Friday, December 19, 2008

"The Glass is definitely Half Full!"

Richard Crenian Blogs
December 19, 2008

“The Glass is definitely Half-Full!”

Oil Prices are down- we laugh every time now when we fill up! If we are flying it should be cheaper because oil is less! As a consumer we are glad that it is costing us less.

Retailers are concerned about their sales. Yes but that translates in better deals for us consumers. Retailers profits are down but their sales are still about the same. What good deals out there!

Fact: Government of Canada is lowering its rates. That is good, cost of funds for borrowing are cheaper. We are experiencing “deflation” and as a consumer that is better for us.

Fact: House prices are lower. Our kids can now afford to buy the houses at lower interest rates. If we are buying retirement homes, or condos it is a great time to look at that. If you are looking at a second home, prices look good for those. Just avoid those land deals. We have a ton of supply of housing right now.

Fact: If rates are lower, my interest on my cash is lowering too.
Yes, so look for safe, alternate investments that provide cash flow higher than the rate of inflation. Look for appreciation down the road, with those qualities in mind.

Fact: High quality commercial real estate is still looking like the way to go. Cash flows, appreciation are all part of that look.

Fact: Howard is back, and it is -37 in Calgary. Dress warm this weekend, and tell Howard to buy a parka after that Tucson trip. Don’t feel too cold for him. He will go back soon.

My blog of November 26th is enclosed, below.

Richard Crenian

Richard Crenian Blogs

November 26, 2008

“Of Promoters and Bandits!”

I was looking at my mail this morning and cannot believe people are trying to sell land investments for future residential projects.
They were promoting investing with you retirement fund…….
GRRR………that makes me so mad.

Let’s see……….
1. House prices are tanking
2. House are taking longer to sell
3. No demand for newer product
4. More supply for product than demand
5. New product is more expensive than existing
6. There is no cash flow associated with the product today
7. No cash flow in the foreseeable future
8. Is land depreciating?
9. Have we seen bottom?
10. Aren’t there better things to do?

So if all the world is scared of housing why would you be investing in land…….unless it is such a deal, you are managing it and you are buying it without the promoter taking all the profit.

Strange isn’t it how some of the promoters out there think we are fools!

Richard Crenian

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