Taginflation

Home Prices Heat Up Despite High Interest Rates

Some weird stuff is happening in the world of real estate. As you likely know, the Bank of Canada has steadily raised interest rates over the past year in hopes of cooling inflation. This was also supposed to cool the housing market. Conventional wisdom dictates that higher rates would result in more mortgage defaults, more housing supply, and lower home prices. Oddly enough, none of that is happening.

Posted December 16, 2020 Interest rates

Average inflation targeting… remember this term.

Last week, I participated in a webinar featuring Economist Dr. Peter Andersen. While there was a lot of information covered, today I want to focus on a couple of key areas.

What can business expect in 2021?
Average inflation targeting and why you should remember this phrase.

Rental properties as a secure long-term investment

Posted January 23, 2020 Real Estate news

Real estate may not be sexy, but…

Rental properties are a secure long-term investment. Note the emphasis on “long-term”.

Check out any seven-year period over the past 50 years (anyone who has read this news site knows that I always recommend buying and holding for at least seven years). Property values have almost always risen.

Sure, the last five or 10 years have seen fantastic appreciation in almost every part of Canada. But, let’s leave capital appreciation out of the equation for now.

Why aren’t we talking about rental income? Or, how about the equity growth through your mortgage being paid down each year?

RENTAL INCOME IS UP, UP, UP!

Part of what makes rental properties attractive is that rent rises with inflation (or even higher, in many cases, as we have seen in urban markets like Toronto and Vancouver). This is how you create your own pension or retirement income! Continue reading “Real estate may not be sexy, but…”

Posted June 19, 20186 Comments Mortgage News

Real Estate Rebounds in June as Expected!

Earlier this year, I voiced my disagreement with the real estate pessimists who said a real estate crash or bubble was forming. Click here to read more.

This same more positive outlook is backed up by CMHC’s latest Housing Market Insight report for Ontario courtesy of regional economist Ted Tsiakopoulos.

Below are some key highlights from CMHC’s report:

Continue reading “Real Estate Rebounds in June as Expected!”

Posted April 19, 20184 Comments Bank News

Got a mortgage? Good news: Bank of Canada didn’t raise rates yesterday!

Yesterday, Bank of Canada (BoC) Governor, Stephen Poloz, left rates unchanged. This kept the bank prime rate at 3.45%.

This also, indirectly, affects fixed mortgage rates. Great news for anyone with a mortgage. Go ahead, it’s okay to feel good about paying a low interest rate on what’s probably the biggest debt of your life!

ARE ECONOMISTS RIGHT?

For months we’ve heard economists forecasting 2-4 BoC rate hikes for 2018. So far, we’ve had one increase – in January. Should we be expecting three more increases? Only time will tell, since the BoC raises its rate when inflation rises above the target inflation rate… currently the range is between 1% and 3%, and sits at an acceptable 2.10%. Some believe inflation has increased temporarily, in part, due to increased minimum wage.

Continue reading “Got a mortgage? Good news: Bank of Canada didn’t raise rates yesterday!”