Buy Buy! Wait I meant Sell, No Wait Rent Instead!

I’m Frustrated With Real Estate

This Real Estate market is killing me. Anyone else feel the same? Every time things start looking better in the world, up pops something to knock a table leg out and start the worldwide economy teetering once again. And this has been going on since 2008!

As soon as these fear headlines hit the major media outlets, everyone starts hunkering down expecting the bottom to fall out everywhere. And maybe it will, just not around here. Now I’m not saying it won’t affect our local housing markets, I’m just pointing out it won’t be for economic fundamentals but rather for F.U.D.

If you aren’t familiar with F.U.D., it’s fear uncertainty and doubt. Fear is what can drive the markets down quickly, whether it’s stocks, housing or gold. Uncertainty can leave the markets without any movement as people sit on their hands waiting to see what direction the market is heading and doubt is what creeps into everyone’s minds when nothing positive is happening. It‘s the cycle we seem to be stuck in for the last several years.

Perhaps part of it is our sheltered existence here in Alberta along with our short selective memories. It seems like there are a couple of different mindsets out there, but the loudest ones locally are the ones talking about how bad things are, how tough it is and how many cutbacks and layoffs are occurring around us.

Many of these people selectively recall how incredible it was during 2006 and how Alberta was literally paved with streets of gold. My how things have changed, now instead of it being spectacular, it’s just good and good isn’t good enough anymore.

Maybe I’m just talking to the wrong people, but the roofer, Samuel,  I met last week who had just moved here from Quebec couldn’t believe all the opportunity for him here. He had a job lined up before he arrived and two new offers before he started Monday, just by making some phone calls. He had to leave his wife and young child behind, but he wasn’t working in Quebec, now in a month or slightly longer he can bring his family here.

Same with Michael from Virginia whom I met earlier this week that just moved here to work, Hamil from France who I talked to this morning and is arriving Sunday for work and how about Rey from BC who starts his new job on the 24th in Calgary. Yep, things are awful here. At least until you understand how crappy things are elsewhere.

 

Time for some cold hard facts. Alberta is leading the country is weekly earnings. We get paid more here than anywhere else in Canada. We’re usually near the top in increases in wages every time the reports come out, our unemployment is among the lowest in Canada and we have billions of dollars worth of the energy that makes the world turn under our soil. True it’s not as it was in 2006, but things are darn good compared to just about everywhere else, and I’m not talking just in North America but in most of the developed countries!

 

Yet F.U.D. prevails. So we will continue to be mired for several more months as the Greek crisis resolves itself, then likely the next issue will pop up (probably more US financial issues) leaving us mired even longer, meanwhile many of the people who see the big picture and who have long term views, will be slowly buying select properties in the province. They’ll continue to collect ever increasing rents due to the renewed in-migration and “secret” prosperity occurring before their very eyes. Steadfastly waiting for many of their friends and neighbours to call them lucky in a few years when the masses suddenly realize it isn’t so bad. When all along they know they weren’t lucky, they were just observant and not falling victim to F.U.D.

Our Perspective is Whacked

I was going to use stronger language there, but held back. Feel free to read it any way you want. I cannot take credit for this observation and I cannot recall where I heard it, but think about this. This recession was a cake walk when you compare it to the Great Depression.

During the Great Depression people were not lined up down the street to buy the latest piece of technology, they were lining up for soup kitchens. During this recession, Apple has become the largest company in the world by selling expensive phones, expensive computers and expensive tablets. And people were lining up! Damn times are tough.

During the Great Depression workers were moving their whole families across the country with the hope of being able to find food. During this recession unions are negotiating for cost of living increases. Damn times are tough.

These are just a couple of observations that come to mind. If you live in Alberta you are situated in one of the best places on the planet to improve your life, at least for the next five years, so tell the naysayers to give their head a shake and move somewhere else if times are so bad. In the meantime, take advantage of this timing, while so many are timid and scared to move forward and see where you can take your life!

 

About admin

Bill has been investing in Calgary Real Estate since 2003 and has been writing about various Real Estate topics since shortly after he started. With a significant amount of Real Estate transactions and experiences he is able to pass his knowledge on to other investors and partners, and now you through his Real Estate blog. To automatically receive new posts, be sure to sign up on the top right of this page and I will send you a free ebook on Screening Tenants.
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8 Responses to Buy Buy! Wait I meant Sell, No Wait Rent Instead!

  1. Theode Kasper says:

    Hi Bill,
    FUD is relative. I think people need to get out and about to appreciate what you have in AB. I have been in New Brunswick for the last month and noticed Alberta companies advertizing in all the local newspapers, radio stations etc for employees. Is anyone from NB advertizing in AB? I don’t think so. That tells me someone in AB thinks there is allot happening & there aren’t enough applicants in AB to fill the jobs. There will be lots of new people moving to AB in the next year. Now is the time to buy in AB before everyone else figures out there is a boom happening there again.

  2. Kerry says:

    Is anyones stocks doing better then realestate, if so let me know!

  3. Bill Biko says:

    Definitely true Theode, we have become so caught up in our little corner we don;t understand how good we have it.

    Regards,

    Bill

  4. Bill Biko says:

    I think the bank’s stock is, but only because they invest in mortgages!

    Bill

  5. Bill,
    It’s interesting to read this article… the first somewhat positive news that I’ve come across for some time. It’s great to hear that there are still some places in this world where not everything is bad.

    Besides home inspections, I also deliver foreclosure notices for several banks. Things are so bad down here in the US that I spend more than 40 hours per week just delivering foreclosure notices. Maybe I should think about moving to Alberta…

  6. Bill Biko says:

    Hi Rick,

    Thanks for the feedback. The economy in Alberta and specifically Calgary is totally unlike the rest of North America (and most of the world). The people just seem to be coming steadily here non-stop for work and opportunity while the people living here are oblivious to how great we actually have it. We’d love ot have you come out here, although the foreclosure business is significantly slower than down there, so you might have to find another job!

    Bill

  7. Bill, thanks for your comment above.
    You know, next Spring my wife and I may just check out Calgary…you make it sound like a window of opportunity.

  8. I agree. I have been an investor in Alberta, calgary real estate for12 yearsand seen great things. Post a rental listing online and see how quickly you get replies! Calgary is a great place to live

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