| Greetings Friends,The new year is well underway now! I’m currently writing this edition from sunny Cabo San Lucas where I am looking at investment opportunities, and exploring the Baja with friends + family. Recently my wife Katherine joined the team as a full-time realtor! She is wowing our Toronto clients with her 5-star service and deep market knowledge. We have big plans for her in 2022 to further grow this side of our business by helping 12 families get into the housing market this year! At Ontario Assets, we have had a fast start to 2022 with multiple closings, renovations underway, newly tenanted units and we’ve also closed on 18 apartment units already this year. Congrats to our clients and passive investors for taking action; working towards their own time + money freedom! After the silly photo below, I’ll outline the signals we are using for 2022 to help our partners and clients exceed expectations… Now on to the Meat of the Matter: Our monthly highlights of the market and random opinions! |
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| “I predict future happiness for the people if they can prevent the government from wasting the labours of the people under the pretence of taking care of them.” ― Thomas Jefferson |
| Takeaways: If you are unfortunate enough to be looking to the Bank of Canada, CMHC, CBC, the Globe etc. for your news or guidance on important matters, what I’m about to write may run counter to much of the fear-mongering you’re currently digesting with regards to housing, markets and interest rates. Most of the news these days is focused on the 8 rate hikes predicted by the BoC. With the exception of CIBC, who has taken a contrary stance to the major news narrative, most of the banks and markets are trembling at the prospect of pricing these increases in. I sense we may see one or two 0.25% hikes at most. I don’t believe Canadian homes are in a bubble. I actually believe they are one of the few assets actually tracking the true inflation rate. When plotted alongside the BoC’s money printing & the ballooning national debt, the massive gains in property values track perfectly. The real tragedy is when incomes don’t keep up with inflation, which is likely between 15-25%. As you have likely gathered over the last 5 years of newsletters, I believe the folks on your news programs, and who wax eloquently in the paper, are mostly uniformed hypocrites, or worse outright liars. Our position is that inflation running hot IS THE PLAN, as it actually assists our inept, indebted governments to erode the national debt at the expense of the working poor, the vanishing middle class and everyone under the age of 35. Instead of wasting time worrying about rate hikes or wether it’s time to “fix in your mortgage”, I would suggest asking yourself: Am I going to get priced out forever if I hold off on purchasing my next property? For those of us who safely ignored the government muppets, the BoC and CMHC hawkishness for the last 2 years, we’ve seen a boom in our portfolios and net worth; nearly 25-40% on average, while our mortgage debt was being devalued at the same time. Those that waited lost purchasing power and fell behind. Sometimes the “safe” option isn’t very safe. The choice is always our own, but over here we are choosing to get after it. Oh, what a wonderful world! Randall Reashore Ontario Assets |