Happy Summer, Welcome to August, I trust your summer is going well - with some time to relax, some time for investment, some time to re-set your goals and of course, some time to reflect on all that you've accomplished over the last 12 months. This edition of the Real Estate Insider gives you the latest research numbers we all need to watch, plus some bonus items for you. Please read right to the end as the details on the 10 complimentary support tools on-line are listed within the newsletter.
First off, let me personally thank you for your support of Habitat For Humanity over the last 14 months. We've raised over $75,000 (including 100% of the author royalties from the best selling books Real Estate Investing in Canada and 97 Tips for Canadian Real Estate Investors). In fact, your support has allowed Habitat to hand over the keys for new homes for two families. Congratulations on making a difference. (Here is the direct link to Habitat for Humanity's site about this exciting project: details:
Table of Contents
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New Housing Price Index and What It Means To You
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Upcoming Events (BC, Alberta, & Ontario)
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Conference Board of Canada's Latest Research For Future Growth Areas
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10 Complimentary Support Tools and Links
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Capital Gains Tax Comparison - Critical for Real Estate Investors
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Latest Media Listings and Links
Now, let's get right into the 'real estate fundamental':
New Housing Price Index...
The New Housing Price Index, has just been released and it provides some very interesting insights, not only into where the market has moved, but where it will be going.
It proved, once again, the value of looking at fundamentals behind a market
The New Housing Price Index is compiled by Statistics Canada and is used by sophisticated investors to see how much the market has moved, as well as an indicator of where re-sale home prices will be moving in the coming six months. We look at the ripple effect that new housing prices have on re-sale property values and can extrapolate what direction re-sale prices will be moving and by how much.
For instance, for the last three years, we have told investors to avoid Windsor, Ontario as an investment area because the underlying fundamentals are not very strong. This has been proven once again with the release of the latest findings. New Housing Prices have actually decreased by .5% during June 2005 - June 2006 proving that fundamental investing works in helping you pick the best markets and avoid the flat ones. This .5% decrease should have little impact on average re-sale values in the Windsor region.
To contrast this, the fundamentals we discuss are so strong in Calgary that the market continues to be super heated. With close to 3,000 net new people into the city every month, the property market just can't keep up. That is why we saw the New Housing Price Index increase by 49.2% (June 2005 to June 2006). This is great news for the future of re-sale values in the city as these increases will continue to ripple out into the market for at least the next six months.
Comparing these two regions is a great illustration of the value of not getting caught in the 'emotional guessing game' by just focusing on the underlying fundamentals. It is sad to see those people who said in the last 2 years that the Alberta real estate market was over and they were going to sit back and wait until it drops. Quite obviously, they have missed out on AMAZING gains, all because they didn't follow fundamentals, they just led with their emotions.
By the way, Edmonton's New Housing Price Index is up an amazing 28% so far (June 2005 to June 2006), also great news.
By comparison across the country, these are the numbers for June 2005 - June 2006 New Housing Price Index for:
Vancouver . . . . . . . . +5.2%
Saskatoon . . . . . . . . +8.5%
London . . . . . . . . . . . +3.0%
Hamilton . . . . . . . . . . +4.9%
St. Catharines - Niagara . . . . +4.9%
Toronto and Oshawa . . . . . . . +3.2%
Ottawa - Gatineau . . . . . . . . . +3.1%
Fundamental investing ALWAYS makes you look like a genius - emotional investing gives you quick highs, but also quick lows. Well done on your focus!
More economic fundamentals later on in this Newsletter, but first here's an update of upcoming events:
REIN™ Events for August (BC, Alberta & Ontario):
1. "MEMBERS ONLY" REIN™ WORKSHOPS in ALBERTA are extra special this month. We are flying in one of Canada's leading economists Benjamin Tal who, in an entertaining and detailed presentation, will be cutting through the economic hype to tell you the future of interest rates, where the 'economic roadblocks' are located so you can avoid them, and to look deep into the future of the Canadian economy. Some of this event will not be audio-taped so please do whatever you can to be in attendance.
At these important REIN™ Members Only Workshops, we'll also be discussing the latest on 'renting garages in the city' and 'the Secondary Suite' debate that is continuing across Alberta. Housing is so tight in Alberta, so it is great to see that this debate is continuing.
. . . . CALGARY New Location - Tuesday, August 29th 6:30pm *** NEW LOCATION Red & White Club (north side of McMahon Stadium). Free Parking, beautiful meeting room, serviced by LRT and major roads. Details:
. . . . EDMONTON - Wednesday August 30th 6:30pm *** Sutton Place Hotel Details:
2. REIN™ Golf Tournament. August 28th Limited space, please ensure you are pre-registered this week. Includes: BBQ, Thousands of dollars in prizes, green fees, and riding cart only $89+gst. Register you and your guests by calling 1-888-824-7346.
3. MEMBER'S ANNUAL TOP 10 TOWN FIELD TRIP ONTARIO - August 25th 1. ANNUAL FIELD TRIP ONTARIO - August 25th A fun day visiting the 'Economic Alberta of Ontario' as well as other Top 10 Investment regions. In addition, we'll be visiting areas NOT on the Top 10, but which have tremendous upside potential. If you were on last year's trip, you know you won't want to miss this year's. And if you missed last year - whatever you do, don't miss this one. It is definitely one of the highlights of the REIN™ year. We'll spend the day aboard luxury coaches, investigating regions, meeting mayors and city leaders and having a BBQ and uncovering hidden gem properties. There is limited seating on the buses and they are getting very full already (many from across the country are coming. What a great way to network with your fellow Members and to see how best to analyze a region. Details:
4. "MEMBER'S ONLY" REIN™ ALL-DAY WORKSHOP ONTARIO: August 26th 2. The Ontario REIN™ WORKSHOP is extra special this month, it is all-day following the Annual Top 10 Town Field Trip. It is filled with special We are flying in one of Canada's leading Champion Coaches (Gold Medal, World Champion & Leading Business Builder). We are pleased to present Steffany Hanlen-Francey and her How To Be A Champion in Every Area of Your Life. Two years ago she spoke with the Alberta REIN™ group and literally had them standing in the aisles the breakthroughs you'll have during this workshop will dramatically affect your business, your real estate and personal life. And thats just a small part of this extra special REIN™ Member Workshop. Details:
5. "MEMBER'S ONLY" REIN™ BC WORKSHOP - August 22nd, 7:00pm. Our Quarterly BC Workshop kicks-off the end of summer events and promises to be an insightful look at some real hidden gems. As always, the August BC Workshop proves to be a very special presentation (with surprise guests and new strategies) New research is going to be released, so plan on being there early!
If you are not yet a Member of REIN™, now would be a perfect time to start prospering from the exclusive benefits (including the above listed private workshops). For more details and to become a Member call 1-888-824-7346 or click here:
Real Estate Fundamentals Continued...
As the fundamentals have been showing all along, the Alberta market continues to be strong, as in-migration and job creation continues to attract people from not only across Canada, but from around the world. Our average wages are increasing, our population is increasing, our unemployment rate continues to drop and our GDP growth is slated to once again lead the country.
Here are some very interesting facts that are helping to support the strong fundamentals:
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The Conference Board of Canada is forecasting strong economic growth in Canada, with Alberta once again leading the way. In fact, the projected growth for Alberta's economy is a staggering 6.6%. (BC + 3.6%, Ontario + 2.5%), and this is slated to occur even with the labour shortages we are witnessing.
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People are discovering Canada as an investment center from all over the world. Recently, there have been investors coming here from Asia, Australia, the US, UK and Europe. In fact, if you review the world's press you will see that Canada (with a focus on Alberta) is being discussed more frequently.
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Don Campbell has just returned from presenting our Canadian investment atmosphere (including Why Alberta - Why Now") to a group of major investors in Dublin, Ireland, and the response was overwhelmingly positive. In fact, after Don presented the economic facts, many of these investors (who could invest anywhere in the world) have already booked their flights to here. Once again proving that when the true numbers of our economy are presented (along with the political stability of our country), there is no place in the world that can beat it for long term investment.
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Job creation continues to be strong (with a small lull in June); definitely a sign of strong long-term fundamentals. RBC has also been following the job creation situation and here is what they are saying: (www.rbc.com/economics) "After generating a substantial 96,700 jobs in May, the largest such gain since January 2002, the economy lost a modest 4,600 jobs in June...
Strength in the Canadian economy contributed to a gain of 215,600 jobs in the first half of 2006, a feat not matched since the second half of 2002. With the economy widely expected to grow at a more moderate pace in the second half of the year on the back of slowing trade activity, this impressive showing may not repeat itself. We expect that employment grew in July at a pace consistent with its recent trend of 24,000 jobs a month. Assuming that the labour force grew at its trend rate, a gain of 24,000 jobs will lead to a national unemployment rate of 6.1%." Overall very good news. Now the key is to ensure that the region in which you are investing is continuing to generate jobs and increasing incomes.
In other words, it is a great time to be taking advantage of this strong economy, avoiding 'excuses' and to especially not listen to the uninformed 'dream stealers.' As long as you stick with your game plan, you continue to do your due diligence, and you remove emotions from the equation, you will see the opportunities that are right in front of you, right here in Alberta. Let the 'dream stealers' call you 'lucky' 5 years from now as your net worth has soared and your financial freedom has surpassed even your wildest expectations.
10 Complimentary Tools and Links Available to you as a special thank 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.
Here is the list of support tools and links you you have access to as being part of the 'inner circle'. Below are just ten of the many you have at your disposal.
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Back issues of the Canadian Insider Newsletter... over 20 back issues. Click Here:
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Access to over 40 articles posted by Real Estate Experts... experts in their fields. Click Here:
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Access to the following audio presentations from Economist Carl Gomez (formerly of TD Economics) analyzing the Canadian marketplace: Click Here:
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2 Audio presentation from Don Campbell talking about Current Real Estate Economic Fundamentals
Presentation #1 - Download Here:
Presentation #2 - Download Here:
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If you have registered your book 'Real Estate Investing in Canada' you received 4 free gifts including 2 audio presentations. Details:
- Property Analysis Tool
- Sophisticated Investor Bank Application Template created by mortgage financing expert
- 2 Audio Presentations by Don R. Campbell:
1).Creating Long Term Wealth
2).3 Pillars of Real Estate
18 Rules For Street-Smart Negotiations
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If you have registered your book "97 Tips For Canadian Real Estate Investors" you received an additional 3 free gifts and over 4 hours of audio presentations. Details:
- Audio Recording from Co-Author Barry McGuire on Real Estate Legals. What to watch for and what to watch out for
- Audio Recording from Co-AUthor Peter Kinch on the latest insights for financing your rental properties
- Download the Rental Property Analysis spreadsheet that the banks use
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Access to Canadian Real Estate Success Stories (audio files). Discover strategies Canadians are using TODAY to create success in the real estate market. Download:
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Report on the effects of transportation changes on Real Estate Values (as featured in the Globe & Mail and on the front page of the Vancouver Sun) Download:
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Special Report on Understanding your Credit Report & Credit Score. The best report the federal government has published in years: Download:
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Tenant Clean-up checklist. Critical communications tool for all landlords: Details:
Capital Gains Comparison.
KPMG has recently released a comparison of the true Top Federal and Provincial Marginal Capital Gains Tax Rates per province. It is very interesting to see how these will affect your exit strategy. Here are the numbers:
BC . . . . . . . . 21.9%
AB . . . . . . . . 19.5%
SK . . . . . . . . 22.0%
MB . . . . . . . . 23.2%
ON . . . . . . . . 23.2%
QC . . . . . . . . 24.1%
NB . . . . . . . . 23.4%
NS . . . . . . . . 24.1%
PE . . . . . . . . 23.7%
NF . . . . . . . . 24.3%
Lower capital gains tax increases investment and stimulates the long term economy of the province. It also allows real estate investors to keep more of their profits at exit time. Always a good number to pay attention to.
Overall, by staying focused for the next short period of time, you have the opportunity to create financial freedom of which others can only dream. Of course, the key word is focus. And with an August line-up of 'Members Only' events like this, you can't help to become a real estate investment champion when you take action as a full REIN™ Member.
Focus on the fundamentals, keep emotions out of your decisions, and enjoy the results in just a few short years.
Sincerely,
Don R Campbell Your REIN™ Team
P.S. REIN™ makes the main Irish business newspaper as well as other publications. Click here to read a selection of these stories: Details:
P.P.S. The latest "REIN™ Recommended Reading List" is now available on-line visit this link to see what the Top percentile are reading: Click Here: