Friday, October 17, 2014

What to remember when you invest. Peter Kinch ReBlogged....

I saw a report the other day that a UK company recommended Toronto, Vancouver and Calgary as the best places to invest in Canada. Well, one out of three isn't bad....

You may remember what $890k can buy in Vancouver. How are you going to cashflow with that property? You're mortgage payments are about $3320.00 so you have to rent that property out for about $3800 to cover tax, repairs, property management fees. I don't know about you but I have yet to find a tenant willing to spend $4000 to live in a hovel.

So with all the noise about investing where to do it, who to do it with even when to do it. You need to just remember the basics. For me the most important thing is why I invest. You could throw water on my face at 3am and it's quite likely I would shout out the answer word for word. That's my commitment.

Here are some reasons from Peter Kinch ( who I reblog a LOT) :

Here's the bottom line for all investors:

There are a lot of headlines this week trumpeting the downward slide of the stock market – All this while the head of Scotia Bank reminds us that reports of a ‘Housing Bubble’ are over-rated.
*If you are looking to invest over the long term, then don’t get too worried about the day to day fluctuations of the market – whether that’s in real estate or the stock market.

*If you’re looking for steady cash flow and long-term stability from your investment – then focus on the economic fundamentals of where you are buying and key in on having a solid tenant base.

In the meantime, here’s what’s ‘In the News’….

A new report suggests that Canadian homeowners are paying down their mortgages faster than they’re being given credit for.

Click here for full details from MoneySense.

Canadian concerns about a housing bubble are overblown in a country where credit growth is modest and the job market is stable, says Bank of Nova Scotia CEO Brian Porter.

Click here for the full Bloomberg article.

Bank of Canada Governor Stephen Poloz is signaling that it’s time to take off the training wheels – that the central bank will no longer be there to hold the market’s hand.

Click here for more from Business in Canada.

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Thank you Peter!

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