June 2015 Canadian Economic Fundamentals

[Ally]

Growth in government outpacing private sector, especially in Ontario

TORONTO— The public sector in Canada (including federal, provincial and local government employees) is growing and reaching proportions not seen since the early 1990s—an era marked by large government deficits and high debt—finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The study, An Analysis of Public and Private Sector Employment Trends in Canada, notes that, from 2003 to 2013, employment in Canada’s public sector increased by 22.6 per cent, more than double the rate of increase in the private sector (10.7 per cent).

Read the full article here.

 

[Ally]

Using cash back as your down payment ends June 30th. Here are the details

The door is closing on one of the last remaining forms of 100% financing. On June 30, insurers are banning cash-back down payment mortgages.

Only a handful of lenders still market these products, and they’re all provincially regulated credit unions. OSFI has effectively barred cash-back down payment mortgages at the federal level (e.g., at banks).

Read the full article here.

 

[Ally]

Realtors see influx of U.S. buyers in Canada's recreational property markets

TORONTO - Real estate agent Priscilla Sookarow rang in the new year in a novel way, brokering the sale of a $3-million vacation property in B.C.'s Okanagan Valley to a family from Texas.

In addition to the region's natural beauty, the buyers were lured by the low value of the loonie relative to the U.S. dollar, said Sookarow who, along with realtors elsewhere, says an increasing number of vacation property buyers are coming from south of the border.

Read the full article here.

 

[Ally]

Will the mIllennials be the ultimate saviors of the housing market? Well here is a survey where the results lean towards a resounding YES

MIAMI, June 25, 2015 /PRNewswire/ -- Realtor.com®, a leading provider of online real estate services operated by News Corp [Nasdaq: NWS, NWSA] subsidiary Move, Inc., today revealed that millennials have become more positive when it comes to taking the plunge into home ownership and are primed to gain market share in the second half of the year, based on the results of its consumer behavior survey of more than 12,000 respondents conducted from Jan. 1, 2015 to June 15, 2015.

Jonathan Smoke, chief economist for realtor.com®, revealed an in-depth analysis of these survey findings during Wednesday'sMortgage Availability for Millennials and Other First-Time Buyers panel discussion at the National Association of Real Estate Editors conference in Miami.

Read the full article here.

 

[Tina Myrvang]

Tips on avoiding tenant nightmares

It’s a nightmare shared by every rental property owner - occupants stop paying rent, trash the home and refuse to leave. Left with no choice, the proprietor is forced to go to court to obtain an eviction order. On top of that, there's the cleaning of the mess of what was once a pristine property. It may just be a bad dream, but such a scenario can actually occur. The good news is, it rarely does. Here are some safeguards a landlord can employ to avoid the dreaded tenants from hell.


Rental Application – If you cannot put your hands on a detailed rental application form, you can simply draft your own. See to it that other than having the personal information section filled in, applicants should also indicate current and past employers, previous addresses, rental and ownership history, and landlord reference with contact information. Ensure that the entire document is answered, of which includes a signed consent to allow a credit check. Omitted particulars send up a big red flag. Don’t ignore this, or be fooled just because they seem nice - always verify. The more data you gather, the more likely you are to discover hidden concerns, if any, that may result in a troubled tenancy.

Read the full article here.

Rental Applications can be found in the Member Back office at www.reincanada.com

 

[DonCampbell]

Will the mIllennials be the ultimate saviors of the housing market? Well here is a survey where the results lean towards a resounding YES.

This large demographic wave will begin hitting the rental market in 2016 and will turn into a tsunami-force by 2021. Sadly MANY investors will get washed-over and damaged by the wave because they didn't adapt. Adaptation is critical in any business, (look at Blockbuster vs NetFlix). Get to know this new wave and you will end up riding this coming wave to a very financially successful end.

Start here with this important blog post on how a $80,000,000 Investor/REIN Member used adaptation and change:
Challenge – Absorb – Adjust: The real secret to long term success (http://www.donrcampbell.com/challenge-absorb-adjust-the-real-secret-to-long-term-success )

Don