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Keeping a positive mindset in a toxic work environment can be an extremely difficult task. I've spent some time in toxic work places and motivating workplaces and there is a vast difference between employee moral …

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The Canadian Real Estate Market Trending Down

Submitted by on Friday, 15 July 2011No Comment
The Canadian Real Estate Market Trending Down

A recent report from the Toronto Dominion Bank indicated that current real estate prices in Canada are inflated by¬†approximately 25% and even higher in other parts of the country. The message was clear and that was the housing market will decline over the next two year by upto 25%. This is due to the rapid increase in real estate prices and we’ve reached a point where the market needs to correct itself. What does this mean for current home owners?

If you arent looking to sell your home it means nothing. Market corrections are a part of the economical cycle. For example say you spend $100 each month on shopping for new household items or clothing. However the more you spend, the more you realize its difficult for you to keep up with these spending habbits as prices inflate. So what do you do? normally stop spending until the market realizes people arent buying their items so they have to come up with either new products and better rates or lower their rates. The cycle would repeat itself only for the real estate market the cycle time is much larger.

If you are looking to sell your property you might have to make some concessions on price. However I always find that real estate is a sound investment and historically speaking has provided me a better return than putting my money away in a bank. Immigration is something that will likely not cease in Canada and as a result as immigration increases so does the demand for your land. People want to live close to the city and with more buyers the value of your land will naturally increase relative to the sub-urban areas.

The message I am trying to relay here is the expected decline in prices is a market correction and a part of the real estate cycle. Having said that I stand by the fact that real estate has been my most prized asset and has consistently delivered the best return for me. We have strict lending policies here which is opposite to what happened in the US. As long as our banks and home owners/buyers stay smart so will our real estate.

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