Tags: Canadian

16 Jul 2009, Comments Off

CANADIAN ALTERNATIVE FINANCING

Author: admin

Setting up shop in Canada comes with its own set of obstacles and benefits. Statistics Canada reports that 75% of job creation is through small businesses. Getting a conventional loan is one of the biggest challenges. Canada’s major banks have big profits yet are not supportive of small businesses. Venture capital is scarce.

Working Ventures, sponsored by the Canadian Federation of Labor, is the first national, labor-sponsored investment fund in the world. Its goal is long-term capital appreciation for shareholders, providing risk capital (between $250,000 and $10 million) to high-growth and medium-sized Canadian businesses. All Canadians who invest in Working Fund receive tax credits.

Therefore, in Canada, alternative funding is easier to obtain. From customers and suppliers to corporate lenders and government programs, customer financing has minimal paperwork.

Human Resources Development Canada offers self-employment assistance to employment insurance recipients who want to start their own businesses. There are even Community Loan Associations in each province.

Canadian Alternative Investment Co-operative in Toronto, Ontario, was formed in the early 1980’s by a number of religious communities pooling resources to make investments towards positive social change. CAIC offers loans, mortgages, and equity investments for community-based projects.

BRIDGE LOANS

Bridge loans are loans that are generally very short term, easier to acquire and with quick approval times. Their main advantage is speed and the ability to quickly close, save property from foreclosure or other situations which generally come on short notice and require fast money. Bridge loans are extremely convenient and useful when you absolutely can’t wait for a standard loan. Other names for bridge loans include “interim financing,” “gap financing,” and “swing loans.”

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”

—Paul Getty

As the terms “interim financing” and “gap financing” imply, bridge loans are also used to fill in the gaps during cash-flow shortages or to finance businesses or business operations in the interim between larger loans. They also come in handy between business startup financing and more permanent financing. Bridge loans are often used on short notice for real estate purposes. The range can stretch from two weeks to three years, and the amount of the loan and interest rates are only really limited by the customer’s credit. However, the amount of the loan generally won’t be as high as long-term loans would be, and interest rates generally run several percentage points higher.

Ilya Bodner
Small Business Owner

http://www.fastcompany.com/blog/ilya-bodner/true-business-credit-card/canadian-alternative-financing

reviewed by Moishe Alexander, CFC Canadian Funding Corp CEO

29 Jun 2009, Comments Off

Canadian Funding Corp Sees Continued Growth in Property Market

Author: admin

More good news for Canadians this week, as an official think tank has predicted that Canada will continue to avoid the harshest affects of the recession.

The think thank, in collboration with the IMF, noted that the housing market remains strong, and continues to flourish. The IMF predicts that of all the G7 countries, Canada wil be the fastest growing in 2009, and has one of the soundest economies in the world. Canada’a extraordinary robustness is all the more impressive when compared to the U.S’s recent financial troubles.

Although Canada is sometimes considered the poorer relation to the U.S., or not considered as one of the leading economies of the world, Canada is in fact one of the few countries that continues to thrive in these tough economic times.

Thriving Real Estate Market

Canada’s quality of life continues to rank among the top 10 in the world. With a thriving property market and quality real estate, Canada continues to be an attractive offer to overseas buyers, looking to buy investment property, or holiday homes.

There are a number of reasons why Canada’s property market (and economy) continues is ascent:

Firstly, Canada has built it’s economy on the strength of its oil and gas resources – the 2nd largest oil reserves in the world and the 3rd largest natural gas producer. In the Alberta oil region where much of the gas is produced has a 5% employment growth per annum.

Billlion Dollar Sales

In 2007, when the U.S was recording record number of repossessions, (to get worse in 2008) the Canadian Real Estate Association was celebrating its’ first year of billion dollar sales. Another lesson the U.S: how much of the Canadian real estate lending was sub-prime? About 5%.

With inflation well under control, and the Bank of Canada recently reducing its rates on martgage lending, Canada increasingly looks like a great place to invest your real estate money. Government spending is under control, and house prices continue to rise.

http://www.sell-my-house-quick.com/articles/canadian-property-market-continued-growth-160.html

brought by Moishe Alexander, CFC CEO

16 Jun 2009, Comments Off

“Opening door on market”, Moishe Alexander, CFC CEO, brings the report

Author: admin

Canadian Columnists Linda Leatherdale on 2008-05-04 posted on Canoe Money a timely article on the Canadian Housing Market – “Opening door on market”

“Some feverishly argue there’s no way Canada’s real estate market will crash and burn like the U.S. market, where one prominent analyst warns that the meltdown is more fast and furious than during the Great Depression”.

“Others say, get real: Canada’s largest trading partner is the United States, and if this one-time economic superstar is in a recession, we’re going down, too”.

Read the full article here.

The Royal Bank of Scotland recently released an advisory to its clients to braise for a “global stock and credit crash” over the next 3 months. The UK housing market may not recover until 2015. The housing market and debts problems in the US and UK, record high energy and food prices could eventually drag Canada into a housing down turn as we experienced in 1995 to 2001. Except, this time the problem could be very much worse than what we experienced previously.

Greater Vancouver Housing Market

The Saunder School of Business’s housing chart for Greater Vancouver below shown that it took 8 years for the housing market to recover to it’s 1981 peak at around $240,000. The housing downturn from 1995’s peak at $420,000 took almost 9 years to recover. Using the charts presented here up to 2007, and plotting the trend lines for nominal and real prices, $540,000 seemed to be about the “right” price level where the Vancouver housing price should be. This represents a 30% to 35% price differential below the current Vancouver nominal and real housing prices.

The price gains over the past 30 over years is attributed to excessive liquidity and priming of the money pump, we have over-shot the price gain by 30% to 35%. If the housing down turn is going to hit Canada, we could be facing a more serious price decline from that happening in 1981 and 1995. Click here for the latest news on Richmond’s real estate market.

The chart below for Greater Vancouver from the Real Estate Board of Vancouver plotting housing data up to May 2008 confirmed the sharp housing price gains that are “unsustainable”. The escalation in prices since 2002 to present out-paced the gains in the past 25 years.

Last week’s 400 plus points drop in the Dow could signal the big one is coming. Canada is unlikely to be insulated and not affected by the financial meltdown.

The debate as posted by Linda Leatherdale will continue. My take is that our real estate market is not so different from the US and UK. Our housing market is way over-priced and overly propped up by past years price appreciation. It is a matter of time we will face a painful price correction resulting in huge financial losses by many home owners. You are welcomed to post your comments.

http://activerain.com/blogsview/573085/the-canadian-real-estate-debate-goes-on

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