The $0 Calgary home | Power of cashflow & equity in real-estate 🚀🏠

[@phoenixcapitalvc]

Great video bro. Thoroughly enjoyed it as always. Looking forward to doing business in the near future!

[@growwithnav]

Appreciate it!

[@saleemakhtar87]

Good thought process, you are very optimistic about 4% mortgage...budget 5%...rerun your numbers, In 2 years your house may not be worth 650K most probably 550K....I have bought & sold 13 houses...analyzing from my own experience...good luck !!!

[@growwithnav]

👏👍

[@kalyan151098]

Glad i found this channel. Very informative

[@rsarneja123]

From where can i get this excel sheet

[@louisg8389]

Excellent video. One of the most realistic breakdowns ive ever watched.

[@growwithnav]

😀👏

[@tango123t]

Increase in rent and property value and not considering inflation or market going down.. one can even create Taj Mahal with these excels 😂

[@growwithnav]

Sure… doesn’t come without risk :) Never invest if you can’t stomach loss or long term hold.

[@lokithor9472]

Hahahaha ye banda idiot hai ye apne mortgages ko bechne ke liye kuch bhi bolta hai koi bhi calculations karta hai. Planner hai ye. Iske plans ghans charne jaayenge.

[@pvatsal99]

bro it may take a little longer than expected but that's what happens in property, value always goes up in long time

[@ranjandudeja1984]

how cum property tax remains the same?.. per my research, property tax is 0.6/ 0.7% of the property value (Alberta)... so the property tax shud increase

[@growwithnav]

It’s as per city assessed value, not bank appraised value. And yes, it may go up by a bit :)

[@ranjandudeja1984]

@@growwithnav great to hear.. bank takes it own value... u know in India, bank goes with circle rate only.. on tht usually minus another 80% and giv loan

[@akashmehta7599]

What is forgotten in all this is the Risk or the Beta. When Debt is involved there is an inherent risk (The Borrower is Slave to the Lender). Over longer period (30 years) and replicating the strategy of buying on leverage (i.e. loan) magnifies that risk. Also, factor in Recessions, Bad Tenants, Stretches of unoccupied properties should be factored in. Imagine a scenario where someone owns multiple properties (via BRRR or just traditional method) and hopes that the renter will pay off the mortgage. 20 properties with an average loan of 500 K (so 10 Million in Loan), a bad year or a several recessions are guaranteed in 30 year period, there will be times where out of 20 properties 3-5 will be empty during downturn and that will be enough to loose ones shirt. Same applied to smaller portfolios (1 -2 properties). a 30 year period definitely will have 3 - 4 recessions and period where occupancy will be hit severely. Further, a $6 gain per month after spending 250 K doesn't seems to be a prudent business strategy with the risks involved. Real estate over the long run just gives 4 - 5 % (half of the markets). One may save and invest a lot more without taking unnecessary risks. Leveraged investing may look glam until murphy catches on and turns around to bit one down.

[@growwithnav]

All good points. I like to take risks. It’s not for everyone, but I believe in this investment to give me a 100% return in 10 years while being Cashflow positive from year 3. If it doesn’t work out - I will deal with that because I understand that it’s part of the risk / reward game 😀

[@akashmehta7599]

@@growwithnav Well said. Risk indeed is part of every equation.

[@jaibirkang5345]

Following up on your current asset ? Has the value gone up or down ? I scanned the builder and location where i am assuming your property is and i guess value has gone down. So are you expecting an increase in value as you bought round October 2021 when things were getting crazy and its down with the worst yet to come.

[@ProfAA-z9u]

But the net return you have calculated should also be subtracted from the opportunity cost of that upfront payments. 107,000 x 0.04 = 4,300/12 = 358 CAD. ( Assuming 4% annual return on upfront payments. Compounding factor not added to calculate on bare minimum on single year) Now if you calculate your total investment output on spread sheet in longterm. Forecast realestate appreciation in 3 or 5 years when you sell it. And calculate along with this opportunity loss of upfront payment. Then you get real ROI. Sorry for all this, you are urself a financial expert and have very good analytical mind. So you must have done this already. Cheers.

[@growwithnav]

It’s a relatively a smaller return compared to the return on 80% leverage that you enjoy in realestate :)

[@curiousp9700]

@@growwithnav Leverage works in both ways. Good number of Canadians are feeling the pain (after long period of enjoyment) and if the deleveraging cycle starts we will see the strength of Canadian economy and immigrant narrative... Real Estate always goes up narrative has changed to real estate always goes up in long term...More changes to come

[@akshita6532]

Learning new things with each video on this channel💯

[@growwithnav]

Thank you 😊

[@akhere4279]

How do you deal the risk about any possibility of tenant not paying rent for few months? And Are you guys planning to sell in few years or what's your plan to keep rental property long term or what?

[@growwithnav]

We have 6 month of emergency fund for the house, that will be enough to change the tenant as not paying rent is breach of contract. There are always risks :)

[@anildaita]

Is the Calgary house rented out?

[@pradeepgaur9047]

If you want to watch house tour of the video then here is the link 😂😂 - Just having fun, great content paji!

[@growwithnav]

👏👏

[@nabeel796]

can u please make a video of how a partnership works in buying a home in Canada?.

[@growwithnav]

Yes / will make one on this with a lawyer

[@allitm4642]

Keep up the great work Navjot 👍

[@growwithnav]

Thank you 😊

[@mukeshsachdev8307]

Assumptions Assumptions and more Assumptions! Great way to mislead people. Selling with assumptions is easy. If it has increased so much in price please try selling it and then show real numbers with proof. I understand main motto is to make more videos to make more money digitally via you tube and related branches. Try to make balance video via showing how you can loose money every month and if property price decreases and your emi increases which can become cash flow and equity -ve and can add stress to your family life seeing money going out of pocket every month.

[@Papabear-x2g]

Love the breakdown you’ve shown here. Very informative. However, for the home value to increase 25% in 2 years is speculative (but you already acknowledge that 😊). Also, if the assumption is a 25% increase in home value, that would mean a similar increase in property taxes. So $375 instead of $300.

[@growwithnav]

Thank you! The home value is already $575K as of today :) so it’s a 9% increase that I am assuming in 2 years. The property tax is based on city assessed value , not the bank appraised value… but yes, it will move up slightly.

[@achleshsood]

@@growwithnav that is a lie , i am also scouting property in Calgary prices have move down at least 15-20 percent from oct 2021 , please don't falsely advertise just to make yourself look smarter

[@himanshuverma31]

Calgary market is based on oil price, my friend bought one house in 2011 for 500k and sold the same in 2021 for 515k. Best of luck for making any money on this property 😂

[@NIRAJKUMAR-ji7ck]

IMO, You are too aggressive on your future assessment and positive on future real estate sentiment. We are in a bigger bubble than the 1990 Canada real estate crash and see how many years it took to bounce back. Our Private debt GDP ratio is too much at this time and per capita income is declining every year. Global macro economics should be considered as well. I hope you look at the other side as well and not get biased

[@Financial_Enthusiast]

Agree

[@sagarnalawade2253]

Could you please suggest if we should go with fixed interest or variable considering the current situation. Fixed is 5.5 Variable 6.25

[@growwithnav]

I don’t know your situation - so difficult to comment. Best to book a call with me and discuss your situation. Send a screenshot of this chat on [e-mail]. Will call you. Besides, you might get a better rate than this ;)

[@dsinghr]

you have put around 100k as house deposit. And if everything goes according to plan, you get it back in next two years. But what about the interest lost on 100k for two years? which you would have earned let's say if you invest this money elsewhere. With conservative estimates of 8 percent, it would be around 16k ?

[@growwithnav]

Doesn’t matter. Rent covers that and some more which leads to cashflow. Interest is part of mortgage.

[@sahilpassi]

Hello brother. Are you aware if Canada allows subject to and seller finance deal and if i can book a consultation with you about the same?

[@growwithnav]

It does allow. However very few of these deals out there because people get a better price on-market

[@sahilpassi]

@@growwithnav great so you give consultations or recommendations for subject to deals as well?

[@ranjandudeja1984]

I don't see a calculation of TAX on the rental income.. plz elaborate on that area as well...

[@growwithnav]

Sure, there are taxes… but after expenses and depreciation. I didn’t include them here because they are wildly different for everyone depending on their income levels.

[@ranjandudeja1984]

@@growwithnav depreciation?

[@AshutoshBaghel]

How it is 108 ? Can you tell that

[@growwithnav]

New mortgage 500K Old outstanding balance 392K After paying off the old mortgage - left with 108K

[@nabeel796]

hey, can you please make a video on term insurance, which one we should buy it, shall both husband and wife separately or one should be enough, and which insurance companies are good for term insurance, which insurance to buy either term or life?

[@growwithnav]

Will make one soon

[@vkchaitanya2003]

There is a lot of speculation, But I understand if Canada keeps getting 500K new people in the country every year then I understand the basis.

[@growwithnav]

True

[@ajaypartapsingh9056]

So , Nav sir I have one question regarding refinancing the house with $500,000 so how we will be qualifying for the new loan in terms of income (If our income is same and its not increasing much in 2 years.). As we are taking out the $108,000 instead of paying off the new loan. can you please explain about this situation.

[@growwithnav]

I am assuming that income will increase in 2 years - it should :) else, we need to work on our income first 😀

[@growwithnav]

Vaise even if it doesn’t - the interest rate will come down which will then lead to higher eligibility.

[@giangdo9648]

Can i ask what is ur anual income to be qualified for this loan

[@growwithnav]

You need about 100K to qualify for this house if it’s your first house.

[@flyingsardar]

@@growwithnavf you are putting 100k down only then….with 5% you can’t get it…

[@ajaykapoor4339]

Golibaaz !!

[@udaychopra1227]

Hi Nav, how were you able to buy 2 houses and 1 apartment while being self employed ? Can you get a mortgage without having to show 2 years of Tax return when self employed ??

[@growwithnav]

We bought the apartment when we were both full time… Calgary house is with partners who are full time employees.. Kitchener house is B lender :) everything is possible 😀

[@udaychopra1227]

@@growwithnav thanks for sharing and educating at the same time 👍

[@CanadaYTwatch]

Property tax increases 4% every on an average. So you have to factor in 8% property tax. You also have to pay new account opening fees for all utilities every time you have a new tenant because they dont transfer it from old tenant to new tenant. they transfer it to you and then you give permission to transfer it to new owners. Thats very minimal but its a cost to you :) Also furnace and water heater maintenance is sometimes not covered by a builder. Also for refinance, there are feels like appraisal fees, lawyer fees etc :) Good luck

[@growwithnav]

Thanks! Makes sense… there are a few others too… but All relatively small expenses that can be covered with a refi and Cashflow :)

[@ran388]

What is the reason behind 625k in 2 years, seems very aggressive . In the last 10 years of good market, Calgary market has been appreciated I think may be 50-60% with its own ups & down.

[@growwithnav]

It’s already at 575K. So I am taking a 8.5% increase over 2 years. We bought this in Oct 2021..

[@dreamus2canada]

Real estate investing + Investing in stocks will have greater impact on your portfolio in the long term as you have mentioned in your earlier videos as well. Just saving money and not investing is a recipe for disaster in today's economy.

[@RR-tf8ic]

Another great video . Can you share your excel sheet links in description where the audience can download and strategize their investment numbers.

[@growwithnav]

Yeah - I will soon, the excel is not complete yet and the formulas could mislead people. Will complete and share.

[@saurabhbabbar2631]

Great Investment!!

[@growwithnav]

👏👍

[@Lj22]

Nav, where did you get the 20% dp from ? Did u have it saved or you took HELOC on your principal house? Cause then u have ti add that extra payment obligation as well to monthly expenses

[@growwithnav]

We saved it…

[@CanadaTop5]

Hey Nav, great video once again. Can you please confirm house model name? I am not able to find any semi detached on Brookfield website.

[@growwithnav]

Wicklow

[@CanadaTop5]

Thanks Nav. Wicklow is really good model! Brookfield is making this model in Seton, Chinook gate, Rockland park and Livingston. Would you still bet on Seton? Is there any other model that you wish you could have gone for ?

[@jugrajdhillon7006]

Hi Navjot, when you will take new loan, Bank will take foreclosure charges of previous loan and processing fee for new loan, plz tell

[@growwithnav]

No they won’t - I will do it at the time of renewal. My loan is for 2-year fixed.

[@vivektanwar469]

Amazing video as always and pure explanation of numbers best of the best videos nav sir 💯 moreover loved your watch would you name it please thank you for putting out such amazing content ✨💯

[@growwithnav]

Thank you :) You mean wrist watch ? It’s Apple ultra

[@tab1757]

Great content and really appreciate the transparency!! Would you be able to share the reference for the person / company for blinds?

[@growwithnav]

Yes - in the next video on @potatotalkies

[@89ALEE]

It's a great effort and transparency on your part to disclose so much information. There are many cushions you have built into the investment but there are many things that might need to happen if you want your return come to fruition. Check other measures analyze your investment like irr, unlevered irr and dscr. Banks are comfortable because you have provided your credit behind it.

[@growwithnav]

👍👍

[@dushyantgupta11]

2 words - Simply Amazing ❤🥰

[@growwithnav]

Thank you 😊

[@ChetanSankhala]

how emi is same even after re-morgage?

[@growwithnav]

Lower interest rate

[@ChetanSankhala]

@@growwithnav oh. got it. when rate decreased, you did not reduce your loan tenure but taken out more money from bank so eod you have same emi and same tenure. nice

[@growwithnav]

Yes :)

[@mihir40]

Hi Navjot, So after 2 years if you take a loan of 500,000 and your property value has increased, don't you have to pay the remaining amount of initial loan?

[@jugrajdhillon7006]

balance of initial loan of 404000 that is 392000 is paid and he took out 108000 as equity after taking a new loan of 500000

[@growwithnav]

👍👍

[@mihir40]

@@growwithnav Not clear totally but got very high level idea 😁

[@akashmehta7599]

@@jugrajdhillon7006 And then one lands in a bigger loan that has to be paid and assumed everything will work well, there won't be recessions in the 30 years, leverage and murphy may come to bit back if risks are not accounted properly. 100's went down under in the financial crisis by using the same model, until everything went down under.

[@harmanbhutani]

Always learn something new from your videos , keep inspiring us !

[@growwithnav]

Thank you 👏👏

[@damanpreetgrewal]

True that

[@aaliyashaikh1218]

Every time Navjot goes to his spreadsheets, videos start getting more interesting 😃 How mindblowingly good you are with numbers!! Definitely reaching out to you first when we start the process of purchasing our first property.

[@growwithnav]

Thank you 😀👏

[@ankitseksaria]

Initial 50k DP from own savings ?

[@growwithnav]

Yes

[@amitroy5793]

Hi Navjot, could you please share the contact details of the property management company

[@ark4usa]

Thank you for the amazing content. Can you please add the property management contact in the description.

[@growwithnav]

Done :)

[@amitgoswami218]

Looking forward to being your client in the very near future as I also live in the KW area. I Have been following you since Potato talkies was 1 video old.

[@growwithnav]

Wow!!! Looking forward to talking with you too :)

[@vancouverdiaries738]

What an idea sir ji????

[@rightbrothers2004]

You bought the property on peak of the bubble. BoC might continue to raise interest rate and then pivot for couple of year. Realestate market will see another 15-20% correction. This may be repeat of ur crypto saga of 2018.

[@growwithnav]

Thank you for your good wishes 👏

[@GagandeepSingh-ly4gz]

@@growwithnav haha

[@rightbrothers2004]

@@growwithnav no evil or good wishes, just pointing out ur assumption are unrealistic. U ve only painted best case scenario.

[@tysontaha2088]

Canadas real-estate is a castle built on quick sand.

[@mrdesi5520]

first comment🎉

[@growwithnav]

Thank you 👏🎉

[@tysontaha2088]

lol your assuming its worth 625k in 2 yrs, can i see that crystal ball

[@Raj-xk4on]

👍

[@bhagatpremal]

Principal and not principle

[@growwithnav]

Oops, have always been poor at spellings 😀

[@therustedgardan]

Veere a hi video punjabi ya Hindi bna do