By: Lourdes Elardo
My career in Accounting exposed me to the different facets of the financial world, investments as one of them. People have always been fascinated how money will work for them instead of the other way around. However, there are individuals who are interested but not committed. Author Ken Blanchard says, “When you’re interested in something, you do it only when it’s convenient. When you’re committed to something, you accept no excuses, only results.”
When I was younger, having a stock brokerage company as an audit client, I decided to buy an energy stock. I bought some shares that cost me US$2.38/share. Guess what?!? In less than one year, it went to US$.05/share! The bear stock market in the Philippines ended my stock investing career. After my Canadian immigration, I found out that one of my friends in Los Angeles, California States was able to buy 7 properties in one year. I was tongue – tied as this young millionaire friend of mine is only in the first quarter in the money game of life. He was only 28 years old when he started to become a real estate expert. You may visit his website at: www.acquissets.com. I became interested in the real estate investing arena with his influence and inspiration. The real estate investment market is a little bit different in the US as compared to Canada although there are a lot of similarities too. My research of the real estate investment field connected me to a very motivated individual who was able to own 142+ properties in 5 years and I’ve a friend who was able to buy 17+ more properties in 2 years! Isn’t that amazing?!?
Monica Gutschi’s article in the National Post Newspaper on March 30, 2006 entitled “Real state more stable than equities” caught my attention. “Toronto. Here’s a news flash for those who may have suffered through the real estate crash of the early 1990’s: As an asset class, real estate is actually more stable than stocks or bonds.”
“Much more stable, says Catherine Marshall, senior vice – president of LaSalle Investment Management a division of Jones Lang LaSalle Inc., one of the world’s leading real estate service providers. Over the longer term, she said in a presentation to the Toronto CFA Society, 30 years of data show that real estate is “less risky” than either stocks or bonds. As well, she said it’s a well – developed asset class, in which investors can choose between direct property investment, partnerships and joint ventures, real estate funds, pooled funds, mortgage funds, and mortgage bonds.” “And it’s a growing and increasingly profitable asset class. Income returns from real estate has been steady “through good times and bad,” Ms. Marshall said, averaging 8.2% over the past 30 years. “Valuations are all attractive, Ms. Marshall said, if one considers private real estate as a high dividend – paying equity and compare it to real estate income trusts, or REITS, and the S& P/TSX Index. These are the bests of times in real estate. Ms. Marshall said, pointing to the diversity of offerings and the increased liquidity in Canadian real estate in recent years. We are in a secular bull market and there is no end in sight.”
Tip: Do you want to know where the hottest Canadian real estate market at this time? Visit www.rbc.com/economics Final words: Invest in economic fundamentals not on hype or emotions!
