Investing From Thousands of Kilometres Away
Years ago, in the early 2000s, I began working with a real estate investor living in Europe who wanted to build a portfolio in Calgary.
The time difference made it difficult to make quick decisions when strong opportunities came onto the market.
So we established a Power of Attorney arrangement that allowed me to act within the authority and instructions he had given me.
The mandate was simple:
Find and purchase excellent Calgary properties with strong revenue and investment potential.
Building the Portfolio
Over roughly the next year, I selected and purchased properties that I believed made sense both as revenue properties and as investments.
Every purchase had to stand on its own.
- Location.
- Purchase price.
- Rental potential.
- Property type.
- Resale appeal.
- And whether I believed it was a property worth owning.
We weren't buying simply to accumulate properties.
We were trying to buy the right properties.
One by one, we built a Calgary portfolio I would have been proud to own myself.
Then the Market Moved
Approximately 18 months after the properties had been acquired, the investor decided to sell.
Calgary's market had moved significantly during that period.
Because we had purchased well, the portfolio was positioned to benefit strongly from those market conditions.
When the properties were sold, the investor realized well over $1 million in gains across the portfolio.
That was an exceptional result during an exceptional period in Calgary real estate.
It isn't a result anyone should assume can be repeated simply because they buy investment property today.
But it does illustrate something I've believed for decades:
What you buy matters.
The Result
- An international investor based in Europe.
- A Calgary portfolio assembled over approximately one year.
- Properties selected for revenue and investment potential.
- Approximately 18 months from acquisition to sale.
- More than $1 million in realized gains across the portfolio.
A Good Market Helps. Buying Well Still Matters.
The early 2000s were an extraordinary period in Calgary real estate.
Market appreciation played a major role in this result.
But strong markets don't make every property a good investment.
You still have to decide what to buy, where to buy it and what price makes sense.
That means looking beyond the listing photos and asking:
- Will people want to rent this property?
- Will buyers still want it when it's time to sell?
- Does the location have lasting appeal?
- Is the purchase price justified?
- Would I be comfortable owning this property myself?
Markets change.
No REALTOR® can guarantee appreciation.
But experience can help you recognize a better piece of real estate when you see one.
Past results reflect the specific properties and market conditions of that period and are not a prediction of future returns. No REALTOR® can guarantee appreciation.