Now that the business cycle is in the downward part of the curve (the recession), we have to change our investment strategies. Here I will let you in on some tips to profit from this recession. I recommend if you haven’t done so already, please read my article from last year ‘Understanding the Recession’.
It’s important to know that the U.S. recession and the Canadian recession have different causes, so when you read stories from the U.S. try to remember they are not battling the same things we are here. Responses they make to improve their market, may weaken ours. The reason the economy here in Ontario is doing poorly is because we are primarily a manufacturing based economy, and our prime market is the United States. The United States are not buying our products because of their own recession. The engine for the economy of the world, the U.S. consumer, is in hibernation, and will not re-emerge again until the vacant properties get discounted and sold, and the U.S. currency stabilizes. Obviously, this will not be a short period of time. Last time I was asked about the recession, I said it would take a year; I will stick to that prediction, (making it mid October 2009) but for real estate, the timing is poor, so we won’t see a real resurgence until April 2010.
Another prediction I would like to make is the significant fall of the value of the U.S. dollar against the Canadian dollar. This will hurt the manufacturing sector, but will make investment in U.S. real estate very attractive. If you are considering making a purchase like this, I can connect you with an associate through the Coldwell Banker network to take advantage of this opportunity. Those ocean view condos in Miami that are all over the news will eventually be sold, and investors will eventually rent them out. If you can wait out the downturn, a property like this will be a wonderful addition to your portfolio. When you are ready to retire, you will have a place ready for you in the sun!
Apart from U.S. properties, I recommend properties along the Toronto subway system. Doing this will insulate yourself the best you can from a loss in value. Buyers are demanding more conveniences from the properties they occupy. This means living close to work, reducing commuting time; improving their quality of life with an abundance of amenities in the neighbourhood; and more people are considering the environmental impact their life in a particular area will have.
Whatever your plans, I can help you find a property that meets your needs into the future. I can advise you on investments that will hold their value and keep you updated on market trends. With me by your side, you will get a great deal.
