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Investor Toolkit: How to manage risk when investing in the stock market

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on the fundamentals of successfully investing in the stock market. Each Investor Toolkit update gives you a fundamental tip and shows you …read more »

BP oil spill could turn oil sands stocks into blue chip stocks

In response to the BP oil spill in the Gulf of Mexico, regulators will probably require offshore drillers to install more equipment aimed at preventing future spills. These extra costs would hurt the profits of companies that are active in the Gulf.

That should spur more development of less-risky onshore oil …read more »

3 risks of investing in drug stocks

Investors often comment that we sometimes differ with the mainstream view on which stocks make good investments. That’s especially true with drug stocks.

The general view on these stocks seems to be that they are can’t-miss investments because the baby boomers are reaching an age when they will need drugs …read more »

New Free Report - Gold Investing: 7 Profitable Strategies for Investing in Canadian Gold Stocks

Discover how you can make higher profits in gold investing — and minimize your risks

Click here to immediately download our new free report, Gold Investing: 7 Profitable Strategies for Investing in Canadian Gold Stocks.

When the economy is weak, gold’s popularity rises. As an informed Canadian investor, you’ve likely noticed that …read more »

3 ways to spot the best stocks for long-term gains

We’ve long relied on these three tips to find the best stocks to recommend in our investment services and newsletters, including our flagship advisory, The Successful Investor. We think they can help you pick winners, too.

1. Some of the best stocks have hidden assets: By hidden assets, we mean assets …read more »

Investor Toolkit: Beware of name-dropping promoters when you buy penny stocks

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on the fundamentals of successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put …read more »

This well-established stock could produce strong gains for the conservative investor

We continue to think investors will profit most — and with the least risk — by buying shares of well-established companies with strong business prospects and strong positions in healthy industries.

(In the current issue of Canadian Wealth Advisor, our newsletter for the conservative investor, we update our buy/sell/hold advice …read more »

Consider all the risks of real estate investing in the U.S. sunbelt

November 5, 2009
Posted by: Pat McKeough Filed in: Real Estate Investing
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The high Canadian dollar and lower U.S. house values have some investors, including members of our Inner Circle service, seeing opportunity in U.S. real estate investing, particularly in the “sunbelt” states, such as Arizona and Florida.

Before you consider such a move, you should first make sure that buying a vacation property doesn’t leave your investments overweighted in real estate. What’s more, there are a number of other special risks and costs involved with buying and owning vacation property in the U.S.

Real estate investing: Here are 5 risk factors to consider when buying vacation property in the sunbelt

  • Beware of unexpected costs. For example, some states (Florida, in particular) can charge out-of-state homeowners higher property-taxes than state residents. As well, homeowners in states that face frequent hurricanes and floods (including California and Florida), often face high insurance costs. That’s why it’s a good idea to contact national and state authorities, insurance firms and other professionals to get a clear picture of all of the costs before you begin your U.S. real estate investing.
  • Take a skeptical view of bargains in the U.S. real estate market. Markets like Florida and California still face uncertain outlooks in the wake of the sub-prime mortgage meltdown, and bargains in these states may not be as appealing as they seem.

You want to protect your "safe money" -- the part of your portfolio you're counting on for the future -- yet you want to earn more than you're getting from the bank. That's where my Canadian Wealth Advisor newsletter comes in. I'll show you several proven ways to protect and grow your safe money. Click here to learn how you can get started right away.

  • How long do you plan to spend at your new home? You’ll have to budget for your home’s care while you’re not there, because vacant homes invite burglars and vandals. If you plan to spend shorter periods of time at your vacation residence (less than six months, say), and you’re not concerned about making a return on the sale of the property, you may consider renting, instead. This will help you decide whether you want to permanently commit to a community before you buy.
  • Any rental income you hope to generate from your property is dependent, in part, on the weather. For example, your property could be more difficult to rent out if your area experiences a prolonged stretch of cold or rainy days.
  • If you buy in a new condominium development, say, you could face the risk of your fees increasing without warning, and some new developments can go out of business before your unit is even built. That’s why you’ll want to make sure you focus your property search on established neighbourhoods. Another thing to keep in mind is that land-use controls are often looser in the U.S. than they are in Canada. That means your neighbourhood could change radically in a few years.

We continue to believe that ownership of a primary residence is all the real estate exposure that most investors need. What’s more, unlike your private residence, capital gains on the sale of your vacation property are not tax exempt.

If you have investment-related questions like these, or if you’d like to ask me about stocks you’re considering buying (or selling), you should join my Inner Circle service. Click here to learn more.

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