With the recent turmoil in the markets, I hope we can all try to remember to try to keep clear heads and know that real estate has proven historically to be a reasonably safe investment. Locally, some important things have not changed. Firstly, we are still the most desirable place to live in Canada! Secondly, interest rates are still low, especially the variable rates, which dropped just a few days ago and lastly, real estate prices have dropped a little. On a 35 year amortization, payments are still often the same or less than rent - and try to find a place to rent! Besides, we all need a roof over our heads.
Furthermore, in a recent CTV News story (dated Oct 9th, 08), Canada's banking industry, led by Royal Bank, CIBC, Scotiabank, TD Bank, Bank of Montreal and National Bank, was given the best ranking of any banking system in the world. The survey by the World Economic Forum has proclaimed Canada to have the world's soundest banking system, with a rating of 6.8!
Placing just behind were Sweden, Luxembourg, Australia and Denmark in the World Economic Forum's Global Competitiveness Report, released on Wednesday in Switzerland.
Twelve thousand corporate executives around the world were interviewed on a number of questions and ranked banks around the world on a scale of one to seven -- one being insolvent and possibly in need of government assistance and seven being entirely healthy.
So sit tight everyone, we'll get through this together. I hope this offers some small bit of comfort.
Wishing you all a very Happy Thanksgiving.
Ann