Month: November 2009

Homes are getting pretty expensive. Im seeing singles pushing 500K in the East and West ends, and Towns pushing 300K.

why? Pent up demand, low inventory and cheap money.

So what happens to the 2nd larget demographic in Ottawa (25-30years old) in a handfull of years when the market is different?

Picture this: You go out, you buy a nice townhome for 270K, you have a child, a dog  – and you live your life.  Now mortgage rates go up (which they likely will), and if you are on a variable rate mortgage it could be a year – or a fixed , maybe a few years – 5 at most.

The past little while has not been a time of economic expansion for yourself, because you’ve been supporting this new family. So what happens when you have to re-negotiate your rate on a home that you were possibly both over-leveraged into and bought for a premium due to affordable rates?  Now you have an expensive home with an expensive loan. hmmm… HOUSE POOR.

Unfortunately, I think this is going to happen to many people.

Makes me happy for all those people I helped buy homes that seemed to be 15-20K under potential market value, and all the while they could have afforded MUCH more – these people will be alright.

What do I think the answer will be? Green Housing. Eco-friendly developments, and heavy government incentives.

I think people are going to need to move to (relatively) more affordable housing (via $$ incentives) that will present a lower carrying cost to offset the volatilty of mortgage rates over the life of the investment.

Incentives for either a green retrofit or new green builds will be a sensible bailout for Canadian homeowners that have overleveraged themselves during THESE times.

I would think that it might be a wise invesment to get into these kinds of homes by buying stock or even buying these homes pre-construction once plans are released.

New technology and architechtural advancements will combine to give Green living a huge appeal in a coutry like Canada – where the land is already are major source of enjoyment.

Cottage living, ice fishing, skiing, snowboarding, hunting, four wheeling, fishing, hiking, sight seeing – all things Canadians enjoy that come from the land.

The harmony between housing and environment has incredible potential – and my prediction is that we will see this relationship grow tremendously over the next 5 years.

Thoughts?

Postscript:

the LARGEST demographic – our parents (50-65 years old) will be looking for LIFESTYLE living solutions that run with the land. Waterfront retirement resorts or granny flats, functional housing backing onto golf courses and wetlands that will provide them with gorgeous views, opportunities to see wildlife and enjoy peaceful walks. These types of housing, being ECO-friendly, will also provide better air quality, more sunlight and perhaps even community gardens. I would PERSONALLY like to see housing for the elderly that not only do this, but also instead of offering RENT  – perhaps the buildings, resort or immediate community could be a corporation – like a condominum arrangment perhaps – where these people can continue to enjoy the benefits of Real Estate investment, while condo fees support staff and management.  Why pay the corporation when you can BE the corporation?

And if you like this blog, check out a few of my other entries:

https://ottawacapitalgroup.wordpress.com/2008/09/18/agricultural-innovation-out-of-necessity/

 https://ottawacapitalgroup.wordpress.com/wp-admin/post.php?action=edit&post=26

https://ottawacapitalgroup.wordpress.com/wp-admin/post.php?action=edit&post=59

Last time it was too canned from an exercise I had done. It didn’t read correctly and was a little scattered.

I took some stuff out, added a little, and re-organized. It definitely reflect the person I am much better. Here goes.

PERSONAL MISSION STATEMENT

My life’s journey is to establish my family as one that is secured, healthy, wealthy, strong and happy.

I will be a person who believed in something bigger than himself, that there was a purpose behind every day of his life and he never lost sight of it. One who devoted all his time and effort to the betterment of his loved ones and raised the bar for the standards in ethic, passion, determination and drive.

I believe that love, passion and caring are to be guiding forces in life.

I am at my best when I am using my unique skills and traits to help others.

I can do anything I set my mind to.

I will lead by example.

I will find opportunities to use my natural talents and gifts.

I will enjoy my work by finding opportunities where I can help people solve problems.

I will find enjoyment in my personal life by providing security, freedom and pleasure.

I will surround myself with family, and a handful of good friends who share my values.

I will stop procrastinating and start working on:

• Realizing my potential.
• Continuously improve my production capacity and set objectives for production.
• Follow through with action steps – implement the knowledge I have gained.

I will strive to incorporate the following attributes into my life:

• Being the only driver in my life. I choose where, when and how
• Dedicated and devoted to my personal mission
• Becoming a true pioneer, an entrepreneur, and a role model

I will constantly renew myself by focusing on the four dimensions of my life:

• Being physically strong and conditioned.
• Personal Values and Principles that guide the person that I am.
• Focus and Unbreakable Ethic. Determination.
• Living with Passion