Investment - Real Estate Vs. Stock Market

21/11/2007

REAL ESTATE I have a question for you. Why are you not investing in real estate? Yes you – why do YOU, not own a piece of dirt other than the piece you live on? Yah, Yah I hear your excuses loud and clear. “I don’t want the hassle of tenants.” “You have to be careful you could lose your shirt.” “The only one that makes money in real estate investment is the real estate agent”. Blah Blah Blah – that’s what I hear.

undamental change in moving motivation.

Here's what I mean. Twenty years ago, people were more settled than they are now. The idea of contract work was just making its debut for most of North American society. The road to success was more about getting a good job with a good pension than it was about starting your own business or simply working from a "YOU INC" mentality. The modern vision, for one's self in the job market, as a "Gun-For-Hire" was practically non-existent when my age group (35-40) hit the job front. With people staying put at a particular job for most of their working years, the need to move was restricted to, "Keeping up with the Jones" - the fuel of the "Move-up Market".

The government helped to relax the, "Stay Put Attitude" when they began offering a CMHC insured mortgage that allowed banks to loan up to 90% of a homes value. That was amended about a dozen years ago to allow first time buyers to get in to the housing market with only 5% down. And now ultimately anyone can use the 95% mortgage rule to make a move. I believe that this government program has made the biggest impact in establishing our transient attitudes toward home ownership. But the government can not take all the credit (or blame). Our societies high divorce rate and generally low interest rates make strong contributions to today's on-the-go, have-to-have-it-now, fast-paced life style.

Thirty years ago, when the first of the boomers began hitting the housing market, almost no one moved in the winter. With so many different influences affecting the way we live and the choices we make it's no wonder our moving and house-hunting habits have changed.

When selling a home in the market of today, you must realize that times have changed, buyers are quite happy to purchase their new castle in the middle winter with their eye on moving in late spring or in many cases any time at all. The reason is this transformation our society has undergone. And just like the advent of the 24-hour convenience store that lead to our 24-hour society, this transformation has smoothed the peaks and valleys of our market and taken it from a seasonal industry to a 12-month market.

Bottom Line

If you're thinking of making a move you might as well get your home on the market now when there is a little less competition. The Buyers are there waiting for you all year round, so why wait? Thanks for listening.

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