Good Advice for 2017

It seems everyone is glad to see the back of 2016. For so many different reasons it was a hard year. We hope 2017 is better but it could be worse. The only smart thing to do is protect yourself and your assets. Don't be misinformed or dis-informed both are rampant in our society now.

Having said that Robert Kiyosaki has an investment take on 2017:

“We’re on the edge of a cliff right now. We have never been here before. If you’re still saving money when interest rates are negative, you’ve got to be crazy. When you’re investing for the long-term in the stock market, where there is no connection between stock price and reality, you’re crazy." Rich Dad author, Robert Kiyosaki 

Read more here

May you live in interesting economic times

Here is an interesting article interviewing Robert Kiyosaki of Rich Dad. Especially the part about resource based countries Read more

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.

Do you have a mortgage that is coming up for renewal? Are you thinking of buying an investment property? Do you know someone who is buying a new principal residence and would benefit from a lower mortgage rate?

Now is the best time to get our expertise working for you. You can get a great rate and expert advice at the same time.

Call or Email Today to book a consultation!

Thank you Peter!

Have You Heard This One Before?

It's always a good idea to invest. Sure there appear to be many reasons not to and some of them huge, however, well placed investments especially in changing times produce profits.

Warren Buffet's philosophy is to buy stocks of companies he understands that have seen a decrease in their "real" value. It would seem that now with the stock market up and down there are many companies that are falsely low and are a great deal. The same holds true for real estate - take an economically sound region where prices are slightly depressed and you can find some great deals that will appreciate quite well. Edmonton, Alberta is exactly such a region.

Here is a list created by John S. Baen, Professor of Real Estate at the University of North Texas, of why people don't invest -- even though they know they should. I changed some parts to make it Canada-centric

Why People Don't Invest: 12 Humorous Reasons

1. They're already paying into Old Age Security Pension.
   
2. Their budget includes $20 per week for lottery tickets, which is bound to pay off soon.
   
3. They believe that inflation means their money will grow.
   
4. Old people don't eat much anyway.
   
5. They sit at home waiting for the Publishers Clearing House van to pull up in their driveway and deliver their check.
   
6. Their money is safely buried in the backyard.
   
7. Their rich Aunt Melba will die soon.
   
8. Little Matilda is sure to make it big in Films Canada.
   
9. They can cash in their Edmonton Oiler collector glasses when it's time to retire.
   
10. Their dot-com stocks will come back to life.
    
11. They'll write a book and live off the royalties.
    
12. They plan on marrying a young wife/husband when they're 60 and depend on their financial support.