Be a Canadian “Chicken” with Fat & Happy Real Estate Investment Returns
A new report in the Edmonton Journal describes Canadians as “fat and happy…too chicken to invest” slamming the nation’s citizens and businesses for being too cautious in their investments.
So do you need to head to the roulette table to find the returns you are looking for or are we on the right track?
Proud to Be a Chicken
The above mentioned report went on at length to criticize Canadian’s investment habits for playing it too safe and for not being more like our more flamboyant and brave cousins in the U.S. Do you really want to be more like them, with a desolated economy, high unemployment, rising poverty and continuing financial struggles? They do have the iPhone 5 but then again you can now get one of those here in Alberta and no amount of risk taking is going to help you bring home any of the Florida sunshine.
Canada is on top right now and is the envy of most of the globe exactly because of our savvy banking system and avoidance of extreme risks. Why break that? Chickens lay plenty of nest eggs and investing wisely is not a bad thing for the country, a bad thing for individual Canadian’s financial security nor their children’s. So why go wild when there are plenty of safe ways to invest at home for great returns?
Wake Up Ben!
Besides, Canadians have real reason to be cautious today. Benjamin Tal, CIBC World Markets’ deputy chief economist recently tried to convince markets that the housing downturn in Vancouver and Toronto wouldn’t be as bad as is feared by saying an emerging growth in the number of 25 to 34 year olds who are the biggest portion of first time home buyers would prop these markets up. Please! This is the exact demographic slammed the hardest by the new mortgage rules. Vancouver and Toronto are going to get smashed by the residential downturn and per a Vancouver newspaper article last month financial advisers there are already warning retirees to cash out their homes and head to cheaper and safer places, which we all know means Alberta.
There is safety in Alberta and not only is it holding its own but local real estate is booming in value and sales volume and will keep on growing and throwing off healthy investment returns as long as the other provinces keep taking hits, which could be at least another 7 years.