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Real Estate

Ottawa Real Estate Market Update

Ottawa realtors sold 964 homes and condos in January 2021. This figure compares with 778 residential homes sold in January 2020 representing an increase of 24% in sales volume for the city compared with January 2020.

674 freehold type (non-condo) residential houses were sold by Ottawa real estate agents in January 2021 showing an increase of 21% from a year ago and 290 Ottawa condos were sold representing a substantial increase of 31% from January 2020.

While inventory is up from December 2020, it is still greatly down from the average last year with 43% fewer properties available for sale in the Ottawa real estate market. This shortage of available homes for sale further causes residential property prices to increase as most houses in Ottawa now sell with multiple buyers bidding and generally causing the property to sell for over the asking price. Specific offer presentation dates and times are the norm now in the city.

The average sale price for Ottawa condos for sale was $380000 an increase of 13% from last year. The average price for a freehold house in Ottawa was $677000 an increase of 31% from January 2020.

Relative to December 2020 the sale price for Ottawa condominiums increased by 7 per cent while freehold Ottawa houses for sale increased by 12 per cent.

There were 63 houses that sold for over one million dollars in Ottawa in January 2020 relative to only 16 such transactions one year ago. Million-dollar properties are no longer unique and most indicators predict more houses will sell in the million dollar and more price point in 2021.

This trend shows a pent-up buyer demand that drove January’s resale housing market drastically higher since January 2020 and the trend is continuing upwards in sales values in Ottawa real estate.

Keep in mind these sale figures are based on average sold prices of Ottawa condos and houses sold on the MLS listings platform. Property values can be drastically different based on location, neighborhood, age, size and condition of the structures. For a more detailed and accurate property value analyzes make sure to consult a real estate professional and appraiser.

The province and city-wide Covid-19 related shutdowns and subsequent government financial help seem to have dramatically altered the capital’s housing market conditions. Pent-up demand especially for single houses in suburbs, such as Barrhaven homes for sale and the lowest interest rate available in more than a generation created a huge demand for housing. The number of listings on the market cannot keep pace with the increasing number of buyers looking for new homes. It will be interesting to see if this trend continues into the latter part of 2021 or whether the Ottawa residential market undergoes yet another change this year.

If you are a home buyer you are well advised to prepare for the home buying process. Sellers strongly prefer firm offers with no conditions. Your finances therefore must be in excellent order and the mortgage pre-approval is a must have when bidding for a property. Furthermore, most buyers need to accept the unique and often frustrating reality of multiple buyers bidding on homes. This makes the house hunting process much more complex and longer. Patience and the ability to give strong and attractive offers are key to successfully purchase a home in Ottawa in this market.

yield farming
Real Estate

Marco Kozlowski Real Estate Reviews

Real estate investing is a complicated business. A lot of decisions go into making a successful property purchase and then either turning it over for a profit with a flip, or renting it out. Marco Kozlowski has made a huge success in real estate and his students couldn’t be happier.

Check out all of the reviews here on Marco’s website.

Yield Farming in 2021

Aside from real estate I’ve been getting into cryptocurrency trading. I came across something really exciting at the end of 2020 and have run head first into 2021 with this new wealth building phenomenon.

Over the last year we have seen the increase of defi (decentralized finance) take over the world of cryptocurrency. When I initially went down the bunny hole of bitcoin in 2011 it had to do with decentralized money. We required to take back control of money from lenders. Then, with the rise of ethereum we had the ability to launch startups during the ico trend of 2016-2018. Then in 2019, hex began the defi craze we see today.
Hex was the very first completed crypto product i had experienced. There was no roadmap. The code was composed and anyone who wished to participate in the world’s first decentralized certificate of deposit might merely transfer hex into the smart contract. Their hex would become shares which upon completion of the contract would yield hex in the kind of trustless interest. Boom, the first genuinely decentralized defi product in crypto was born.

I learned about a defi project called makerdao and was quickly captivated by the idea of collateral locked into the software application protocol to create dollar-linked stablecoins called dai. “that was my entry to what we call defi,” anjos states. “at the time there wasn’t really a name for it. “.

Unlike other defi projects that pre-mine tokens, bryan legend, ceo of clever defi pty ltd and the team hold zero preliminary supply and this more offers credence to the project. Rather, the team is paid a portion (0. 1%) of the interest supplied by the smart contract every cycle. This fee is allocated towards marketing, research study and other activities that would foster the upkeep of a flourishing ecosystem. The benefits of a no preliminary token supply imply that clva is safe from the dishonest practice that prevails in the defi sector, whereby charter members discard their pre-mined tokens after launch which typically triggers a drop in price.

It does, and in defi that money is mostly supplied by complete strangers on the web. That’s why the start-ups behind these decentralized banking applications create creative ways to bring in hodlers with idle assets. Liquidity is the chief concern of all these different products. That is: just how much money do they have locked in their smart contracts? Uniswap is an “automatic market maker,” or amm (another defi regard to art). This suggests uniswap is a robot on the web that is always ready to purchase and it’s likewise always willing to sell any cryptocurrency for which it has a market.

Check out this crypto course to learn all about DeFi and yield farming.

Real Estate

Real Estate and Money Supply

There is a direct relationship between the quantity of money supply that is offered in the system and also the amount of cash that discovers its method into the realty market. This is due to the fact that realty is one of one of the most preferred investment classes worldwide. It is taken into consideration to be a safe house as well as one of the most safe bushes versus inflation.

Nonetheless, very couple of people are aware of the reality that realty also ends up creating even more cash supply! This is because of the method the modern fractional book banking system functions. The even more real estate is developed, the even more home loan are made and the greater the cash supply goes. This recursive partnership between realty and also cash supply along with how they thrust each other higher has actually been outlined in this post.

Self Continuing Money Supply
The modern system of property spending creates a circumstance where in realty catapults the money supply offered in the system. This enhanced money supply then discovers its way once more right into the property market. This never finishing backward and forward in between the financial system as well as the property system creates an environment of increasing realty rates.

Because the principles of the economic climate i.e. revenue degrees are not transforming, these climbing costs are commonly a real estate bubble. This bubble bursts bringing the prices down for a brief time period. Nevertheless, in the long run, due to the really nature of the process, realty financial investments end up propping up the money supply and creating a self-enforcing and also intensifying loophole.

Home Loans Develop Cash
About 80% of the house purchases across the established nations in the world happen on obtained cash. Hence, the term “house purchase” can be thought about to be identified with words “home mortgage”. This seems to be a regular point up until one considers just how the modern banking system works.

Banks do not offer out existing money, rather they produce new money when they make loans. Therefore, whenever a bank makes a home loan, it winds up creating that cash and pumping it right into the system. Consequently, the more home loans there are, the more cash there will remain in the system. This truth can be conveniently empirically validated by comparing the development of home loan in the financial industry for cash supply in the economy. Both charts nearly move all at once!

Money Creates High Rising Cost Of Living
Now, the problem with more money getting produced is the fact that this newly created cash rotates in the system. It obtains its worth by decreasing the value of the various other money in circulation. Consequently, in countries like the United States when the home loan markets were booming, there was incredibly high rising cost of living out there. The high inflation combined with average salaries growth creates a scenario wherein the employees are shedding real wages!

Rising Cost Of Living Creates High Prices
The money that was created as a result of the mortgages locates its way largely into the real estate industry once more. This is due to the fact that enhancing demand for real estate takes the prices higher triggering customers to mark time to get what appear to be “profitable investments”

Now, excess money along with excess need in the system results in the growth in the costs of property units. This additional rises financier self-confidence that real estate is certainly an exceptionally profitable investment. The realty rates which initially appeared to be overmuch high offered the financial fundamentals stay that way as well as the impression starts to become reality! The filled with air realty rates become the brand-new regular.

Supposition Produces More Mortgages
When speculators observe that several of their peers have earned money by speculating on realty, they also make an attempt to sign up with the party. This further puts in an upward pressure on the property sector as excess money and excess demand currently fulfill speculative objectives!

This is the excellent dish for a bubble. Speculators drive the costs skies high via self reinforcing comments loopholes. Higher prices in the past become the reason for even greater costs in the future! This period witnesses a quick development in mortgages as well as housing costs.

The Bust Phase
Finally, at an unpredictable point in time, the bubble bursts. The main factor behind the breast is the unsustainable financial problem in the economic climate. At this point in time, many customers are simply not able to make payments to their financial institutions. Consequently, the bank has to seize these homes and list the losses. Nonetheless, very few people know the fact that when banks write down these losses, they in fact write the money out of presence. Because home mortgages were what created the cash in the first place, when these mortgages disappear so does the money. As a result, the total money supply in the system is reduced and also therefore the costs show up to have actually gone down.

Therefore, mortgages and also real estate prices have a massive impact on the money supply of the economy. Given that cash supply is one of the basic financial specifications, the real estate prices wind up having a massive impact on the entire economic climate.