There may have been a time when you thought it would be great to buy some property and turn it into a rental unit. Perhaps it’s a smaller fourplex, a larger 16-unit property or even a single dwelling. Whatever the situation, investing in rental property can be prosperous, but there are certain factors to consider when determining which type property is best to invest in. Research. This is one of the first things that you should do before making any big decisions. Put some time and effort into determining what type of units are in most demand in the current market. Is it a three bedroom that would accommodate small families or a couple of roommates? Perhaps, the market is demanding one bedroom units that are best suited for students, young professionals or couples? Your decision on the type of property to invest in might be easier to make if there is, in fact, a shortage of any one type of unit in the city. A second consideration is a location. You’ve heard it before - location, location, location makes all the difference! Is it near a major employer or educational institution? Is it close to elementary or secondary schools? What about a shopping centre? Location plays a key role in determining your ideal tenant and target rent. Once you have looked at what types of property that might be in demand and where the next factor to consider is whether you to intend to invest in a new rental property or purchase an existing one. Investing in an existing property may affect cash flow. Property that was built on April 9, 2001 has a 15-year exemption from guideline rent increases or 20-years if it was built after March 7, 2005. If an older property is selected as an investment, the property may be within the rent control guidelines which means that rent can only be increased each year by the prescribed amount set by the province each year. This will affect cash flow as you are limited in your ability to increase rent to cover expenses and mortgage payments. On the flip side, if you are building a new rental property you will have 20 years to adjust the rent to cover increases in expenses such as changes in interest rates or property taxes, while still staying within rates of what the market will handle. Of course, it’s impossible to decide on what type of property to invest in without considering finances. Most financial institutions require 25 per cent equity in a rental property, meaning that the financial institution will finance 75 per cent of the asset. Although the equity may be tough to come up with, you could obtain a line of credit on your main residence to make up an equity shortfall and deduct the incremental interest against the income from your rental property. There also may be options available through the Canada Mortgage and Housing Corporation that will allow you to purchase a rental property with less than 25 per cent equity, however, there are premiums added to the mortgage as well as covenants such as audited financial statements that could potentially reduce the annual return on investment. Finally, how do you feel about taking calls in the middle of the night to fix a broken heating system? Are you willing to handle basic maintenance, be on the property immediately following a snowfall? The answer to these questions will help you to decide if you want to self-manage your property or hire a licensed property manager. Not only will a property manager handle all the challenging day-to-day tasks, they will often have systems and processes in place that will mitigate the risk of your investment. Headquartered in Brandon, Manitoba, Vionell Holdings Partnership (VHP) has operations in Brandon and Thompson. VHP provides rental housing and property management for an array of residential and commercial customers, including Condominium Management.  VHP currently has over 2,500 units under management in Manitoba.

Brandon, MB – The City of Brandon’s Community Services Department is pleased to advise the public that the outdoor skating oval located immediately west of the Parks Complex on McGregor Avenue will officially open for the winter season on as of 4 p.m. tomorrow, Friday, December 22nd.  Hours of operation at the oval will be 11 a.m. to 11 p.m. through the course of the winter season, weather-permitting. The oval is developed each year by Community Services staff and provides for warming shacks, portable washroom facilities, flood lighting, ambient music, and fire pits to cook on or warm up around. In addition, the Manitoba Hydro Power Smart Waterfall of Lights is also lit until 11 p.m. each evening so the public can skate around the oval and take in the brilliant, festive displays. The public should note that while use of the skating oval is FREE, it is unsupervised, with no sticks, pucks or pets allowed on the ice surface. The public is encouraged to park in designated areas on McGregor Avenue or Hilton Avenue, as NO public vehicles are allowed in the direct area of the Power Smart Waterfall of Lights display or the skating oval. For more information on public winter activities provided by the City of Brandon’s Community Services Department, call 204-729-2148.

With a new year approaching, many of us take the time to review our financial goals and investment opportunities. If you’re looking to make changes to your investment portfolio why not consider an investment in rental property? Rental properties have proven to be a stable investment option in the Brandon area and are a good addition to your portfolio that may already include investments in Registered Retirement Savings Plans or a Tax-Free Savings Accounts. There are a number of advantages and benefits to investing in rental properties. In terms of dollars and cents, you receive a monthly cash flow, which is secure and predictable as long as the rental property is occupied. As well, you pay less tax as certain expenses such as mortgage interest, property taxes, insurance, maintenance, property management, capital cost allowance (depreciation) and utility bills, as all of these items are allowable expenses for tax purposes. In addition, if you have losses for tax purposes on your rental property, you can deduct it from other sources of income. From a community economic point-of-view, an investment in rental properties means that you are contributing indirectly to the economy through job creation (construction jobs, maintenance, etc.) and are having a positive impact on the community by creating much needed housing options. These socially responsible actions go a long way! As you look to the future and other advantages, you quickly learn that you are earning equity in the property as you pay down the mortgage. This equity that you build in the investment will allow you to sell the property or borrow against it to purchase more real estate or invest elsewhere. As well, with the cost of construction increasing each year, the value of your property will increase as well. This is generally based on cash flow generated at market rental rates. If you are at all concerned with the day-to-day challenges of dealing with rental properties, one of the best options is to enter a contract with a licensed property manager. For a small fee, a property manager will take care of screening tenants, showing the units, scheduling move in or move out appointments or maintenance, collecting rent and handling after hours complaints or emergencies. The end result is that you end up with a great, stress-free investment with all the benefits. To find out more about investing in rental property real estate, contact a local property manager or real estate agent.

A small collection of photos of Christmas light displays in Brandon.  Photos courtesy of Shae Hedley and Cesha Hedley.

Brandon Tourism is pleased to announce that the Brandon Tourist Greeter program celebrates its 30th anniversary this year! What began with just a handful of members visiting campgrounds in 1988, has flourished into a dynamic and busy program with over 40 active volunteers! This unique volunteer based program is one-of-a-kind in North America, sending local Tourist Greeters to special events throughout the city - such as Royal Manitoba Winter Fair and the Arabian Horse Show – where the Greeters distribute Brandon Visitor’s Guides, city maps and hospitality packages that include community event listings, coupons to local businesses, and much more! The Greeters also continue to work a very busy summer schedule visiting our local campgrounds to hand out hospitality packages and welcome the campers to our community! Sponsored by Brandon Tourism/ Brandon Riverbank Inc. this program plays a key role in the promotion of the city and is a definite asset to the community.