Recent News
NEWSLETTER
Click here for the Spring 2004
Victoria Real Estate Newsletter
Common Stocks or Real Estate
WHERE'S THE SMART MONEY GOING?
The Stock market has been horrible for several months.
Does this have any impact on the value of real estate in both the
long and the short term?
Real estate is a hard asset and as such is most attractive during
periods of economic growth coupled with inflation. Common stocks
are a soft or paper asset that performs best during periods of economic
growth coupled with low inflation.
For 2 decades from the mid 1960’s to the mid 1980’s,
we had economic growth and high inflation. During this time real
estate investment was the best investment class to own. BUT starting
in the mid 80’s and even to today, we have had economic growth
with low inflation. As a result common stocks have been the place
to be - ie. computer and Internet (former) magnates
We may be at or near the point for a change in long term direction.
The pendulum may be about to swing back in favor of real estate.
The first thing to watch for is a raise in inflation.
If B.C. is and indication, there will also be some price pressure
as a result of rising wages. This will add to the inflationary pressure.
Another contributor to cost to push inflation is rising energy costs.
We know how oil and gas prices have risen substantially over the
past year.
Do not expect dramatic increase in the inflation rate. Changing
such long-term secular trends is like turning a large ship on the
open ocean, It will happen gradually, once it begins to change it
will be very difficult to stop. And as inflation rises, real estate
prices should also begin to rise after many years of being in the
doldrums.
Source: Ted Ohashi,
author of Maclean’s Money Companion
Feng Shui
Have you ever entered a building where you instantly
felt uncomfortable or ill at ease? Conversely, are there spaces where
you feel immediately at home, this could be your office, your home,
or the home of a friend Feng Shui teaches that harmony and balance
are important for a good energy flow. We are all effected by our
surroundings. When these are pleasant, we feel a sense of well being,
which invites good health and prosperity into our lives.
Feng Shui (fung schway) is the ancient Chinese study of placement,
literally meaning wind and water. Its' practitioners believe there
is a direct connection between our environment and it’s surrounding
energy levels. When Donald Trump consulted Feng Shui for the design
of his New York high rises; North Americans began to take notice
of this ancient practice.
The principals of Feng Shui apply inside and out, if large bushes
are growing over the walkway, impeding entry to your home; this slows
the flow of chi (energy). So does clutter, leaky faucets and poor
lighting. Feng Shui is another way of looking at our space with larger
eyes. Small improvements can create major changes. Get rid of clutter,
fix or repair that squeaky door, and make sure there is adequate
lighting. Enhancement through the use of color, flowers and furniture
placement can also be of benefit in creating the harmonious balance
and feel of your space.
As you begin to sense the connection to your environment, it will
become easier to gain insight on how to understand Feug Shui.
Thought for the Day
"Every problem contains the seed of its own
solution." – Norman Vincent Peale
