This week CMHC announced more changes to its insurance programs.
Last week the Bank of Canada Governor suggested Canadian interest rates will stay low for years to come.
And those two sentences define what we can all expect going forward.
Canada cannot raise its rates.
The only thing it can do to calm the real estate market is change mortgage rules.
With Japan printing trillions of Yen, the U.S. printing billions a month, China building mysterious cities that are completely vacant and Europe looking like the best of the worst ... nothing is going to change.
Nothing has changed since 2008 so we're destined to get more of the same.
Maybe worse.
Likely worse.
In the meantime, Canada is forced to keep low rates in a silly attempt to remain globally competitive.
If fact, we're surprised Canada hasn't increased the minimum down payment required for first time home buyers in an attempt to cool the real estate market further. Perhaps that's next.
We wouldn't be surprised by it.
But the masses will.
As real estate investors the last few years have meant we have to drive further to find good properties.
We have to fight multiple offers to win them.
We have to deal with our own frustrations at losing some.
But in a world that is primed to go through some major financial meltdowns in the coming years it's all worth it.
And you can choose to opt-out of all the crazyness that's going.
You can create your own financial instruments with little cash flowing houses.
You can put yourself on a gold standard by buying some precious metals.
Heck, you can even buy some fine art.
And for the record, some Canadians are opting-out.
Just yesterday we spoke to two different people - one buying fine art, the other buying silver coins.
The first time for both of them.
Land, gold and art has a certain calming ring to it - doesn't it?
OK, maybe for most people land, gold and art seem like crazy investments.
Gold is a "barbaric relic" right?
Housing is over priced right?
And art? Well, that's fools play.
But these only sound crazy because we haven't given all the detail here to convince otherwise.
We're working on that.
Specifically for the next Rock Star Member Event we have an exciting "Economic Update" planned.
It's going to be chalk full of new data, fancy charts and fun headlines.
We always have a blast doing them.
And this time should be no different!
If you're a Rock Star Inner Circle Member reach out to the office now to sign up for the May 27, 2014 event.
Not a member of ours and want to come out to the event?
Stay tuned, we may have options for you.
In the meantime if you're really into this crazy "monetary policy" stuff then check out Jim Rickards' new book, The Death of Money.
He's a very smart guy. The introduction and first chapter alone are worth it.
It's too easy to ignore these large global economic changes when we all have our day-to-day problems.
You may feel you don't have time to come out to our event or can't find the time to read a book.
But that would be a costly mistake.
You can profit and even prosper over the next few years with the right preparation ... that our 2 cents anyway! And it's what we plan to do for ourselves 😉
Until next time ... Your Life! Your Terms!
