So It Wasn`t That Bad

[wgraham]

posted by CTV

It was called the next Great Depression, then dubbed the Great Recession.

Turns out, in Canada it was more like the Average Recession, according to a paper published Thursday.

Canada`s 2008-2009 recession was “less severe and shorter” than in other G7 nations, said Philip Cross, chief economic analyst at Statistics Canada and author of its year-end review.

Between the third quarter of 2008 and the third quarter of last year, the country`s real GDP in Canada fell 3.3 per cent, compared with 3.7 per cent in the United States and bigger declines in Europe and Japan.

The recession was also shorter than elsewhere. Statscan tentatively says the recession in Canada lasted three quarters – the last quarter of 2008 and the first two quarters of last year, though those dates could be subject to revision. The downturn in other G7 countries lasted anywhere from four to, in the case of the United Kingdom, six quarters.

Read more here

 

[DonCampbell]

Good news is that REIN Members knew this because they focused on what was real, not the chicken littles running around freaking Canadians out.
We will still be going through an `economic W` for the next year (more or less) with good news followed by bad news.

But thank goodness we are in Canada! Let`s be proud how our country faired.

Don R. Campbell

 

[lilbuffet]

interesting perspective....glad to be Canadian! GO HABS GO!

 

[wealthyboomer]

It will be interesting to see how much Canada and the Banks are invested in the PIGS (Portugal, Italy, Greece, Spain). Until now, they (PIGS) were borrowing money that would have to be repaid sometime in the future. But today is the tomorrow they didn’t worry about yesterday. Several countries are already past the point of no return.

When external debt passes 73% of GDP or 239% of exports, the result is default, hyperinflation, or both. IMF data show the US already too far gone on both scores, with external debt at 96% of GDP and 748% of exports.

And we still haven`t heard the end of `Dubai`, and the world financial markets that are invested there and awaiting their repayments.

Could all of this be a parallel the latest recession/crash?

 

[housingrental]

There will be problems in the future somewhere
Where, what time, and what impact on what?

Why does this data matter to you and me?

Also: The percent of debt to exports shouldn`t be read into too much.

 

[gwasser]

QUOTE (housingrental @ Apr 29 2010, 07:56 AM) There will be problems in the future somewhere
Where, what time, and what impact on what?

Why does this data matter to you and me?

Also: The percent of debt to exports shouldn`t be read into too much.

I kind of agree with Adam. Really, what is the impact on us? Maybe we feel a bit less confident but even if the Greek debt was a 120B, that is nothing compared to TARP. So stick to your knitting and hey, maybe this will keep our interest rates a bit lower a bit longer.

If it is beyond your control, why worry that much. I had a friend who told me he sold off a sizeable portion of his portfolio because of the Greek Crises. So now he triggered cap gains taxes and commissions to go out and commissions later to go back into the market. In the mean time Canadian Oil Sands announced a 43% dividend increase, guess what that will do to COS shares? And my friend is standing on the sidelines with a lot less money to invest. We invest for the long term and leave the daily worries to economists and other know-it-all worry-warts.

 

[wealthyboomer]

QUOTE (gwasser @ Apr 29 2010, 05:24 PM) I kind of agree with Adam. Really, what is the impact on us? Maybe we feel a bit less confident but even if the Greek debt was a 120B, that is nothing compared to TARP. So stick to your knitting and hey, maybe this will keep our interest rates a bit lower a bit longer.

If it is beyond your control, why worry that much. I had a friend who told me he sold off a sizeable portion of his portfolio because of the Greek Crises. So now he triggered cap gains taxes and commissions to go out and commissions later to go back into the market. In the mean time Canadian Oil Sands announced a 43% dividend increase, guess what that will do to COS shares? And my friend is standing on the sidelines with a lot less money to invest. We invest for the long term and leave the daily worries to economists and other know-it-all worry-warts.

The result is a longer-than-expected economic slump, both in Canada and internationally.
The net result of this would be negative for growth in Canada.
It will also lead to higher borrowing costs, and that will have an effect on investment and growth in Canada. (ie. Credit crunch and/or another recession)
It will also severely impact global trade, which means job loss in Canada.

 

[gwasser]

QUOTE (wealthyboomer @ Apr 29 2010, 07:45 PM) The result is a longer-than-expected economic slump, both in Canada and internationally.
The net result of this would be negative for growth in Canada.
It will also lead to higher borrowing costs, and that will have an effect on investment and growth in Canada. (ie. Credit crunch and/or another recession)
It will also severely impact global trade, which means job loss in Canada.

I think you`re too dark in your outlook. If the slump will actually last longer, interest rates will stay low longer and you`ll have a better chance to buy more properties - that`s not too bad is it?. But if the stock market is the leading indicator many claim it to be then you don`t have to worry. This is one of the fastest recoveries on record - at least in Canada.

 

[ibuildstuff]

Simply put, do not put all of your eggs in one basket...many people are pontificating about how low interest rates are. Do not get sucked in by this, it makes no difference in your purchase that will span a 25 yr mortgage. Local dynamics apply, how is the economy, where is it going etc. I have listened to a bs post about someone who started out with a single unit and built it up to 1,200 units....NOT BLOODY LIKELY!!! Remember the person in the interview started out with a LOAN from a family member...don`t be fooled, it cannot be done!!!!!! Do not become a sucker that listens to this drivel...

 

[JohnS]

QUOTE (ibuildstuff @ Aug 11 2010, 01:42 AM) Do not become a sucker that listens to this drivel...


Don`t worry about that, ibuildstuff. Due to the amount that you`ve helped out others on this forum with your post(s?), I`m sure most people here are going to take your advice, especially when reading your posts....

Have a good one!

JohnS

 

[ibuildstuff]

I may not live on this forum, but I comment where i see fit...it fits. You see otherwise? You live in a world i cannot see. I live in reality, and safety...risky real estate deals are not where you will make your fortune. Wise investments in worthwhile ventures will get you much further. Do not blindly follow the real estate frauds. I have great respect for the people on this forum, and understand what many of them are saying. Some make no sense...use good judgement and listen to people who have much experience in specific fields. Do not listen to dreamers who tell you the world is your oyster! It is not. The world belongs to people who can make intelligent decisions based on facts demonstrated and proven by others and repeating the same. Blah to people who think someone with 0$ can buy a multi-family building!!!!!!!!

 

[Thomas Beyer]

QUOTE (ibuildstuff @ Aug 10 2010, 11:42 PM)
.. I have listened to a bs post about someone who started out with a single unit and built it up to 1,200 units....NOT BLOODY LIKELY!!! Remember the person in the interview started out with a LOAN from a family member...don't be fooled, it cannot be done!!!!!! .


yes it can be done .. as I started with a small condo in 1997 .. one a year for 4 years then a 15 suiter for 100K cash (5th asset in .. with some add'l cash by my dad to have some spare cash for reserves) .. then a 20-plex with 250K cash ..



Granted, the market was rising faster than expected and going forward from 2010 won't go quite as fast .. but to do what REIN preaches .. i.e. 1, then 2, then 3 .. then 8, then 17 houses in a decade or so to become financially independent is VERY doable with a modest amount of cash and hard work .. and part-time for he first 5-8 years !! Most folks also have a network of friends or family who would would lend them some money for a larger asset if the asset made sense and the person is reliable .. which is certainly the case for a large majority of REIN members too !



1200 units is comprised of 16 building complexes .. and with a decent property manager that takes as little or as much work as managing 16 houses by yourself probably .. it is a function of systems in place .. and systems get built up over time .. it took me over a decade and every month you learn s.t. new and tweak things a bit .



Of course, one can always find excuses why it can't be done.



related posts:



How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html



How did I get started: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-15422-Is_my_goal_of_200K_annual_income_feasible.html



5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html



Do what you love: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-16722-Love_what_you_do_-_Do_what_you_love_.html

 

[Thomas Beyer]

QUOTE (ibuildstuff @ Aug 11 2010, 01:14 AM) .. Blah to people who think someone with 0$ can buy a multi-family building!!!!!!!!
that is true .. and no one stated that .. for a 20-plex in Edmonton @ 80/door you need about 400K cash to $1.2M mortgage .. and for a 12-plex in smaller SK or ON or AB communities at 50/door maybe only 120-160K .. and many many REIN members have that kind of cash or access to it from mother, father-in-law, sister, wife, buddy at work, grannie etc .. i.e. their immediate long time network .. then you go from there .. it takes time and experience .. I know more today than 10 years ago when I bought an 85% levered 15-plex .. I too would have been completely overwhelmed 10 years ago buying even a 30-plex .. as both cash wise, mortgage-wise and experience wise it would have been impossible then !

 

[housingrental]

I will still prefer the advice of Thomas over ibuildstuff
QUOTE (JohnS @ Aug 11 2010, 02:22 AM) Don`t worry about that, ibuildstuff. Due to the amount that you`ve helped out others on this forum with your post(s?), I`m sure most people here are going to take your advice, especially when reading your posts....

Have a good one!

JohnS

 

[ScottL]

Just a quick thank-you to Thomas for his honest and humble, informative postings. It is not rocket science. It can be done. It is hard work that pays over time.

Regards,

Scott

 

[Conrad5]

I have come to know of two kinds of people:

1) Those who think and believe that they cannot achieve anything so project/assume that others cannot achieve anything like them.
2) Those who think they can and believe that all things are possible and have the evidence to show that they have really achieved.

I have chosen to listen to the second group, learn from their mistakes and I am surprised how much I have achieved. For now the sky is my limit for (with God) all things are possible.



QUOTE (ScottL @ Aug 11 2010, 06:36 PM) Just a quick thank-you to Thomas for his honest and humble, informative postings. It is not rocket science. It can be done. It is hard work that pays over time.

Regards,

Scott

 

[JohnS]

QUOTE (caglah @ Aug 11 2010, 09:03 PM) I have come to know of two kinds of people:

1) Those who think and believe that they cannot achieve anything so project/assume that others cannot achieve anything like them.
2) Those who think they can and believe that all things are possible and have the evidence to show that they have really achieved.

I have chosen to listen to the second group, learn from their mistakes and I am surprised how much I have achieved.

That`s a great way to look at it, Conrad...I definitely agree!

Have a good one!

JohnS

 

[JohnS]

QUOTE (housingrental @ Aug 11 2010, 02:39 PM) I will still prefer the advice of Thomas over ibuildstuff

Oh, absolutely Adam, as do I and probably 99% of the people on here! I mean, I definitely don`t agree with him on the topic of climate change, but on pretty much anything real estate related, I`ll definitely listen to his advice over the "drivel" of people who just come on and make negative statements pretty much whenever they post.

Telling me that "it" can`t be done just tells me that *you* don`t know how to do "it", and aren`t willing to learn. I`d much, much rather listen to someone else tell me how they did "it", no matter what "it" is!

Have a good one!

JohnS