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NEW HOUSING PRICE INDEX...
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The New Housing Price Index, has just been released and it provides some very+ l2 e! [& {6 Z% e7 _5 P1 h& R) B
interesting insights, not only into where the market has moved, but where it, z0 ^( ]3 u I% e8 S+ [; u
will be going.
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5 K6 |5 B& {3 o( MIt proved, once again, the value of looking at fundamentals behind a market.- L+ z6 P8 s; t; |0 _5 C) b" K
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The New Housing Price Index is compiled by Statistics Canada and is used by
4 O# ]7 U5 v" r0 Xsophisticated investors to see how much the market has moved, as well as an
: M1 i( w+ G" @7 Q- L% L; W% V% @indicator of where re-sale home prices will be moving in the coming six months. % s$ `' \9 T$ r5 H0 B, N$ {' [
We look at the ripple effect that new housing prices have on re-sale property
: D1 s5 B3 Y2 Z. w1 z# f( Dvalues and can extrapolate what direction re-sale prices will be moving and by
; T! K- H& N9 q! W Z8 V; L! Ohow much.
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For instance, for the last three years, we have told investors to avoid Windsor,: n+ |, l- g8 h, W
Ontario as an investment area because the underlying fundamentals are not very, \3 t' q" p0 `. L0 |% X: l2 J) A) `
strong. This has been proven once again with the release of the latest
/ }7 R6 C- \5 m6 Y/ E) O, K* \6 Ufindings. New Housing Prices have actually decreased by .5% during June 2005 -! H# Y+ j8 U2 m5 k; M
June 2006 proving that fundamental investing works in helping you pick the best
3 e) n3 X9 \9 k1 O/ Q( lmarkets and avoid the flat ones. This .5% decrease should have little impact
+ u$ p# R/ c: R* N1 ^1 C& S2 E0 ion average re-sale values in the Windsor region. w! d6 p5 a0 V) z
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To contrast this, the fundamentals we discuss are so strong in Calgary that the
; f/ a# `8 S3 _. j( N: Tmarket continues to be super heated. With close to 3,000 net new people into$ b& @& E0 h. q& ?
the city every month, the property market just can't keep up. That is why we
* j$ S4 J5 M$ r0 V. jsaw the New Housing Price Index increase by 49.2% (June 2005 to June 2006). 7 L- k( p( D& t
This is great news for the future of re-sale values in the city as these9 V" N% H4 Q0 G
increases will continue to ripple out into the market for at least the next six
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" N( u4 x3 V& |1 a# {, Z/ VComparing these two regions is a great illustration of the value of not getting
f% _" O7 a: V. ]caught in the 'emotional guessing game' by just focusing on the underlying) [* B7 x5 x. F
fundamentals. It is sad to see those people who said in the last 2 years that5 \9 x, | _: d: w" U
the Alberta real estate market was over and they were going to sit back and wait
3 M, x. V2 d. N9 ], E" `" Suntil it drops. Quite obviously, they have missed out on AMAZING gains, all$ R; u9 m8 C- b3 S z
because they didn't follow fundamentals, they just led with their emotions.% F3 n" F6 e( s- [8 z& ^
R+ N8 W+ A# x+ DBy the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June& ]. N5 n4 D: a) J9 K( }# N
2005 to June 2006), also great news.
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By comparison across the country, these are the numbers for June 2005 - June8 X$ `) Q5 u: L
2006 New Housing Price Index for:9 R5 I: ]. S1 o% f
( R1 r% @& }' w/ I! V- UVancouver . . . . . . . . +5.2%
. @2 T) O! N% b* d, FSaskatoon . . . . . . . . +8.5%1 d, m: R0 b; W4 u0 T
London . . . . . . . . . . . +3.0%7 Y6 }0 \$ s- E6 C/ x4 Y
Hamilton . . . . . . . . . . +4.9%
$ ?- b9 g0 m; |St. Catharines - Niagara . . . . +4.9%% N4 w: N( B# h) R8 I# ?. l
Toronto and Oshawa . . . . . . . +3.2
0 p4 _0 x- c* tOttawa - Gatineau . . . . . . . . . +3.1%
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! h! q7 e* y" L3 _Fundamental investing ALWAYS makes you look like a genius - emotional investing. X5 B6 _; i. |% r1 u
gives you quick highs, but also quick lows. Well done on your focus!
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/ {( m% b2 I0 |6 zAs the fundamentals have been showing all along, the Alberta market continues to% z8 d. z- ?9 ~
be strong, as in-migration and job creation continues to attract people from not- v: E% e% Q2 W( Z2 p5 V* \
only across Canada, but from around the world. Our average wages are
/ I- _& s5 a8 e. S1 S4 A. ?0 W0 T3 B6 Hincreasing, our population is increasing, our unemployment rate continues to/ M' N, p, H' y+ x
drop and our GDP growth is slated to once again lead the country./ T# @$ P5 J" x; k; m0 y9 `
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Here are some very interesting facts that are helping to support the strong
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' N+ H4 i S: E5 T2 }# O2 Q1. The Conference Board of Canada is forecasting strong economic growth in$ \) C( S# s6 C. P. B( R( a7 u
Canada, with Alberta once again leading the way. In fact, the projected growth% [+ R& u/ X$ u/ z/ Q
for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and
, i. T/ _- r8 J, o/ Qthis is slated to occur even with the labour shortages we are witnessing.* ~+ J/ H; w( b6 L z8 B5 r v
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2. People are discovering Canada as an investment center from all over the1 j5 H f, T) b4 @4 c8 P7 D: B: D( x
world. Recently, there have been investors coming here from Asia, Australia,
- i1 H- P5 t6 o" C" p gthe US, UK and Europe. In fact, if you review the world's press you will see
2 S' ^+ H. K! H; a# n& N- S8 Jthat Canada (with a focus on Alberta) is being discussed more frequently.
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0 a/ s. O) I+ J6 Y( L$ \7 X5 h3. Don Campbell has just returned from presenting our Canadian investment6 H$ I! y( h7 W: V
atmosphere (including Why Alberta - Why Now") to a group of major investors in: M; C0 l2 u/ D# z: A: z2 @, M
Dublin, Ireland, and the response was overwhelmingly positive. In fact, after v! F9 C8 R6 b7 Z# Y
Don presented the economic facts, many of these investors (who could invest
5 ]+ c( u, {9 F- ]- janywhere in the world) have already booked their flights to here. Once again7 c% @& Z) h' `0 Z; e( f! }1 I/ V2 K
proving that when the true numbers of our economy are presented (along with the) u$ o- \6 e! D" p" K
political stability of our country), there is no place in the world that can$ `: {4 B3 o) u& }6 f4 H
beat it for long term investment./ a9 q1 P# {4 W
8 ~0 ^+ L% g' v. e% g4. Job creation continues to be strong (with a small lull in June); definitely3 c6 t, S; x3 O% k8 P0 w" H2 q
a sign of strong long-term fundamentals. RBC has also been following the job
# k4 e* Q+ M1 r' ?, a" ? Icreation situation and here is what they are saying: (www.rbc.com/economics)
* \; e& i, ?; S"After generating a substantial 96,700 jobs in May, the largest such gain since# Y9 |. N! C4 b4 D
January 2002, the economy lost a modest 4,600 jobs in June... 6 n2 P0 H6 }- v8 f* p! \
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Strength in the Canadian economy contributed to a gain of 215,600 jobs in the( l+ @" ^ X* t7 r% N1 `
first half of 2006, a feat not matched since the second half of 2002. With the
E9 s/ O* O: @economy widely expected to grow at a more moderate pace in the second half of6 Y% _; H5 S9 g( ~" t
the year on the back of slowing trade activity, this impressive showing may not2 B! S& V4 ~$ D
repeat itself. We expect that employment grew in July at a pace consistent with4 z) I7 P7 s; m$ y0 k. K% p' y
its recent trend of 24,000 jobs a month. Assuming that the labour force grew at
" |. Y# E. n, k" W7 ?, Wits trend rate, a gain of 24,000 jobs will lead to a national unemployment rate5 j8 @; v5 K) g7 t1 \: }1 d) O8 I# z: }- Z
of 6.1%." Overall very good news. Now the key is to ensure that the region in2 \* [/ _# ]. X6 i+ q: K! l
which you are investing is continuing to generate jobs and increasing incomes.
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- A. W/ ?; g- q0 Q2 l# kIn other words, it is a great time to be taking advantage of this strong6 Z0 ]) y# p. i; \' c# a
economy, avoiding 'excuses' and to especially not listen to the uninformed
/ B. o2 u$ X; y# U8 W" n" Y. C'dream stealers.' As long as you stick with your game plan, you continue to do2 c4 H# U) D. s# y E7 |
your due diligence, and you remove emotions from the equation, you will see the
6 C& C, a: Y% }" U! a+ V5 Z# i1 Wopportunities that are right in front of you, right here in Alberta. Let the5 ?$ \- ]3 o7 \0 t9 U) N
'dream stealers' call you 'lucky' 5 years from now as your net worth has soared
- R9 a G' _: |' }, v0 Cand your financial freedom has surpassed even your wildest expectations.# K# [9 P% b, i& S P6 h. r
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Capital Gains Comparison.
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KPMG has recently released a comparison of the true Top Federal and Provincial+ p V% s# b0 x5 f0 P5 q7 @8 z0 P
Marginal Capital Gains Tax Rates per province. It is very interesting to see Z7 A6 Y3 [6 r
how these will affect your exit strategy. Here are the numbers:
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6 q* h3 H4 O3 B* K& |) h; X# K) V' _BC . . . . . . . . 21.9%
" E6 ~, H8 L L: [5 yAB . . . . . . . . 19.5%" d; G2 Y3 r9 V& U; G U
SK . . . . . . . . 22.0%
s2 S/ \2 w7 n6 A# o( dMB . . . . . . . . 23.2%
/ H/ E. p. A) P4 M V8 ?- l/ xON . . . . . . . . 23.2%5 z9 o: _) k% L$ A
QC . . . . . . . . 24.1%; q8 t; ]* A2 G P- m3 o9 F
NB . . . . . . . . 23.4%
/ o, P9 n+ g/ x4 T4 NNS . . . . . . . . 24.1%
7 c, G* K% r/ [( C) u: z* N7 APE . . . . . . . . 23.7%; T! O) B/ H3 g% a
NF . . . . . . . . 24.3%# e) N# C9 U% H' a4 Z
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Lower capital gains tax increases investment and stimulates the long term
6 A9 I& N6 w7 [) q) `+ ]+ i3 L, Feconomy of the province. It also allows real estate investors to keep more of
- I( K. h6 m- \! `! ^their profits at exit time. Always a good number to pay attention to.
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6 W& ^& `/ P {1 Y UOverall, by staying focused for the next short period of time, you have the
# h/ } |4 L5 t8 K6 bopportunity to create financial freedom of which others can only dream. Of
( b# E+ n; I' j0 ^' Rcourse, the key word is focus. And with an August line-up of 'Members Only'
M2 y1 B( y: V+ l8 N6 @5 M) T mevents like this, you can't help to become a real estate investment champion
+ U3 }; T9 ~/ Q& w+ e* F+ W+ Vwhen you take action as a full REIN Member.
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( U' ]2 X& i1 aFocus on the fundamentals, keep emotions out of your decisions, and enjoy the
/ f( v/ n: c! L, M; @( rresults in just a few short years. |
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发表于 2006-8-25 08:35
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