During the infamous 'boom' years of 2006-2007 I discovered that, instead of putting my newly acquired kinesiology degree to use, I could make twice as much money doing easy temp work for oil companies.
The first company that hired me was a small office, only about 15 employees; all them dynamic and knowledgable, all of them raking in big time money. The Vice President, Dean, took an interest in me because he was quick witted and sarcastic and found I shared this trait. One day I was stuffing receipts from companies they recently sold off into storage boxes. Dean was bored and sauntered over to my desk, 'Wanna know what we really do here?'
'I do!' hoping it was James Bond like espionage.
'We buy low and sell high.'
'Oh, ok.' We've all heard this simple piece of advice before so went back to work stuffing bills in boxes.
'You don't get it. We buy low and sell high on an epic scale. Right now the market is good so our office is small. We've sold off almost all of our assets at an enormous profit. We're going to buy back half of companies we sold in few years at a third of what we sold them for, hang on to them until the market goes up, then sell them again. When the market is good the only thing you should should have is money in your pocket to get back in when it inevitably goes back down.'
When my mandate there concluded, I moved one to another company that was losing money like Allen Iverson at the club. Yes, losing money during the oil boom. So, in their wisdom, they decided to purchase another oil company that was also losing money. They bought something of low value at the highest price. Their logic was 'If we can turn both companies around quick enough, and the price of oil stays at a record high long enough, we'll make decent money.' That company no longer exists.
I listed a home last month that had great potential as an investment property. The response was incredible. I can't tell you how many calls I got from people telling me, 'The rental market is so tight, now is the time to get an investment property.' Because I was representing the seller I would casually agree with them. But I think they're dead wrong. Last year was the time to buy an investment property. t's sell high time right now. Many investors are selling off all of their investment properties and making huge profits.
If you want to buy an investment property right now, I think still think it can be good idea if you're strategic about it. Do I think it's a can't miss great idea? No. Except for a few neighbourhoods. Call me if you want to know which ones.