I wanted to share a great blog post from Ken McLauchlan that brings some perspective to the current economic atmosphere…
Courtesy of www.kensblog.ca
The “need” to own real estate is strong
I have never been one to be a “big” investor in stocks and bonds. Don’t really know much about this sort of investing, although I do realize the importance it plays in the scheme of things. I suppose I look at the stock market as an quick reference indicator to how things are doing out there in our country and abroad. For me the stock market is so fickle, reacting to so many triggers – it’s hard for me to get a handle on it. That’s why I primarily stick to real estate investing – preferring long term holds (real estate) over short term. Real estate is something I know and something everyone needs.
Today’s stock market is a bit concerning. It seems collectively the markets have decided that the US is headed for a double dip recession. This way of thinking is fueled by terrible job creation rates, the sorry state of the US economy and the continual lack of a plan to get things in financial shape. Europe is in a mess for the most part with talk now of Italy, Spain and Portugal soon needing a Greece like bailout. It doesn’t seem good for the short term, BUT what can we – the average consumer and investor do about it all?
We need to think long term rather than reacting to daily news bursts about economies. What little confidence we have in various economies would be shattered if we followed our various news sources with their spin on the negative. Sure we must be aware of how things are, but in the long run – there is nothing much we can do about it.
Keep going about our business. The real estate market will have its ups and down and quite possibly we are heading into a “down period.” The down period will consist of fewer sales and a softening on price acceleration. But the need to “own” real estate is strong locally.
In the fall, our real estate markets will continue to be fueled by low mortgage rates, immigration, the local economy, and supply. When the housing supply picks up, turnover will slow down and price acceleration will ease.
So buy those investment properties, people need a place to rent. Buy a principal residence, in the long term your asset will grow, and if you have the need, buy a recreational property – your choices are great.
One other thing – quit watching and listening to negative news spins – it’s all done with a purpose.
– Ken McLauchlan, Broker/Owner RE/MAX Hallmark Realty Ltd.
If you’d like to discuss opportunities to invest in the real estate market, contact me today.