December 2006 Volume 2, Number 12
In This Issue
· Market Update
· Equity is a Good Thing
·
·
In Closing
Real Estate Links
Stef Lukas, our Realtor
Richard Anderson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
Bill Biko
President/Investor Relations
403-870-4663
In This Issue
· Market Update
· Equity is a Good Thing
·
Planning for the Future
·
Real Estate Links
Stef Lukas, our Realtor
Richard Anderson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
Bill Biko
President/Investor Relations
403-870-4663
Market
Update
If you recall, over the last few months I had predicted the market to pick-up before the end of the year. So far it appears I was a bit premature, but there are promising signs, indicating that the market will pick-up again shortly, although nothing like what we had experienced over the last year.
From a peak of almost 6,800 listings on the MLS a few weeks ago, we have moved to just fewer than 5,465 listings in the first week of December. There are a couple of points to be taken from this. We are seeing many of the sellers disappear, who were hoping to cash in on the over-heated market of the summer. A couple of weeks ago, our realtor Stef Lukas (www.lukasgrouprealty.com), pointed out there were over 200 listing expirations on one day alone. These expirations are the 90 day contracts that simply did not sell and were subsequently taken off the market.
Traditionally, December tends to be a slower period for new listings and sales. Last year was an exception to the rule, as the market was just starting to explode in December and actually became the busiest December on record. For most people it is one of the most hectic times of the year, so real serious house buying tends to get pushed to the New Year.
The final important note is when supplies decrease, the competition for
the remaining properties increase and this tends to push up the prices
again. We have already noticed the demand for some of our sale projects
is starting to intensify; which is a great sign!
Equity is a Good Thing
I talk to a lot of Calgarians every month and many simply cannot believe how much their homes have increased in value.
The amazing aspect is while many complain about high property prices, they already own their own homes and are receiving a huge benefit. Perhaps it's just human nature to complain or maybe it's just people having a different perspective than we do.
My own personal residence has increased in value by more than three times from its original value when we purchased it ten years ago. Considering we put only $13,000 down and it has grown in value by $260,000: I think it's fantastic! It resulted in a 200% return per year over the last ten years. Not a bad return at all, and only slightly better than the RRSPs I had, by approximately 198% each year.
Consequently a couple of years ago, this allowed us to refinance our
home and redirect those funds back into our company to purchase a couple
more investment properties. So now we have still made our original 200%
return (although with higher mortgage payments) and own two more properties,
which provide returns at 30-40% per year. Now my money is truly making
money on the original $13,000 investment. It's no wonder I get excited
talking about Real Estate.
Planning for the Future
So what are your plans for 2007? It's right around the corner, but have you thought about where you want to be financially by this time next year?
One of the tools we have learned to use is to actively set goals each year for what we are hope to accomplish. Amazingly enough, we tend to come very close or completely surpass these goals every year.
Is it coincidence, or by making a plan each year is it bringing our goals to the forefront so we can focus on them? More importantly, does it really matter which it is, if it helps us achieve what we want? According to many different research groups, less than 3% of the population set goals, yet another 3% tend to be the most successful people out there. Now I don't know about you, but I prefer to emulate the people who are becoming successful, rather than follow the masses.
I'm not sure who originally said it, but the quote "Success leaves
clues" is very telling. If successful people are goal setting and
you are not, perhaps is this a habit you want to start? Establishing goals
results in you being more focused, more committed, and more aware of where
you are heading and what you are achieving. It takes a bit more work than
ambling through life just accepting what is given to you, but it's your
future, isn't that worth planning?
Here we are in December already and what an incredible year it has been. Thanks to everyone who has called us, emailed us, met with us, and partnered with us on projects. Without all of you this Newsletter wouldn't be worth it.
Some of the changes you will see in 2007 are a brand new web site, some guest writers, and a new and improved layout for the Newsletter. Remember "Change is Good!"
Be sure to make time to spend with family and friends this Christmas and if there are any topics you would like to see discussed or explained in more depth please contact us.
Have a safe and Merry Christmas!
Bill &
Karen Biko
Kat