 鲜花( 0)  鸡蛋( 0)
|
NEW HOUSING PRICE INDEX...
5 r7 p$ \' o6 e/ s$ C( C8 z: n9 P. b$ |$ n# F, y7 F+ H. C, [! [
* [- {3 h0 V- ^
The New Housing Price Index, has just been released and it provides some very
% X7 Y( E% l2 k* Pinteresting insights, not only into where the market has moved, but where it
9 o- z+ G6 t J% N: pwill be going.9 X, I7 |$ u$ A: M0 u
2 `8 x# M7 A' [; D' b2 x. j. kIt proved, once again, the value of looking at fundamentals behind a market." [5 J J9 K# z. Q1 l3 J- ^
6 B/ Z! f; _. z% H3 n5 x
The New Housing Price Index is compiled by Statistics Canada and is used by
6 H! J+ \" L, B! wsophisticated investors to see how much the market has moved, as well as an
# F, b& s* ~4 h; sindicator of where re-sale home prices will be moving in the coming six months. # n) \% R2 C/ R
We look at the ripple effect that new housing prices have on re-sale property
7 T$ A0 A, l0 c1 L# Q9 avalues and can extrapolate what direction re-sale prices will be moving and by3 k. q. X2 E/ A! H% Q( _
how much.2 I* k8 c1 F' N, f% I- g
/ ~1 H9 X' ?# xFor instance, for the last three years, we have told investors to avoid Windsor, ^6 S# Z! o6 E! N* @
Ontario as an investment area because the underlying fundamentals are not very
8 V9 ?# H( n" n7 f, r* y1 zstrong. This has been proven once again with the release of the latest/ Z, F: D0 S3 |' B7 T6 g
findings. New Housing Prices have actually decreased by .5% during June 2005 -
% I6 S' R) H5 j, FJune 2006 proving that fundamental investing works in helping you pick the best3 m* z5 `) E0 d* {
markets and avoid the flat ones. This .5% decrease should have little impact6 F4 l8 g$ l \) r2 R9 ^ }7 c
on average re-sale values in the Windsor region.
- L) T* |/ b V# v& \! j9 Z) c
! G$ s ]1 J( j$ @) P% UTo contrast this, the fundamentals we discuss are so strong in Calgary that the
% D0 Q1 ~; }: j' J+ lmarket continues to be super heated. With close to 3,000 net new people into
4 n1 e' K* ]& h* ]# gthe city every month, the property market just can't keep up. That is why we
9 q K$ ]- \0 Hsaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006). % L( \. } w( s! q0 K! Y' W3 }
This is great news for the future of re-sale values in the city as these- ?1 f; T0 \( C* |$ M
increases will continue to ripple out into the market for at least the next six# e$ l( Z/ g/ |! ~; j/ ]
months. 6 w% S7 }6 B' S7 U2 @
5 l9 j/ g$ M1 O i3 z
Comparing these two regions is a great illustration of the value of not getting& |7 s! Y2 U2 F' a, c) `& I
caught in the 'emotional guessing game' by just focusing on the underlying3 L% C4 c. p% d5 d5 c+ H
fundamentals. It is sad to see those people who said in the last 2 years that
7 Q% y" R/ A5 h* zthe Alberta real estate market was over and they were going to sit back and wait
% K7 _( a0 h! M$ Wuntil it drops. Quite obviously, they have missed out on AMAZING gains, all
- R) [) t. O& }* C+ R" `5 f, vbecause they didn't follow fundamentals, they just led with their emotions.
) Z# u7 @. C4 `+ |
- ^+ U* x. W6 lBy the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June
& p- y4 W N# H2005 to June 2006), also great news.
- a% E4 B, i$ v/ T# c( Q0 ^1 J) Y
1 C3 G$ d3 ^0 {: Y4 t) EBy comparison across the country, these are the numbers for June 2005 - June$ @9 r7 |. Z) v9 {
2006 New Housing Price Index for:
8 T1 L% K, {6 V: @! }9 j
$ R. q5 A' w2 E4 U, [Vancouver . . . . . . . . +5.2%
9 D0 p" n- n. ]' NSaskatoon . . . . . . . . +8.5%
% o9 n2 K8 N/ k3 L( `" e$ ]. lLondon . . . . . . . . . . . +3.0%! {8 [% B3 a/ h* m
Hamilton . . . . . . . . . . +4.9%
) L3 Q% f/ e6 r' z pSt. Catharines - Niagara . . . . +4.9%6 t5 G$ d( f$ h: z0 J
Toronto and Oshawa . . . . . . . +3.2
0 O9 w# J7 U/ o% {Ottawa - Gatineau . . . . . . . . . +3.1%
4 o( H- h2 @) V# M9 R0 `/ ]/ ?5 r
Fundamental investing ALWAYS makes you look like a genius - emotional investing
. E- }0 n$ Q2 M* Dgives you quick highs, but also quick lows. Well done on your focus!9 b8 s% L i/ H2 }% Y1 T
' w6 a' \) B! K# J# M1 m; CAs the fundamentals have been showing all along, the Alberta market continues to
0 j. V0 g0 o Q( fbe strong, as in-migration and job creation continues to attract people from not
) A) w0 n5 _) e8 Nonly across Canada, but from around the world. Our average wages are3 o/ r- g' l% c ]# ^1 I
increasing, our population is increasing, our unemployment rate continues to* M5 e# k% Y* h% x0 L y( K
drop and our GDP growth is slated to once again lead the country.0 k9 t/ G }$ x/ |3 X6 H; f5 u
* G8 J3 E, [" W" [- V. Q
Here are some very interesting facts that are helping to support the strong$ E4 R& X2 X" P7 d
fundamentals:
' W" e, e3 V% t) d O2 j& C1 O8 U0 v- a O1 m+ f) @( C5 e2 y0 n
1. The Conference Board of Canada is forecasting strong economic growth in( k& g; R6 h3 t
Canada, with Alberta once again leading the way. In fact, the projected growth
4 N# z9 I" W9 t+ G0 d+ d6 Gfor Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and2 A; q j; f/ |( l/ w! b1 x
this is slated to occur even with the labour shortages we are witnessing.. v, o8 C3 [: W2 w: Q' Q
$ N. |6 ?" ] g- I5 `' Z$ i6 D2. People are discovering Canada as an investment center from all over the
* e* \% |' E0 s- B) \7 m7 S* ]# j4 ~world. Recently, there have been investors coming here from Asia, Australia,
4 C, q* e' C+ [, h$ Q1 }' nthe US, UK and Europe. In fact, if you review the world's press you will see) d2 p/ {: R x
that Canada (with a focus on Alberta) is being discussed more frequently.
( J5 P0 F& X- l% P3 e
I, l) }0 i$ n e7 v V7 H3. Don Campbell has just returned from presenting our Canadian investment
& i# e4 e3 v# V8 matmosphere (including Why Alberta - Why Now") to a group of major investors in
" {5 g) D7 `/ b- i4 hDublin, Ireland, and the response was overwhelmingly positive. In fact, after+ R2 k! G4 A n0 o2 v y! k- v
Don presented the economic facts, many of these investors (who could invest
* i7 [3 a* y4 W& b6 m; aanywhere in the world) have already booked their flights to here. Once again
3 J- h* g$ c) U+ N6 k& Y/ ~proving that when the true numbers of our economy are presented (along with the9 z$ g" ?# S; E% Y$ {
political stability of our country), there is no place in the world that can; @9 U3 F0 v3 w- M! k
beat it for long term investment.6 S: A- C) h0 ?; y9 c- ~
4 L' N. }% d4 q# d- V0 K" _9 Z: d4. Job creation continues to be strong (with a small lull in June); definitely' j7 H0 y/ Q& y" E% d9 a
a sign of strong long-term fundamentals. RBC has also been following the job
8 v: o4 V8 ?! `1 H6 pcreation situation and here is what they are saying: (www.rbc.com/economics)
, Y8 [5 j$ E0 J0 }* D/ T3 t"After generating a substantial 96,700 jobs in May, the largest such gain since% w6 f1 d: H' p$ q0 S& C( L
January 2002, the economy lost a modest 4,600 jobs in June...
6 m0 S; [2 ^+ F, O( F4 a; A3 o. M2 @2 `# g
Strength in the Canadian economy contributed to a gain of 215,600 jobs in the
8 e; p( k* F6 z/ O/ F# E ^5 W5 @5 Afirst half of 2006, a feat not matched since the second half of 2002. With the4 y% G" m/ e! k+ \
economy widely expected to grow at a more moderate pace in the second half of+ x1 a( u0 F+ w* V3 d% T
the year on the back of slowing trade activity, this impressive showing may not
" {% k4 a h8 Srepeat itself. We expect that employment grew in July at a pace consistent with
* O4 k) l" v) y. G7 p& Eits recent trend of 24,000 jobs a month. Assuming that the labour force grew at
. t) y4 b$ Q8 }0 L* \9 Pits trend rate, a gain of 24,000 jobs will lead to a national unemployment rate% _$ N1 i+ e7 s, ^
of 6.1%." Overall very good news. Now the key is to ensure that the region in1 ~7 ?6 a1 T; L, V
which you are investing is continuing to generate jobs and increasing incomes.
% F/ L9 ]0 V; Y
3 ]: d( n j. x: k3 J4 d2 |! z0 H7 L
In other words, it is a great time to be taking advantage of this strong- `$ @3 ~+ v, P
economy, avoiding 'excuses' and to especially not listen to the uninformed1 `! f3 d% C$ y! S' M& K% o, F& j5 ^1 ]
'dream stealers.' As long as you stick with your game plan, you continue to do
* u Q) P# n: y, P, s% S$ ~/ Z7 oyour due diligence, and you remove emotions from the equation, you will see the& m4 G$ N T5 f7 ~ G% T
opportunities that are right in front of you, right here in Alberta. Let the
1 y$ }% \8 t( I u9 c1 }'dream stealers' call you 'lucky' 5 years from now as your net worth has soared8 K# t! m$ K! R/ M/ o/ B
and your financial freedom has surpassed even your wildest expectations.' v) B- z& N! E! a6 f g# t: x
9 ~$ W" c U) T% A , w9 D( m" B: y* S8 L
Capital Gains Comparison.
3 a( X2 f; q, `# y) R
* }" a" v' i1 m- _8 v3 @ P: wKPMG has recently released a comparison of the true Top Federal and Provincial1 P/ N5 N$ K; p7 Q5 a: E6 D* Z
Marginal Capital Gains Tax Rates per province. It is very interesting to see- y. }' j% h2 h! h. C( |
how these will affect your exit strategy. Here are the numbers:
& R5 M$ C" j6 m$ q* F( _) F" w+ \( M! G* s4 A/ y1 x
BC . . . . . . . . 21.9%
: J5 G$ z' q* AAB . . . . . . . . 19.5%3 e; h D- @: U7 {: g! ~/ ~3 c4 ]
SK . . . . . . . . 22.0%6 e2 K6 H/ l- \- X
MB . . . . . . . . 23.2%& F/ ^/ o' R0 b
ON . . . . . . . . 23.2% f9 N: c7 y2 }) _" E) ~ Q
QC . . . . . . . . 24.1%
- ~( B2 @6 I/ P: WNB . . . . . . . . 23.4%
& ?% g) E) m1 v5 \& ]9 D1 qNS . . . . . . . . 24.1%
, T6 x3 k9 _/ \+ tPE . . . . . . . . 23.7%: w3 Q7 [1 ?1 D5 l3 T5 k4 X
NF . . . . . . . . 24.3%
2 d; j( C \3 M1 x. ?; z" L6 g; a3 }- b* d
Lower capital gains tax increases investment and stimulates the long term6 q j/ T. l3 r1 D
economy of the province. It also allows real estate investors to keep more of
" U: T/ P* x& K9 H; E+ g$ Dtheir profits at exit time. Always a good number to pay attention to.
l$ ?7 Y [8 t, ?( a; Q, D6 E
v0 W. p" l% k4 f% i2 U- h: `
4 a; X* h! W' ]& A' j- E* * * * * *- T, i6 b; n/ W% @' }: _* X
$ s- }& x) a. o$ m4 I9 c/ B
Overall, by staying focused for the next short period of time, you have the
7 U' ~: p, z# Z7 M( d# p( [0 Y0 Uopportunity to create financial freedom of which others can only dream. Of
# T" H( J5 }& [ z" Qcourse, the key word is focus. And with an August line-up of 'Members Only'
4 x3 J+ I" M. D; A5 |% eevents like this, you can't help to become a real estate investment champion
5 b8 m( v) M) b; P: g- ~when you take action as a full REIN Member.+ X* h$ [; @/ W0 e8 o) G; h6 r
+ H! g( H5 X Q! Q9 W
Focus on the fundamentals, keep emotions out of your decisions, and enjoy the
2 O( G# s2 y7 N/ B% }/ Hresults 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
