Todays financial headlines sure sounds bad....
Once again I read the papers today and the headlines blare out a collapsing stock market.."Worse drop then in 2000"...reads the National Post. I myself get caught up in the headlines. It is difficult to sip a tall, cool one while reading all this negative news. I have to step back and once again consider the fundamentals of where my (and maybe even yours) real estate portfolio lies.
So do I take my own advice from past blog postings and not panic? ...Do I really have a choice?. The answer is yes I have to take my own advice and go back and study the economic fundamentals of the Barrie, Orillia area and see how they affect my real estate holdings. So I ask, how do some of these national headlines affect real estate properties in Midland? In Collingwood? Does this dramatic drop ( over 700 points on the TSX in the past 3 days!!) affect real estate values of home owners on the Simcoe Shores? I have to say no...no real affect on home prices....yet.
Once again I espouse to the theory that the National news has little effect on home prices. Yes it may be a slow change coming down the road. But national news has little direct effect on real estate values TODAY. And besides, what am I going to do? Sell everything off today. When I read bad news like this I am reminded of the comment Jimmy Stewart makes in the movie "It's a Wonderful Life" where he tells all the panicked people during the bank collapse that old man Cotter is smart because he is not selling...he is buying....why, because everyone else is selling that's why!!
I write these words, in many ways, to alleviate my own uneasiness with the Canadian real estate market. We are definitely being affected by the slow down in the US. But that is because North America is like a giant bathtub economically where we are all in the same water. Canada just has more lifejackets we can cling to to ride out this storm.
Like you, my initial reaction to reading negative headlines is to think we are in trouble...I think maybe I need to sell all my properties, just to be safe? But this blog is like a journal for me. I write about what I love and it becomes therapeutic. I have to listen to my own words and relax. Economically Canada is on solid ground. I can prove that and I have commented on it many times right here. This is a temporary blip...and most important of all, real estate is a long term investment. Not values based on blips in the stock market. So I am going to relax now and get back to business.
There... I wrote about it and it calmed me down...no need for panic...and I feel better...do you?
Mark Vosylius
(705)-812-1033
Email: mark(at) manainvestments com
Mana Investments - www.manainvestments.com - Defining real estate values and economic fundamentals for investors and home owners the Orillia, Barrie, Collingwood, Midland areas. We specialize in using RRSP as for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario
The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.
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