Halifax : A City with a Very Bright Future

Posted on 20. Oct, 2011 by in General

The 19th October 2011 was a momentous day for Nova Scotia as Irving Shipbuilding, Halifax Shipyard was awarded a $25 billion combat contract under the National Shipbuilding Procurement Strategy – this happens to be the largest government contract ever awarded. Way to go Halifax.

The economic implications of this contract will be HUGE for the province, but not limited to Nova Scotia.  The ripple effect will create profound benefit to the entire Canadian economy – from coast to coast.

According to the Greater Halifax Partnership, the contract will mean a peak of:

* 11,500 jobs

* over $540 million in personal income

* Over $350 million in federal, provincial and local tax revenue

What does this mean for Real Estate Investors?

Those of us who follow a system based on solid economic fundamentals know that the demand for real estate in Halifax will increase. This is based on the micro and macro economic forces that drive market values such as job growth, in-migration of people, an increase in average incomes and increased rental demand.  The cycle that will lead to increased property prices takes between 12-24 months to happen.  The key factor in getting this to start is GDP and job growth.  Halifax has just secured both.

It’s going to be a very interesting few months for investors. You will no doubt witness speculative investors rushing into the market place to buy properties at inflated prices based on yesterday’s announcement, despite no actual jobs being created (yet!).  Fundamentally, nothing has changed from yesterday.

What the sophisticated investor needs to do now is work out the strategy, types of properties and locations where the influx of people will be looking to rent.

Sophisticated investors know they need to wait for the speculative investors to exit the market and prices to normalise. It takes 12-18 months from now to buy the right properties at the right price.  Our fear is that people will buy properties for the sake of getting in first – fear of missing out on the biggest opportunity for many years. However, this is not the case.

Take your time to observe the market, analyse the properties and buy when the time is right – not following the crowd and being a speculator.  Speculators lose their money because they buy at inflated prices and without knowing the market.

Take a breath, become a geographic specialist and buy right. This way, you will prosper too!

To Your Investing Success!

Richard & Jane


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One Response to “Halifax : A City with a Very Bright Future”

  1. ken nicoll

    17. Nov, 2011

    hi Richard & Jane
    I am a REIN member in Edmonton. I was born and raised in Halifax. We return”home” every other summer. I found your site from your recent REIN ad (consutancy fee) and found it quite interesting. Would have interest in looking at investments in Halifax What would be a good way to start to observe the market and specific geographica llocations
    No firm dates for our trip home this summer.
    cheers ken & susan

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