POINT OF MAXIMUM FINANCIAL OPPORTUNITY

Did your jaw drop?  Are you shaking your head?  Losing your mind a little bit with this headline?

If you follow the news media even a little bit these days, you probably think the sky is falling.  There is doom and gloom and uncertainty around every corner.

So why on earth are we talking about financial opportunity—and maximum opportunities!

It’s simply because we follow the Secrets of the Canadian Real Estate Cycle, written by Don R. Campbell.  And we are also big fans of the predictable annual real estate cycle that is found in Canada.

Let’s start with the bigger picture.  The Canadian real estate cycle is predictable.  There are 3 phases that have been happening for over a century:  Boom, Slump, and Recovery.  In that order.  Over and over again in all corners of this amazing country.  (For more details, we encourage you to read the book!)  What we don’t know:  how long each phase will last.

Ok, there are a lot of other things we don’t know, but I digress.

Real estate in Canada is also very well known to have an annual cycle.  Typically sales and prices (and even rentals) are slower from November through February; then things pick up and peak late spring-early summer.  We are anticipating that the annual cycle will be exaggerated by Covid this year.  We are currently looking at fewer people moving, slower immigration, Covid restrictions, and concerns for possible lockdowns.  Demand is way, way down.  As more deferrals end, more motivated sellers will need to list their properties.  Supply may rise again.

Conversely, in the spring, what if the COVID vaccine has rolled out, and the borders re-open to immigration, and interest rates remain low?  We think there will be some pent-up demand—not skyrocketing prices by any stretch of the imagination, but we believe we’ll see some clearer signs of the recovery phase.

Obviously, Calgary has been leaning into the slump phase for over 5 years now.  Many people became used to what was termed the “Boom-Bust” cycle of Alberta—and they are eagerly hoping for the next boom.  But the smart and strategic investors are looking at the long term potential.

Take a slump market, add COVID, then add the annual winter slump.  Real estate investors and homeowners alike are anxious and fearful.  It’s text book time for investing in Long Term Buy and Hold properties.  Fortunes are made by buying low, then waiting.

Connect with us at any time to chat about opportunities to grow your financial freedom!