With the last Bank of Canada interest rate announcement for the year coming up on Wednesday, December 6th, this is set to be another week of economic and interest rate commentary. It's easy to make the call that the BOC will hold rates and speculate on what that will do for housing prices and the economy.
However, not all markets have been affected as we have been in Ontario. It's easy for us Ontario investors to get caught up in our bubble and to look at what the effects of the last few years have had on our specific markets. However, if you look outside southern Ontario, interest rates haven't had such an outsized effect on prices. Interprovincial migration trends show that people are leaving Ontario in a flight to lower prices and costs of living.
Does that mean I think that Ontario investing is over? Absolutely not. In fact, Alberta largely had flat prices for the last 15 years, and only now are they starting to see some appreciation. With continued lofty immigration targets set by the Federal Government, I believe that we are experiencing a cycle, not a fundamental shift in the viability of real estate investment in Ontario. I wanted to highlight the fact that every market is different, with different fundamentals and different catalysts for growth or decline. There are many different ways to diversify a real estate portfolio. Regional differences should not be ignored.
We attended an event last week in Mississauga. One of the speakers has a front-row seat to robotics and AI implementation for industry in Ontario. The pace at which robotics divisions are exploding is mind-blowing. From flipping burgers to changing tires and warehouse work, the robots are coming whether you like it or not. The flight to cheaper labor costs has begun.
As you can see, people are constantly looking for better value.
I attended a wedding in the US this past summer. My American cousin had set aside a block of hotel rooms and was collecting the money from all those who needed accommodations. If you've ever tried sending money to someone in another country, you'll know this wasn't an easy or cheap process. E-transfer didn't work; we don't have Venmo or Zelle in Canada. I found the cheapest, most efficient way to pay him was to use the Bitcoin Lightning Network. The transaction was complete almost instantly, with minimal fees. This is only one of many reasons why I am excited to see where Bitcoin goes over the next few years. If the trend of capital flowing toward quality continues, I think this internet of money is in its infancy.
Have questions about your portfolio or want an outside opinion? Please select the button provided below, and I will schedule a free half-hour call with you to go over your situation! Talking to the right people can really save you money. I really believe that this is the time to expand your network and learn from those around you. I'll be in touch!
I'd love to hear your thoughts on this! Have a great week while working past those obstacles on your climb to success. Let's Grow Together!
Jonathan Beam
Real Estate Investor and Entrepreneur
Jonathan Beam is a real estate investor in the Niagara region who is passionate about helping you achieve financial freedom through real estate. He works with new and experienced investors to formulate a plan that fits your specific situation and provides market guidance and consultation on the best places and strategies to pursue within the Niagara Region. Book a free, half hour no obligation consultation to see how he can help you to achieve your goals. His travels are available at www.realestateandrepeat.com
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