why you shouldn’t invest or start your own company. JUST DO IT