Well, it is the last day of 2008 - a year of tumultuous markets and plenty of talk of a global recession.  While some countries in the world are reeling, our situation here in Canada - especially in Western Canada - seems and feels quite different from what we read about in the news. 

Lets talk real estate at home for a brief moment.  In Western Canada (BC, Alberta, Saskatchewan) we saw a strong 1st and 2nd quarter in housing prices and then a softening in the 3rd and 4th quarters as the financial markets took their tumble in October and November and consumers around the globe - even here in Canada - stayed glued to the business news.  Many held on for the unknown ride ahead and real estate transactions came to a grinding halt in the closing months of the year.  While transactions slowed in western Canada, the future of real estate here certainly feels much less volatile than in other parts of the country.  The founders ofAltaPacific Mortgage Investment Co. - along with many western Canadian real estate experts - are confident in the outlook for 2009.  We are excited by the new opportunities that a changing economy brings to the real estate industry.  We forecast and expect strong and healthy returns for our investors in 2009 and are already seeing quality mortgage needs from real estate owners in the western provinces of Canada.


Our confidence and expectations are not baseless either.  Today (December 31 2008), news broke from the Mortgage Bankers Association that may shows a glimmer of hope for our friends in the United States.  Mortgage applications in the U.S. last week reached a five-year high!  Pardon!?  While real estate prices plunge in many parts of America the application for mortgages is reaching a 5 year high?  This morning's news article from Bloomberg - U.S. MBA’s Mortgage Applications Index Rose to Five-Year High states that the rise is in large part to sliding borrowing costs but certainly must shows some renewed confidence by American consumers. The year ahead has signs for optimism even in the USA.


Meanwhile, north of the border Canadian banks weathered the 2008 storms remarkably well and this month showed further signs of stability; including raising nearly record levels of capital.

As we look into 2009 we all want to know where our money is going.  Gone are the days of empty promises and mysterious managers of our money.  Investors want a view - transparency as some call it - into how their investment is being used and what real returns they're experiencing.  At AltaPacific Mortgage Investment Co., investors provide this transparency and investors know that the folks entrusted to manage it (that's us) are accountable.  When was the last time you could actually meet the individuals face to face that would be directly responsible for your money?  An investment inAltaPacific allows you to do just that; have a regular open line of communication to the parties directly responsible for your investment. Please feel free to contact us if you're interesting in learning more.

All the best in 2009! 

This information is compliments of Canadian Business Blog from December 9, 2008.

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Canadians think house prices are tumbling in Canada thanks to Canadian Real Estate Association (CREA) reports that say prices have dropped 10% over the year. But it’s generally recognized their methodology is flawed: CREA compares average prices between two periods even though the composition of houses sold in the two periods can be quite different in terms of type, dwelling size, quality, etc.

A new price index gets around the apples-to-oranges comparison and shows by how much CREA statistics miss the mark. The repeat-sale price index (RSPI), developed by Teranet Inc. and National Bank, says house prices are still above the level of a year ago (by 3.3%). For more detail on the RSPI, see the website maintained by Teranet Inc. and National Bank (also shows price changes at the city level).

The RSPI approach is what’s used in the U.S. for the S&P/Case-Shiller and the Office of Federal Housing Enterprise Oversight (OFHEO) indexes. And now that Canada has the same approach, comparisons with the U.S. are more valid (the S&P/Case-Shiller index is down almost 20% year-over-year, showing how much worse things are in the U.S. at present).

Visit the link for this blog post for the rest of the details

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At AltaPacific Mortgage Investment Co. we'd like to speak do you about diversifying your investment portfolio (including those Canadians that invest with RSPs) by investing in Western Canadian mortgages. We know that investing can be confusing and often the person you're entrusting your money with is not the person that will actually be investing your hard earned (or saved) funds.  Imagine meeting the actual people that will take your investment dollars and manage them personally and directly.  The team at AltaPacific are highly experienced in Western Canadian real estate investing.  Feel free to contact us for a discussion about your RSP investments or private placement dollars.  There is no obligations and no high pressure sales presentations - we'll tell you about what we do and what we believe in.  If it sounds right for you then we can discuss how you can invest.

Yesterday’s news from the Canadian mortgage industry is most interesting.  Some of the highlights include.

- Canadian mortgage products and lending arrangements are safer than those in the U.S.
- Mortgage arrears in the U.S. are 6.5 times higher than in Canada
- President and CEO of the Canadian Association of Accredited Mortgage Professionals believes the "most likely outcome" is for global markets and credit conditions in Canada to gradually improve even though he feels 2009 will be difficult
- Canadian real estate market is slowing, but we have different products, we are in better shape, credit is available, and interest rates are low.
- The percentage of Canadian mortgages in arrears is at historical lows (September 2008 was 0.29 per cent, or 11,362 of about 3.9 million mortgages in the country)
- American lenders rely much more heavily on securitization - which means the loans are packaged with other financial products and sold off to banks, insurance companies or private investors.
- In Canada, the banks and other home loan lenders tend to hold the mortgages they originate.

At AltaPacific we believe that investing in mortgages, even in times of economic uncertainty, is an effective way to diversify your investment portfolio.  While it sounds self promoting we think you should talk with us and learn about our experience and poise in the mortgage market.  The principals in AltaPacific are committed and experienced in the western Canadian real estate and mortgage industry.

If you’re contemplating the option of investing in Mortgages we invite you to speak with us.  Place a portion of your RSP investments, or private placement funds, into our mortgage pool to diversify your portfolio. Some of your questions might be answers on our Questions and Answers page on www.altapacificmortgages.com website.

Not just in Canada, but around the world the performance of mutual funds, stocks and bonds are puzzling, unpredictable and more than anything frustrating to investors. At AltaPacific we like real estate because it’s something we can all touch; we can see it, we can drive by it... we can understand it.