The ONE Habit That Will Make a Massive Difference in 2016

DonCampbell

Investor, Analyst, Author, Philanthropist
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Aug 22, 2007
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#1
In 2016 there is a habit I URGE you to adopt.

It is not one of those usual ‘New Years Resolutions’ it is a habit that I have been using for decades to help me see the world a little differently and through it seize opportunities when they arise. This habit has become increasingly more important with the advent of social media and its undertones of manipulation as well as the polarization of our media and politics. When I see people being OVERLY offended by simple discussions, when I witness the vitriol of the uninformed on social media, when I watch debates turn into name calling what I see is a WHOLE lot of people who have lost the real life perspective.

This is a habit that I have used, for close to 2 decades, to assist me in seeing the world differently to many others which has allowed me to uncover both dangers and opportunities where many others have not. So what is this habit? Simply it is...

Well, to make it easy, here's a detailed blog and video discussing it (and the fate of the real estate market forecasters):

http://www.donrcampbell.com/a-critical-habit-to-create-in-2016

Feel free to share it
 

ThomasBeyer

Senior Forum Member
REIN Member
#2
Yes seeing the big picture and any issue from multiple angles is very relevant.

I personally have been frustrated many many times and wondered if higher returns or higher CAP rates exist elsewhere. Thus, I do ask frequently: what is better ? Where is it better ? Gold ? Public REITs ? Dividend paying stocks ? Investing in the US, the EU, UK or China ? Buying different asset classes like office, retail malls or storage ? Doing development instead of existing assets that will be merely enhanced and better managed ?

Time and time again I come to the conclusion that no perfect alternative exists and that every investment anywhere comes with pro's and con's such as more risk, more volatility, more cash requirements, more complex rules to follow or far more time invested.

So, if what you do works for you, keep at her, and fine tune and systemize it. In other words: when you jump over the fence to the allegedly greener side ensure the fence doesn't impale you. Fence jumping is costly, dangerous and it is not necessarily grass on the other side !

Therefore, more specifically

1) if you have a decent job - or even better a well paying public sector job with cushy hours and a safe pension - do not rush into real estate and quit your job after the first successful flip that made you $30,000 or the first JV.

2) if you had success buying several ( perhaps suited ) houses do not assume multi-family is better

3) if you had success buying multi-family in AB and now oil is low and a dumb government raids the once full coffers , do not assume that BC or ON are necessarily better investment places in the long term

4) if you had success in Canada and Canada now will have slower growth for the next few years do not assume TX, AZ or FL real estate is better

Keep a broad perspective and ask: why do so many folks move here from almost anywhere in the world ? If it is so bad here, why would they come ? Why is so much Asian money parked in Lower Mainland ? Traveling and looking at Canada from a non-Canadian perspective , an asset many immigrants have , is useful. Is green energy really the solution that will make oil worthless in a few years ? So yes oil might be low for another year or two, but in ten years ?

Five major themes affect real estate prices, perhaps more, and with that in mind keep your perspective that real estate for the next decade won't be quite as well performing as the last ten to twenty:

1) Interest rate falling

We had falling interest rates for almost twenty years pushing up values. While we should not expect rising rates anytime soon due to demographics the fall is essentially over and as such the wind at your back for real estate valuations .

2) Growth in China & other BRIC countries

While Brazil, Russia, India and China continue to grow their growth is far slower and thus, demand for resources which Canada has plenty of: oil, gas, coal, wood, uranium, copper, potash

3) Fiscally sound governments

Both AB and ON and now the federal government seem to be on a path of massive debt creation decoupled from fiscal sanity, unlike previous Liberal or Conservative governments in the 1990s to 2000s. This usually ends in higher taxes or reduced services after a time of partying and excessive spending. Our spending on public servants' salaries is particularly worrisome and tough to reverse, creating a new middle class c/o everyone else.

4) Continued Immigration

Canada still shines here but with a weaker economy we too, like in Europe, will see more opposition and division between those with skills and money and those with nothing.

5) Jobs & Ability to sell products the world needs

In a variation to point 2, Canada is by and large a decent enough producer of what Don Campbell calls the 4 Fs, i.e. products the world needs: fuel ( oil, gas, coal ) food ( almost any product from chickens to fish to eggs to milk to cheese to beef to grain to canola) fertilizer ( oil & potash ) forestry ( wood ) plus some decent manufactured goods like cars, buses , skidoo and planes plus all sorts of petrochemical products and oil & gas related gear. Some minor biotech and software even. Plus world class universities selling their education services at quintuple the price locals pay. Thus, a prosperous and basically self sufficient country - with plenty of water - the new export debate about to start as parched SE US starts to desalinate water at huge huge prices to keep their burgeoning population and food industry buoyant. Plenty of clean air, mountains, lakes and oceans too - for fishery to tourism to residences .

So overall still the cream of the crap - compared to the chaos, slow growth, QE, riots and overtaxation elsewhere in the world !

All in all real estate as well as other investments will yield a lower return going forward than in the past, but it helps to put what you do and invest in into context of the major themes.

Perspective helps, indeed !
 
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Rickson9

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Oct 27, 2009
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#3
I find that 99% of the time the best decision for me is to keep 100% of my cash. 1% of the time the best decision is to deploy 100% of my cash. Rinse and repeat until you get bored of making money.
 

Rickson9

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#5
If making money is wrong I'll be wrong all day long.

You might also want to consider changing this on your website. Or not. I don't know.

Why Alberta?
With oil sands development in high gear, Alberta has been Canada’s economic darling for the last decade. Some wonder how long can it go? Is it still a great place to invest? Absolutely.

The price of a barrel of oil may be a barometer of world politics and economics, fluctuating up and down on the latest news of the day, however the fundamentals that drove the price of oil past the threshold that make oil sands production profitable are here to stay. As well, Albertans have done a stellar job in the last decade of ensuring that their future depends on a lot more than the oil. After many years of strong economic growth the government books are in great shape, and with the lowest taxes in the country people will always want to move here.

For your review, we’ve gathered a selection of key resources about Alberta. They give you an idea of why Prestigious Properties is currently targeting this province in our never-ending search for great real estate investment opportunities. More here on Alberta and real estate related factoids on our facebook site.
 
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RE123RE

Inspired Forum Member
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Jan 22, 2016
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#6
I find that 99% of the time the best decision for me is to keep 100% of my cash. 1% of the time the best decision is to deploy 100% of my cash. Rinse and repeat until you get bored of making money.
Hi,
1 minute is 1% of 100 minutes. Do you deploy 100% of your money every hour and forty minutes?
That's also why I have to agree with Thomas that often "Complex problems have simple easy to understand wrong answers."
You using the wrong units of measurement is not a big deal. Unfortunately, it's a bit more serious than that - you found something interesting but not sure how to put it in words.
Perhaps you were not talking about time at all, but rather tried to say simply that in a world of 'opportunities', only very few are really good ones. Or not. Not sure.
Thanks
 

ThomasBeyer

Senior Forum Member
REIN Member
#7
If making money is wrong I'll be wrong all day long.

You might also want to consider changing this on your website. Or not. I don't know.
We might. Not raising money right now as it is very hard to place for any decent ROI and MF party is over in AB for the time being. Managing what we own very well, both in AB as well as in TX. Buying a MHP in BC the next few weeks.
 
Likes: Rickson9

Rickson9

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#9
Studying and reading. Like it does 99% of the time.
 
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trevismcconaghy

Trevis McConaghy, REIA
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Nov 11, 2012
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#10
Reflecting back to the first post, perspective plays a major part in any investing. Mindset is critical. If I took the advice of many friends who go to work from 9-5, I would still be farming, unable to choose what I want and how I will get there. I have found that if I get educated (Knowledge), learn proper techniques (Strategy) and take action (Execution) (as taught by people like Tai Lopez), and the REIN community, incredible results can be achieved over time. After having travelled the globe, Canada truly is a wonderful place to be, and a wonderful place to invest.
 

Freerob

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May 23, 2016
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#12
I find that 99% of the time the best decision for me is to keep 100% of my cash. 1% of the time the best decision is to deploy 100% of my cash. Rinse and repeat until you get bored of making money.
Nice thought.
 

Randon

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Sep 19, 2016
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#15
Thanks for the post Don. A wealth of knowledge, and a great insight of 'being outside of Canada getting a different look inside.