 鲜花( 0)  鸡蛋( 0)
|
NEW HOUSING PRICE INDEX...
7 Q( y1 \8 {, d& L, P7 a9 Q5 }, G
& R4 F' d, Z9 |$ d& x% B% @0 y Z" j9 M5 W
The New Housing Price Index, has just been released and it provides some very8 s8 S1 ]) }1 x- ?
interesting insights, not only into where the market has moved, but where it
0 s) b( V5 f' a4 P( ^will be going.' z6 b# G. ?! s( y. A, P6 X) B
5 Q/ R( Q& W, f5 i) t0 LIt proved, once again, the value of looking at fundamentals behind a market.& `1 A' j+ V: m& i) i- g4 n
. z/ j- U% ~) Z8 X3 H$ F4 OThe New Housing Price Index is compiled by Statistics Canada and is used by0 P: F# ?6 Z2 Q) y; P
sophisticated investors to see how much the market has moved, as well as an
3 s# [$ S v4 k4 a! Cindicator of where re-sale home prices will be moving in the coming six months. ! Y& u/ D/ a, |, N9 M( \
We look at the ripple effect that new housing prices have on re-sale property
1 ~. F2 G4 ^7 @8 r3 Pvalues and can extrapolate what direction re-sale prices will be moving and by
2 a$ u/ Y |$ ghow much.0 n3 I3 k! v5 R* m% V' b& b
' K2 c; s" `. LFor instance, for the last three years, we have told investors to avoid Windsor,
3 Q/ R6 M [3 y% O1 L% mOntario as an investment area because the underlying fundamentals are not very
: n6 B+ B( _' q$ O- ]# Ystrong. This has been proven once again with the release of the latest
- l7 r0 r+ u: _& |% y6 R* Efindings. New Housing Prices have actually decreased by .5% during June 2005 -2 C, T( @- v7 {% u/ n
June 2006 proving that fundamental investing works in helping you pick the best3 W+ D! Y1 h5 @' \2 e( s! t( b
markets and avoid the flat ones. This .5% decrease should have little impact
5 c4 _4 c# S. A& I3 s3 F# g& v) yon average re-sale values in the Windsor region.+ B2 h( u1 Z# @( Q# ]+ h4 l
( }4 S8 }; O/ u$ K/ p4 x
To contrast this, the fundamentals we discuss are so strong in Calgary that the( P5 K. {0 c$ o# e: v
market continues to be super heated. With close to 3,000 net new people into! g0 R" b( R% {. y D6 y
the city every month, the property market just can't keep up. That is why we
! N. p- M/ }0 k. jsaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006). 2 y; K+ {9 N# W5 {9 r6 j1 d5 `$ X
This is great news for the future of re-sale values in the city as these
) L9 ]' D5 ^" |. v, b1 ^/ ^- Tincreases will continue to ripple out into the market for at least the next six9 }. r; j5 _4 L
months.
6 Y* y3 ~. @; D9 l! q1 ~
1 b7 n6 X- T/ f$ Q2 `) E' LComparing these two regions is a great illustration of the value of not getting, h: {" a" c5 }1 j+ o; c% Z G
caught in the 'emotional guessing game' by just focusing on the underlying, J( L4 q. ^9 S+ W9 Y
fundamentals. It is sad to see those people who said in the last 2 years that
/ C* ?: M0 J2 M2 [+ a8 B/ X9 R+ Zthe Alberta real estate market was over and they were going to sit back and wait
1 V1 [& S+ p: Ountil it drops. Quite obviously, they have missed out on AMAZING gains, all
1 S" N u8 w% y: ^' f& Q$ H% abecause they didn't follow fundamentals, they just led with their emotions.+ I3 x/ h t& v) t8 s# v! h) s
9 ~- N. W' r& h. a7 ~By the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June
/ A. l2 B4 _, m" E/ K+ R2005 to June 2006), also great news.9 j1 \$ c0 P0 Z ~' d9 X7 C
3 ]/ q5 `8 L a" j* k; x% ?By comparison across the country, these are the numbers for June 2005 - June
) |2 L% g4 N0 e$ }+ a! J+ q2006 New Housing Price Index for:
2 c6 b* v3 M6 o8 P9 g! U f+ N$ i) _; _1 J+ b
Vancouver . . . . . . . . +5.2%
) m5 \: ~7 v+ B* G% z% \. FSaskatoon . . . . . . . . +8.5%
( C0 Y7 u$ ^3 q6 RLondon . . . . . . . . . . . +3.0%# J5 l9 d/ v! ]+ P5 t
Hamilton . . . . . . . . . . +4.9%2 G3 {% W8 L6 }8 m. @: [
St. Catharines - Niagara . . . . +4.9%' t7 n5 ?! m/ |" q6 O3 [" G
Toronto and Oshawa . . . . . . . +3.2/ [' @7 L5 ?* V" n* p7 Y
Ottawa - Gatineau . . . . . . . . . +3.1%
- h5 [" B R8 H* f1 h; ^- ^% d/ I) l; E5 K" [/ H8 v6 Z* L* Z& o
Fundamental investing ALWAYS makes you look like a genius - emotional investing; x" T f% _ O, f) ?
gives you quick highs, but also quick lows. Well done on your focus!( c! U! v: k5 [) {% w, V
, F5 `5 v% v7 H, F0 w3 VAs the fundamentals have been showing all along, the Alberta market continues to# g T1 e) H d0 l! Y
be strong, as in-migration and job creation continues to attract people from not
) q9 @3 d8 [" Q! \only across Canada, but from around the world. Our average wages are- [8 N- y0 |' z! w
increasing, our population is increasing, our unemployment rate continues to
. r B0 o+ Z7 b0 I! O" cdrop and our GDP growth is slated to once again lead the country.
9 _& H1 c4 ]0 ^$ G% A! A9 p
4 g. w0 l, O( O( yHere are some very interesting facts that are helping to support the strong( B7 @; ~% T/ }
fundamentals:& f7 D! B. L* \* N3 K5 ?
" E4 P6 [0 R2 C- }) M K; ^7 [/ G
1. The Conference Board of Canada is forecasting strong economic growth in
+ l u! K" B2 n. p) y% t- _* u8 {Canada, with Alberta once again leading the way. In fact, the projected growth
+ l" ?4 N9 q* `for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and
+ ]. f2 x. p* Mthis is slated to occur even with the labour shortages we are witnessing.
% g; [$ U* Q, C, ]0 R( S
' p3 I6 ~9 v* ]# l+ V# k) {# M" |2. People are discovering Canada as an investment center from all over the5 R* _1 h+ ?' Z% P7 e+ Y% D- S n
world. Recently, there have been investors coming here from Asia, Australia,
/ Q! a$ J8 N' }$ K0 }8 s, V, Fthe US, UK and Europe. In fact, if you review the world's press you will see
1 J. N: G' Q/ k& l' k! ^' Vthat Canada (with a focus on Alberta) is being discussed more frequently. 8 s6 i" ^; ^; G' E) L7 M
5 f6 F% a) i8 I0 ^- |3 S3. Don Campbell has just returned from presenting our Canadian investment
8 A# V4 c7 J6 i2 g2 |8 Hatmosphere (including Why Alberta - Why Now") to a group of major investors in
3 |2 H- K a& \8 v6 I/ e4 {Dublin, Ireland, and the response was overwhelmingly positive. In fact, after
: W7 k/ i6 B! s+ q% _Don presented the economic facts, many of these investors (who could invest
/ n! x, D9 K8 m j- G, u* ^; ianywhere in the world) have already booked their flights to here. Once again
8 h- @$ v$ a+ L7 ^7 e2 L& E1 X) Fproving that when the true numbers of our economy are presented (along with the0 D/ E) ^/ P9 I) f. h6 P
political stability of our country), there is no place in the world that can8 Y& V0 S t$ Q
beat it for long term investment.- D. \9 G# K5 ?" {9 K( B' y
3 O ^, Y" E, x$ C# `4. Job creation continues to be strong (with a small lull in June); definitely
& p1 s4 n7 V% H9 b4 da sign of strong long-term fundamentals. RBC has also been following the job
: b9 Z" Y- O3 q" K$ f0 G! Bcreation situation and here is what they are saying: (www.rbc.com/economics)
1 {% E$ s: a3 c* A"After generating a substantial 96,700 jobs in May, the largest such gain since# p; m& l" r1 p/ ]' m, o5 m
January 2002, the economy lost a modest 4,600 jobs in June...
$ g D W+ I) R; I( t) _
6 v: J/ u z8 n: AStrength in the Canadian economy contributed to a gain of 215,600 jobs in the6 w6 @5 N* ~- x# p
first half of 2006, a feat not matched since the second half of 2002. With the
! g' b% r/ I4 L, W- P3 o- ~, keconomy widely expected to grow at a more moderate pace in the second half of
$ K& b' c6 {, C" c1 athe year on the back of slowing trade activity, this impressive showing may not
1 q/ k1 Z) y8 m; P( N8 p. Nrepeat itself. We expect that employment grew in July at a pace consistent with0 w! {/ A3 j& Y- \! J+ H, r
its recent trend of 24,000 jobs a month. Assuming that the labour force grew at" Y% S1 u7 D; ?+ g
its trend rate, a gain of 24,000 jobs will lead to a national unemployment rate
# s( E0 p; e7 R6 Sof 6.1%." Overall very good news. Now the key is to ensure that the region in1 e: _' A/ F3 \/ R' e2 M1 W- G
which you are investing is continuing to generate jobs and increasing incomes.) L, i; I+ A2 |) u$ D
- ^4 z: k5 S% i$ V- N& \( u# W
' w+ v! ~7 x+ f @0 [) VIn other words, it is a great time to be taking advantage of this strong! J+ U& V+ Y+ w
economy, avoiding 'excuses' and to especially not listen to the uninformed5 ~" }- d$ y3 B( M: m) v6 S% l
'dream stealers.' As long as you stick with your game plan, you continue to do, d: z. q. Q* i/ P8 w
your due diligence, and you remove emotions from the equation, you will see the$ {7 |- ^, m; i) V$ j
opportunities that are right in front of you, right here in Alberta. Let the
9 O- ], o$ k. @% G! F5 o5 ?'dream stealers' call you 'lucky' 5 years from now as your net worth has soared
* a5 Z2 p; B/ f8 C! t( c! c+ `and your financial freedom has surpassed even your wildest expectations.
" j' a* [0 g1 D9 T _
3 b; J$ F/ R7 K2 J
5 n5 D6 u! X% a' x1 f. n9 z! FCapital Gains Comparison.
( i( b- P& r M! X$ i* w
! i/ n0 J3 o5 T1 f, i0 f2 r+ ]% i2 o9 yKPMG has recently released a comparison of the true Top Federal and Provincial, d+ i, m, u% t J3 o
Marginal Capital Gains Tax Rates per province. It is very interesting to see8 V) w) O! q1 g4 Q- @* B4 [6 r" D9 T
how these will affect your exit strategy. Here are the numbers:
$ j( E- N; |* S" q \/ X" r7 F x( I* _
BC . . . . . . . . 21.9%
9 u: _+ y% M0 j' p1 UAB . . . . . . . . 19.5%
% H, g( X+ }, oSK . . . . . . . . 22.0%% J, B4 W D2 C& s3 y' W
MB . . . . . . . . 23.2%# e- B2 _& M+ g
ON . . . . . . . . 23.2%
; A, s/ |0 H! E. s/ cQC . . . . . . . . 24.1%
+ g5 v L$ d& F4 `* P9 e5 _NB . . . . . . . . 23.4%
* A" d9 s( j. y9 A' a2 X' a# R% d% ONS . . . . . . . . 24.1%% A% ^2 C7 z# l9 `$ N6 S; i
PE . . . . . . . . 23.7%' s+ N6 K5 D0 j
NF . . . . . . . . 24.3%
3 k. I, V3 f, P
1 N g D) ]$ l O! aLower capital gains tax increases investment and stimulates the long term
6 J" m5 X* Q. ?5 Z, k) q6 \economy of the province. It also allows real estate investors to keep more of
! U# ` v5 z0 y+ V3 o i& }& z' _their profits at exit time. Always a good number to pay attention to.
" A8 S/ B; I5 _9 `! L: Y' u8 R- R* i& j3 u0 a% E' i
# S3 H/ G t, J- X/ w* * * * * *
% M9 r$ Z: J8 B! {; o1 h
% V; v5 }* _5 F4 `9 xOverall, by staying focused for the next short period of time, you have the' _8 N( _- d5 i. U, h6 U! G
opportunity to create financial freedom of which others can only dream. Of0 f' [% N j/ y
course, the key word is focus. And with an August line-up of 'Members Only'
; W1 I9 E; y. g7 a6 W9 r! Vevents like this, you can't help to become a real estate investment champion$ T8 e; s( @: f! C
when you take action as a full REIN Member. S. Y' j: j( B; w. q" r% c
5 e% s! o9 x4 m/ Z' P+ lFocus on the fundamentals, keep emotions out of your decisions, and enjoy the
) S9 r0 I' X+ t2 Bresults in just a few short years. |
|
狗仔卡
发表于 2006-8-25 08:35
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
显身卡
楼主
