Japan - the economic fallout from the disaster!

It is worth examining what could happen economically in the days to come. There will be a massive rebuilding effort, no doubt successful, just as Japan did in the aftermath of the Second World War. That will lift Japan’s GDP over time.

However, in the short-term, there will be factory shutdowns. There could add to a shortage of some critical parts, particularly related to electronic products, and thereby lift inflationary pressure for these goods worldwide. Less nuclear energy usage will mean more oil consumption, which could also add to inflationary pressure on energy products.

The money for rebuilding will be from government borrowing. Japan already has one of the highest government debts in relation to the economy, measurably higher than the national debt in the U.S. But unlike America, most debt borrowing is from Japanese citizens. So in a sense Japan owes money to the Japanese. In America, about 40 percent of the debt is held by foreigners, which despite creating lower debt than in Japan, makes it more alarming. Eventually, more borrowing by Japan will mean less total global savings to purchase U.S. debt. That means the U.S. government will need to offer higher interest rates to borrow once Japan slowly regroups and recovers.

Median Age of Home Buyers: 2001 – 2010

The typical age of home buyers has remained at 39 years of age since 2007.

However, when looking closer there are differences among first-time home buyers and repeat home buyers.

The age of first-time home buyers fluctuates with household affordability. From 2003 to 2006, during the housing boom, younger buyers had a more difficult time entering the market and the typical age rose to 32. In 2007, the typical age of first-time home buyers fell to 31 and from 2008 to 2010 the typical age has remained at 30.



Among repeat buyers the story is different. When many markets became buyer’s markets, current home owners stayed in their homes longer, putting off selling and moving to a different home. This affected not only tenure in home, but the typical age of repeat buyers. Repeat buyers increased in age steadily on an annual basis from 41 in 2001 to 49 in 2010.

Chinese investors once again pouring money into Canadian real estate

In Vancouver, real estate is the economy. So for many, news that Chinese investors are once again arriving in droves to buy up property is being cheered.
Real-estate agents haven’t seen anything like it since the mid-1990s, when fears surrounding the Hong Kong handover fuelled the first rush into the local market by Chinese investors. This second charge could be as substantial as the first, which drove up property values by hundreds of thousands of dollars.

Back then, suburban Richmond was the destination of choice. And while it remains the preferred location, investors from mainland China are buying up property throughout Greater Vancouver. Toronto too.
There are more wealthy people in China than ever before. Concerns about inflation and a real-estate bubble prompted the Chinese government to limit the number of condominiums people can own to two. So the wealthiest Chinese are looking elsewhere to invest their money.
That it’s hard to get money out of the Communist country appears to be a myth.
“Real-estate values in China have doubled over the last two or three years,’ said Les Sohar, an International real estate specialist. “So real estate in Vancouver and Toronto doesn’t seem too expensive to them any more.
“We’re also seeing a lot of Chinese looking for a parachute plan. These are people afraid of a regime change in China and what that might mean for their wealth base. Canada is seen as a safe place to put their money.”
The Chinese love the political and economic stability Canada offers. We have a good education system too, which is why so many mainland Chinese send their children here to go to school. It is common for a mother and her children to come to over, while the husband remains in China to earn a living.
Thanks largely to the latest great push from China, the average price of a home in Greater Vancouver rose 12 per cent in 2010 and is expected to rise another three per cent this year, according to Canada Mortgage and Housing Corp.

From the ashes and mud of Japan comes a new dawn

Housing Affordability Soars in the USA, Investors Move In

It's a good time to buy a home or invest in a property. With so many distressed properties on the market, housing affordability has jumped to levels not seen in 20 years.
The Housing Opportunity Index (HOI) for the fourth quarter 2010, reveals that 73.9 percent of all new and existing homes sold were affordable to families earning the national median income of $64,400.



That record-setting level beat the last record high of 72.5 percent set during the first quarter of 2009. It was also the eighth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

Where the bargains are
With 93.5 percent of all homes sold affordable to households earning the area's median family income, the Indianapolis-Carmel, IN area was the nation's most affordable large housing market.
Also ranking near the top of the most affordable major metro housing markets were a host of other areas. Contact me if you would like more information.

Is Immigration important to our economies? It is to Canada

According to Statistics Canada, the population of Canada has grown by more than 129,300 people from July 2010 to October 2010. More than 65% of those people were new immigrants to the country. Within those 3 months, 84,200 new immigrants arrived in Canada. This growth in immigration can be attributed to the strengthening Canadian economy. As new jobs are being added to the market, Canada is looking for skilled workers to immigrate to the country. The Government of Canada is expecting to issue approximately 265,000 Canadian visas by the end of this year.
Although most provinces saw some growth rate in their population, certain provinces such as Quebec, Prince Edward Island, and Manitoba have been receiving the highest number of immigrants. During the past few years, Quebec has received almost 17,000 new immigrants, while Manitoba has received almost 16,000 immigrants. Provinces are attributing the influx of immigrants to their successful Provincial Nominee Programs. Nearly 75% of immigrants who arrived in Manitoba had immigrated to Canada through the Manitoba PNP.
As the Federal and Provincial governments continue to adjust their immigration programs to attract even more people to the country, Canada can expect its population to continue to grow in the coming years.

The world's smallest house (7ft wide, 47ft long) in Toronto

At just over seven feet wide and 47 feet long, this tiny building is one of the smallest functioning homes in the world at 312-square foot 'Little House' of Toronto, Canada.

With a front drive that parks two family sized cars - even though the house itself is barely big enough to swing a cat round - it still comes with all amenities. As well as its ample 2.36m-high ceilings, the Little House also has a decent sized basement for storage space.It has a full bathroom, a kitchen and a decent sized bedroom with a fold up bed that gives more room when up. 'This is a great and historic purchase.'

Built in 1912, the Little Home has become a celebrity in its own right over the past 98 years. Talk show host Ellen Degeneres has even expressed an interest!