 鲜花( 0)  鸡蛋( 0)
|
NEW HOUSING PRICE INDEX..." o0 E5 w+ ~( I8 v" { c
. z! F% x2 `. C
: T0 F2 @- K0 |7 a! xThe New Housing Price Index, has just been released and it provides some very9 ^! {* C+ l& p& w. u
interesting insights, not only into where the market has moved, but where it$ v0 z/ P+ u# @/ n& h# E8 M3 J
will be going.
1 t' W: X3 _; x; U& w& b9 D" M5 P$ c+ [1 D( i# }- Y
It proved, once again, the value of looking at fundamentals behind a market.; {0 g3 P: _: e4 c! E& E
$ o8 x9 X4 U( s& g- p8 i8 r* N* oThe New Housing Price Index is compiled by Statistics Canada and is used by3 K" [- t7 i' Z/ J' @$ b
sophisticated investors to see how much the market has moved, as well as an
5 [: |! t; J0 x5 R8 o& aindicator of where re-sale home prices will be moving in the coming six months. % H8 _" ^# j) l& h1 n
We look at the ripple effect that new housing prices have on re-sale property3 j1 B! {) ?$ |5 @" O2 ^1 P1 @7 q
values and can extrapolate what direction re-sale prices will be moving and by. }9 D. T7 p7 ~* }9 K5 o- N' `& \
how much. }8 z, Q' G$ ?: z/ e& n" d
$ A# W8 W5 p+ ^8 R: Y. r: [ V
For instance, for the last three years, we have told investors to avoid Windsor,3 a* T1 P. R0 R9 |
Ontario as an investment area because the underlying fundamentals are not very
9 J- c4 Q3 h% @9 R% dstrong. This has been proven once again with the release of the latest
9 D- H {; [1 D: qfindings. New Housing Prices have actually decreased by .5% during June 2005 -
! h# w! C g% mJune 2006 proving that fundamental investing works in helping you pick the best
2 n5 K4 R& Y$ a- smarkets and avoid the flat ones. This .5% decrease should have little impact
4 g* n# ]8 O1 l" i- von average re-sale values in the Windsor region.+ l& M: @4 S3 e
& Z9 O* V% S4 W: |; Q
To contrast this, the fundamentals we discuss are so strong in Calgary that the L; N1 Y" o" G" G6 g" h' \
market continues to be super heated. With close to 3,000 net new people into! W" l; Q8 h- {- a2 z
the city every month, the property market just can't keep up. That is why we
" N3 d/ g8 K9 T5 m- Qsaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006).
; |- B9 L1 N- ? _+ z1 v7 eThis is great news for the future of re-sale values in the city as these
# a4 w4 M6 b3 J K8 z: X9 Vincreases will continue to ripple out into the market for at least the next six: K+ Z7 c& o5 k* Z" A
months. ( E: n3 b, Y8 m' k
! s0 v: g: s4 l) l8 p" |Comparing these two regions is a great illustration of the value of not getting- p: [" m- Z$ q5 F
caught in the 'emotional guessing game' by just focusing on the underlying
V7 o( l9 o/ ]: L* v: \9 S1 E9 u& yfundamentals. It is sad to see those people who said in the last 2 years that
% Y$ W4 D; X( m) F5 G) e- Mthe Alberta real estate market was over and they were going to sit back and wait
1 E1 d3 V! ]+ l3 r9 Auntil it drops. Quite obviously, they have missed out on AMAZING gains, all2 D( H4 g. ? }$ r5 o
because they didn't follow fundamentals, they just led with their emotions.$ E& J' r0 A- x, ^# [; c- l1 W! }
1 U6 y S6 b/ ~- j* E3 ZBy the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June
1 k, p% y% v" ?. J0 r; {5 z2005 to June 2006), also great news.; h ]4 C* y& F& E& K/ S; w0 ?$ m
# A$ q3 V4 U+ S3 L& ]6 u, JBy comparison across the country, these are the numbers for June 2005 - June
' B- V2 x9 u( f. ]' a: B, q! X2006 New Housing Price Index for:5 L( b" R; ?, \7 C* C/ d- q* r) p
: W Z- Z' E; e" h, E: |% n! G
Vancouver . . . . . . . . +5.2%
- L' i$ X5 [" B5 {- @8 bSaskatoon . . . . . . . . +8.5%$ u1 Y# E1 e; D: |6 p( ~" I. m, H
London . . . . . . . . . . . +3.0%
. n9 ^2 U) J" O5 V1 jHamilton . . . . . . . . . . +4.9%. F! m8 W6 o- N1 ~! v) X. ^
St. Catharines - Niagara . . . . +4.9%
1 R% T! s# R( l/ J; {Toronto and Oshawa . . . . . . . +3.2
" m, I1 r- ?# m K) q0 cOttawa - Gatineau . . . . . . . . . +3.1%" L& o/ q0 X( b4 D
9 J4 l+ e* t" a+ M( OFundamental investing ALWAYS makes you look like a genius - emotional investing2 ]5 i$ q. A5 f
gives you quick highs, but also quick lows. Well done on your focus! A5 D% g8 k7 a. M# o% Q; `" w- f3 e. L
, j2 K. N2 r2 G" s$ T# zAs the fundamentals have been showing all along, the Alberta market continues to" P9 o. v6 G% R" H6 G, s# ?
be strong, as in-migration and job creation continues to attract people from not6 ^* K- H7 E F2 ^' o0 o3 I
only across Canada, but from around the world. Our average wages are
- L# }" i9 G+ M, Y: cincreasing, our population is increasing, our unemployment rate continues to
& V* u/ }* U! Q `9 ^drop and our GDP growth is slated to once again lead the country.& { r. z; G$ a. g& a S1 b. B
% c4 @/ |" W( K2 u) D* {- s
Here are some very interesting facts that are helping to support the strong4 Q4 v" D2 V6 a8 H8 N4 Y2 A; z
fundamentals:) Z; y1 G! i" m; \ [: F4 |
" T. D6 M3 i- I: O, n5 m- G
1. The Conference Board of Canada is forecasting strong economic growth in( m1 M6 `2 B+ y8 x1 B
Canada, with Alberta once again leading the way. In fact, the projected growth0 W. ~. _- i( g) B- S1 g
for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and# l$ l( t4 F: z0 U+ v2 N
this is slated to occur even with the labour shortages we are witnessing.
' ~) }6 w+ p, `) y; \ Y g: C7 g6 g( [1 | y6 s' |: Q
2. People are discovering Canada as an investment center from all over the
6 P1 f" H1 g7 ^: }. t* y5 X7 Hworld. Recently, there have been investors coming here from Asia, Australia,- T6 _1 q+ W3 d" A1 _0 X+ f# h
the US, UK and Europe. In fact, if you review the world's press you will see! z' e8 t% y! u# G" n
that Canada (with a focus on Alberta) is being discussed more frequently.
) c' y% U. ^. O* b9 m8 `
" f9 ~3 b+ u! X+ T' J3. Don Campbell has just returned from presenting our Canadian investment8 P' N# v- i0 u, ]
atmosphere (including Why Alberta - Why Now") to a group of major investors in" c, Q k) J y; ~
Dublin, Ireland, and the response was overwhelmingly positive. In fact, after
% q& P! Y( _/ j) W# Z& w N- CDon presented the economic facts, many of these investors (who could invest
( w& s) v- k& B: V, ianywhere in the world) have already booked their flights to here. Once again. ?$ z: c1 a# C& ?, s
proving that when the true numbers of our economy are presented (along with the
8 {+ k- c6 Z7 \political stability of our country), there is no place in the world that can
4 U* `# B0 M. j$ \% v9 ibeat it for long term investment.. M. W0 X4 D, H7 Q8 W
+ V8 r q8 |1 O, G8 w4. Job creation continues to be strong (with a small lull in June); definitely& r. X, F' o+ a( h& o ^+ Y
a sign of strong long-term fundamentals. RBC has also been following the job: F+ c% ~; `! @3 \
creation situation and here is what they are saying: (www.rbc.com/economics)
3 I5 [8 Y/ S5 p" j: S"After generating a substantial 96,700 jobs in May, the largest such gain since
' `( t- H* c5 z. I. eJanuary 2002, the economy lost a modest 4,600 jobs in June...
2 S }/ H8 L- R8 n
, |, v: @# B3 v2 ?' B* YStrength in the Canadian economy contributed to a gain of 215,600 jobs in the
$ O' X; }0 M8 x- L4 {( qfirst half of 2006, a feat not matched since the second half of 2002. With the
% e2 |/ G6 W4 C7 G/ r ieconomy widely expected to grow at a more moderate pace in the second half of4 j9 D8 i5 n8 q& |( F/ z, i2 z! W
the year on the back of slowing trade activity, this impressive showing may not
$ s% G( b# z5 q$ ]& _2 F1 Q; v0 Rrepeat itself. We expect that employment grew in July at a pace consistent with
4 N3 v4 Q, T+ @0 _8 y5 Cits recent trend of 24,000 jobs a month. Assuming that the labour force grew at/ Q9 o/ d/ y* P' H1 [% M
its trend rate, a gain of 24,000 jobs will lead to a national unemployment rate
& U% H! r) H# `0 h6 V7 Hof 6.1%." Overall very good news. Now the key is to ensure that the region in
0 n# y3 [) g9 h, B: p. Vwhich you are investing is continuing to generate jobs and increasing incomes.
- C+ D8 }2 T: q8 \5 M
- l2 t Q( W j3 X$ \- }( Q3 R8 _
In other words, it is a great time to be taking advantage of this strong v" j* [+ m5 @+ x' M9 s
economy, avoiding 'excuses' and to especially not listen to the uninformed6 P; Q8 X. V% q4 Q) U+ y8 L
'dream stealers.' As long as you stick with your game plan, you continue to do! P1 R: s& j- r# P8 V9 K
your due diligence, and you remove emotions from the equation, you will see the
8 M+ V, _( E5 `4 s1 N8 Vopportunities that are right in front of you, right here in Alberta. Let the: B* c" l$ s# C9 c
'dream stealers' call you 'lucky' 5 years from now as your net worth has soared5 d, ]! y m4 Y# M) n6 _
and your financial freedom has surpassed even your wildest expectations.1 U4 [6 [" F' d
9 p$ e: [& i' i: F L
2 h+ g* x! f5 M0 F1 U1 ?5 UCapital Gains Comparison.
; ?/ A6 F2 n8 _- z! x% n1 |5 n4 D- D* T1 ]5 N, R
KPMG has recently released a comparison of the true Top Federal and Provincial
& m! n0 L# E2 e( v1 J1 XMarginal Capital Gains Tax Rates per province. It is very interesting to see
& r$ [! R, |5 b' Q7 g2 Jhow these will affect your exit strategy. Here are the numbers:
h" l/ ?+ c3 ~6 Z" Y( n/ _
7 @# K# ?5 j- |) m, r( CBC . . . . . . . . 21.9%
. p. i# N- u5 j3 m7 MAB . . . . . . . . 19.5%
$ }0 p8 w" W3 F% u+ @SK . . . . . . . . 22.0%+ Q9 f2 Q& y+ g
MB . . . . . . . . 23.2%
& E' W7 i. {6 e; y1 LON . . . . . . . . 23.2%' C: s. X6 |/ \7 J, K
QC . . . . . . . . 24.1%/ _' F3 ]/ y* d# j# ^% p5 h
NB . . . . . . . . 23.4%
/ }# E. B( P% l% }NS . . . . . . . . 24.1%
J# J8 z; O! W1 U) c' m, HPE . . . . . . . . 23.7%. S+ E5 n/ A6 Y& l: y
NF . . . . . . . . 24.3%( i7 M; `* b Q1 ]) U" V( R
- e, M: u: n* ]) \Lower capital gains tax increases investment and stimulates the long term
6 g0 s2 O: O v" [* E6 D* weconomy of the province. It also allows real estate investors to keep more of3 \5 ]7 [( a8 n5 d; A+ e8 V0 I6 \
their profits at exit time. Always a good number to pay attention to.: o* m) R/ Y$ N# r6 ^
8 r" Q, Z9 m* K& A. ~$ Q# G% K2 f, U+ F* v$ O1 q6 i
* * * * * *$ R+ Q1 |2 d: o. M, G0 z! E
. V5 V) y$ u5 a7 H& HOverall, by staying focused for the next short period of time, you have the
% w* J- J" l, x. `7 } v( bopportunity to create financial freedom of which others can only dream. Of+ V+ J! Y4 t2 t9 v4 T4 m( L
course, the key word is focus. And with an August line-up of 'Members Only', m+ r7 d7 _. u {1 {
events like this, you can't help to become a real estate investment champion) J( G6 p t$ |/ S) [
when you take action as a full REIN Member., `" P: A) N( e5 H6 Y+ J
: t& t. K, S( LFocus on the fundamentals, keep emotions out of your decisions, and enjoy the8 f1 o& M( h( I# l5 |7 W
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
