There’s been some great material at the last few REIN meetings about mortgages, particularly timely given the Bank of Canada’s decision to raise prime.

Don Campbell was on BNN, CBC, Alberta Primetime and a couple others talking about the best way to approach the coming rate hikes. Watch the video or scroll under to get the quick skinny.

The best option is to stay variable and make optional payments to bring your payment level up to the same level as the fixed rate payments. It’ll save you tens of thousands of dollars.

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Here’s a video of an interview Don had with the folks at BNN (the Business News Network). She starts off with one of Don’s old quotes, and asks if he still thinks it’s true today.

Even in today’s unsustainable economy, an investment in real estate is still a solid investment, backed by solid assets.

Here’s some bullet points I took from the video:

• Look long term. The next 18 months are going to be a roller-coaster. We’re looking for yield, and return on investment (ROI).
• The Three F’s: food, fuel and fertilizer.
• National stats don’t mean anything.
• Remember; people go to school during a recession. Towns with 2 or more  post secondary institutions are a good possibility. Pay attention to education. Avoid forestry driven towns.

The interviewer is a smart lady, and pretty sharp. As she says at the end of the interview:

It’s common sense, look where there’s robust economic activity.

The other guy says “he glosses over the costs of maintaining rental properties” and she stomps on him. Apparently she’s reading Real Estate Investing in Canada (and knows the truth). Good short video. Don’s good at rapid-fire interviews like that.

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