The Canadian Real Estate Association (CREA) says national home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.

Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards was down 6.8 per cent on a month-over-month basis in July. The national decline was smaller than the previous two months, as July sales in the Prairies and Quebec came in on par with June levels. Declines in British Columbia (-14.1 per cent) and Ontario (-8 per cent) accounted for 85 per cent of the change in national activity in July. Read the rest of this entry »

February 16, 2010

Jim Flaherty, Canada’s Minister of Finance, announced new lending guidelines for CMHC backed mortgage loans in an announcement earlier today.

The new rules are as follows:

1. All borrowers must qualify for a mortgage using the five year fixed rate regardless of the term chosen.  Example:  if you wish to take out a 1 year mortgage at 2.65% you will still need to qualify at the 5 year closed rage of 3.89%.

2. When refinancing a home, Canadians will only be able to refinance up to 90% of the value instead of the previous 95%.

3. If you want to purchase a revenue property, CMHC will no longer insure you.  You’ll need to put 20% down to take out a convential mortgage.

These changes come into effect April 19, 2010.

What HAS NOT change:
-> You can still purchase a property with 5% down!
-> You can still do a 35 year amortization!
-> You can still have GDS/TDS ratios up to 44% if you have a credit score over 680!

All information presented in this notice is believed to be true and accurate at the time of printing but is not guaranteed to be so.

Source: Yahoo Finance
What do you all think about what Mr. Kioyaski has to say?

http://finance.yahoo.com/expert/article/richricher/211091;_ylt=Auf82MjK3eqhkP2irW.HiSuER4V4;_ylu=X3oDMTFidHI0c3VuBHBvcwMxMwRzZWMDYmxvZ0luZGV4Q2h1bmtzBHNsawMyMDEwdGhlYmVzdG8-

Robert Kiyosaki Why the Rich Get Richer

2010: The Best of Times or the Worst?

“It was the best of times. It was the worst of times.”   
– Charles Dickens

Is the recession over? Are happy days really here again? Paraphrasing Dickens, my answer is, “For people who are prepared, 2010 will be the best of times. For many, 2010 will be the worst of times.”

The following are a few of my predictions and reasons behind them…

Prediction #1:  The real estate market will crash again.

Pictured above is a graph of mortgage resets. In simple terms, a mortgage reset is when a mortgage comes due. In normal times, refinancing was a simple process…but these are not normal times. Some points of interest:

1.  In September 2008, the mortgage resets hit $35 billion that month. That was the exact time the financial crisis hit. When people could not afford to refinance and began to default, the stock market and banking industry crashed. 

2.  The eye of the storm: In the summer of 2009 mortgage resets were low — around $15 billion a month. This is when optimists began to see “green shoots” in the economy. The green shoots were the eye of the storm.  In 2010, as I see it, the second half of the financial hurricane hits. By late 2011, the resets climb to nearly $40 billion a month. The storm will not end until 2012.

3.  The first half of the storm was primarily due to subprime defaults. The second half of the storm will hit more solid homeowners. The question is, can they weather the storm? Will Mac Mansion foreclosures be next?

4.  In America, there are over 40 million people who own more than two homes. Can they afford to carry and refinance two or more mortgages?

5.  Since home values have gone down, many homeowners will find they owe more than their home(s) are worth. Will the bank be kind to them?

6.  The time for using your home as an ATM is over. This is crushing retailers and retail real estate. Shopping centers are in trouble. Strip malls are empyting as shopkeepers close — permanently. This will lead to the crash of the office, warehouse, and other commercial properties.

My prediction:  Obviously these are the best of times if you are a buyer of distressed properties and the worst of times if you are a seller.

Other things I am watching for in 2010:

1. Will China crash? America’s crash has hit China in the gut. The Chinese are laying off millions of workers. Only massive government bailout is keeping the economy afloat. The Chinese boom will eventually go bust…but will it bust in 2010? Only time will tell.

2.  When America stopped importing from China, China stopped importing from the rest of the world. This affects Asian countries as well as Australia, Brazil, and other suppliers of raw materials.

3.  Fed Chairman Ben Bernanke is replacing toxic debt with new debt. By protecting his friends in the mega-banks, he is turning the U.S. into a zombie nation. The recession is over, but America is entering an era we will be calling The New Depression, a period when the rich become extremely rich but everyone else becomes poorer. Taxes will kill anyone working for a paycheck.

4.  The U.S. dollar will grow weaker. If the dollar strengthens, we will have more unemployment because our goods become too expensive and we will export less. 

5.  The deficit will increase.  The bailouts for the rich are killing the economy.

6.  Israel may attack Iran. Israel will not tolerate Iran developing nuclear power, even if Iran claims it is for peaceful purposes. If there is an attack, oil prices will go through the roof. 

7.  Dead cat bounce. The current stock market rally will probably turn into a dead cat bounce. If the Dow drops below 6500, 5,000 may be the next stop.

The Best of Times

I know I sound painfully pessimistic. I know my predictions are bad news for most people. Yet, for others, bad news is good news.

The following are the bright spots for people who are prepared. Read the rest of this entry »

Gen X to flex new purchasing muscle
in recreational property markets across Canada, says RE/MAX

Demographic shift underway in 74 per cent of markets surveyed
Kelowna, BC (June 2, 2009) — Generation X purchasers are poised to replace aging baby
boomers as the major force in recreational property markets across the country, according to a
report released today by RE/MAX.

The demographic shift was noted in the 2009 RE/MAX Recreational Property Report
highlighting sales, pricing, trends and developments in 50 Canadian markets. The report found
demand from Gen X (those born between 1965 and 1980) has nearly doubled over one year ago.
Seventy-four per cent of markets surveyed this year reported a marked trend toward thirtysomething
buyers snapping up affordably-priced product, ranging from waterfront cottages to
resort condominiums, compared to just 40 per cent in 2008.
“Much of the activity in the marketplace today has to do with the mindset of this particular
generation,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
“More important than the investment aspect is the commitment to lifestyle. The purchase of a
waterfront home or a condominium is more than a simple transaction to Gen X purchasers –
owning a recreational property underscores their dedication to family and balance.”
The financial strength of the cohort dovetails well with current market realities. Sixty-six per cent
of recreational property markets surveyed reported a decline in the number of recreational
product sold in the first four months of 2009, while 22 per cent indicated sales were either up or
on par compared to one year ago. While the combination of inclement weather and a global
recession clearly hampered sales activity earlier in the year, many major centres are currently
experiencing an upswing in activity as the traditional cottage season gets underway.

“After being priced out of most markets for the better half of the last decade, Gen X purchasers
now have the financial wherewithal to buy recreational product at virtually every price point,”
says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic
Canada. “Gen X is ideally positioned to pick up any slack in recreational property markets caused
by softer demand from baby boomers and retirees. They represent the next wave of recreational
property owners in Canada and they know it.”

The time to buy has never been better. Read the rest of this entry »

Existing MLS® home sales activity increased for the second month in a row in March 2009, according to statistics released by CREA. The number of new listings also continued trending lower in March, which firmed up the balance of supply to demand.

A seasonally adjusted total of 31,135 homes traded hands nationally via the MLS® in March 2009. This is an increase of 7% from the previous month, and builds on the 10.3% activity gain in February. The number of transactions in March 2009 stands 18% above levels reported in January 2009, when activity sank to the lowest level in a decade. Read the rest of this entry »

March Economic Partnership Breakfast

“Recognizing Challenge -
Seizing Opportunity”

The Leduc-Nisku Economic Development Authority (EDA) hosted its monthly Economic Partnership Breakfast at the Executive Royal Inn on March 17, 2009, which focused on the theme, “Recognizing Challenge – Seizing Opportunity.”

Keynote speaker, Ron Gilbertson, President and CEO of Edmonton Economic Development Corporation (EEDC) delivered a presentation titled “Greater Edmonton’s Economic Future for 2009.” Where does the Edmonton region stand given today’s global economic climate? Is the region still one of opportunity? Read about the answers in Mr. Gilbertson’s presentation by clicking here. http://www.internationalregion.com/documents/EmailNewsletter/2009/March/Gilbertson.pdf

Colby Cooper Report
January 23, 2009 (10:30 AM MST)
North America Toll-Free: 1-877-599-4645

· Oil futures ended slightly higher yesterday, reversing declines after U.S. stocks pared losses on optimism that the Obama administration will take measures to boost the economy and the markets. Crude oil for March delivery ended up 12 cents at $43.67 a barrel on the New York Mercantile Exchange.

On Wednesday, energy stocks rallied with their strongest one-day gains so far in 2009, snapping back from losses in the previous session. Oil and gas drillers led the charge, stoked by a big jump in crude prices and hefty gains in the broad market on Wednesday.

The sector tapped into strength in crude prices, which rose a surprising $2.70.

· Seeking a joint strategy with the U.S. to deliver gas from the Canadian Arctic and Alaska’s North Slope to markets further south in North America, the federal government has set the ball rolling by offering financial backing for the stalled Mackenzie Gas Project (MGP).

Environment Minister Jim Prentice said Tuesday that a “responsible offer” has been delivered to the backers of the CDN $16.2 billion MGP, which would deliver an initial 1.2 Bcf. This step breaks the current regulatory logjam and sets in motion a project that is “very important to our country and the North, for our energy future and energy security.”

In a speech later in Toronto, Prentice said Ottawa is eager to play a role in solving North America’s energy challenges by facilitating the construction of a gas pipeline from Alaska across Canadian territory to the lower 48 states. Read the rest of this entry »