10 JANUARY 2012

www.dreamsandmoney.com

FORTNIGHTLYPAGES Dream Issue8 1 16

Higher Standards Agents... Higher Results!™

Perrii Muthuraman MBA; M.Com

HomeLife/GTA Realty Inc., Brokerage*

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www.homelifegtarealty.com Email : perrii@dreamsandmoney.com416.473.6100

Sales Representative

1711 McCowan Rd., #206Toronto, ON M1S 2Y3Bus : 416.321.6969

Dream Homeis within your reach

LET ME SHOW YOU WHERE AND HOW?

Cold And Flu Prevention

Winter Activities: Tips to Avoid Injury2 2 2

&

INSIDE

STORY TIME

Your Home Dreams Fulfiller

New Housing Price Index Rises Again :StatsCan

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Market Review

The HousingBubble

BMO Bank of Montreal advertised the lowest mortgage rate and grabbed all the attention. 2.99 percent for a 5 year fixed rate mortgage. It's supposedly just a two-week promotion. Other banks have already begun to match BMO's offer. BMO offers this special rate with one main condition: amortizations no longer than 25 years. Other banks permit repayment period or amortiza-tion up to 30 years. People with low income will have problem, to get qualified for mortgage with low amortization.

RBC & TD Canada Trust, now offers 4 year fixed rate mortgage at 2.99 percent. Scotia offers 3 year fixed rate mortgage at 2.89 percent.

CIBC's 3 year special rate is 3.19%.

Low rates offer a great opportunity for those who can afford to buy or refi-nance . Breaking your mortgage requires careful consideration of many factors , including the charges or prepayment penalty that you may have to pay.

Mainly two factors that determine the prepayment penalty of a fixed-rate mortgage are:

Ÿ The difference between your higher-rate mortgage and the current mortgage rate, known as the interest rate differential penalty; and

Ÿ The amount of time remaining in

your mortgage's term. The longer the time, the bigger the penalty.

Unlike the USA, low mortgage rates have spurred more home sales in Canada and the trend is expected to continue.

Fixed mortgage interest rates closely follow the trend of bond rates and in fact fixed mortgage rates are linked to bond

interest rates. Due to global uncertainty, bond rates have continuously declined in the recent past. Mortgage rates are catching up that trend now. Variable mortgage rates and other floating rates are not affected. They get affected only by the Bank of Canada's overnight rate.

A variable-rate mortgage features an interest rate that floats with any change in the prime interest rate. A fixed-rate mortgage features an interest rate that is fixed for a specific period of time, such as five years.

Of course, competition among the banks and other lenders along with the desire to boost shrinking business also contribute for the fall in rates.

Why are mortgage rateshitting record lows?

anada is the fourth friendliest which had high scores in all four country in the world for categories.C

expatriates, according to the results of New Zealand, in the top spot, had HSBC's Expat Explorer Survey. high scores in all four categories.

HSBC surveyed 3,385 expats in 100 Seventy-five percent of respondents countries between May and July 2011, living there reported that they were but the findings only ranked 31 nations integrating well in the local community.because those with less than 30 respon- “New Zealanders as a whole seem dents "were deemed statistically like happy people, and that translates insignificant," Forbes.com reported. into friendly, helpful and kind people,”

The countries were ranked based on notes American expat Kim Brinster. four categories: ability to befriend Other positive aspects, she says, include locals, success in learning the local a “pitch-in-and-help mentality,” as well language, capacity for integrating as navigable government and health-themselves into the community, and care systems. A former New York City

ease in which they fit into the new culture.

Those 4 factors, according to New York-based coach for expatriates Heather Markel, are “among the biggest challenges when relocating.”

bookstore owner, she relocated two Coming in just behind the top three years ago to Waiheke Island, off in terms of friendliness were Canada Auckland, to be with her New Zealander (dropping slightly from the top spot last partner. She has no plans to leave.year) and the United States.

“A majority of respondent here Below is a list of the top 15:

report better working conditions and 1. New Zealandimproved work-life balance as a result 2. Australiaof their relocation; 39% say they are

interested in staying on to become long- 3. South Africaterm expats.," Forbes.com said about 4. CanadaCanada, citing the results of the HSBC

5. United Statessurvey.

6. TurkeyTopping the list of the world's

7. United Kingdomfriendliest countries is New Zealand,

ORONTO, Ont. - The Ford members of the public to attend. The Brothers are doing to them- weight loss challenge will last six T

selves what they are doing to the city months. budget. Yes The Mayor Rob Ford is not Members of the public can keep only cutting the fat in the city of track of how the mayor and his brother Toronto, but also inviting Toronto are doing at the interactive website residents to participate in their "Cut the www.cutthewaist.ca.waist" challenge. The brothers came up with the idea

The Mayor and his brother will take over the holidays in Florida. “We said, part in a public weigh-in at City Hall on hey, we've got to do something with our January 16 and they are inviting weight, not to mention our kids.

Especially Rob's, his are only little guys.”

(Courtesy : 680 news)

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M.SHEKAR

Ford Brothers Invite People ToParticipate In Weight Loss Challenge

Canada Friendliest Country is World's 4th : HSBC Survey

>>CONT. PG.6

Mortgage RatesRecord Low!

Are At A

2

10 JANUARY 2011 MONEYDREAMS &

ith cold weather knocking on on 3 preparations from echinacea root the door, many are concerned found no clinically significant effects on W

about falling victim to colds and flu. Flu the common cold. The critics of the In the group treated with the garlic vaccine the most effective way to study believe, however, that the dose of

supplement, 24 people came down with prevent the flu, according to the Centers 900 mg per day was too low. Echinacea the common cold, which lasted for 1.52 produced no such effects. The research-for Disease Control and Prevention treatment may lead to minor and days, compared with 65 people in the no ers suggest that the key was in L-remains a controversial subject. First, uncommon abdominal upset, nausea treatment group who had colds that theanine, a substance in tea that most flu vaccines still contain and dizziness. It may be contraindicated lasted 5 days on average. increases immune response in fighting thimerosal, a mercury based preserva- in people with autoimmune conditions

bacteria, infection, viruses and fungi. tive. Second, because of the unpredict- or HIV.Excessive doses may cause insomnia, ability of flu strains, the available headache, dizziness, and diarrhea.vaccine often doesn't match the strain of Zinc lozenges are another home

flu that hits the population. But even if remedy for fighting winter viruses. the vaccine corresponds with the The role of vitamin C in the preven- Although research on this remedy is circulating flu strain, it is not that tion and treatment of respiratory conflicting, a recent study on zinc effective. A recent study found that the infections has been widely researched. gluconate glycine lozenges in school-overall effectiveness of vaccines against Some studies suggest that vitamin C aged children showed shorter cold flu-like illness in the elderly was 23 can affect the duration or duration and fewer colds with the percent when vaccine matching was severity of symptoms. therapy. Zinc lozenges, however, come good, and not significantly different Others have shown in different formulations, and more from no vaccination when matching no effect on the research is needed to assess their was poor or unknown. Well-matched s y m p t o m s , b u t effectiveness. In addition, long-term use vaccine, however, may effectively s u g g e s t e d t h a t of zinc lozenges may lead to problems, prevent pneumonia and decrease v i t a m i n C c a n including impairing the body's immune hospitalization rates due to pneumonia reduce susceptibil- responses. Excessive zinc in the diet can or flu. ity to colds. A recent lead to copper deficiency and may also

Recent research shows that the best study compared 29 decrease the levels of HDL (good) protection from flu may be flu itself. In clinical trials in cholesterol in the blood.the past 20 years, deaths from flu in the which participants elderly have decreased. At the same received 200 mg or

Research indicates that chronic time, flu vaccination has increased by more of vitamin C stress may substantially increase the 45 to 50%. Researchers concluded, that daily.risk of catching cold and stress manage-flu vaccine didn't help decrease deaths Garlic therapy should be discontin- The researchers found that vitamin C ment reduces the duration of flu and from flu people simply acquired natural ued at least two weeks prior to surgery to prevented flu or colds in people who colds. Acupuncture may be effective immunity to the emerging strain of flu. prevent excessive bleeding. People on were exposed to brief periods of severe against preventing and curing the Because of this, many are looking into anticoagulants should consult their physical exercise and/or cold environ- common cold, as well. Many chiroprac-natural ways to prevent viruses. physicians. ments. In those who regularly take tors have also noticed that chiropractic

vitamin C, they concluded that vitamin adjustments have helped prevent or C plays some role in their defense Garlic has been used as a health food Green and black teas have been reduce the duration of their patients mechanisms, helping them to recover for more than 5,000 years and is touted studied for their effects on the cardio- colds. Preliminary results of an ongoing from their colds faster and reducing the for its antibiotic properties and effect on vascular system and cancer. A recent ch i rop rac t i c s tudy show tha t severity of symptoms. People with general immunity. A recent study found Harvard study looked at teas role in chiropractic may increase immunoglob-kidney disease should not use vitamin that a group of people treated with an boosting the immunity system. ulin A levels and that it decreases the C.allicin-containing garlic supplement for Participants who drank five cups of levels of glucocorticoid cortisol, a major

a period of 12 weeks between black tea a day for 2 to 4 weeks component of stress.November and February had signifi- increased their levels of interferon, an For more information on health and safety Echinacea has been widely used to cantly fewer colds than the group that visit the Ontario Chiropractic Association important immune defense hormone up prevent and treat colds. Research on the

Web site at www.chiropractic.on.ca ortook a placebo (24 colds vs. 65) and to 4 times normal levels. Drinking the plant, however, has produced conflict- call recovered faster if infected. same amount of coffee for 12 weeks ing results. A recent study that focused

Zinc Lozenges

Vitamin C

Additional Remedies

Garlic Tea

Echinacea

1877-327-2273.Dr. George Traitses, 416-499-5656

hen snow, ice and frigid weather blast into town, W

watch out, says Dr. George Traitses. Winter recreational activities and chores silver medalist Derek Parra. In fact, gold and silver medals during the 2002 can pose problems for the outdoor when pressed for time, its better to Winter Olympics in Salt Lake City, enthusiast whose body is not in condi- shorten the length of your workout and Utah, adds that, You can complete a Chiropractic Association suggest that tion. Winter sports like skating, skiing keep a good warm-up than to skip the good warm-up in 15-20 minutes. And you start with some light aerobic and sledding can cause painful muscle warm-up and dive right into the work- believe me, it will make your workout activity (jogging, biking, fast walking) spasms, strains or tears if you're not in out. Skipping your warm-up is the best more pleasant and safe. for about 7-10 minutes.shape. Even shoveling snow the wrong way to get hurt. Parra, who took both the Derek Parra and the Ontario Then follow these tips to help you way, clambering awkwardly over snow

fight back the winter weather:banks, slipping on sidewalks and Skiing do 10 to 15 squats. Stand with wearing the wrong kinds of clothing can

your legs shoulder width apart, knees all pose the potential for spasms, strains aligned over your feet. Slowly lower and sprains. Simply walking outside in your buttocks as you bend your knees the freezing weather without layers of over your feet. Stand up straight again.warm clothing can intensify older joint

problems and cause a great deal of pain. Skating do lunges. Take a moder-As muscles and blood vessels contract ately advanced step with one foot. Let to conserve the bodys heat, the blood your back knee come down to the floor supply to extremities is reduced. This while keeping your shoulders in lowers the functional capacity of many position over your hips. Repeat the muscles, particularly among the process with your other foot.physically unfit. Preparation for an Sledding/tobogganing do knee-to-outdoor winter activity, including chest stretches to fight compression conditioning the areas of the body that injuries caused by repetitive bouncing are most vulnerable, can help avoid over the snow. Either sitting or lying on injury and costly health care bills. your back, pull your knees to your chest

Simply put, warming up is essential, and hold for up to 30 seconds. Don't says Olympic speed skating gold and forget cool-down

B.Sc.(Hon.), D.C., M.Sc., C.H.N., C.C.R.D., C.N.M., A.C.R.B. 1, C.R.A.By Dr. George I. Traitses

B.Sc.(Hon.), D.C., M.Sc., C.H.N., C.C.R.D., C.N.M., A.C.R.B. 1, C.R.A.By Dr. George I. Traitses

COLD FLU AND PREVENTION

Winter Activities: Tips to Avoid Injury

>>Cont. Next Page

3

10 JANUARY 2012MONEYDREAMS &

The largest year-over-year price increases were recorded in Toronto and Oshawa (+6.2%), Winnipeg (+5.8%) and Regina (+5.3%).

Compared with November 2010, contractors' selling prices were also Among the 21 metropolitan regions higher in Kitchener– Cambridge– surveyed, 4 posted 12-month price Waterloo (+3.6%) and Charlottetown declines in November, led by Victoria (-(+3.5%). 1.7%).

an 12 The New Housing Price Index (NHPI) rose 0.3% in J

November, following a 0.2% increase in October. unchanged in 6 of the 21 metropolitan

regions surveyed.The metropolitan regions of Toronto and Oshawa, and Montréal were the top The most significant monthly price contributors to the increase in declines were recorded in Calgary (-November. The positive impact of these 0.4%), Vancouver (-0.3%) and the metropolitan regions on the overall aggregated metropolitan regions of index was offset in part by decreases Greater Sudbury and Thunder Bay (-observed in Calgary and Vancouver. 0.3%).

Between October and November, Following three consecutive Windsor (+2.0%) posted the largest monthly price increases, some builders monthly price advance, followed by in Calgary reported that they lowered Saskatoon (+1.2%). In Windsor, price their prices in November to stimulate increases were primarily the result of sales.higher material costs and improved In Vancouver, a few builders offered market conditions. This was the largest promotional pricing while in Greater month-over-month price increase for Sudbury and Thunder Bay, some this metropolitan region since builders indicated that they lowered November 1996 (+3.0%). their prices to remain competitive.

In Saskatoon, higher material and Year over year, the NHPI was up labour costs were the main reasons for 2.5% in November. The main contribu-the price increases. tor to this advance was the metropolitan

I n N o v e m b e r, p r i c e s w e r e region of Toronto and Oshawa.

New Housing Price Rises Again :StatsCan Index Toronto And Oshawa Post The Highest Year-over-year Price Increase

Canada is world's 4th... India was ranked in the last place for the second year in a row.“India is simply a

From Pg.1 minefield of relentless mental, emo-8. Philippines tional and practical daily challenges for 9. Spain most non-Indians,” according to 10. Malaysia Denmark native PiaMollback-Verbic, 11. Brazil the director of a Mumbai-based qualita-12. Italy tive market research firm who relocated 13. Mexico there via the U.S. in 2007. “It's nothing 14. Singapore less than a riddling obstacle course, 15. France which only can be navigated with a The most challenging countries for healthy dose of humor, expansive

expats, according to the survey, include capacity for patience, and tolerance for Saudi Arabia, Qatar, Russia and India. the illogical.”

Winter Activities... and turning motions.

Bend your knees to lift when From Pg.2shoveling. Let the muscles of your legs

stretching for all of these sports At the and arms do the work, not your back.bottom of the sledding hill, for instance,

Take frequent rest breaks to take the before trudging back up, do some more strain off your muscles. A fatigued body knees-to-chest stretches, or repetitive asks for injury. Stop if you feel chest squatting movements to restore flexibil-pain, or get really tired or have shortness ity.of breath. You may need immediate

Shoveling snow can also wreak professional help.havoc on the musculoskeletal system.

After any of these activities, if you The Ontario Chiropractic Association are sore, apply an ice bag to the affected suggests the following tips for exercise area for 20 minutes, then take it off for a of the snow shoveling variety:couple of hours. Repeat a couple of

If you must shovel snow, be careful. times each day over the next day or two.Listen to weather forecasts so you can

If you continue to feel soreness, pain rise early and have time to shovel before or strain after following these tips, it work. Layer clothing to keep your may be time to visit a doctor of muscles warm and flexible.chiropractic. I've always believed in

Shoveling can strain de-conditioned chiropractic care, says Parra. I've used a muscles between your shoulders, in lot of other treatments for injuries and your upper back, lower back, buttocks pain, but the problem doesn't get fixed and legs. So, do some warm-up stretch- until I go to a doctor of chiropractic.ing before you grab that shovel. When

For more information on health and safety you do shovel, push the snow straight visit the Ontario Chiropractic Association ahead. Don't try to throw it. Walk it to Web site at www.chiropractic.on.ca or

call the snowbank. Avoid sudden twisting 1877-327-2273.Dr. George Traitses, 416-499-5656

4

10 JANUARY 2012 MONEYDREAMS &

“REAL ESTATE AGENT ≠ FINANCIAL ADVISOR”“REAL ESTATE AGENT ≠ FINANCIAL ADVISOR”

PERRII.

PERRII

PERRII’s

PERRII @ 416 473 6100 / 647 352 4945

perrii@dreamsandmoney.com

www.dreamsandmoney.com

www.perrii.com

This is what Elizabeth Newlin, a US based Real Estate Sale Representative says when talking about the present housing crisis in the

USA (read her story on the given below) What if someone who is a Financial Advisor IS ALSO a Real Estate Sale Representative.

Here's one such person :

ŸGathering your information.

ŸRecommending what is achievable & alternatives, if required.

ŸImplementing personalized strategies tailored to your dreams and goals.

For a free consultation

call

email :

visit websites :

With many years of experience in Real Estate and Financial Advisory Services, can help you effectively in taking quality

financial decisions and buying a right home or selling your home for top dollars.

2 in 1 process includes

You also have a choice to avail Perrii's services for

buying and selling your home

without using his skills as a Financial Advisor.

PERRII MUTHURAMAN MBA PFP CCPPERRII MUTHURAMAN MBA PFP CCPSales Representative

Your Home Dreams Fulfiller

Direct 416 473 6100 Office 416 298 8383Direct 416 473 6100 Office 416 298 8383perrii@dreamsandmoney.com

www.perrii.com | www.dreamsandmoney.com MONEYDREAMS &

INNOVATIVE REALTY INC.Brokerage*

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True Story of Elizabeth Newlin, a US based Real Estate Sales Representative

As your real estate agent, here's what I know:

Here's what I don't know:

ŸWhat your debts are

ŸHow high your tolerance for debt-risk is(source: http://realestatetangent.com/real-estate-agent- ŸWhether you've been squirreling away cash for %E2%89%A0-financial-advisor/) 7 years or living month-to-month

“I've had several encounters with various forms Everything else about your financial status I of media discussing or requesting more info from the would need to make a qualified judgment about what general public on the topic of real estate agents you can and cannot 'afford'encouraging or persuading buyers to purchase homes

My point is that, yes, I had clients who bought in that were 'more than you could afford'.……………2005, 2006 and 2007 who couldn't keep their

To begin with, home sellers were just as greedy as homes............ Don't you think that if I had some their agents. Yes, we were thrilled with our jacked up magic 8 ball knowledge about the collapse of the commissions, but did you turn down the $100K you made on your house from when you bought it in 2002 till when you sold it in 2005? Because that's more than I made in 2005 and 2006 together in commissions; I'm just saying. And now that you put it down on your house you bought in 2005, which is worth 60% of what you bought it for, you're angry and disappointed that you 'lost' that inflated equity. That's clearly also my fault. And secondly, I really a lot need everyone to understand this one thing: YOUR REAL ESTATE AGENT HAS NO IDEA WHAT YOU CAN AND CANNOT 'AFFORD'. I'm sorry. That was screamy and poorly written. I couldn't help it.

national housing market I would have warned the I seriously cannot deal with the concept out in the people I love about the upcoming disaster, instead of

public that a real estate agent has any clue whatsoever watching them walk into it totally unprotected while what his client can afford. gathering my comparatively paltry commission

checks?...........

So next time you hear someone blaming the real ŸWhat you tell me your price range isestate professionals for the bubble pop out here,

ŸWhat the lender says you qualify forremember this: four out of five of my closest friends who are real estate agents have lost their homes to

ŸHow much you make foreclosure in the last two years Does that sound like we had a clue it was going to happen?.......

Thinking of Selling ... Ask for PERRII’s

FREE MARKET EVALUATIONPERRII MUTHURAMAN 416 473 6100 Sales Representative

CENTURY 21 INNOVATIVE REALTY INC. BROKERAGE*

INTERESTED TO KNOW?Ÿ RRSP loans at prime + 0.5 = 3.5%

(subject to lenders guidelines)

Ÿ Looking to secure your capital and receive 8% fixed rate of return?(subject to risks attached to it)

Ÿ Ways to reduce your debts?

Ÿ Increase your cash flow and wealth?

Ÿ Need a financial plan for your dreams?

Ÿ Or simply, a second opinion on your investments &/or debts?

PERRII MUTHURAMAN MBA PFP CCP

Direct 416 473 6100 / 647 352 4945perrii@dreamsandmoney.com

CONTACT

www.perrii.com

www.dreamsandmoney.com

Your FinancialDreams Fulfiller

TORONTO HOUSING STARTS RISE IN 2011

DISCLAIMERDreams and Money takes care to present all

the information as accurately and efficiently as possible. Any advice or recommendation appearing in the paper is also part of information only. They should not be construed as an expert opinion. Please note that no representation or warranty with respect to the accuracy or the completeness of the information is given. Information always keeps changing. Hence all the information, including advice and recommendations are to be treated as of general nature only. For your speci f ic circumstances, you are always advised to consult an expert before acting on any information.

unsolicited articles are welcomeselected ones will be publishedemail : editor@dreamsandmoney.com

& community news

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105-2100 Ellesmere Road,Scarborough, ON, M1H 3B7

Ph: 647 352 4945 | Fax: 647 352 6110Email: info@dreamsandmoney.com

www.dreamsandmoney.com

At Dreams & Money, we want to help people lead happy lives. We want to help people reach their dreams. A lot of dreams in the world require financial awareness and proper planning to bring to fruition. To get this financial knowledge can be challenging. We realize this, and want to make this process simpler.

We will bring you financial news happening around you that impacts you, along with timeless classics on topics like financial planning, life skills, health etc. to help you grow all around to reach your dreams.

If you are someone who shares this same passion, and think you can contribute to us in any way (writing articles, spread-ing the message etc.), please let us know. We’ll be happy to hear from you.

THE MISSION

Editor-in-Chief & PublisherPerrii Muthuraman

Direct : 416 473 6100

Editor & Technical AdvisorAishwar Muthuraman

Editorial & Development Committee

V.S. Thurairajah

Karthik .M

Das Narayanasamy

Manivannan

Canada's Housing MarketIs There A In Canada?“Housing Bubble”

“No,” says CMHC, p rev ious peaks , wh ich Canada's national housing coincided to the last known agency housing bubble in Toronto in

the late 1980s early 1990s.Following is CMHC's fact sheet. C o n d o m i n i u m

vacancy rates across larger “While there have been urban centres are relatively stable.concerns of a "house price bubble" in

Canada, clear evidence of it is lacking. Finally, there is little evidence of The key characteristic of a bubble is an problematic over-valuation in the environment where house prices exceed Canadian housing market overall, levels that would be suggested by although some centres warrant closer underlying demographic, economic and monitoring.financial factors (migration, income, It has been suggested that Canadian interest rates, wealth, etc.) and where housing markets will experience the the growth rate of prices is accelerating. same severe adjustments as U.S. When house prices are out of line with markets did, however housing markets these fundamentals and are growing at in Canada are generally not exposed to an accelerated rate, it can be the result of the same circumstances that shaped the a significant increase in speculative recent U.S. experience. The sub-prime activity in the housing market, a key market, in particular, never took hold in ingredient for a bubble. Canada to the extent that it did in the

Significant levels of speculative U.S. Lending standards have remained activity typically result in over-building rigorous in Canada. Indeed the rate of of new homes. However, there is mortgage arrears in Canada is less than currently no evidence of significant one half of one per cent, according to the over-building in Canada: Canadian Bankers Association (CBA)'s

backgrounder, Canada's Strong The pace of housing starts is B a n k i n g S y s t e m : B e n e f i t t i n g gradually moving back in line with Canadians, which also reports that the demographic requirements.rate of arrears in the US is more than ten Stocks of completed and times higher than in Canada.”unoccupied new housing units have

risen but remain significantly below

Ÿ

Ÿ

Ÿ

5

OPINIONSEDITORIALS 10 JANUARY 2012MONEYDREAMS &

The Housing BubbleThe Economist magazine in 2005 described the rise in the US house prices since 2000 as the 'biggest bubble in history'. Subsequently, since 2006 the U.S . hous ing p r ices dec l ined 33percent.It resulted in an estimated $7 trillion loss of household wealth, and about 12 million U.S. homeowners are current ly underwater on their mortgages.

A new federal report shows that speculative real estate investors played a larger role than originally thought in driving the housing bubble that led to record foreclosures and sent economies plummeting in Nevada, California, Arizona, Florida and other states. Low-down-payment and subprime credit are some of the factors that inflated home prices first and then caused recession.

Reading all these, the natural question that comes to our mind is“what about Canada?”

We expect in 2012,

Ÿ Sales and prices to stabilize in Canada

payment.

It is interesting that Bank of Canada Ÿ Interest rates also to remain low governor Mark Carney also repeatedly

in Canada issued warnings to Canadians last year on piling personal debts. This mountain A recent Statistics Canada data of debt may cause some housing-price shows average household debt in correction. "Risk reversals, when they Canada hit a new record high of almost happen, can be fierce," warned Carney. 153 per cent to disposable income in the

third quarter. It is a disturbing trend. Till It appears that low interest rates have now, housing market was not controlled kept buyers competing for homes and by Jim Flaherty's moves such as driving prices higher in 2011. A more lowering the maximum amortization balanced market is expected in 2012. It period and increasing the down means that the market will not see

bidding wars.

However, a recent report in The Economist suggests Canadian homes are 29 per cent overvalued.

Overvalued prices and large debts leave households vulnerable to a rise in unemployment or higher mortgage rates. Better to focus on debt reduction first, before accumulating wealth through leveraged money.

Is the Canadian real estate market a bubble that is about to burst?

Right answer will be known in 2013.

What Are The For 2012?

Canadian Real Estate Predictions

Well, according to The Globe and Mail, if interest rates stay low and sub-prime mortgages remain at bay, prices won't crash, and the market will level off.

Benjamin Taj, chief economist of CIBC, has seven Canadian real estate predictions for 2012:

1- Interest rates will remain low; prices will remain high, especially in city centres like Vancouver and Toronto.

2- Rates will rise by two to three percentage points, so you should budget for home payments accordingly.

3- Home buyers will have no problem finding the homes they want without having to deal with bidding wars.

4- Flipping homes will not be lucrative.

5- Prices may go down in some parts of Canada.

6- Those who want to renovate their homes should take advantage this year, as interest rates will remain the same.

7- For those who have some financial legroom, variable-rate mortgages are still a good option.

What Banks think?‘At the condo side there is probably

vulnerability ‘

Royal Bank CEO Gord Nixon

There is a risk of a downturn in the housing market and the best hope is for a soft landing; investor owned properties are a cause for concern because there is a build up of supply based on investors expecting there will always be demand

- Bank of Montreal president CEO Bill Downe

Consumer loan growth could fall to zero

Gerry McCaughey, head of Canadian Imperial Bank of

Commerce

“I'd say generally (the U.S) crisis has turned out to be net quite positive for us right across the board because the crisis took out competitors all across the board. In the U.S. we couldn't have conceived I think of being as successful

as we have been absent the crisis”

Toronto-Dominion Bank CEO Ed Clark.

TORONTO, January 10, 2012 – growth during 2011, reaching their Annual total housing starts for the highest level since 2008.Toronto Census Metropolitan Area “New home construction was increased to 39,745 units in 2011, boosted last year by the condominium according to preliminary data released apartment sector as the backlog of today by Canada Mortgage and Housing projects in pre-construction cleared Corporation (CMHC). For the month of while easing credit conditions and December, the seasonally-adjusted exceptional demand allowed many new annual rate (SAAR) of total housing units to break ground,” said Shaun starts increased to 39,500 units. Hildebrand, CMHC's Senior Market Housing starts in Toronto showed strong Analyst for the GTA.

6

10 JANUARY 2012 MONEYDREAMS &

US faced very difficult debt issues with a potential recession on deck. No real safe haven. Even though many bad news hit the market, US market didn't fall much. US stocks outperformed major markets across the globe in 2011. The bulls were the winners this year, even though the market was flat. The markets were helped by a solid recovery in US corporate earnings, including the banks and auto industry. Markets were also helped by the Federal Reserve, which kept interest rates near zero for the third straight year, and by aversion to other currencies, especially the euro. But US markets barely made up their steep losses in the fourth quarter, as economic growth appeared to regain its footing while economies elsewhere slowed and Europe sank further into crisis. Europe in terrible shape with many of the Euro zone countries tinkering on bankruptcy. Desperate measures are being taken to try to keep things afloat. Day after day much news comes how dire things are overseas. Japan and China are struggling with their economies, and things are slowing quickly. Volatility was high during the year as the world was rocked by extreme events such as the Arab Spring upris-ings, Japan's massive earthquake-tsunami disaster, repeated US political showdowns over the deficit that led to a historic S&P downgrade of its credit rating, and Europe's crisis, which sparked fears of a possible breakup of the euro zone, geopolitical crises in areas such as Libya and an abundance of natural disasters.

Indian Market Sensex slumped 24.64% and the Nifty tumbled 24.62% in the calendar year 2011. Market hit with a tremendous number of bearish news from all over the world. On the macro front, every macro economic indicator got worse, Inflation has been above 9% for all the months of 2011 except the recent two week and GDP too, for the first time in 11 quarters, dipped below the 7% mark. Fiscal deficit also is at the worst ever level since the crisis. India has reported significant jump in the trade deficit for last month, increasing worries that the depreciating rupee might have raised cost of imports. Concerns such as 2G scam, Anti-corruption activist by Anna Hazare, suspension of policy decision of the Government with regard to FDI in multi retail sector, continuous decline of rupee also weighed on Indian market. In the calendar year 2011, foreign institutional investors were net sellers for 5 billion dollar, which was also a major t r igger for the market . Continuous outflow also pushed down the value of Indian rupee. Except in the last review meeting, RBI had raised its key policy rates 13 times since March 2010 to tame inflation. RBI also said that the rupee remains under stress, the timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead

The currency slid over 15% this year, the worst performance among Asian

currencies; on concern Europe's debt more pain ahead, 2012 is likely to end crisis will slow global growth and damp on a positive note. Anything can come demand for emerging-market assets. out of Europe. However, market needs

real action that would have longer-term positive effects. The market is hoping that takes place, and is acting as if there is real hope. There are a lot of shorts in After a disastrous 2011, stock market the market, and when there are a lot of investors are pinning hopes on next shorts there is a lot of fuel for the bulls, year. Analysts believe though there is

Indian Market outlookfor the year 2012

Whole Market Review The Financial Year For January 2011 To December 2011

should the right piece of news go in their favor.

Indian markets may trade upward as the central bank starts easing its mone-tary policy and on possible resolution of the euro zone debt crisis. However, before this happens, things could get worse. Market may likely to decline due to the worsening macroeconomic scenario in India and concerns sur-rounding the euro zone debt crisis. Major indicators to be watched are inflation data, GDP growth data, interest rate cycle, crude price movement, policy actions from government, rupee value, fiscal or trade scenario, global economic trend, resolution for euro zone debt problem, economic growth reports from major global markets, Union Budget for 2012-13, results of assembly elections in five states etc.

However, a series of changes brought in by the regulator as well as the govt such as allowing Qualified Foreign Investors (QFIs) to directly invest in Indian Mutual Funds may support the bourses. The regulator is likely to come out with new rules that will make it easier for the government to push through divestment in state-owned companies as well as promoters planning to offload a slice of their holdings.

Market is declining, but not out, market will rebound. Asia`s growth will still outperform the developed markets and Asian governments have better public finances, Asian consumers have better balance sheets as compared to balance sheets of elsewhere, afflu-ence is growing in Asia. Asian govern-ments, including the Chinese and the Indians, have the policy powder to provide monetary relief. That move towards easing in Asia will be one of the catalysts that start to push markets higher.

More details send email to or

call or visit shekarm@indiafinancebazaar.com

09380034431www.indiafinancebazaar.com www.ifmaonline.com

M.Shekar

oncern over euro zone sover- results of a French government bond eign debt crisis and geopolitical auction that saw a rise in 10-year yields. C-

worries arising from death of North Bond auctions are closely watched as Korean leader Kim Jong-il hurt global the markets try to gauge the ability of markets adversely. However, a better- euro-zone nations, including France, than-estimated US consumer confi- Spain and Italy, to fund them. dence report overshadowed a decline in Meanwhile, concerns remain about US home prices and concern about France's ability to retain its prized triple-Europe's debt crisis. The Confidence A credit rating.Board reported that its consumer French President Nicolas Sarkozy confidence index came to 64.5 in will meet German Chancellor Angela December, up from 55.2 in November Merkel in Berlin on 9 January 2012 for and outpacing market forecasts for a talks that are likely to center on new 58.2 reading. Consumer spending rules to enforce budget discipline across

the European Union. The two leaders are anxious to flesh out a plan agreed at a December 2011 summit by all EU members except Britain for a new treaty to forge closer fiscal integration, as Europe battles to stem a sovereign debt crisis in the euro zone.

Finance ministers from the EU's 27 members will meet on 23 January 2012 before their leaders hold a summit a week later. They will be under intense pressure to find a definitive solution to the crisis which threatens the very survival of the single currency, 10 years after it came into circulation.

Market managed gains during the accounts for about 70% of total US third week of December 2011 as economic output. Signs of increased investors resorted to bargain hunting manufacturing output around the world after recent steep slide in share prices. also supported global equities. The easing of food inflation sharply to a European shares dropped on near four-year low also aided sentiment. Thursday on fresh worries about the Easing of inflation may prompt the health of European banks. Banks central bank to cut interest rates to posted especially steep losses after revive sagging economic growth. Spain's economy minister told the Moody's Investors Service raised Financial Times that Spanish banks will India's local-currency debt rating by one have to set aside as much as 50 billion level to investment grade from the euros, which amounts to 4% of Spain's highest junk grade also supported the GDP, in extra provisions on bad prop-trend. erty assets. Investors digested the

Indian Market Review16.12.11 to 5.1.2012

World Market Review – 16.12.2011 To 5.1.2012

Market declined during the last week of the year 2011 on concern ahead of third quarter earnings of corporate. Recent media reports that Indian and Mauritian tax officials have begun talks on revising the double taxation avoid-ance pact between the two countries also weighed on sentiment as it could adversely impact foreign fund flow into Indian equity market. About 40% of foreign institutional investor's inflows and around 42% of the foreign direct investment in India are routed through Mauritius. While short-term capital gains are taxed at 15% in India, they are exempted in Mauritius. Several compa-nies take advantage of the double taxation avoidance pact between the

two countries and escape paying taxes in both the countries. Weak rupee also weighed on >>Cont. Next Page

7

MONEYDREAMS & 10 JANUARY 2012

Good Start For Will It Continue?2012.

Source : Yahoo Finance

The Toronto stock started the first prices were weakening amid disap-trading day of 2012 with commodities pointing trade data from the United getting a big lift from strong manufac- States and heightened concern about the turing data and geopolitical tensions. euro zone after reports that more ratings

downgrades to government debt could The S&P/TSX composite index be coming.surged 253.34 points to 12,208.43 while

the TSX Venture Exchange gained The S&P/TSX composite index 21.62 points to 1,506.28. dropped 94.62 points to 12,179.71

while the TSX Venture Exchange lost However, the Toronto stock market 12.6 points to 1,527.9.was negative on Jan 13. Commodity

tocks were all over the place last year, but finished close to the S

I am not brushing the problems starting point. Should we expect more of under the rug; Europe's debt problems the same?and questions about China's growth are Or, as some doomsayers never tire of real and remain a concern. But there are reminding us, should we get ready for reasons to believe that we will have a lot that day-of-reckoning stemming from more clarity on these issues in the problems in Europe and fiscal imbal-coming months than was the case last ances in the U.S?year.

I don't buy into those scenarios. In I am not someone who always sees fact, I firmly believe that we entered

the glass half-full. My sunny outlook for 2012 in much better shape than in the 2012 has a sound fundamental basis, last several years. Don't let the endless which I want to share with you here. harangues from doomsayers about Suffice it to say, I see a lot better Europe and China scare you away from performance this year than what we saw the stock market.in 2011.

What Will 2012 Bring? fourth quarter earnings season just getting into high gear, it is expected to

Many of the issues that kept the show a lower growth rate than what we market in check last year are still with us have become accustomed to in the last and will likely remain so through at least two-plus years. But that shouldn't be the first few months of the year. But I much of a worry given where we are in expect visibility to improve going the earnings cycle. With margins forward, driving most of the gains for effectively at peak levels and top-line 2012. gains getting hard to come by due to the

Recessionary worries about the U.S. relatively softer global economic have eased, with the economy expected backdrop, growth rates were bound to to grow a little over 2% in 2012. It is come down. And they have.hard to get excited over that level of Using different valuation metrics, I growth. But a 2% growth pace starts arrive at stocks generating gains in looking a lot more attractive relative to excess of +10% from current levels this the outlook for the other major devel- year. But I am not looking for a nice oped economies. straight up move in 2012. In fact, I

Importantly, this is plenty of growth envision two distinct phases in the stock for the corporate sector to sustain its market this year, with each requiring its profitability momentum. With the own set of investment strategies.

TSX Trend Jan3, 2012 to Jan 9, 2012

TSX Trend Jan1, 2011 to Dec 31, 2011

World Market Review tions on borrowing by banks from it, in another move aimed at easing the cash

From Pg.6 crunch in the banking system. It has allowed banks to avail themselves of sentiment. funds from RBI on overnight basis, Market started with positive node on under Marginal Standing Facility the first day of the year 2012 on data (MSF), against their excess SLR showing a sharp improvement in global holdings. Food inflation plunged into manufacturing activity in December the negative territory in the fourth week 2011 and comments by Reserve Bank of of December mainly due to base effect. India governor that the central bank is Fuel inflation edged up though. Food likely to begin easing monetary policy inflation shrank by 3.36% in the week to address concerns about economic ended December 24, after rising by growth. The government's decision to 0.42% in the preceding week. Inflation allow qualified foreign investors to in the Primary Articles group fell to invest directly in local equities and 0.1% in the week under review, from gains in European shares underpinned 2.7% in the week ended December 17. sentiment as the market snapped a four-Inflation in the Fuel & Power group day losing streak. However concern stood at 14.60% in the week ended about upcoming third quarter corporate December 24, versus 14.37% in the earnings weighed on sentiment. previous week.

The RBI on 16 December 2011 left its main lending rate unchanged in order to support faltering economic growth as Market may continue its volatility on inflation shows signs of cooling. The mixed global cues. Third quarter central bank also refrained from cutting earning session will trigger from next the cash reserve ratio despite tight week, which would keenly be watched liquidity in the system. The repo rate has by the investors. The focus will be on been left steady at 8.5% after increasing guidance from the company manage-it 13 times since March 2010. The bank ments on outlook for the remaining part rate also remains static at 6%. The of the year and for the next year. central bank kept its end-March 2012 Corporate may report weak quarter inflation forecast unchanged at 7%. results due to lower volume growth in a

Central bank relaxed some restric- slowing economy, higher raw material

Indian Market outlook

costs and higher interest charges. growth, a parliamentary panel on finance warned on 22 December 2011. The budget for 2012/13 ending While inflation remains on its projected March will be presented after elections trajectory, downside risks to growth scheduled in five states. SEBI had have clearly increased, RBI said in a allowed auctioning of securities through statement. However, it must be empha-stock exchanges and introduced a new sized that inflation risks remain high method for institutional placement of and inflation could quickly recur as a stocks. The move will help fund-raising result of both supply and demand forces. by the government, which has so far RBI said there are currently no signifi-been unable to meet its target of 8 billion cant signs of stress in the money market. dollar from share sales in state-run firms

this fiscal that ends in March. PSU The more defensive end of the stocks will be in focus on reports the market is what's performing the best. government is likely to give green The lower P/E and higher dividend signal to the proposal of the Department stocks would become best choice of of Disinvestment to help it raise 8 billion investment, under volatile circum-through innovative means like buyback stances. We structure and manage and cross-holding of equities in central investment portfolio for NRI, Foreign public sector enterprises. investors, QFI according to their needs

and financial goals. We also train India may face the risk of stagflation people to manage their investment if the government doesn't take urgent portfolio independently.steps to tame inflation and stimulate

INVESTING SUCCESS 2012 FOR IN By Sheraz Mian, ZACKS

8

10 JANUARY 2012 MONEYDREAMS & STORY TIME

SIR ISAAC NEWTONSir Isaac Newton, after thinking for

some time on the effect of gravity, could not solve the problem. So Newton went for a walk to relax and when sitting quietly under an apple tree, saw an apple fall down; in a flash of understanding Newton understood the law of gravity which governs the movement of minute particles as well as the stars and planets. Many great scientific discoveries have been made not during serious thinking or when doing a lot of calculations but while the mind is relaxed. This is when intuition starts."

Decide what is important to you and How much do you believe in what take huge steps everyday even though it you're doing? Colonel Sanders did doesn't seem like it's working. Success despite 1009 rejections!doesn't happen without failures. It's “Fall down seven times, get up reality. eight.” – Japanese proverb

Deal with it. Let these examples inspire you How bad do you want to achieve every day.

your goal? It better be so bad that Source :http://getbusylivingblog.com

rejection won't derail you.

EMI, brought Beatlemania to the United and I missed. I have failed over and over States, and became the greatest band in and over again in my life. And that is history. why I succeed.”

He's No list famous for being cut from of success from failures his high school basketball would be complete without team. He turned out to be the man who gave us many the greatest basketball inventions including the

player but never let failure deter him. I light bulb. He knew failure wouldn't love this quote… stop him. If I find 10,000 ways some-

thing won't work, I haven't failed. I am “I have missed more than 9,000 shots not discouraged, because every wrong in my career. I have lost almost 300 attempt discarded is another step games. On 26 occasions I have been forward.entrusted to take the game winning shot,

MICHAEL JORDAN: THOMAS EDISON:

COLONEL SANDERS:

JOHN GRISHAM:

STEVEN SPIELBERG:

WALT DISNEY:

STEPHEN KING:

ALBERT EINSTEIN:

STEPHENIE MEYER:RICHARD BRANSON:

M A R K C U B A N :

TIM FERRIS:

THE BEATLES:

VINCENT VAN GOGH:

THEODOR SEUSS GIESEL:

The founder of KFC. He started his dream at 65 years old!

The He got a social security American author first was a check for only $105 and lawyer who loved to write. was mad. Instead of complaining he did His first book A Time to Kill something about it.took three years to write.

He thought restaurant owners would The book was rejected 28 times until he love his fried chicken recipe, use it, sales got one yes for a 5,000 copy print. He's would increase, and he'd get a percent- sold over 250 million total copies of his age of it. He drove around the country books.knocking on doors, sleeping in his car,

He wearing his white suit.applied and was denied two

Do you know how many times times to the prestigious people said no till he got one yes? 1009 University of Southern times! California film school.

The man Instead he went to Cal State University who gave us Disney World in Long Beach.and Mickey Mouse. His He went on to direct some of the first animation company biggest movie blockbusters in history. went bankrupt. He was Now he's worth $2.7 billion and in 1994

fired by a news editor cause he lacked got an honorary degree from the film imagination. Legend has it he was school that rejected him twice.turned down 302 times before he got

His first financing for creating Disney World.book Carrie was rejected 30

He times and he threw it in the didn't speak till he was four trash. His wife retrieved it and didn't read till seven. out of the trash and encour-His parents and teachers aged him to resubmit it. The rest is thought he was mentally history. He has sold more than 350

handicapped. He only turned out to win million copies of his books. (He's also a Nobel prize and be the face of modern made many adults fear clowns too.)physics.

The He's author of the crazy Twilight

a billionaire mogul of series said the inspiration Virgin but has had his share from the book came from a of failures. Remember dream. She finished it in Virgin Cola or Virgin credit three months but never intended to

cards? Probably not. He's lost hundreds publish it until a friend suggested she of millions of dollars but has not let should.failure stop him. When you're rich like

She wrote 15 letters to literary him you can rent his private island for agencies. Five didn't reply. Nine $53,000 a night.rejected. One gave her a chance. Then

The eight publishers auctioned for the right billionaire owner of the to publish Twilight. She got a three book NBA's Dallas Mavericks deal worth $750,000. In 2010, Forbes got rich when he sold his reported she earned $40 million.company to Yahoo for $5.9

The man billion in stock. He admitted he was behind the 4 Hour Work terrible at his early jobs. His parents week, who changed how wanted him to have a normal job. So he many people view work and tried carpentry but hated it. He was a life, was rejected by 26 short order cook but a terrible one. He

publishers before one gave him a waited tables but couldn't open a bottle chance. It's been on the best seller's list of wine. He says of his failures,for years, sold all over the world, and

“I've learned that it doesn't matter last year published The 4 Hour Body how many times you failed,” Cuban that went to #1 on the New York Times says. “You only have to be right once. I best sellers list.tried to sell powdered milk. I was an

They were idiot lots of times, and I learned from rejected by many record them all.”labels. In a famous rejec-

He tion, the label said, “”guitar only sold one painting in his groups are on the way out” lifetime! Just one to a and “the Beatles have no future in show friend. Despite that he kept business”.painting and finished over

After that the Beatles signed with 800 pieces. Now everyone wants to buy them and his most expensive painting is valued at $142.7 million.

Dr. Seuss gave us Cat in the Hat and Green Eggs and Ham. Books every child reads. At first many didn't

think he would succeed. 27 different publishers rejected Dr. Seuss's first book To Think That I Saw It on Mulberry Street.

Time to get connected to your inner self.

Stories attract people’s attention. People love to listen to stories. A great story-teller can always attract audience.

Story telling isn’t just for children. It’s vital to every profession. Storytelling is a universal language and a core-skill for all presenters. Investors may be more likely to fund a company with an inspiring story. Customers may be more compelled to buy from an entrepreneur. Straight facts are forgettable and boring. Stories compel the audience to listen actively and they can subtly pesuade them. Often no one takes a position to argue against.

Through stories you can build not only a connection with yourself inwardly but also with others. Through this connection, you’ll build confidence, rapport and trust. These are the qualities that make you to grow and influence others. Honesty is part of story telling.

Simply, for us at Dreams & Money, it is a holistic learning solution that could close the literary achievement gap between schools, communities and families.

PEOPLE SUCCESS FAILURES WHO FOUND DESPITE

THERE IS NO SUCCESS WITHOUT FAILURE

Einstein's Last Wish Further before his death, he did not forget to mention again and again not to hold a funeral for him, nor set up any In 1955, Albert Einstein (1879-monument. So Einstein's funeral was 1955) was hospitalized due to the quite simple. According to his last bleeding from his artery. Einstein wishes, his body was burned and where discovered theory of relativity. He his remains were stored was never received the honor of the Nobel prize announced to the public.and helped to develop the atom bomb.

At the end of his life, when hospital-ized, Einstein realized that he did not have many days left in the human world. So he told his relatives and friends two things. Number one: please do not turn my living quarters into a commemora-tive museum for people to venerate. Number two: please give my office to other people to use.

551 — 479 B.C.

Confucius

Our greatestglory is not

in never falling but in rising every time we fall.