 鲜花( 0)  鸡蛋( 0)
|
NEW HOUSING PRICE INDEX...
8 x/ J |$ N4 F7 @/ r$ F) i# |* b% q
; G6 y3 u5 w! i; n6 h' |
The New Housing Price Index, has just been released and it provides some very
. K2 ^+ z% Z$ q$ a* M4 s# ^interesting insights, not only into where the market has moved, but where it. B% O6 K- Y' A9 {% L
will be going.
. }4 J4 ]1 |* F% H1 P- G% D8 g8 h: o- L
It proved, once again, the value of looking at fundamentals behind a market.
4 K- b' u k8 w, H) q0 a6 H2 P( m4 z" ?$ Q- Z& f( z
The New Housing Price Index is compiled by Statistics Canada and is used by: Z- I# k7 P: J" s: |
sophisticated investors to see how much the market has moved, as well as an) s% J3 `6 M: _" ~
indicator of where re-sale home prices will be moving in the coming six months. 3 [5 B3 |# C! q1 K7 `( x
We look at the ripple effect that new housing prices have on re-sale property
7 P0 Y/ g+ N1 V7 [values and can extrapolate what direction re-sale prices will be moving and by
- s* Q Z3 Q* t( L u( rhow much.
& |% ?1 n) Z1 @. F" Q
7 W9 m/ R, M2 [For instance, for the last three years, we have told investors to avoid Windsor,
8 l: T' v, _" C, P* {4 e* ^+ B9 \/ OOntario as an investment area because the underlying fundamentals are not very8 \% A, Y1 ~) Y ~
strong. This has been proven once again with the release of the latest
$ ]# E# \& G( X1 U, r% Rfindings. New Housing Prices have actually decreased by .5% during June 2005 -9 v! @1 `5 p8 G7 f" u
June 2006 proving that fundamental investing works in helping you pick the best
) ?" _! V* j3 `( R2 ]7 Vmarkets and avoid the flat ones. This .5% decrease should have little impact9 f( @7 p% P. d# s
on average re-sale values in the Windsor region.$ p' Y( R7 S( L" h b
) W9 E% u# R/ g* ?To contrast this, the fundamentals we discuss are so strong in Calgary that the
- K' U E& N. ymarket continues to be super heated. With close to 3,000 net new people into
- B! j. ~( ?+ m3 \) Athe city every month, the property market just can't keep up. That is why we
( F h: H6 y( isaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006).
1 T) u+ r! [+ P0 Y! ^$ lThis is great news for the future of re-sale values in the city as these
1 U) m/ |# G0 ^increases will continue to ripple out into the market for at least the next six" L9 `5 M, o a/ S
months. # L3 D- z! X. b7 D; v2 A
% w a3 Q' h; b2 X) _% Z
Comparing these two regions is a great illustration of the value of not getting
2 [. t8 ^7 L+ B- P! Ycaught in the 'emotional guessing game' by just focusing on the underlying
; S! U. _. Q+ n; G3 I( Qfundamentals. It is sad to see those people who said in the last 2 years that
2 i q9 z4 b) F3 {& {- bthe Alberta real estate market was over and they were going to sit back and wait+ V, B1 F- C# ~/ `% Y& c0 I2 g/ N
until it drops. Quite obviously, they have missed out on AMAZING gains, all
+ S d9 a! B1 V2 T) j# g& Ibecause they didn't follow fundamentals, they just led with their emotions.! i2 u+ R4 \) S% {$ q+ ~+ f1 ^
$ @5 x7 C, b4 u& D+ D/ K# E1 dBy the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June
0 ]* Z7 O7 T; Y' Y2005 to June 2006), also great news.
- q5 {+ s4 v& M. e% X7 C% ?7 l. K+ p" ^
By comparison across the country, these are the numbers for June 2005 - June
. l, P4 `, f4 q2006 New Housing Price Index for:
5 w2 _: Y/ H+ E; N& c8 E: @7 T0 B0 C6 r
Vancouver . . . . . . . . +5.2%' R7 C; x8 U* a% T, ]3 d, v& ?9 ~
Saskatoon . . . . . . . . +8.5%0 V% r2 ]1 K& J/ g, E; @" s
London . . . . . . . . . . . +3.0%
4 I0 X! ` H" LHamilton . . . . . . . . . . +4.9%
" F; }; b! Z8 p0 BSt. Catharines - Niagara . . . . +4.9%, V: n$ A% G) P9 l( f
Toronto and Oshawa . . . . . . . +3.2
: {3 p$ Q- `* q6 \& M' j( |Ottawa - Gatineau . . . . . . . . . +3.1%
8 ~7 ?- w$ v' v+ g/ U1 H
0 X, G# y$ b- O$ i4 t, QFundamental investing ALWAYS makes you look like a genius - emotional investing( `7 u* n& c' e
gives you quick highs, but also quick lows. Well done on your focus!6 C" c8 A2 T Y: l
) U" i: b- N0 @/ \/ H8 P
As the fundamentals have been showing all along, the Alberta market continues to
5 I$ ]! Y3 [2 }! k& ^2 |be strong, as in-migration and job creation continues to attract people from not
$ C9 B. U) u, I9 s2 y, conly across Canada, but from around the world. Our average wages are) K$ [ W4 x2 \8 F
increasing, our population is increasing, our unemployment rate continues to
2 F$ L# l' R1 B7 Q; m0 ldrop and our GDP growth is slated to once again lead the country.
( p' j1 M& o2 k8 ^) m2 z
# c# t" t# g- Z( o4 J8 j. pHere are some very interesting facts that are helping to support the strong
" O" ?/ `0 m/ p; u3 gfundamentals:
6 }9 ?- [7 Q4 R
+ j* b; _7 i$ c0 O& ?1. The Conference Board of Canada is forecasting strong economic growth in0 C/ S7 f3 Q7 Q; \' b0 k+ M$ C
Canada, with Alberta once again leading the way. In fact, the projected growth$ {# z$ s) J$ x4 m- X2 k, d
for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and
9 N- r0 [6 t4 `: Kthis is slated to occur even with the labour shortages we are witnessing.0 H& Q0 [3 X2 ~, m$ Z% x
. M" Y$ i. Y! c
2. People are discovering Canada as an investment center from all over the g: [' l4 t s! K+ X5 |; W
world. Recently, there have been investors coming here from Asia, Australia,
0 i4 n1 v+ O: f7 ^6 u) N5 S9 ~! Xthe US, UK and Europe. In fact, if you review the world's press you will see6 r4 @0 Z+ l7 j
that Canada (with a focus on Alberta) is being discussed more frequently. . K% m v9 d2 ~: |2 \# V
, i, F8 O" l! Q$ _' f0 {/ N) i3. Don Campbell has just returned from presenting our Canadian investment
# C- }" T" X2 ^5 d6 @atmosphere (including Why Alberta - Why Now") to a group of major investors in
6 U5 y* L9 @; W+ B( ?: B) u9 m8 YDublin, Ireland, and the response was overwhelmingly positive. In fact, after3 @+ {7 p: K" ?6 G' t
Don presented the economic facts, many of these investors (who could invest
, Z; s: s( u3 y' B0 eanywhere in the world) have already booked their flights to here. Once again/ A" C# i3 N* \9 X) W: g. Y
proving that when the true numbers of our economy are presented (along with the: {4 i. B9 @2 b$ \
political stability of our country), there is no place in the world that can
# X; q$ u7 F2 z. p6 Cbeat it for long term investment.
0 p( r, h, q5 l$ N& u: {8 F) `& G0 t% j
4. Job creation continues to be strong (with a small lull in June); definitely0 {4 Q# v8 x9 A" _+ x# Z
a sign of strong long-term fundamentals. RBC has also been following the job& `* l+ ?" Y9 w% Q5 b: y C/ p2 m
creation situation and here is what they are saying: (www.rbc.com/economics)7 N1 m1 |+ [* G/ @2 L+ U% G
"After generating a substantial 96,700 jobs in May, the largest such gain since
) P- U+ Y( f+ ZJanuary 2002, the economy lost a modest 4,600 jobs in June... 2 K R: n5 Z; }: w6 O+ ]4 o5 Q
3 F+ \1 N; }5 Z+ {3 c+ C* J. ^Strength in the Canadian economy contributed to a gain of 215,600 jobs in the
. n; P& g4 D9 A; N$ Ffirst half of 2006, a feat not matched since the second half of 2002. With the
; K6 z, t- H$ g& g) v; M- k6 Weconomy widely expected to grow at a more moderate pace in the second half of
r: n3 I9 t+ d- |0 G7 D: vthe year on the back of slowing trade activity, this impressive showing may not
( v$ K( I+ f% n q8 g3 Z" Brepeat itself. We expect that employment grew in July at a pace consistent with3 q, r/ b- u0 l* w g, R
its recent trend of 24,000 jobs a month. Assuming that the labour force grew at
( q8 f4 x; F1 u& Q! _7 o/ Y I7 mits trend rate, a gain of 24,000 jobs will lead to a national unemployment rate
! @. U1 p( z/ H* L$ A% ~of 6.1%." Overall very good news. Now the key is to ensure that the region in
5 J+ v/ y1 ^ J+ X5 K; y/ @which you are investing is continuing to generate jobs and increasing incomes.6 k; \$ g& c1 P4 w. j3 w
9 Q$ F0 o3 ?% { P8 A; `7 o: h. g# y& T# O J: {7 }" ]
In other words, it is a great time to be taking advantage of this strong
1 N; F9 v0 U6 b! h. S% feconomy, avoiding 'excuses' and to especially not listen to the uninformed
) S) i# T: v" b v' p'dream stealers.' As long as you stick with your game plan, you continue to do
! P' T' u6 q- y8 P' C$ x! lyour due diligence, and you remove emotions from the equation, you will see the$ j4 _# t1 F1 v; J
opportunities that are right in front of you, right here in Alberta. Let the
) V9 S6 u* O6 _) ['dream stealers' call you 'lucky' 5 years from now as your net worth has soared3 w0 f$ e* \' O' ^: A
and your financial freedom has surpassed even your wildest expectations.( ]. W: ^) D& G+ `; B9 R6 I( L
* g0 X$ a" z+ K4 F i. ^
$ L% V) k; b; k8 {5 T! qCapital Gains Comparison.
/ ^6 ]3 l1 [, g6 P( f+ w" ^4 F) ?9 h
; m* a' s5 r2 O; g0 V* o7 |) }KPMG has recently released a comparison of the true Top Federal and Provincial
; Z; }* O; B% y5 ?: I7 W5 |% aMarginal Capital Gains Tax Rates per province. It is very interesting to see
: b, D; R0 E+ Y' |5 F( }/ @how these will affect your exit strategy. Here are the numbers:
- Y3 u1 ?5 `" A% i" ~; G" B' M! I; k# `+ x( v* [
BC . . . . . . . . 21.9%' w9 ^# S4 e% \' o' R) R
AB . . . . . . . . 19.5%
& R2 R$ j5 L/ _6 t& |$ USK . . . . . . . . 22.0%
3 G6 e1 \1 f; B: J' dMB . . . . . . . . 23.2%2 b9 T6 ?- \& h; p. _
ON . . . . . . . . 23.2%
% r3 I! t6 `9 p: X# ^5 FQC . . . . . . . . 24.1%
0 ^3 q# \8 n2 U) tNB . . . . . . . . 23.4%
) l* n; J9 V8 P3 N2 tNS . . . . . . . . 24.1%
3 u S1 c' h6 a- b. [6 YPE . . . . . . . . 23.7%
* c) ^% S, @) U* cNF . . . . . . . . 24.3%' t- y1 H4 K) e" H5 J4 m
: Z' j7 Y2 w* u6 I; \3 lLower capital gains tax increases investment and stimulates the long term
9 a; L! @9 {1 [7 y* `% peconomy of the province. It also allows real estate investors to keep more of, h" n7 [- N: {
their profits at exit time. Always a good number to pay attention to.) }2 S% e8 z8 X, e! c; t
% k$ M" A9 f+ S0 J9 U, C- t" e$ e" l6 g4 `' x T
* * * * * *" Z( N3 }' O4 Y+ Z; H6 n2 r2 O1 b
* f4 T* c8 S2 ^3 J
Overall, by staying focused for the next short period of time, you have the" O9 C+ Q5 u& E- h
opportunity to create financial freedom of which others can only dream. Of
. [) A8 _+ t9 K# f0 {& zcourse, the key word is focus. And with an August line-up of 'Members Only'( N: M: v5 O* j( Y# \; t, v
events like this, you can't help to become a real estate investment champion
- h& {- Y' u/ b& G! {6 b, p+ m3 zwhen you take action as a full REIN Member.
S' D* B5 n5 w/ Y+ d3 J+ ]) s& ^; R: q% g
Focus on the fundamentals, keep emotions out of your decisions, and enjoy the" v/ i2 z- T3 U6 X$ E; c
results 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
