The Wealth Building Guy

A few conversations going on around the Internet today . . . Jump in - either here or at the original blog posts (click through the links to get there).

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Brian Brady thinks Canada is headed for a Real Estate slowdown, and he asks a local for some ‘on the ground’ reporting.

In Canada’s ‘Wealth Building Guy’ Defends Kitchener Waterloo Real Estate, I tell Brian why I think that Kitchener Waterloo offers Real Estate Investors a great place to let their equity grow at accelerated rates, and why I feel Canada’s economic situation is very different from what we’re seeing in the US right now.

…There are three major post secondary institutions in Kitchener Waterloo, with a medical school almost completed.

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We are the heart of Canada’s Hi Tech sector (the Blackberry everyone loves is made in Waterloo, 5 minutes from my office)

We have a very strong FIRE [Finance, Insurance & Real Estate] sector.

We have a VERY diverse economic base.

When I spoke with Benjamin Tal last month, a head Real Estate analyst in Canada, he singled out Kitchener Waterloo as the bright spot for Real Estate investors in Ontario. I agree, and my clients do too - voting with their wallets.

People from Toronto, Montreal, Vancouver, Calgary, New York, California and recently even Kuwait are attracted to our low prices and great economy. Condos from 130Ks (they’re nice!), newer single detached homes in *nice* areas from the $230,000s - and we’re less than 1 hour away from Toronto, and Pearson International Airport. [ed: Waterloo Regional also flies to international destinations]

Just like in the US, there are some areas where, to me, prices feel high. But Canadians as a whole have not embraced the sub prime lending that the US has seen in recent years, and *most* Canadians aren’t buying huge homes they can’t afford, without equity. Clearly, there are always some who do, and independent of the economy, they’ll get burned, almost every single time.

Investors in Canada should be looking to areas where they can get a great, reliable, steady return on their investment - Kitchener Waterloo fits the bill in every regard, and you don’t need to plunk 35% down like most of us Canucks would have to when buying stateside.

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At AgentGenius we’re having a great discussion on Good Debt vs Bad Debt, prompted by Seth’s blog this morning. 

I said… 

Bad Debt = borrowing to buy a depreciating asset or experience (shoes, boat, car, most vacations)

Good Debt = borrowing to buy things which increase in value (real estate, businesses, collectibles) or increase your value (targeted education and training, for example).

Pay off your bad debt ASAP. Take on Good Debt, in small doses, after loads of education.

Jennifer in Louisville added "They get told by the media and self-proclaimed “experts” that they should cut up their credit cards, and get rid of all their debt so they can be financially sound. When in reality, most persons that are considered wealthy (other than by lottery winnings, or inheritance) - had to go into debt at some point to get their product/business off the ground."

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Ben Asks:

Have you had to shift your paradigm about debt to include Good Debt ? 

How did YOU do it ?

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada - and recently, the world! - helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008