Carolyn Ireland, Gloobe and mail, March 26, 2009
Lots of people have been stopping me in the hallways of the Globe to talk about the Ontario government budget and the impact that the new harmonized sales tax will have on buying and selling houses.
The budget confirms the plan by Dalton McGuinty's government to harmonize the 8-per-cent provincial sales tax with the 5-per-cent federal goods and services tax.
The new blended sales tax will add a tax burden to many household goods that are currently not subject to provincial sales tax, including the purchase of new homes above $400,000 and the closing costs on the sale of existing houses.
Just yesterday my colleague Clare Jordan was thinking about putting her smallish house on the market and looking around for something bigger now that she's found out how much ground two-year-old boys can cover.
Today she's not so sure.
In any already struggling market, will her house be that much harder to sell with more taxes piled on? And will anything she buys become less affordable?
Because Jordan would be selling an existing house, the tax hit would apply only to the closing costs, including the realtor fees that she and the purchaser pay. Then there are the legal services, title insurance and home inspections that the purchaser typically forks out for. These costs are not currently subject to provincial sales taxes.
Taking the example of a $360,000 house, the Toronto Real Estate Board estimates that will add $2,037 to the purchase.
When she buys another property, she would pay the tax on the closing costs as well.
The equation changes dramatically, however, if she purchases a new house that costs more than $400,000 because in that case the purchase price will be subject to the harmonized tax.
Not surprisingly, TREB is unhappy with the change.
“Obviously it's not good,” was the first reaction of TREB spokesman Von Palmer.
“We're shocked because we're still reeling from the land transfer tax,” he says.
Von Palmer points out that home buyers in Toronto are often already paying $4,000 to Toronto and another $4,000 to the province for the land transfer tax.
The harmonized tax does not affect new houses under $400,000: Under that ceiling, the status quo remains, Von Palmer says.
While the issue affects real estate across the province, Toronto's housing market will feel it more because house prices are higher, on average, he points out.
He says realtors were finally seeing some signs of hope in the city's property trade after months of sliding sales and price declines.
In the budget, newly built homes that cost more than $400,000 will be hit with higher taxes - ranging from $12,000 to $46,676 in Toronto, according to one study - while the federal government has agreed to drop the GST for those under that threshold.
There's a sliding scale upwards from there, with houses above $500,000 subject to the full 13 per cent combined tax.
TREB is working with the Ontario Real Estate Association to voice the displeasure of their constituency - real estate agents - to the province.
What about homeowners and prospective buyers? Does anyone care to weigh in?
Asher Ullah
www.homesforgta.com
Saturday, March 28, 2009
Sunday, March 22, 2009
Canada ranks third best country for business
Jack Gage, Forbes
Published: Friday, March 20, 2009, Macleans
The economic downturn that's swept the globe has crushed financial markets, exploded unemployment and shaken confidence in the banking system.
The disaster isn't shared equally, though.
Some countries are in a much better position than others to rebound from the current malaise by attracting entrepreneurs, investors and workers.
Who are they? Our fourth annual Best Countries for Business ranking looks at business conditions in 127 economies. Topping the list for 2009: Denmark, for a second straight year, takes the No. 1 spot. The U.S. is up two spots to No. 2, Canada is up four spots to No. 3, Singapore is up four to No. 4 and New Zealand is up seven to No. 5.
Big movers included New Zealand (No. 5, up seven spots), followed by Jordan (No. 33, up 28), Australia (No. 8, up five), United Arab Emirates (No. 46, up 28) and Malaysia (No. 25, up 13).
This is not a tally of economies with high gross domestic product growth, or low unemployment. The goal is to quantify for entrepreneurs and investors the often-qualified information about dynamic economies and what they would consider desirable conditions for business.
Personal freedoms play a big part -- it's hard to start a company or find talented employees under totalitarian regimes and military juntas. So we include measures of the right to participate in free and fair elections, freedom of expression and organization.
Taking care of investors, with laws assuring recourse for minority shareholders in cases of corporate misdeeds, is also important. As a barometer for corruption, Transparency International examines the number and frequency of incidents where corporate assets are misused for personal gain.
Amid the financial turmoil this year, we added stock market performance to reflect the extent of disrepair in countries' banking systems, as well as investor confidence in a recovery. Intellectual property rights, the promotion of free trade and low inflation, combined with low taxes on income and investment, give a snapshot of the conditions for business in each.
All was not lost in a tough year for believers in low taxes, free trade and limited bureaucracy. Despite swelling budget deficits, at least 50 countries recently cut or passed plans to cut taxes on individuals and businesses, including eight of the top 10, with individuals and investors in the U.S. and Norway left in the lurch.
The United Arab Emirates, in particular, has made strides in protecting intellectual property rights through initiatives like educational seminars for thousands of students, with support from corporations like Procter & Gamble, Estée Lauder and General Motors. New Zealand improved its free-trade ranking by pursuing talks with India, Korea and Hong Kong, while securing the first (for a developed nation) free-trade deal with China late last year.
Infrastructure improvements to the Jordanian stock market are improving enforcement of investment laws and compliance by broker members.
Sliding the most this year was Ireland (No. 14, down 12), which even saw plans for a Guinness mega-brewery shelved by parent Diageo as exports slowed. Uruguay (No. 66, down 22), Armenia (No. 94, down 31), Paraguay (No. 99, down 29) and Latvia (No. 45, down 13) rounded out this year's losers.
Expertise, research and published reports -- from the Heritage Foundation, World Economic Forum, World Bank, Transparency International, Freedom House, Deloitte Tax, the U.S. Chamber of Commerce and Central Intelligence Agency --all contributed vital analyses of various socioeconomic indicators on the countries included.
Asher UIlah
http://www.homesforgta.com/
Published: Friday, March 20, 2009, Macleans
The economic downturn that's swept the globe has crushed financial markets, exploded unemployment and shaken confidence in the banking system.
The disaster isn't shared equally, though.
Some countries are in a much better position than others to rebound from the current malaise by attracting entrepreneurs, investors and workers.
Who are they? Our fourth annual Best Countries for Business ranking looks at business conditions in 127 economies. Topping the list for 2009: Denmark, for a second straight year, takes the No. 1 spot. The U.S. is up two spots to No. 2, Canada is up four spots to No. 3, Singapore is up four to No. 4 and New Zealand is up seven to No. 5.
Big movers included New Zealand (No. 5, up seven spots), followed by Jordan (No. 33, up 28), Australia (No. 8, up five), United Arab Emirates (No. 46, up 28) and Malaysia (No. 25, up 13).
This is not a tally of economies with high gross domestic product growth, or low unemployment. The goal is to quantify for entrepreneurs and investors the often-qualified information about dynamic economies and what they would consider desirable conditions for business.
Personal freedoms play a big part -- it's hard to start a company or find talented employees under totalitarian regimes and military juntas. So we include measures of the right to participate in free and fair elections, freedom of expression and organization.
Taking care of investors, with laws assuring recourse for minority shareholders in cases of corporate misdeeds, is also important. As a barometer for corruption, Transparency International examines the number and frequency of incidents where corporate assets are misused for personal gain.
Amid the financial turmoil this year, we added stock market performance to reflect the extent of disrepair in countries' banking systems, as well as investor confidence in a recovery. Intellectual property rights, the promotion of free trade and low inflation, combined with low taxes on income and investment, give a snapshot of the conditions for business in each.
All was not lost in a tough year for believers in low taxes, free trade and limited bureaucracy. Despite swelling budget deficits, at least 50 countries recently cut or passed plans to cut taxes on individuals and businesses, including eight of the top 10, with individuals and investors in the U.S. and Norway left in the lurch.
The United Arab Emirates, in particular, has made strides in protecting intellectual property rights through initiatives like educational seminars for thousands of students, with support from corporations like Procter & Gamble, Estée Lauder and General Motors. New Zealand improved its free-trade ranking by pursuing talks with India, Korea and Hong Kong, while securing the first (for a developed nation) free-trade deal with China late last year.
Infrastructure improvements to the Jordanian stock market are improving enforcement of investment laws and compliance by broker members.
Sliding the most this year was Ireland (No. 14, down 12), which even saw plans for a Guinness mega-brewery shelved by parent Diageo as exports slowed. Uruguay (No. 66, down 22), Armenia (No. 94, down 31), Paraguay (No. 99, down 29) and Latvia (No. 45, down 13) rounded out this year's losers.
Expertise, research and published reports -- from the Heritage Foundation, World Economic Forum, World Bank, Transparency International, Freedom House, Deloitte Tax, the U.S. Chamber of Commerce and Central Intelligence Agency --all contributed vital analyses of various socioeconomic indicators on the countries included.
Asher UIlah
http://www.homesforgta.com/
Tuesday, March 17, 2009
First-timers drive a rebounding market
'Vancouver detached house prices are the lowest they have been in two or three years,' say one couple convinced that the time is ripe to purchase
KERRY GOLD
Globe and Mail Update
March 13, 2009 at 10:34 AM EDT
Judging from the many shoes littering the front porches at open houses in recent weekends, it's clear that people are back buying houses.
Without a doubt, the market has picked up, and we're barely into March. It's a far cry from the abysmal real estate market of last fall and January this year.
According to the Real Estate Board of Greater Vancouver, residential housing sales were up 94 per cent last month compared with January. That translates into 1,480 sales for the month of February alone. January, on the other hand, was a record-setting sluggish month - the slowest for housing sales in 25 years.
The growth defies the sky-is-falling pronouncements that have made headlines since September last year. But there is a growing perception that it's a buyer's market. A recent RBC/Ipsos Reid poll revealed that 26 per cent of B.C. residents surveyed believed they would purchase a home in the next two years, despite the view that house prices will continue to fall over 2009.
Sean and Karin Whale are unfazed about talk that it’s not a good time to sell their townhouse. They recently had a baby, 14-week-old Dayton, and are looking to trade up to a detached house. (Laura Leyshon for the Globe and Mail)
The condo market is also feeling a surge of life, real estate marketer Bob Rennie says.
"Sales are up," he says. "We have sold 19 [units] at One Madison Avenue in Burnaby in the past six weeks, and another nine at L'Hermitage at Robson and Richards in the past 10 days.
"I do think that the market is seeing a little bit of confidence, combined with some great opportunities with great interest rates."
Armed with low interest rates and realizing a good deal when they see one, brave contrarians are defying fears.
"People can see the value - and the value is phenomenal," real estate agent Lorne Goldman says.
Mr. Goldman says he had a house for sale last year on the city's pricey west side with an asking price of $2.4-million. The sellers were offered $2.3-million, but the buyer failed to complete. The same house is now on the market for $1.85-million.
"It's also very basic Real Estate 101," he adds. "There are people who are getting married, there are people who are married having more children, people being transferred into Vancouver from other cities. There are people who have inherited money who want a bigger house.
"The market continues, despite what is out there in the general economy. The fundamentals are there. People still need to buy groceries, and they still need shelter."
Karin and Sean Whale are unfazed about talk that house prices may fall further or that it's not a good time to sell a home. They recently had a baby and are motivated by their changing lifestyle.
The couple owns a three-storey townhouse on the east side of the city near trendy Commercial Drive, and with the latest addition, they've outgrown it and are looking to trade up to a detached house. They don't worry about selling and buying into the same market.
"Buying low and selling low is not a scary proposition to us," Ms. Whale says.
"We need more space at this time in our lives ...Vancouver detached house prices are the lowest they have been in two or three years."
Long-time Vancouver real estate agent David Campbell says that, unlike a year ago, it isn't the fixer-uppers and in-between houses selling. Demand is high for nice ones that don't require a lot of work, and there aren't a lot of them on the market. And the people buying, he says, are either first-time buyers or homeowners such as the Whale family who are trading up.
"We have many buyers, but we have seen the return of first-time buyers," Mr. Campbell says. "For a good part of, let's say, the last nine months, first-time buyers have been staying out of the market. They were a little scared as to what was happening last fall. But interest rates are at record lows, and prices have adjusted downward, and there are lots of first-time buyers coming back.
"We're getting a lot of move-up buyers as well taking advantage of the low interest rates who say, 'Now I can afford that spread up to the next one.' "
And unlike last fall, when the bottom fell out of the market, they aren't making low-ball offers - the prices have firmed up, he says.
"Last Sunday I had the busiest open house since April," Mr. Campbell says. "I had three offers on a house in 24 hours and it sold over asking."
But not just any house is selling, he adds. Buyers are being selective in this uncertain market.
"They want a good home, so they are picking the better ones," Mr. Campbell says. "That's where we get multiple offers."
Asher Ullah
www.homesforgta.com
KERRY GOLD
Globe and Mail Update
March 13, 2009 at 10:34 AM EDT
Judging from the many shoes littering the front porches at open houses in recent weekends, it's clear that people are back buying houses.
Without a doubt, the market has picked up, and we're barely into March. It's a far cry from the abysmal real estate market of last fall and January this year.
According to the Real Estate Board of Greater Vancouver, residential housing sales were up 94 per cent last month compared with January. That translates into 1,480 sales for the month of February alone. January, on the other hand, was a record-setting sluggish month - the slowest for housing sales in 25 years.
The growth defies the sky-is-falling pronouncements that have made headlines since September last year. But there is a growing perception that it's a buyer's market. A recent RBC/Ipsos Reid poll revealed that 26 per cent of B.C. residents surveyed believed they would purchase a home in the next two years, despite the view that house prices will continue to fall over 2009.
Sean and Karin Whale are unfazed about talk that it’s not a good time to sell their townhouse. They recently had a baby, 14-week-old Dayton, and are looking to trade up to a detached house. (Laura Leyshon for the Globe and Mail)
The condo market is also feeling a surge of life, real estate marketer Bob Rennie says.
"Sales are up," he says. "We have sold 19 [units] at One Madison Avenue in Burnaby in the past six weeks, and another nine at L'Hermitage at Robson and Richards in the past 10 days.
"I do think that the market is seeing a little bit of confidence, combined with some great opportunities with great interest rates."
Armed with low interest rates and realizing a good deal when they see one, brave contrarians are defying fears.
"People can see the value - and the value is phenomenal," real estate agent Lorne Goldman says.
Mr. Goldman says he had a house for sale last year on the city's pricey west side with an asking price of $2.4-million. The sellers were offered $2.3-million, but the buyer failed to complete. The same house is now on the market for $1.85-million.
"It's also very basic Real Estate 101," he adds. "There are people who are getting married, there are people who are married having more children, people being transferred into Vancouver from other cities. There are people who have inherited money who want a bigger house.
"The market continues, despite what is out there in the general economy. The fundamentals are there. People still need to buy groceries, and they still need shelter."
Karin and Sean Whale are unfazed about talk that house prices may fall further or that it's not a good time to sell a home. They recently had a baby and are motivated by their changing lifestyle.
The couple owns a three-storey townhouse on the east side of the city near trendy Commercial Drive, and with the latest addition, they've outgrown it and are looking to trade up to a detached house. They don't worry about selling and buying into the same market.
"Buying low and selling low is not a scary proposition to us," Ms. Whale says.
"We need more space at this time in our lives ...Vancouver detached house prices are the lowest they have been in two or three years."
Long-time Vancouver real estate agent David Campbell says that, unlike a year ago, it isn't the fixer-uppers and in-between houses selling. Demand is high for nice ones that don't require a lot of work, and there aren't a lot of them on the market. And the people buying, he says, are either first-time buyers or homeowners such as the Whale family who are trading up.
"We have many buyers, but we have seen the return of first-time buyers," Mr. Campbell says. "For a good part of, let's say, the last nine months, first-time buyers have been staying out of the market. They were a little scared as to what was happening last fall. But interest rates are at record lows, and prices have adjusted downward, and there are lots of first-time buyers coming back.
"We're getting a lot of move-up buyers as well taking advantage of the low interest rates who say, 'Now I can afford that spread up to the next one.' "
And unlike last fall, when the bottom fell out of the market, they aren't making low-ball offers - the prices have firmed up, he says.
"Last Sunday I had the busiest open house since April," Mr. Campbell says. "I had three offers on a house in 24 hours and it sold over asking."
But not just any house is selling, he adds. Buyers are being selective in this uncertain market.
"They want a good home, so they are picking the better ones," Mr. Campbell says. "That's where we get multiple offers."
Asher Ullah
www.homesforgta.com
Wednesday, March 11, 2009
The World's billionaires or the biggest looser
The World's billionaires
by Luisa Kroll, Matthew Miller and Tatiana Serafin, Forbes.comWednesday, March 11, 2009provided by Forbes.com
The world has become a wealth wasteland. Like the rest of us, the richest people in the world have endured a financial disaster over the past year. Today there are 793 people on our list of the World's Billionaires, a 30 per cent decline from a year ago. Of the 1,125 billionaires who made last year's ranking, 373 fell off the list—355 from declining fortunes and 18 who died. There are 38 newcomers, plus three moguls who returned to the list after regaining their 10-figure fortunes. It is the first time since 2003 that the world has had a net loss in the number of billionaires.
The world's richest are also a lot poorer. Their collective net worth is $2.4 trillion (Can$3.0 trillion), down $2 trillion (Can$2.5 trillion) from a year ago. Their average net worth fell 23 per cent to $3 billion (Can$3.7 billion). The last time the average was that low was in 2003.
Bill Gates lost $18 billion (Can$22.3 billion) but regained his title as the world's richest man. Warren Buffett, last year's No. 1, saw his fortune decline $25 billion (Can$31.0 billion) as shares of Berkshire Hathaway (nyse: BRK-B) fell nearly 50 per cent in 12 months, but he still managed to slip just one spot to No. 2. Mexican telecom titan Carlos Slim Helú also lost $25 billion (Can$31.0 billion) and dropped one spot to No. 3. It was hard to avoid the carnage, whether you were in stocks, commodities, real estate or technology. Even people running profitable businesses were hammered by frozen credit markets, weak consumer spending or declining currencies.
The biggest loser in the world this year, by dollars, was last year's biggest gainer. India's Anil Ambani lost $32 billion (Can$39.7 billion)—76 per cent of his fortune—as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed.Ambani is one of 24 Indian billionaires, all but one of whom are poorer than a year ago. Another 29 Indians lost their billionaire status entirely as India's stock market tumbled 44 per cent in the past year and the Indian rupee depreciated 18 per cent against the dollar. It is no longer the top spot in Asia for billionaires, ceding that title to China, which has 28. Russia became the epicenter of the world's commodities bust, dropping 55 billionaires—two-thirds of its 2008 crop. Among them: Dmitry Pumpyansky, an industrialist from the resource-rich Ural mountain region, who lost $5 billion (Can$6.2 billion) as shares of his pipe producer, TMK, sank 84 per cent. Also gone is Vasily Anisimov, father of Moscow's Paris Hilton, Anna Anisimova, who lost $3.2 billion (Can$4.0 billion) as the value of his Metalloinvest Holding, one of Russia's largest ore mining and processing firms, fell along with his real estate holdings. Twelve months ago Moscow overtook New York as the billionaire capital of the world, with 74 tycoons to New York's 71. Today there are 27 in Moscow and 55 in New York.After slipping in recent years, the U.S. is regaining its dominance as a repository of wealth. Americans account for 44 per cent of the money and 45 per cent of the list's slots, up seven and three percentage points from last year, respectively. Still, it has 110 fewer billionaires than a year ago.
Those with ties to Wall Street were particularly hard hit. Former head of AIG (nyse: AIG) Maurice (Hank) Greenberg saw his $1.9 billion (Can$2.4 billion) fortune nearly wiped out after the insurance behemoth had to be bailed out by the U.S. government. Today Greenberg is worth less than $100 million (Can$124.0 million). Former Citigroup (nyse: C) Chairman Sandy Weill also falls from the ranks. Last year there were 39 American billionaire hedge fund managers; this year there are 28. Twelve American private equity tycoons dropped out of the billionaire ranks.Blackstone Group's (nyse: BX) Stephen Schwarzman, who lost $4 billion (Can$5.0 billion), and Kohlberg Kravis & Roberts' Henry Kravis, who lost $2.5 billion (Can$3.1 billion), retain their billionaire status despite their weaker fortunes.Worldwide, 80 of the 355 drop-offs from last year's list had fortunes derived from finance or investments. While 656 billionaires lost money in the past year, 44 added to their fortunes. Those who made money did so by catering to budget-conscious consumers (discount retailer Uniqlo's Tadashi Yanai), predicting the crash (investor John Paulson) or cashing out in the nick of time (Cirque du Soleil's Guy Laliberte). So is there anywhere one can still make a fortune these days? The 38 newcomers offer a few clues. Among the more notable new billionaires are Mexican Joaquín Guzmán Loera, one of the biggest suppliers of cocaine to the U.S.; Wang Chuanfu of China, whose BYD Co. began selling electric cars in December, and American John Paul Dejoria, who got the world clean with his Paul Mitchell shampoos and sloppy with his Patrón Tequila.
Cortesy: Forbes.com
Asher Ullah
http://www.homesforgta.com/
by Luisa Kroll, Matthew Miller and Tatiana Serafin, Forbes.comWednesday, March 11, 2009provided by Forbes.com
The world has become a wealth wasteland. Like the rest of us, the richest people in the world have endured a financial disaster over the past year. Today there are 793 people on our list of the World's Billionaires, a 30 per cent decline from a year ago. Of the 1,125 billionaires who made last year's ranking, 373 fell off the list—355 from declining fortunes and 18 who died. There are 38 newcomers, plus three moguls who returned to the list after regaining their 10-figure fortunes. It is the first time since 2003 that the world has had a net loss in the number of billionaires.
The world's richest are also a lot poorer. Their collective net worth is $2.4 trillion (Can$3.0 trillion), down $2 trillion (Can$2.5 trillion) from a year ago. Their average net worth fell 23 per cent to $3 billion (Can$3.7 billion). The last time the average was that low was in 2003.
Bill Gates lost $18 billion (Can$22.3 billion) but regained his title as the world's richest man. Warren Buffett, last year's No. 1, saw his fortune decline $25 billion (Can$31.0 billion) as shares of Berkshire Hathaway (nyse: BRK-B) fell nearly 50 per cent in 12 months, but he still managed to slip just one spot to No. 2. Mexican telecom titan Carlos Slim Helú also lost $25 billion (Can$31.0 billion) and dropped one spot to No. 3. It was hard to avoid the carnage, whether you were in stocks, commodities, real estate or technology. Even people running profitable businesses were hammered by frozen credit markets, weak consumer spending or declining currencies.
The biggest loser in the world this year, by dollars, was last year's biggest gainer. India's Anil Ambani lost $32 billion (Can$39.7 billion)—76 per cent of his fortune—as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed.Ambani is one of 24 Indian billionaires, all but one of whom are poorer than a year ago. Another 29 Indians lost their billionaire status entirely as India's stock market tumbled 44 per cent in the past year and the Indian rupee depreciated 18 per cent against the dollar. It is no longer the top spot in Asia for billionaires, ceding that title to China, which has 28. Russia became the epicenter of the world's commodities bust, dropping 55 billionaires—two-thirds of its 2008 crop. Among them: Dmitry Pumpyansky, an industrialist from the resource-rich Ural mountain region, who lost $5 billion (Can$6.2 billion) as shares of his pipe producer, TMK, sank 84 per cent. Also gone is Vasily Anisimov, father of Moscow's Paris Hilton, Anna Anisimova, who lost $3.2 billion (Can$4.0 billion) as the value of his Metalloinvest Holding, one of Russia's largest ore mining and processing firms, fell along with his real estate holdings. Twelve months ago Moscow overtook New York as the billionaire capital of the world, with 74 tycoons to New York's 71. Today there are 27 in Moscow and 55 in New York.After slipping in recent years, the U.S. is regaining its dominance as a repository of wealth. Americans account for 44 per cent of the money and 45 per cent of the list's slots, up seven and three percentage points from last year, respectively. Still, it has 110 fewer billionaires than a year ago.
Those with ties to Wall Street were particularly hard hit. Former head of AIG (nyse: AIG) Maurice (Hank) Greenberg saw his $1.9 billion (Can$2.4 billion) fortune nearly wiped out after the insurance behemoth had to be bailed out by the U.S. government. Today Greenberg is worth less than $100 million (Can$124.0 million). Former Citigroup (nyse: C) Chairman Sandy Weill also falls from the ranks. Last year there were 39 American billionaire hedge fund managers; this year there are 28. Twelve American private equity tycoons dropped out of the billionaire ranks.Blackstone Group's (nyse: BX) Stephen Schwarzman, who lost $4 billion (Can$5.0 billion), and Kohlberg Kravis & Roberts' Henry Kravis, who lost $2.5 billion (Can$3.1 billion), retain their billionaire status despite their weaker fortunes.Worldwide, 80 of the 355 drop-offs from last year's list had fortunes derived from finance or investments. While 656 billionaires lost money in the past year, 44 added to their fortunes. Those who made money did so by catering to budget-conscious consumers (discount retailer Uniqlo's Tadashi Yanai), predicting the crash (investor John Paulson) or cashing out in the nick of time (Cirque du Soleil's Guy Laliberte). So is there anywhere one can still make a fortune these days? The 38 newcomers offer a few clues. Among the more notable new billionaires are Mexican Joaquín Guzmán Loera, one of the biggest suppliers of cocaine to the U.S.; Wang Chuanfu of China, whose BYD Co. began selling electric cars in December, and American John Paul Dejoria, who got the world clean with his Paul Mitchell shampoos and sloppy with his Patrón Tequila.
Cortesy: Forbes.com
Asher Ullah
http://www.homesforgta.com/
Thursday, March 5, 2009
Canadian property markets cushioned for 2009
Posted: March 05, 2009, 10:32 AM by Jonathan Ratner, Financial post
CIBC real estate analyst Rossa O’Reilly says the latest statistics on commercial real estate prices bode well for Canada. The Canadian Property Investment Index, which tracks a diversified investment portfolio of 2,569 properties in 34 property funds, had a 4.7% total return in 2008. By category, the ICREIM/IPD Index found office properties returned 7.6%, residential 6.4%, industrial 2.3%, retail lost 0.1%, and other segments were off 0.3%.
Mr. O’Reilly said in Canada stronger occupancies and lower development activity along with a stronger economy supported the 3.7% return, which was broken down as 6.2% in income grown and a 2.3% decline in capital growth.
By comparison, Australian commercial properties return 1.8% last year, U.S. properties were down 11.2% and United Kingdom properties were off 22.1%.
While income growth is strong in all categories in Canada, rising cap rates are cutting into total return. The cap rate reflect the rate of return on a property and as it goes up the value of the property declines.
“In 2009 it appears likely that capital erosion will continue and our estimate is that 2009 will see total returns in the 0% to -5% range,” said the analyst. “The absence of a prior sharp escalation in property values, excessive development or highly levered investment activity, as well as a less severe credit crunch, have served Canadian property markets well in the current downturn and should continue to cushion them in 2009.”
Asher Ullah
www.homesforgta.com
CIBC real estate analyst Rossa O’Reilly says the latest statistics on commercial real estate prices bode well for Canada. The Canadian Property Investment Index, which tracks a diversified investment portfolio of 2,569 properties in 34 property funds, had a 4.7% total return in 2008. By category, the ICREIM/IPD Index found office properties returned 7.6%, residential 6.4%, industrial 2.3%, retail lost 0.1%, and other segments were off 0.3%.
Mr. O’Reilly said in Canada stronger occupancies and lower development activity along with a stronger economy supported the 3.7% return, which was broken down as 6.2% in income grown and a 2.3% decline in capital growth.
By comparison, Australian commercial properties return 1.8% last year, U.S. properties were down 11.2% and United Kingdom properties were off 22.1%.
While income growth is strong in all categories in Canada, rising cap rates are cutting into total return. The cap rate reflect the rate of return on a property and as it goes up the value of the property declines.
“In 2009 it appears likely that capital erosion will continue and our estimate is that 2009 will see total returns in the 0% to -5% range,” said the analyst. “The absence of a prior sharp escalation in property values, excessive development or highly levered investment activity, as well as a less severe credit crunch, have served Canadian property markets well in the current downturn and should continue to cushion them in 2009.”
Asher Ullah
www.homesforgta.com
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