There's a lot to unpack this week. On the personal side, I stepped away and took a week-long trip down to the Red River Gorge in Kentucky with a friend of mine. The Red has an international reputation as a mecca for rock-climbing enthusiasts. We spent four days hiking the trails and climbing rock faces, sometimes over 100 feet above the ground! It was equal parts exhilarating, scary, rewarding, and frustrating. I honestly can't think of a better analogy for the challenges we face on a daily basis as entrepreneurs and investors. I spent all week figuring out the routes, applying knowledge and strength to solve the problem, falling, getting back up, and trying again, and completing things that I didn't think were possible. In other words, developing resilience and strength to tackle bigger problems ahead. The process of climbing to success is often filled with failures and mistakes. Your ability to get back up and try again will set you apart! I even checked out a potential off-market land purchase with the possibility of severances and development to create value. More on that to come!
I'm sure you've heard by now that the Bank of Canada has held rates where they are at their last announcement in October. Despite their tough talk, the BOC has only raised rates by 0.75% so far in 2023. Will they continue to raise? When are cuts coming?
Ben Rabidoux of Edge Analytics recently put this note out to his clients: "The BOC will try to convince Canadians that further rate hikes are on the table... but it's clear from their language and the deteriorating economic backdrop that we are likely done with rate hikes for this cycle."
We will have to see how quickly a recession manifests itself and how quickly inflation expectations come down before we can comment on rate cuts. However, if the bond market is any indication, we will have a policy rate in the low 4% range by the end of next year and fixed mortgage rates below 5%. That still seems high, but remember we had a hot market in the spring of 2023 with rates in the mid to high 4% range. It won't take much of a decrease in the policy rate to normalize the real estate market.
In the week ahead, I challenge you to step outside of your comfort zone in your personal life and your business life. Challenge your limiting beliefs and keep moving forward. You've got this!
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!
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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