RBC Affordability Report Sept 2010

[bizaro86]

QUOTE (ThomasBeyer @ Oct 3 2010, 05:14 PM) In addition the oilsands, newly relabeled "Ethical Oil", is a fairly new economically accessible and HUGE resource .. and as such Alberta is well positioned to have high incomes and thus high real estate prices for decades to come !

Interesting fact, Canadian diamonds produce more greenhouse gases than diamonds from wartorn Africa hand mined by slaves. Remarkably, people still seem to prefer Canadian diamonds. Maybe Albertans should form a gasoline co-op in the US, with a tagline of "we don`t hate you and pay people to try to kill you." Could we call it polar bear gasoline?

Michael

 

[housingrental]

Hi Thomas

You bring up a very good point

The issue is the relative value / demand / future labour needed for these resources - although you can view it as likely being a driver of population growth (and thus real estate values) there is some risk.

None the less don't get me wrong - Alberta can have a place in a real estate investors portfolio I'd just be concerned about how large a portion of assets, especially for someone who already lives in Alberta.

For me personally, due to cost and hasstle factor, I think the best route to exposure to this market is investing with an expert in this segment, Prestigious Properties.




QUOTE (ThomasBeyer @ Oct 3 2010, 07:14 PM)
Your opinion is noted. Consider that resources are physical assets that cannot move !!



Capital can move quickly .. as can people !



Resources in the ground (be it oil, gas, water, coal, uranium, nickel, potash, grain or trees even ..) cannot move !



Thus, any economy based on resources in a world with more and more people will do VERY well until 2050 when the world population is expected to peak !!



In addition the oilsands, newly relabeled "Ethical Oil", is a fairly new economically accessible and HUGE resource .. and as such Alberta is well positioned to have high incomes and thus high real estate prices for decades to come !



You cannot ignore the fact that this resource is HUGE .. A GAME CHANGER .. namely the 2nd largest in the world .. and the world's largest privately developable oil field !!



Godfried has some good commentary here: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-18302-Alberta_House_Prices_OVERVALUED.html complementing my thoughts !

 

[housingrental]

Thanks Brad... Will read....
Have we met?

QUOTE (Pheenix @ Oct 3 2010, 11:37 PM) Interesting thread.

I think a read of Don Coxe `s summer `Basic Points` would be valuable for all concerned. He is commodity obsessed generally.

Adam, I like the fact that you stir the pot - not always sure if it is just to get a reaction or not - a read of pages 17 to about 20 in particular would be very interesting.

BTW, isn`t Temagami, that Japanese paper folding stuff (just kidding - had family there at one time).

http://www.zerohedge.com/sites/default/fil...s_June_2010.pdf