hot tip

/Tag: hot tip

August 2015

Canadian housing market – doomed?

By | 2015-10-05T20:06:17+00:00 August 15th, 2015|Hot Tip|

There are a lot of doomers out there about the Canadian housing market. First, there was Deutsche Bank as well as our Central Banker Poloz that saw us 30% overvalued. Now CMHC is raising a warning finger.

In fact CMHC in its quarterly house price and analysis and assessment of 15 markets says Toronto, Winnipeg and Regina are all now considered high-risk markets. But unlike Poloz, CMHC says Vancouver is ok … but Toronto, Regina and Winnipeg are at HIGH RISK!

Add to this that high profile demographer Harry Dent says Vancouver is the single most bubbly city on the planet.

What does Ozzie think? Subscribe to […]

What is a cap rate anyhow?

By | 2015-08-08T11:41:52+00:00 August 8th, 2015|Hot Tip|

Investors are always searching for profit or yield, but how do you know what actual cash flow there comes out of a given property? Well, Real Estate investors – small and large – use what they call a cap rate to find the true net income. But to find that elusive rate is one of most difficult and perplexing problems for realtors and investors. Market comparables are often hard to find and the income and expense statements often only a wild dream by the owner.

Comparables for an older apartment building may also be harder to come by – not as easy as […]

Islands in the Sun – Recreational island investing

By | 2015-08-01T19:09:20+00:00 August 1st, 2015|Hot Tip|

Recreational island investing … often it is better to poke yourself with a sharp stick in the behind.

Things to do – why you should be doubly careful when investing In Your Island in the Sun

  • We forget that islands take ferries (some take 3 ferries)
  • Building at waterfront could be impossible (can no longer go to the water – 100 ft. away)?
  • Buying on a “No ferry islands” – boat access only – hardly any use?
  • Location – west view is best – look where your island property gets the sun? Morning or afternoon sun?
  • Mortgaging difficult – if owner carries – get 10 years length
  • WATER: water well … just enough to brush your teeth. […]

July 2015

Banks keep almost half of the rate reduction!

By | 2015-07-26T12:24:49+00:00 July 18th, 2015|Hot Tip|

Ask your bank why!

When the Bank of Canada cuts interest rates, it does so in an effort to jumpstart the economy by making it cheaper for consumers and companies to borrow money.

The central bank cut its rate by a quarter percentage point last Wednesday, the second such increase this year for a total of .5%.

It passed on that cut by only .3% … so a total of a .50 reduction by the Central bank to our fine banks … resulted in only a .30 reduction in mortgage and credit lines and all variable loans – the rest into profits for banks.

So: on a $400,000 mortgage in Vancouver you should […]

Hot Tip – Don’t Worry About Greece … Worry About The EU

By | 2015-08-15T21:31:29+00:00 July 5th, 2015|Hot Tip|

All the talk about Greece has everyone’s head spinning. People in Europe have mixed feelings.

Spain together with Italy/Portugal and a many others are watching Greece with interest. The worry by the thinkers here is that the left wing parties would gain strength if Greece is perceived to be winning (ie. will win a foregiveness of 50% of debt again). In fact Spain and Portugal the “anti-austerity parties” growing dramatic support (let’s stop paying the debts) and there is great sympathy for them.

The shocker was that yesterday Austrian Parliament faced an EXIT THE EU petition of 256,000 (collected in a week) that want to force a new stance with Brussels.

The […]

June 2015

Germany real estate deals

By | 2015-08-01T18:53:53+00:00 June 30th, 2015|Hot Tip|

Germany never saw a collapse like Southern Europe, Spain, Portugal and the like. Prices stayed the same. Never declined. But now real estate is really on the way UP in all major cities.

We said 3 years ago in our annual forecast that we felt Berlin and most other German cities were undervalued. Since then prices have risen to such an extent (and with it rents) that it is making headlines and TV shows in Germany.

Rents are actually a lot higher and are up:

– Munich are up 29 %

– Frankfurt 23% and

– Cologne up 25% in a year

So are prices, Germany real estate deals:

– […]

May 2015

It is not always the lowest rate that is the most important aspect of your mortgage

By | 2015-07-26T12:24:50+00:00 May 30th, 2015|Hot Tip|

Discuss a list of items you should ask about your broker or bank when negotiating your next mortgage:

– How much can I prepay per year with no penalty?

– When can I make these payments?

– How much can I increase my payments per year?

– What is the penalty to break my mortgage? (most are 3 month penalty, with fixed terms having a potential Interest Rate Differential Penalty)

– How is my IRD penalty calculated? (major banks have a really nasty calculation for their penalties that could cost you 2.5 times more than a “non-bank” lender)

– Am I guaranteed your best rate when I lock […]

Hot Tip – Foreclosures in Calgary?

By | 2015-07-26T12:24:50+00:00 May 19th, 2015|Hot Tip|

They are showing up. Some private listings claiming foreclosure are turning up on Calgary's Kijiji (we counted 32 this week) and Craigslist, but they may not be true court-ordered sales. Calgary realtor Stephen McDonald of CIR Realty, (403-680-0799) which handles foreclosures, counted a total of 55 judicial listings of residential property and 60 'bank owned' listings within a one-hour drive of downtown Calgary this week. McKenzie Towne 2-storey detached house for $319,000. Here are two MLS: 1. Detached 3 bedroom house in NW Calgary, under a Court of Queen Bench foreclosure. 2. 1,044 square foot townhouse in SE Calgary. In foreclosure, offers to be presented to Court. More details at www.factsbyemail.com