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Archive for the ‘Manitoba’ Category

Housing Activity to Rebound in Second Half of 2009 and in 2010 reviewed by Moishe Alexander

Comments: 0September 8th, 2009 by admin

Housing starts are expected to rebound in the second half of 2009 and will reach 141,900 for the year. Starts will increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook, Canada Edition* report. The overall forecast totals for housing starts remain unchanged from the second quarter release.

“Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year”, said Bob Dugan, Chief Economist for CMHC. “In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen.”

Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction.

Existing home sales, as measured by the Multiple Listing Service (MLS®)¹, have rebounded strongly since January and will reach 420,700 units in 2009 and remain close to that level at 419,400 units in 2010. The average MLS® price is expected to moderate to $301,400 in 2009 and to increase to $306,300 in 2010.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of July 23, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

¹ The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.

Information on this release:

Charles Sauriol
CMHC Media Relations
613-748-2799

National Housing Outlook

Key Housing Market Indicators

	2008 Actual	2009 Forecasts	2010 Forecasts
Total housing starts (units)	211,056	141,900	150,300
Total single-detached houses	93,202	68,400	72,450
Total multiple housing units	117,854	73,500	77,850
Total MLS^® sales¹	433,990	420,700	419,400
Average MLS^® selling price ($)	303,607	301,400	306,300

Provincial Housing Outlook

Total Housing Starts

	2008 Actual	2009 Forecasts	2010 Forecasts
Newfoundland and Labrador	3,261	2,950	3,000
Prince Edward Island	712	625	640
Nova Scotia	3,982	3,050	3,325
New Brunswick	4,274	3,285	3,500
Quebec	47,901	43,175	41,100
Ontario	75,076	48,675	50,000
Manitoba	5,537	4,000	4,300
Saskatchewan	6,828	3,750	4,150
Alberta	29,164	16,100	18,250
British Columbia	34,321	16,250	22,000

Tags: activity, Alberta, Bob Dugan, British Columbia, Canada, Chief Economist, CMHC, CONSTRUCTION, forecast, housing, Labrador, manitoba, Market, MLS, Newfoundland, Nova Scotia, Ontario, Outlook, Prince Edward Island, Quebec, Release, Saskatchewan, Starts
Posted in Alberta, British Columbia, CMHC, Manitoba, Newfoundland, Ontario, Quebec

Protecting Investments from Inflation

Comments: 0July 17th, 2009 by admin

Vince writes,

My problem is as follows: I am an immigrant who has been in Canada for 6-7yrs and have no RRSP room to speak of, and can only count on a small CPP. All my savings and investments are in a non-registered account.

How do I protect myself against inflation? Do I buy short term bonds (XSB), real return bonds, or do I stay with common shares?

My allocation if I include property is about 60/40 FI/Equities.

Inflation is certainly a hot topic for many investors since every pundit in the media has an opinion of where inflation will appear and to what degree of severity with hyperinflation being a term that’s been thrown around far too loosely as governments attempt to stimulate economies.

Any conservative investor, regardless of risk or investment style, needs to concern themselves with inflation in all market conditions because inflation affects the real value of your investments. If your investment portfolio returned 4% after costs last year and the inflation rate was 2% your real return for the portfolio was only 2%. What an investor wants to do is achieve returns in their portfolio that outpace inflation over the long-term and provide them with equal or greater purchasing power in the future.

Investing for inflation is really not much different than wanting a raise each year that matches your increases in the cost of living. Essentially your portfolio should be giving you a raise each year in your income to offset the increasing prices of goods and services you use.

To answer Vince’s answer directly it’s not whether he should invest in only short-term bonds, real return bonds or common shares but how much of each to hold over the long-term.

Short-term bonds provide decent inflation protection at the expense of a much lower yield than a longer yielding bonds because you’re not taking on the same interest rate risk. Real return bonds maintain your investment from inflation and you only need to buy a weighting large enough for your desired allocation. Common shares, specifically ones that pay dividends, offer an investor a few advantages in terms of protecting against inflation. Companies that own/operate inflation sensitive assets such as real estate, commodities and infrastructure tend to fare better in valuation terms than other companies. Some dividends stocks pay a dividend and increase that dividend on a yearly basis above the annual rate of inflation then have already achieved your desired goal if the dividend continues to be paid regardless of the effect on share prices. Because dividends, for Canadians, are eligible for the Dividend Tax Credit in a non-registered portfolio the taxation of dividends is less than that of gains from interest (bonds & GIC’s) or from capital gains.

http://www.nurseb911.com/2009/07/protecting-investments-from-inflation.html

reviewed by Moishe Alexander, CFC canadian funding corp CEO

Tags: Alexander, allocation, Canada, canadian funding corp, canadian funding corporation, dividend, inflation, interest, Investment, Investments, investor, moishe alexander, portfolio, Protecting, raise, rate, return, risk, term, Vince, year
Posted in Alberta, British Columbia, CMHC, Housing Market, Manitoba, Newfoundland, Ontario, Quebec, Rental Market, Uncategorized

Israeli House for Sale in Toronto

Comments: 0July 15th, 2009 by admin

By Lauren Kramer

As stock markets around the world have taken a fall with the economic recession, one market that remains strong is Israeli real estate. The Park Hyatt Hotel was host to Israeli real estate firms including Azorim, Gindi Holdings, Dimri Building & Development, Pollock Real Estate and Ashdar Building Company a few weeks ago when they flew into Toronto to deliver a presentation to potential investors.

It was the first time they’d done so directly, according to Ainnat Lifshitz, director of marketing and sales of Bayit4U, the company that coordinated the event. Alongside the real estate developers were bank representatives and lawyers who “give a panoramic view of Israel and cover all aspects of real estate,” she said.

Residential properties in Israel were under the spotlight as they’ve performed well in recent months. According to Lifshitz, demand for homes in Israel was up 14.6 percent in April 2009, compared to the same period in 2008.

http://www.canadasisrael.ca/2009/07/israeli-house-for-sale-in-toronto/