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Our investment strategy is simple:
We invest in fundamentally strong markets with a future for long-term growth
We learned from the best! Warren Buffet’s strategy is to carefully choose stocks based on real growth and to hold them for the long-term. Buffet committed to investments of proven growth and avoided inflated investments such as the ‘dot.com’ craze. Taking Buffet’s strategy, we applied his philosophy to real estate by investing in long term, fundamentally solid, investments.
Real Estate Fundamentals, like basic economics is driven by a market of supply and demand. We target pro-active governments focused on creating an atmosphere of growth in their region.
We seek fundamentals such as a significant population growth driven by people moving into the area. An increase in population creates a demand in housing.
Employment and job growth are indicators of a strong market for newcomers seeking jobs. Above average wage increases in the employment sector enables more purchasing power for home buyers. Economies should be diverse enough so that a failure in one major manufacturing sector won’t significantly affect the entire area’s economy.
The affordability index, which is the percentage of pre-tax household income applied toward home ownership should ultimately be between 25-40%. Increased housing starts and re-sale homes signal a trend toward increasing real estate prices. Deals can be made in a ‘buyers market’ when the ratio of sales to listings is less than 45%. Consistent low vacancy rates and increasing rents is a positive sign when acquiring positive cash flow properties. |
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