The Real Estate Snowball

We had one of our Inner Circle members fly in from Meteghan, NS earlier this week. We really enjoy our member events because it gives us a chance to speak to a lot of people that we don’t get to see on a regular basis.

And it is even better when we have some of our members from other parts of Canada or even other countries join us.

Maybe Cash Flow Isn’t King in Real Estate?

Recently this topic seems to be popping up over and over again…

Most real estate investors graduate from Stage 1, “I want to make a Million Dollars by yesterday” to Stage 2, “OK, I realize this is work like anything else and I want to educate myself about proper real estate investing.”

The lag between Stage 1 and getting to Stage 2 varies from investor to investor.

Some people get caught in Stage 1 for years and face the endless treadmill of frustration always searching for the quick and easy money.

We have news for those people … there ain’t any.

It takes a sophisticated investor to capitalize on a good opportunity and make, what may seem, like “quick and easy” money.

Getting The Latest Real Estate Indie Music Vibe!

Earlier this week, we were in Toronto taking care of some business when we got chatting about the “naysayers” who always believe the sky is falling.

You know the type, the ones that call for real estate to fall in value for so many years in a row that one day they’re right. 

Well, we ourselves have been scared off of the Toronto Condo market for some time and although investing for appreciation isn’t our “cup of tea” we continue to be amazed the strength of the Toronto condo market and shot this quick update…

The “New Fundamentals” of Real Estate

In the interest of full disclosure let it be known that we own real estate as an investment and a real estate brokerage … and all the bias that comes with those.  

Good, with that said, let’s continue.

We *think* there was once a day where the stock market was a place that actually helped both large and small businesses.

Wall Street facilitated the selling of stocks and bonds so that businesses could access capital to help them expand and grow.

Investors earned interest payments on their bonds or equity in their stocks.

Stock traders earned a commission.  Everyone was happy.

We’re not sure when the stock market went off course but we do believe that that was the original intent of it.  A place where Wall Street helped Main Street.

“Global Trends Changing The Canadian Real Estate Investing Landscape”

Over the next few months, you’re likely to hear a louder debate growing around the Chinese currency, the Yuan, and how it is “pegged” to the U.S. Dollar … meaning that it doesn’t dynamically flow in value like the currencies of other industrialized countries like Canada, Australia, the UK etc.

Why?

The North American economic picture isn’t quite as rosy as the media is currently reporting.

There are long-term, underlying fundamentals at work that are changing the landscape of North America.

Part of that is due to the fact that over the last 20 years China has been able to sell a lot of products to U.S. and Canadian consumers by artificially holding the value of their currency down.

Canada is in a Pickle! A Big Pickle.

 The world is a complicated place.  The economic world anyway.

Things like family, friends, your values and your home are pretty simple and straightforward (most of the time!).

But the economic world is a funny place.  Every day we read commentary that seems to contradict what we read the day before.  

The moment you think you’ve got it all figured out you’re thrown a curve ball.

“Will interest rates go up this summer?  Stay flat?”

“Will the Canadian Dollar rise or fall from here?”

“Why do I care about Canada’s GDP again?”

Canada is in a tough spot right now.  The Bank of Canada must be freaking out.

Why?

The whole country is expecting some sort of rate increase this summer.

And it’ll likely happen … at least a small one.  No big two-point move or anything.