January 2011 Canadian Economic Fundamentals

[Ally]

Think like a buyer to sell your home fast




When trying to sell your home, you must position it appropriately. Cincinnati Realtor Beverly Corsmeier says if you are a seller, put on your `buyer hat` and take a look at what is on the market before pricing your home.




`Throughout my career in Cincinnati I have experienced several things that may help you sell your home. Here are a few things I have experienced from the buyer`s perspective:






$175,000 or More: If a home is marketed for more than $175k, buyers don`t want fake wood floors. I`ve had many laugh and say that the homeowner should have just put down linoleum throughout. It really does scream `cheap way out`.






$300,000 or More: So you want $300k or more for your home? I hope it has some form of solid surfacing to catch the buyers attention. Formica just won`t do for today`s buyer and will definitely lower an offer amount. Also, white Corian is now a dated surface. Be sure to invest in the areas that will set your home apart from the competition.



Read the full article here.

 

[Ally]

Quebec rethinking policy on shale gas




The Quebec government is taking a tougher stance on controversial shale gas development in the province.




Until now a staunch supporter of shale gas extraction ` with its potential bounty of jobs, economic development and lucrative royalties ` the government of Liberal Premier Jean Charest appears to be wavering in the wake of a report Friday of a gas leak at one of the test wells.




For months, provincial ministers have played down concerns expressed by residents and environmentalists about the extraction technology known as `fracking` ` the fracturing of layers of shale with a high-pressure blast of water and chemicals to free up the natural gas. One minister even scoffed that cows give off more greenhouse gas than shale gas wells.




Opponents say there are many documented instances of contaminated drinking water, damage to farmland and other fallout from fracking operations in the United States. They have called for a moratorium on the Quebec development.





Read the full article here.

 

[Ally]

100,000 jobs forecast in new report




OTTAWA`Corporate tax cuts will pay off in higher investment and more jobs for Canada, but it will take the better part of a decade for all the benefits to kick in, says a report by a leading tax expert.




The paper, from economist Jack Mintz, commends Ottawa for sticking to its guns in bringing down the corporate tax rate from 16.5 to 15 per cent next year.




Mintz and co-author Duanjie Chen, both of the School of Public Policy at the University of Calgary, said that taking the corporate rate to 15 per cent will result in a $30.6-billion addition to the country`s capital stock and generate 100,000 jobs.




However, they conceded it will take at least seven years for the full benefits to kick in.



Read the full article here.

 

[Ally]

Why tenants need household insurance




Say someone breaks into your apartment and makes off with your cherished possessions: laptop, flat screen TV, that leather jacket you got for Christmas. Or maybe the dishwasher overflows, flooding your kitchen and the unit below. It`s quite a mess you`re in.




But it could get messier, and financially crippling, if you don`t have renters insurance. Yet despite the affordability of tenant insurance policies ` versus the staggering costs incurred in a worst-case scenario ` many renters neglect to cover themselves. That`s a pity, insurance industry experts say. After all, less than a dollar a day (for a typical policy) ensures that if disaster strikes, you can weather the storm.




An average package offers up to $100,000 in contents coverage and $1 million in personal liability coverage for less than $20 a month, or about $200 a year.




`It`s a no brainer ` renters should carry insurance,` says Henry Blumenthal, vice-president and chief underwriter for TD Insurance. `For a small amount of money you`re getting increased peace of mind.` If you haven`t got it you should get some. Here`s what you need to know.



Read the full article here.

 

[Ally]

Canadians are cutting debt levels: CIBC report




Household credit levels are now rising at their slowest pace since 2001 as Canadians get the message about cutting debt levels, according to a report from economists at the Canadian Imperial Bank of Commerce.




The report, released Wednesday, is in stark contrast to renewed warnings from Bank of Canada officials that Canadians are swamped by debt.




From July to September 2010, household debt grew at its slowest pace in nearly 10 years, CIBC said.




Credit increased by just 0.27 per cent in October (the latest available data point) ` the softest monthly reading in more than 15 years.



Read the full article here.

 

[Ally]

Corporate tax cuts create 100,000 jobs: Study





OTTAWA ` Fully implementing the Conservative government`s corporate tax cut scheme will have `little` impact on budget revenue, and in the medium-term generate an estimated $30-billion in additional business investment and 100,000 new jobs, says one of the country`s leading tax and fiscal policy experts in an analysis released Tuesday.




`Given the relatively insignificant anticipated revenue loss from a corporate reduction, it is clear that the investment and employment benefits make a strong case in pursuing this reform,` Jack Mintz, head of the public policy school at the University of Calgary, said in a new paper on business tax reform he co-authored with Duanjie Chen.




He added Canadians should not get `complacent` about their tax system, noting every additional dollar raised through business income tax hikes translates into 37Â in extra costs for the economy.






Read the full article here.

 

[Ally]

Canada's tax regime stokes recovery: Advisor





OTTAWA ` Canada was singled out Wednesday by a global group of tax advisors as pursuing the type of policy that best stokes an economic recovery and attracts business investment.







Taxand, a London-based organization of tax advisors to multinational businesses, said Canada -- along with Malaysia and Britain -- bucked a general trend among countries in 2010 that will result in large corporations now facing bigger tax bills and a sizeable increase in regulation.







`Britain, Canada and Malaysia are among the few countries which stand out as regions where favourable tax policies have been introduced to stimulate economic recovery and in particular investment by multinationals,` said FrÃdÃric Donnedieu de Vabres, Taxand chairman, in a statement accompanying the survey results.






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[Ally]

12 Petro states that will boom when oil hits $100







Daily production: 3,289,000 barrels






GDP at $60 bbl: $1,336 billion






GDP at $100 bbl: $1,384 billion




Canada isn't truly a petro state yet, but wait for the tar sands to get up to speed. Canada has proven reserves second only to Saudi Arabia: enough to launch our neighbor into a petrol-fueled boom-bust economy.




Read the full article here.

 

[Ally]

Exxon sees natural gas passing coal demand by 2030





NEW YORK - Natural gas will surpass coal as the second-largest global energy source behind oil by 2030, even as overall global demand for energy jumps 35 per cent from 2005 levels, oil company ExxonMobil (NYSE:XOM) said on Thursday.




That energy demand growth will be almost entirely in developing economies, where usage will climb 70 per cent, while developed economies will see essentially flat demand because of improvements in energy efficiency, Exxon, the world's largest publicly traded company, said in its annual energy outlook.




"ExxonMobil will continue to invest in technology and innovation to develop new economic energy supplies to help meet this demand while looking for ways to reduce environmental impacts," said Rex W. Tillerson, the company's chairman and chief executive.




Read the full article here.

 

[Ally]

Avison Young's commercial real estate forecast for 2011





The Canadian commercial real estate markets experienced a moderate-to-strong recovery for 2010, some markets even performing better than anticipated. On average the U.S. markets remained elusive in terms of signs of recovery.







In previous years the Canadian market tended to lag behind that of the U.S. However in 2001, Canada led the U.S in market recovery, and 2010 seems to follow the same trajectory.







The Avison Young`s 2011 Forecast notes the key trends in office, retail, industrial and investment markets in 17 regions: Vancouver, Calgary, Edmonton, Lethbridge, Regina, Winnipeg, Mississauga, Toronto, Ottawa, Montreal, Quebec City, Halifax, Chicago, Washington DC, Atlanta, Houston and Boston.







`The Canadian picture remains positive. But the bottom line is this: without improved confidence and growth in employment, consumer spending, industrial production and gross domestic product (GDP), the North American commercial real estate market as a whole will have a difficult time recovering,` comments Mark E. Rose, Chair and CEO of Avison Young.





Read the full article here.