Canadian Economic Real Estate Fundamentals Latest

Real Estate Market Fundamentals Update
"The Mortgage Minute" By Peter Kinch
"97 Tips For Canadian Real Estate Investors"
Summary Of Some Of The Free Information Available To You
D.A.N.G.E.R.: Why People Fail To Succeed (part 1) By Steve McKnight
Quote Of The Month
Final Thoughts

Canadian Real Estate Insider Newsletter - March, 2006

Before we get to ALL the details in the newsletter. The Toronto ACRE System Program, taught by Don R. Campbell, is coming up very quickly (April 8th & 9th) and is filling up more quickly than ever before in history - the word is out.... ACRE System makes an immediate impact.

The good news is it is completely revamped for 2006. New Banker Strategies, New 11 Fundamentals, New Land lording Secrets and much much more. Currently more than 31 forms have been revised & updated for 2006 to keep you on the leading edge of the Canadian Real Estate Market. For a $200 discount click here to read all the details:

Can’t attend live? Click here to read all about the ACRE System Home Study Program

This month’s newsletter is filled with information, special audio presentations and links to key information on the Canadian Real Estate Market. Make sure you read right to the end of this note so you don’t miss any details or key opportunities…

REAL ESTATE EDITORIAL

1) "Real Estate Market Fundamentals Update"

As the Real Estate markets continue to heat up it is now more important than ever that you focus on the unbiased economic fundamentals, and remove yourself from the hype and emotions that surround the Real Estate market. As well, during this time of hot markets and increasing interest rates you will need to be better educated and more on top of the economic fundamentals or you risk making a poor investment decision.

Sophisticated fundamentally-based investors will excel, prosper and be able to sleep at night because they are investing in fundamentally strong locations, while the uneducated and emotionally based investors (speculator) will be constantly looking ‘over their shoulders’ wondering if they timed it just right, and be shaken out of the market.

The key to being an investor, not a speculator, is to eliminate opinions and misinformation and let the others get caught up in the hype while you focus on what’s real! For example, you may hear or read in the headlines that ‘McJobs’ are popping up in the Canadian economy… i.e. High paying jobs are disappearing, replaced by low paying, low skill jobs, causing a economic shift downwards… thus putting pressure on Real Estate Markets.

Reality is… From January 2005 – January 2006 Statistics Canada reported that the Canadian economy created 214,000 new jobs with an hourly wage above the national average wage of $19.66 per hour. Additionally, the three top paying jobs segments created 279,000 new jobs and the three lower tier jobs lost 164,000 positions. This is important to Real Estate investors because, as the Canadian economy creates more higher paying jobs, people can afford to pay for higher priced housing.

This fact reveals that not only is the ‘McJob Effect’ false it is opposite of the public thinking. Look for regions where the job growth is outpacing the National averages to find a region where Real Estate values will increase faster than average over the long term.

Another fundamental to keep your eye on is the growth in Retail sales, which is a sign that times are good and consumer confidence is strong. The latest numbers from Stats Can (ending Dec. 2005) indicate the following Provincial growth numbers:

	% of Population	% Retail Sales	Retail Sales Growth
Canada	100.0%	100.0%	6.7
Nova Scotia	2.9%	2.9%	7.5
New Brunswick	2.3%	2.3%	5.7
Quebec	23.5%	22.6%	5.8
Ontario	38.9%	36.8%	5.3
Manitoba	3.6%	3.4%	6.5
Saskatchewan	3.1%	3.0%	5.8
Alberta	10.1%	13.2%	14.2
British Columbia	13.2%	13.6%	6.0

These numbers reveal that one province is outperforming the Canadian growth average by 200%! This indicates a wealthy and confident consumer. There are only two provinces that are generating a greater share of retail sales than their share of the Canadian population (for example, BC generates 13.6% of all retail sales with only 13.2% of the population and they are growing at 6%, just slightly higher than the Canadian market growth).

Your key is to find a region that is selling a larger share of retail sales than their population percentage, and growing faster than the Canadian pace, thus indicating an upwards trend in future Real Estate prices.

Over the coming months, you are going to hear even more talk about a ‘Bubble’ and you will hear the masses saying “I will start investing in Real Estate once the market has a correction”… well, my friends, in certain fundamentally strong regions in Canada you will be waiting a VERY long time for that ‘correction’. In the meantime, how much time and equity did you let side through your finger tips? …

Clearly, in Canada right now there is no bubble forming with the exception of one market that we are keeping our eye on (Vancouver and Lower Mainland). The top economists, from the major banks across Canada are agreeing with our forecasts and research.

For example, just one of the towns on REIN™’s top 10 town list is Calgary (we have been recommending to clients for the past four years). Some quick facts from Feb. 2005 – Feb. 2006 the combined price average (SFH + Condos) increased by over $63,562 ($174/DAY, or $7.25/hour (per 24 per day!) Currently there are only 1,003 active listings (this changes hourly) we are still predicting that 2006 will show the highest percent value increase in Calgary history. Are you going to wait for the correction or take advantage of the Real Estate market now? I recommend that you don’t play the “masses” waiting game and instead take advantage of these strong fundamentals.

Congratulations to those of you that followed sound fundamental advice and invested in one of the REIN™ recommended areas. In fact, your next opportunity to hear our updated research in the Canadian Real Estate market will be at the ACRE System in Toronto April 8- 9. The seats are filling up quickly. To reserve your spot and not miss any of the key research click here:

2) "The Mortgage Minute" By Peter Kinch

Spring Is In The Air! In some markets in Canada it may feel like Spring is starting to arrive. Each and every year in late February and early March, the banks start rolling out their Spring market campaign of new products in an effort to attract new consumers. And, if early signs are any indication, we’re poised for yet another busy spring. The banks view this as the best time of year to get your attention by coming up with new products or simply putting twists on old ideas.

Over the next few weeks we’ll see a variety of new products and this year the early theme I’m seeing is banks getting more creative in an effort to help you borrow more money. This is partly in response to growing concerns about the potential of rising rates.

In an effort to take the focus away from rates, look for two lenders to come out with ‘True Equity’ programs that will allow home buyers the ability to borrow up to 75% of the equity in their homes without having to qualify based on their incomes. These programs were previously only available to self-employed borrowers. Income earners had to either put more money down or pay higher rates. This will now be a mortgage based on the equity and the rates will be fully discounted.

Another product to keep an eye on is more lenders who will be combining the mortgage with the line of credit and creating a ‘Global borrowing limit’ that will be re-advance-able. More and more consumers will be looking for these kind of products for tax planning and investment strategies.

And speaking about investors, banks are starting to recognize the growing number of home owners who are buying multiple revenue properties for investments and we now have an ‘Interest-Only’ mortgage available for self-employed borrowers on a ‘Stated-income’ basis for revenue properties. This marks the first time a self-employed individual can use ‘stated-income’ to qualify for a revenue property.

The interest rates will be higher for this product, but it is reflective of a growing trend towards American-Style lending practices. A prime example of an American trend influencing our banks will be longer amortization periods. Canada has held tight on 25 year amortizations for years, up until now that is. A few lenders have announced 30 year amortizations on CMHC insured mortgages at fully discounted interest rates.

Finally, in an effort to further take your attention away from the long term rates, look for lenders to get more creative with the discounts they offer on Variable Rate Mortgages. I fully expect to see stronger competition in the form of creative ‘front-end loaded’ discounts and teaser rates that make it more confusing to compare an apple to an apple when shopping for the best mortgage option. It’s going to be another busy spring market and consumers are going to be faced with more choices than ever before. The key, like always, is to get expert advice and remember you have options.

3) "97 Tips For Canadian Real Estate Investors"

Making a difference… Habitat for Humanity is having their official ground breaking for the Women’s Build in Edmonton Alberta (April 11), and REIN™ is a major sponsor click here for more details

If anyone would like to contribute to this special project you can contact Habitat for Humanity Edmonton Communications Co-ordinator Brenley Bennett at (780) 479- 3566 or email bbennett@edmonton.hfh.org. You will be issued a tax receipt for your donation and 100% of the funds raised go toward the building of this project… not administration overhead.

As with the first book, our latest book ’97 Tips for Canadian Real Estate Investors’ is now in full distribution and has already hit the #1 position on Amazon.ca. One hundred percent of the author’s royalties will be donated towards Habitat for Humanity.

If you have already purchased your copy we and Habitat for Humanity thank you. If not, you can take advantage of a special offer from Amazon.ca you can save $9.17 off the cover price of $26.99. To order directly Click Here for more details (If you order 3 or more copies from Amazon, you can take advantage of their free shipping offer).

If you want to read more details about the book and find out about the offer for four free hours of audio programs after registering your book, click here

4) "Summary Of Some Of The Free Information Available To You"

Thank you to the hundreds of new subscribers to the Canadian Real Estate Insider Newsletter. Congratulations to the many of you who have used the information, downloaded free audios and tools directly to your computer and most importantly, implemented these strategies in your Real Estate investing business.

This section will summarize many of the key features that you have free access to as being part of the ‘inner circle’. Below are just ten of the many tools you have at your disposal.

Back issues of the Canadian Insider Newsletter… over 17 back issues. Click Here
Access to over 36 articles posted by Real Estate Experts… experts in their fields. Click Here
Access to the following audio presentations from leading expert: Carl Gomez (TD Economics) Click Here
Audio presentation from Don Campbell talking about Current Real Estate Economic Fundamentals Click Here
If you registered your book “Real Estate Investing in Canada” you received 4 free gifts including 2 audio presentations. Click Here
If you registered your book “97 Tips For Canadian Real Estate Investors” you received an additional 4 free gifts and over 4 hours of audio presentations Click Here
Property Analysis Template
Sophisticated Investor Bank Application Template
Legal “Tales From the Trenches”
Real Estate Success Stories

PLUS Many, Many More Tools Directly At Your Finger Tips…

5) " D.A.N.G.E.R.: Why People Fail To Succeed" (part 1) By Steve McKnight

Why People Fail To Succeed... Recently I have put together a list of six of the most common reasons why, despite the best of intentions, investors fail to achieve success.

These factors combine to form the acronym D.A.N.G.E.R. This month we'll begin by looking at the first three, and then next month I'll conclude with the final three.

As you read through them, be sure to mentally note which ones apply to you.

D - Distraction

When it comes time to make the tough decisions, or work the long hours, or do what it takes to pull off a great result you'll discover that life throws in a few complications that makes the extra effort inconvenient.

It may be a family dilemma, a health issue, a money issue... whatever the factor, it will have the power to distract and take your focus off what you want to accomplish.

'Busyness' is the most common form of distraction. When you become consumed with the minor details, you can quickly and easily lose focus on the bigger issues. Dealing with tenancy problems is a good example of distraction. You may be fighting over $300 in rent arrears, and because you become so angry and frustrated, your distracted mindset may cause you to miss out on a $30,000 profit as a great deal passes you by.

The way to beat distraction is to start each day with a moment of clarity. The way that I do this is to sit down each morning with a clean desk and think about what I want to have achieved when I head home for the day.

Then, throughout the day, I keep a careful eye to watch out for the 'time vampires' who come and suck away precious minutes with questions and issues that are not critical.

A - Action

The importance of taking action is not rocket-science.

If you want to do nothing, then do nothing! If you want something to happen, then do something.

I often meet people who want to buy investment property without making any realistic sacrifices. Well, here's one of the many insights that I shared at a recent MasterClass... when do you think is the best time of the week to buy property?

I've found two times are best. The first is Monday mornings because most people are at work but agents are looking to move property that was passed over at the weekend auctions. Vendors want to do a deal, and the number of genuine buyers out looking to do a deal are significantly lower than on the weekend.

The second is around the end of the quarter when agent commission cheques are about to be calculated, so the period between making a sale and receiving a commission is at its shortest. I find that agents generally work harder at that time of the commission cycle.

Considering these insights, what is the quality of the time that you are allocating to your investing? Are you offering the best and most productive hours of the day, or are you allocating the left-overs when you are dog-tired and more interested in zoning out?

I put it to you that your results, in terms of finding and managing a successful property portfolio are no fluke. If you can only take action when the market is closed (such as on the internet at night), then your progress will always be limited.

N - Negativity

Frustration is a natural part of investing, especially if you are finding problems and selling solutions.

Therefore, you need to have a system for handling the negative emotions that arise from the doubts and fears that are bound to infiltrate your mind from time to time.

I do this by being accountable to the things that I say I'll complete, as I value my word above the pain of the fear and hurt.

Don't be ignorant and think that you'll be bullet-proof. Whether it be a property problem, or perhaps a dissenting family member, advisor or friend, being able to handle and beat the negative emotions will be essential to your investing success.

As mentioned, next month I'll finish off the D.A.N.G.E.R. acronym while also sharing more tips and insights.

6) "Quote Of The Month"

“If you make the unconditional commitment to reach your most important goals, if the strength of your decision is sufficient, you will find the way and the power to achieve your goals.” (Robert Conklin)

7) "Final Thoughts"

Recently we have noticed a massive increase in ‘real estate experts’ coming out of the wood work. This has happened in past booms as well, because it is easy to look like a real estate genius in an up market. (Check out the 6 Critical Questions to ask: Listed in Tip #10 of ‘97 Tips for Canadian Real Estate Investors’. That way you can begin to find out if these people are real or not.)

The important thing for sophisticated investors is to ensure that you are not getting caught up in the emotions of the market. Always do your complete due diligence on a property and never buy just to buy… or just because someone told you it was a good deal.

It is important to watch out for people who have a vested interest in you buying properties from them. For instance, someone telling you a town or region is a great place to buy, then a few weeks later they just happen to have property for sale in that region and you get the ‘exclusive’ first chance to buy it.

Be wary of these opportunities, and make sure you complete your due diligence on these properties. Never allow yourself to get ‘pressured’ into these deals due to ‘fear of missing out.’ And always be wary of supposed ‘educators’ who also sell lots of property to their clients. Not all of them are bad, but the odd one can really ‘pressure’ you into a bad deal due to the trust you have put in their hands.

The market fundamentals look strong in many markets across the country, even with the recent price jumps. Make sure you read chapter 5 (page 37) in Real Estate Investing in Canada so you clearly grasp what fundamentals you must monitor to know when a market is at its peak and it is time to sell.

Have a wonderful month and I look forward to seeing you at the Upcoming ACRE System. Yes, we do have fun at the event, but we also focus directly on the critical fundamentals.

We'd love to hear what you think of this issue!

Please send your comments, questions, and ideas for upcoming issues to us at: info@reincanada.com

Your feedback matters to us!

Keep your eyes peeled for key, fundamentally strong Real Estate deals, and no matter who you are dealing with… always do your complete due diligence. Hope to see you at the next REIN™ Workshop in Toronto on April 7th, Edmonton on April 11th, Calgary on April 12th, Vancouver on April 25th, or Ottawa on May 3rd. If you are not yet a Member of Canada’s most successful by far, and longest running Real Estate Program (14th Year), now would be a great time. Call Sonya or Carolynn at the REIN™ Office today at 1-888-824-7346 for all the details. Or if you prefer, Click Here to see all the benefits that REIN™ provides you across this amazing country of ours!

It's your time to take advantage of this Real Estate Market…

Once again the Toronto ACRE System Program, taught by Don Campbell, is coming up very quickly (April 8th & 9th) and is filling up more quickly than ever before in history - the word is out.... ACRE System will make an immediate difference in your life.

The good news is it is completely revamped for 2006. New Banker Strategies, New 11 Fundamentals, New Land lording Secrets and much much more. Currently more than 31 forms have been updated for 2006 to keep you on the leading edge of the Canadian Real Estate Market. For a $200 discount click here to read all the details:

Can’t attend live? Click here to read all about the ACRE System Home Study Program

Don R. Campbell and The REIN™ Team

"Turning Real Estate Dreams Into Realities... One Investor At A Time!"

P.S… Help support Habitat for Humanity. “97 Tips For Canadian Real Estate Investors is available. You can take advantage of a special offer from Amazon.ca and save $9.17 off the cover price of $26.99. To order directly click here (If you order 3 or more copies from Amazon, you can take advantage of their free shipping offer).

If you want to read more details of the book and find out about the offer for 4 FREE hours of audio programs if you purchase and register your book click here

P.P.S… Quick reminder that ACRE System in Toronto is right around the corner… With the more than 31 forms updated this event will definitely fill up… For a $200 discount click here to read all the details: