Apr 092014
 

Last Fall I made some bold predictions that low interest rates are staying until 2016, which will keep the housing market stable. I also suggested that investing in parts manufacturers like Magna International would be a profitable venture due to the consumer’s love for cars ๐Ÿ˜€

Fast forward to today and it looks like events are unfolding thus far ๐Ÿ™‚ The Prime lending rate is still at 3%, unchanged from last year. Mortgage rates have not moved higher. Home prices have not corrected. And Magna International’s stock price is nowย 25%ย higher since last year’s post.

14-04-magnaint Low Interest Rates

Anyway, the International Monetary Fund (IMF) recently published their growth projections for countries in 2014. Canada’s economy is expected to grow at 2.3% this year, lower than that of the U.S. at 2.8%, and the U.K. at 2.9%.

So we must create a plan to make the best of this current economic situation, because if we fail to plan – then we plan to fail ๐Ÿ˜‰ The following image demonstrates the importance of planning ahead. Can you figure out what’s wrong with this sandwich?

14-04-sandwichmayo Low Interest Rates

Today I will make some more predictions ๐Ÿ™‚ I think the overnight lending rate in Canada, currently at 1%, will increase to 1.25% in 2015. And by 2018, it would only be at 1.75%. Since rates are going up so slowly I would continue to own instead of rent, because I think the national average real estate price will move higher in the next few years ๐Ÿ˜€

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Sep 062013
 

Real Estate Sales Strong Despite Higher Mortgage Rates

Yesterday we just saw the yield on the 10 year US treasury climb to 2.99%, a multi-year high, and mortgage rates are starting to creep up. But houses are still being sold with unimpeded fervor in many parts of Canada ๐Ÿ˜Ž The number of homes sold in Vancouver was 52% higher last month than the same period in 2012. 28% higher in Calgary year over year. 10% higher in Edmonton, and 21% higher in Toronto. Holy guacamole! ๐Ÿ˜ฎ This is good news for myself and the other 69% of Canadians who are homeowners because it means there is still lots of transactions and liquidity in the real estate market. How to profit from this trend? Buy a home ๐Ÿ™‚ People told me to wait for the bubble to pop when I was looking to buy a condo back in 2009. Fiddlesticks!ย If I had listened to them my net worth would not be even close to $187,000 today ๐Ÿ˜›ย  Continue reading »