Recession Blues Part II

Several months ago , I wrote a thread about one of my peers who lost his job and about how some propertys were up for foreclosure.

To carry on from that angle ,the economy has continued to show signs of decline in some quarters. I am led to believe that negative media and economic forecasts become self-fulfilling prophecys.Few newspapers and news sites report positive news if any……..

A friend of mine who is single and has a 11 year old son was looking for an apartment to rent, as she had grown tired of the one she was living in.Mortgage interest rates in Canada have dropped to an all time low of up to 3.25% , so what this means is that ones affordability factor increases – and that mortgage repayments are quite comparable to rental payments.So it is worth venturing into buying real estate as a first time homebuyer or as an investor.

Going back to my lady friend , she was able to buy a brand new 2bedroom condominiumwith a built -in ensuite , in a facility with an indoor pool ,gym , spa and sauna all for $210 000 ! She is ecstatic with happiness as this is the first time in her life that she has owned a property , I suppose its the feel you have when you buy your first car.

In general , this recession has actually opened windows of opportunity for a few people who are risk takers.In the past year , one of my peers started his own homebased business which has thrived despite the economic downturn.Another couple kicked off a cottage industry making pastry pies with a recipe copied from a restaurant in Bulawayo,Zimbabwe….their pies are wildly popular among the community. This is also the time when you can purchase big ticket items at major markdowns , new cars are being sold for as little as $12 995 , the price of electronic goods such as flatscreen plasma TVs has dropped quite dramatically ,not enough for me to upgrade as yet ! For the investor who has savings to spare this is a time to buy stocks and bonds at rock bottom prices, many investors sensing arbitrage opportunities quietly buy up junk bonds,coupons,and mutual funds and wait until the market recovers. In Canada , the tax system is set up in such a way that if you borrow money to purchase investment securities , the interest expenses are tax deductable ! In other jurisdictions, I am quite certain that the tax provisions offer similiar tax treatment. I have been inspired to finally make concrete plans to register my own side business , as they say procrastination is the killer of dreams , and I have procrastinated for a very long time. I am just raring to go , and now is a good time as any…..

Even in these challenging times, all hope is not lost.