7. How to Get Started Real Estate Investing | Specifically for New Brunswick

Unlock the secrets of New Brunswick's booming real estate market. 
 learn why the reasons behind the province's recent population explosion and how it's fuelling an innovative investment scene in cities like Moncton, Saint John, and Fredericton. With insights on navigating the hot market, you'll learn why Fredericton's enticing blend of a diverse economy, high rental demand, and affordable home prices is setting the stage for investors. This episode will spotlight how New Brunswick's lifestyle and affordability are creating ripples in the investment community.
 
 In a dynamic dance with economics, New Brunswick stands out as a beacon of opportunity. This episode peels back the layers of strategy needed to maximize real estate investments in a market teeming with potential, especially with new residents pouring in from places like Ontario. I'm diving into the essentials of crafting cash flow positive properties and the importance of savvy negotiation, meticulous cost control, and strategic property management. This episode will help you understand how you can secure a rental income that brings in cash flow by reducing expenses, paving your path to a new investment future and the exciting potential for reinvestment in a province where economic vitality meets quality living.

I'm your host, Micaiah Gosman and The MGR Podcast is where I talk with Real people, about real money and real estate. To connect with me you can visit my Website or follow me on Instagram or Facebook

Transcript

Speaker 1: 0:01

Hey and welcome back to the MGR podcast where we talk real people about real money and real estate. I'm your host, makai Gosmin, and today we're going to be talking about the beautiful province of New Brunswick and why it is a great place to invest in right now. In today's market, with all the changes, all the immigration, all the population growths and all the changes and interest rates these days, we're going to be chatting a little bit about New Brunswick and why, as an investor, it's a great place to consider. So one thing that you might not know is in the past two years, new Brunswick has grown more than the 29 years prior to that. So we've had about an increase of around 45,000 people in New Brunswick just in the past two years and that's more than we ever had in the past 29 years before that. So that's pretty crazy and I think you know we all see it. You know, since the you know pandemic hit, we've had a huge increase of you know immigration population all across Canada. All of Canada's had increases and some people are saying that Canada is on track to double in population by 2040. I don't know if that's true or not. That's what I read. If that's, if that's the case, then we need to prepare for that and we need to continue doing development. So currently in New Brunswick there's three major cities Frederton, st John and Monkton. Monkton is the biggest city and then St John and then Frederton, which is our capital city, is actually the smallest of the three.

Speaker 1: 1:28

I live in Frederton, new Brunswick. I'm a realtor here and I love Frederton, spent a lot of time growing up here and it's a great area. But with Frederton, we have a lot of IT, a lot of government and we have some great universities and colleges, and so it's a it's a pretty diverse city, which is which is awesome, and it also has the highest rental rates. So it's a great, great place to invest. If you're focused on getting the highest rents for your multifamily units, new Brunswick really still is one of the cheapest places to live. Yeah, I mean, we all pay taxes, but the house pricing is low.

Speaker 1: 2:06

You know, I was chatting with another realtor in Toronto and he was telling me. I said you know what is the average price for residential homes here in the Toronto GTA area? He said you know, on average you know right around 1.4 million for a single family detached residential home. And you know, and I just I just shook my head and just laughed because I was like, wow, you know. But here in Frederton, you know, the average single family home or the average price per home, is between like 285 and 300,000. So you can kind of imagine 1.4 versus 300K. There's quite a difference in affordability there. And with the raise in interest rates as well, you know, 7% or 6.5 or 8% interest rates on a 1.4 million dollar mortgage really hits you compared to, you know, a 250 to 300,000 dollar mortgage. So New Brunswick is a cheaper place to live, cheaper place to buy real estate and can be, you know, really beneficial that way if you want to dive into the market here.

Speaker 1: 3:16

Another thing is there's a lot of opportunity for growth. Currently we have, you know, three major cities, but around those three major cities there's like all these little sub-communities and there is tons of room for growth and expansion on the outskirts of the, the downtown core of these cities. So we got lots of opportunity for development and growth and although we're a small province, you know, not a lot of New Brunswick has been utilized in the sense of housing and population growth. Over the past two years, when we've had that spike in about, you know 45,000 people. We've only really developed around 7,500 to 10,000, you know houses or apartments, and so we haven't been able to keep up with the inflation in the population. So that's just another reason to come to New Brunswick. The opportunity is here. We need it. You know the pricing is lower if you're looking to buy, you know single-family homes or multifamily and affordability. You know that's what, uh, that's what New Brunswick kind of has to offer in this situation.

Speaker 1: 4:18

There are a lot of hidden gems when it comes to New Brunswick. There's a lot of tourist attractions, nothing crazy like Banff National Park or anything like this, but for New Brunswick we have a lot of tourist attractions and beautiful sights that people can see here in New Brunswick. It's also a great, you know, way of life here. It's pretty chill, pretty laid back. A lot of people love New Brunswick for that reason and I think that's why we've had you know of that 45,000, about 18,000 of those people have come from Ontario.

Speaker 1: 4:45

When it comes to why you should invest in New Brunswick, it kind of comes down to what you're looking for in your investment. So whether you're looking for, you know, long-term appreciation and growth and you want to buy, you know some properties in Ontario and then hold them for 50, 60, 75 years. You know that might be an option for you. But if you want to buy some properties here in New Brunswick, see some quicker growth, lower payments and lower purchase prices, with rents that are high and support and cash flow from day one, then New Brunswick can be a great place to invest. You know cash flow, cash flow, cash flow that's what everybody talks about. You know, and if you come to New Brunswick, you invest in New Brunswick, you're going to be able to find properties that cash flow from day one and you can continue to increase cash flow on as the markets go up.

Speaker 1: 5:31

So one of the other things that you know my clients are looking to do here in Frederton is do some fix and flips. You know where it is so affordable. A lot of times some housing can get forgotten about and sometimes the maintenance isn't always up to spec, and I mean that's the same in every city. But here in New Brunswick we have, you know, a great opportunity for renovations and fix and flips and just increasing property values and stuff or maybe properties that haven't sold for the past five to 10 years, maybe 20 years and the owners maybe paid cash for them or they don't have a mortgage on them anymore. There's a great opportunity for doing some fix and flips buying properties at a lower price, doing the renovations and then taking advantage of the big increase in appreciation that we've seen in the market here in New Brunswick over the past two or three years. So there's there's great margins for that and we just need it. You know we need to update the curb appeal and the economy and the look of a lot of places here in New Brunswick. So you know it's a good opportunity for that.

Speaker 1: 6:31

If you want to kind of slowly tap into the market and get into some more affordable housing and then just do some renovations, do some, get some sweat equity into it and then maybe sell the home to to take your cash out, the supply is very, very low and the demand is very high. Right now it's still a sellers market and we're still seeing, you know, multiple offers. So if you want to get into some fix and flips, then I'd love to chat and help you out there. But but yeah, that can just be another great option If you're looking to move here or if you're just looking to invest here. So that's a little bit about New Brunswick and the real estate market here. I love New Brunswick, I don't plan on leaving anytime soon and I love encouraging others to come and get on the growth and development that is happening. So if you have any interest in you know, multifamily commercial, single family residential investing here in New Brunswick, I would love to chat with you and I've got a team of people that can help you grow your portfolio and make sure that your properties are cash flowing and giving you the best returns on your investment.

Speaker 1: 7:27

But that's it for today's episode.

Speaker 1: 7:28

So thank you so much for tuning in.

Speaker 1: 7:30

I wish you all the best and if you have any questions at all, you can contact me through my website at gosmanca and get in touch anytime. And if you, if there's anything else you want to hear about on the podcast or any information you want, then please leave me a comment on any platform you're listening from, and I would love to help answer any questions or touch on any topics that you're interested in. Thanks so much. See you later. Thanks so much for tuning in. If you have any questions or want to learn more, feel free to check out my website at gosmanca, wherever you're listening from, leave me a five star review and let me know what you'd like to see in future episodes. Also, if you're a buyer or a seller and looking for some guidance in this ever changing real estate market, I want to work with you, to get in touch today through my website at gosmanca, or you can search Makai Gosman Realtor on Google and get connected with me through any of my social media platforms. Thanks so much. We'll catch you on the next episode.