 鲜花( 0)  鸡蛋( 0)
|
NEW HOUSING PRICE INDEX...1 C! p) W" S' @9 F) Z+ |5 ]
4 m9 W. P$ F. R6 Y9 Y
& U+ b2 F2 `$ F+ l
The New Housing Price Index, has just been released and it provides some very r" U; l% u2 ^8 C' h
interesting insights, not only into where the market has moved, but where it
7 d4 O J1 k9 Q+ Q# B2 ~will be going.
1 |; U) }# X- }) r5 f) L0 M1 w8 P1 K% K
It proved, once again, the value of looking at fundamentals behind a market.
5 z8 P9 a4 d5 h3 p0 o+ x; B4 ~# g+ Z* N: n/ K9 r
The New Housing Price Index is compiled by Statistics Canada and is used by6 q+ ^# u3 d6 ?" W$ Q
sophisticated investors to see how much the market has moved, as well as an
$ E8 I! [: u8 B4 X2 H( s* z" Bindicator of where re-sale home prices will be moving in the coming six months. d1 [* g. z- Z8 u% b
We look at the ripple effect that new housing prices have on re-sale property
2 L" q4 V" K. b7 X2 R6 V1 _values and can extrapolate what direction re-sale prices will be moving and by
6 {/ y' k; H7 D' d c; A+ E& dhow much.- u0 u; {3 X% U
2 ?* k/ n$ i1 ~* ^4 F/ R/ s+ c7 wFor instance, for the last three years, we have told investors to avoid Windsor,
. M& n: r! B2 m, d H4 a% zOntario as an investment area because the underlying fundamentals are not very
1 d. z8 K- J8 }& Ustrong. This has been proven once again with the release of the latest
5 Y. G; U9 `* b5 }+ ~. bfindings. New Housing Prices have actually decreased by .5% during June 2005 -! ]5 {! N# \0 J2 ?2 m! W
June 2006 proving that fundamental investing works in helping you pick the best v& Y4 U3 O v; I" b2 b
markets and avoid the flat ones. This .5% decrease should have little impact6 \3 |- Q& |* F
on average re-sale values in the Windsor region.& V# ?1 `9 e6 z: H1 q
- i& t4 J( j& Z& c- J+ \To contrast this, the fundamentals we discuss are so strong in Calgary that the; v8 P6 Z8 @: ^7 ~
market continues to be super heated. With close to 3,000 net new people into" C$ Z% K/ `4 g+ f, N
the city every month, the property market just can't keep up. That is why we
3 y5 b# P' J' G1 Q: R; V+ Vsaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006).
+ U) s/ L. X$ i& M2 D' _This is great news for the future of re-sale values in the city as these
l1 y7 r) v( u' wincreases will continue to ripple out into the market for at least the next six
5 a, h8 K% |' l" ^' I8 Imonths. - l3 S2 I% Z( h2 o# t
/ G2 u4 j7 |3 U/ o7 Q9 j/ X8 g3 G
Comparing these two regions is a great illustration of the value of not getting
- s* e: \1 L7 ocaught in the 'emotional guessing game' by just focusing on the underlying
; _4 \! s0 j+ Jfundamentals. It is sad to see those people who said in the last 2 years that; G! T* t3 r1 I: V
the Alberta real estate market was over and they were going to sit back and wait
) A1 }" ?4 g9 J' S- guntil it drops. Quite obviously, they have missed out on AMAZING gains, all
0 h% K* i( s2 A; H# U" n# Tbecause they didn't follow fundamentals, they just led with their emotions.) E% L6 f, I0 @: p# K4 c
) a* h3 X" u' X' UBy the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June& G: r N- Q+ _, C9 F
2005 to June 2006), also great news.2 V) ^# j2 [9 s1 l ?8 |$ \$ x9 ?
/ y" N7 R: \& d& Y
By comparison across the country, these are the numbers for June 2005 - June
' ?$ s* ]0 Y" R8 F" h2006 New Housing Price Index for:1 y0 \6 ~) |* L3 G4 c& ?
4 E/ W' `. |& l+ B
Vancouver . . . . . . . . +5.2%
1 c2 `- K% O0 X; [' y' e5 ISaskatoon . . . . . . . . +8.5%* i9 Q9 O: B# S: d9 i
London . . . . . . . . . . . +3.0%
9 z$ w: \3 c- y1 t0 [, \Hamilton . . . . . . . . . . +4.9%- E0 W* A& H" y! Y
St. Catharines - Niagara . . . . +4.9%
?/ c. Z h7 E9 h" I# MToronto and Oshawa . . . . . . . +3.20 K% _; u. A3 ^" L/ e+ k+ u
Ottawa - Gatineau . . . . . . . . . +3.1%
: |# [& d+ G1 l# W9 _
' G6 M4 {; k$ TFundamental investing ALWAYS makes you look like a genius - emotional investing7 |) k. R. a8 [9 Y
gives you quick highs, but also quick lows. Well done on your focus!/ ^* f. q& i k/ n. C
* r3 r3 i1 ] o
As the fundamentals have been showing all along, the Alberta market continues to
/ u8 E" @' F7 A+ Nbe strong, as in-migration and job creation continues to attract people from not6 V( n2 R+ R$ h j1 i8 w
only across Canada, but from around the world. Our average wages are
. p1 I3 s. \& |8 X% y4 jincreasing, our population is increasing, our unemployment rate continues to
J& {, e: {7 w2 \: {7 r2 }0 l, vdrop and our GDP growth is slated to once again lead the country.
0 k' b/ X( m! s h8 \3 I' O% O, O( F" h; g6 B+ e
Here are some very interesting facts that are helping to support the strong
! }, B0 R! V/ U* E( Zfundamentals:0 I- J+ {4 w; k7 S
- W/ B4 F+ R0 ]# k1 S# K
1. The Conference Board of Canada is forecasting strong economic growth in
: w2 V9 b& I& sCanada, with Alberta once again leading the way. In fact, the projected growth: b, B8 u" E6 p. \5 m6 P! ?
for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and
0 S$ y% x+ _: ?4 Bthis is slated to occur even with the labour shortages we are witnessing.6 _' p/ j S }+ K; p
9 H* w5 p6 S) B9 P& `' B2. People are discovering Canada as an investment center from all over the2 Z f' X4 Y8 d' Z
world. Recently, there have been investors coming here from Asia, Australia,5 ?% ?, G. N* o/ s
the US, UK and Europe. In fact, if you review the world's press you will see
|/ y" d% q* y, ]( ]7 ~that Canada (with a focus on Alberta) is being discussed more frequently.
, X! T- ~. ]3 o# Z# i% O* ~6 ]. O* I7 p6 ?
3. Don Campbell has just returned from presenting our Canadian investment
: T% B8 S# L* Latmosphere (including Why Alberta - Why Now") to a group of major investors in9 Z) y& f3 l! u0 _9 S
Dublin, Ireland, and the response was overwhelmingly positive. In fact, after
2 T, H3 w" t' [9 J1 w3 M6 {Don presented the economic facts, many of these investors (who could invest6 t, q1 a* r# n4 }% b8 I
anywhere in the world) have already booked their flights to here. Once again3 r$ z* T8 d0 Z4 A3 ?
proving that when the true numbers of our economy are presented (along with the3 F3 Y- s: C) Y9 X
political stability of our country), there is no place in the world that can, s) l( n; T, s& q7 @; K" v* G
beat it for long term investment.
9 D; d& P! Y' h( X6 r! [! f
" ]7 ^2 t# e( i) d4. Job creation continues to be strong (with a small lull in June); definitely
3 }) r* P1 F ~$ r \5 U" ja sign of strong long-term fundamentals. RBC has also been following the job `# P5 u. \ \4 |4 a
creation situation and here is what they are saying: (www.rbc.com/economics)
+ I; m) m% S( R4 i9 m6 i/ w"After generating a substantial 96,700 jobs in May, the largest such gain since
$ X. o4 p6 M: a, c KJanuary 2002, the economy lost a modest 4,600 jobs in June... 3 t7 m$ R3 q+ k6 X- i
`4 G% |8 }7 [* e8 ]: C8 z0 `4 v8 DStrength in the Canadian economy contributed to a gain of 215,600 jobs in the
/ B: Q' @5 s1 M' U! Qfirst half of 2006, a feat not matched since the second half of 2002. With the
' @7 }1 c" y3 e& z: Neconomy widely expected to grow at a more moderate pace in the second half of
8 M1 [& R P E4 \* k4 a9 c5 lthe year on the back of slowing trade activity, this impressive showing may not
+ J8 l8 G/ b+ B6 Prepeat itself. We expect that employment grew in July at a pace consistent with
* a! c9 Z- \ ~' a; L6 S) h. wits recent trend of 24,000 jobs a month. Assuming that the labour force grew at$ A" n' c3 E0 v+ ~4 ~
its trend rate, a gain of 24,000 jobs will lead to a national unemployment rate7 ^: K" z. i# }( C r X& ~
of 6.1%." Overall very good news. Now the key is to ensure that the region in
/ w# Y' t: p/ k$ iwhich you are investing is continuing to generate jobs and increasing incomes.
' O7 b8 k# j5 z& l; Q% ~" q: }
4 @- g0 T) d7 o7 O0 r- q6 D
+ ^' _* y M( L4 lIn other words, it is a great time to be taking advantage of this strong
7 f& d" H& t% y( Yeconomy, avoiding 'excuses' and to especially not listen to the uninformed
' \ z- i6 k+ `' Q: A9 N'dream stealers.' As long as you stick with your game plan, you continue to do
) ], d% b: \) K( T `! |your due diligence, and you remove emotions from the equation, you will see the( w: N9 d/ R. V+ N% A7 j, S+ j) s1 j
opportunities that are right in front of you, right here in Alberta. Let the* U) `5 E8 [# C2 x0 t
'dream stealers' call you 'lucky' 5 years from now as your net worth has soared/ i& v% ~( X: l( f U
and your financial freedom has surpassed even your wildest expectations.
. H+ Q' {' K; O& G, _
+ h ~1 p) G* B" C; x# D2 S
5 Q# T6 k/ }3 _" Z6 K- }' ?Capital Gains Comparison.* G9 k9 I& A( G; q4 u
! G3 R* P |: k4 {$ ]; ^1 y
KPMG has recently released a comparison of the true Top Federal and Provincial8 s( A$ m. `$ Y# M! W
Marginal Capital Gains Tax Rates per province. It is very interesting to see M8 u+ }4 k. z, v) z
how these will affect your exit strategy. Here are the numbers:
" \2 a# I, ~7 a/ X* `8 I4 G _- D% u6 Y
BC . . . . . . . . 21.9%
t k+ m' G, A# P4 L: g) E. @AB . . . . . . . . 19.5%( |, \: H6 @1 F9 F. Z+ v+ a8 U
SK . . . . . . . . 22.0%
$ Y3 K% y& }# [& N4 I! P# S2 lMB . . . . . . . . 23.2%
) o# e8 w. _+ Y$ G4 [7 G3 aON . . . . . . . . 23.2%
$ C) `4 F# _4 J7 @) aQC . . . . . . . . 24.1%
' t% D: W9 R& Y4 tNB . . . . . . . . 23.4%
4 u; }/ {/ @/ h+ pNS . . . . . . . . 24.1%
$ s5 D0 N1 M$ J) M4 S+ jPE . . . . . . . . 23.7%% e% a' h8 [- ~/ W, e) U4 V9 Z
NF . . . . . . . . 24.3%
% c. F: _' F5 b/ y$ J- y6 l- F+ o! H& s8 o |" w* m4 ~
Lower capital gains tax increases investment and stimulates the long term; P4 M2 s( u o+ H
economy of the province. It also allows real estate investors to keep more of1 I: ?% e" f1 z, C( }
their profits at exit time. Always a good number to pay attention to.
# c! M2 b, N7 `: [# `! s* M. G f' \" }- z4 R5 p
5 z$ C! M- N) q3 F m0 i* * * * * *5 Y4 C) J* v3 E
: L+ {7 N' ?; ^* J
Overall, by staying focused for the next short period of time, you have the$ J- U3 m& {7 }7 V$ l
opportunity to create financial freedom of which others can only dream. Of- N/ a; g# N4 j9 i2 }9 p3 @$ N
course, the key word is focus. And with an August line-up of 'Members Only'
3 ?& X+ a& _0 Z. Kevents like this, you can't help to become a real estate investment champion
5 O5 R z m% w7 J+ ~8 w# l+ Z% u/ vwhen you take action as a full REIN Member.$ G) ~5 X1 o3 [9 s
- R- ?- s3 n* c8 ?8 ?- ^& Y# e+ W
Focus on the fundamentals, keep emotions out of your decisions, and enjoy the U p0 V& \0 O! u7 a+ ?6 N5 F7 o
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
