NEWSLETTER
Click here for the current Victoria Real Estate Market Conditions 
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
