Investment Strategies for Weathering Unpredictable Economies
Oil prices continue to decline and despite rumours of the Keystone XL pipeline making progress, the US reports it already has record oil reserves. Most analysts expect oil prices to bounce back by the end of 2015, but in the meantime many investors are searching for the strategic moves to preserve wealth and keep yields high.
1. Accelerate Property Acquisitions Ahead of the Surge
Data shows a significant surge in individuals searching to buy Canadian property at the beginning of 2015. This is no doubt in part thanks to the interest rate cut, but also due to oil prices and the continued excitement and confidence in Canadian property markets. Until oil rebounds and proves reliable, interest rates are raised substantially, there is no reason for this activity to wane. This suggests at least several quarters of strong buying activity.
2. Go Retail
Both low interest rates and low oil prices benefit the retail sector. Transportation and store inventory tends to become less expensive, all while reducing the cost of capital.
For retailers, it’s a win-win situation on both sides, with lower operating costs and increase in sales.
Canada continues to boast one of the soundest and best performing real estate investment markets. For Canadian income investors, this might be the best time to scale with inexpensive leverage and diversify across a broader section of the nation’s property markets. Invest in traditional urban strongholds, in rapidly growing trendy cities and branch out into new secondary and tertiary markets. Invest in multifamily, retail and mixed-use.