Institutional investors are looking to take advantage of depressed housing prices and the rebound that could follow south of the border. Scott Minerd, of Guggenheim Partners; Len Blum, of Westwood Capital; and CNBC’s Diana Olick discuss in the following video on CNBC.

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

--------

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

--------

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.

Banks

Canada’s major banks are solid and solvent. They don’t need help to work through their subprime exposure because they didn't travel down the road of foolish and reckless subprime lending to Canadian homeowners that couldn't afford the home they were being enticed to purchase.

We think you too might find this article from MBN Mortgages very interesting.

With Canadian real estate being in a much different position than that of our neighbors to the south and with the financial markets (of which Mutual Funds invest) in peril and uncertainty... we think it's the most opportune time to invest in smart and responsible Canadian Real Estate Mortgages. Contact us for me details.

A couple rather shocking yet insightful reads on the current state of Mutual Fund companies; including the peril of a few.

Mutual Fund companies are in peril
Mutual Fund companies and their performance

We can't be so sweeping in our statement that investing in real estate is the only choice for investors, but we sure feel more comfortable with our own moneys invested in AltaPacific MIC

It all started when one of AltaPacific's founders became frustrated with the performance of his mutual funds being managed by his financial planner.  Now, we're not here to be critical of financial planners... quite frankly many FPs will recommend MICs to their investors.  We might be a little critical of mutual funds though; as maybe you too have experienced less_than_impressive_returns. 

OK, back to the story... At the same time as poor mutual fund performance was being experienced, impressive returns through real estate transactions was occurring.  The frustration of the RSP mutual fund portfolio increased. The day finally came where the frustrations increased to the point of taking action... and a telephone call was made.

This was the phone call between three, of the now four, partners in AltaPacific Mortgage Investment Co. A three-way call was set up and the mutual fund frustrations were described, followed by a plea of "what can I do to get my RSPs into real estate?" A day later with some thinking and the course of action was clear, "We'll start a MIC."  The answer from one member of the three-way call, the frustrated investor, was a simple one, "What's a MIC?" He had never heard the term before.  As the "Mortgage Investment Corporation" was described, the inquisitive mind just kept asking questions.  With each answer to each question, the home for the poor performing RSP funds was becoming clear.  He wanted to invest his RSPs in to mortgages.

Let's talk about RSPs for a moment.  RSPs are one of few tax deductable solutions to your average working Canadian.  We're often taught after landing our first job that we should maximize our contribution to RSPs so that we can receive the taxable benefit on our annual tax return...great advice!  We're also told that these RSPs will be our "saving for our future and our retirement."  Also great advice!  It makes sense on both fronts and it makes even more sense to invest your RSPs in the best way possible. 

Well, the frustrated AltaPacific partner followed this advice after landing his first "real job" and he accumulated many years of RSP savings... at first he opened a TD Waterhouse account and thought he could "self direct" his investments.  This proved extremely challenging.  First off, he was always investing in stocks based on speculation and what he would hear from friends, family and co-workers.  Secondly, he found himself spending time he didn't have doing research and trying to learn what stocks to buy. After several years he came to the realization that he wasn't so good at buying and selling - or buying and holding - stocks.  One day he'd be up, the next day down... and after several years of ups and downs he was pretty much back to even.  With his frustrations in his own poor performance at a peak, called the financial advisor that he'd heard was experienced and trusted - a man that he knew, respected and that he knew had been in the investment business for many years.  He trusted him and he was ready to give him control of his RSP portfolio.  This is getting a long so lets cut back to the opening of this story.. it was simple, even after approx 6 years with this experienced FP, who placed his funds in a myriad of mutual funds, he wasn't impressed with the returns he was seeing.  He just knew that real estate investing was where he wanted to be and where he felt his best returns would come. He was already experiencing impressive returns with my non-RSP dollars and he wanted to transition his RSP investments into a real estate investment vehicle. 

In hindsight he could have just invested in an existing MIC but he's thankful that the third person on the three-way call that day encouraged him - encouraged them - to start a MIC themselves.  Now he has moved his RSPs completely into real estate and he can tell the story to other investors.  Lets face it; we work hard in our careers, we work harder to save our money... we all ultimately want to see solid returns on our money. 

The founders and partners in AltaPacific are serious about bring solid returns to all investors... and since they have invested their own dollars into the MIC, they're motivated to do just that.

It's natural to have lots of questions during the past weeks and month(s) as dire news coming from Wall Street and Bay Street.

We think you will find this report by Canadian Association of Accredited Mortgage Professionals Chief Economist, Will Dunning very informative as it highlights our country's economic health as it relates to real estate and Canadian consumers.

Click here for the 4 page report

 How are your mutual funds doing?

I don' t suppose very well when again today the DOW takes a hit like it is.  That is a scary slope! 

What's with Mondays and October in the stock market? First it was Monday, October 28th, 1929, then it was 'Black Monday' - Monday October 19, 1987, then last week Monday September 29, 2008 (that was close enough to October), and again today Monday October 6, 2008.

And do you find that your mutual funds always take a bigger hit in downturns than the upshot on bull markets? How is that possible?

That's why we like investing in real estate.  The leveraging aspects of owning property and/or the ownership of being a shareholder in a private mortgage lending company (such as our AltaPacific MIC).  You can actually drive by the properties where your money is invested.  You can see what you actually own!  Do you find it frustrating when you receive your monthly financial performance charts and graphs on your mutual funds and the performance is less that what you expect?  I know I did! I got fed up with it... and they (they being several of them along the way) charge their management fees whether they're increaing your wealth - or losing your money.

Investing in real estate - either REAL real estate; or real estate through mortgages... just made a lot more sense to us.  Maybe it does to you too.

AltaPacific MIC has launched!

I can't wait to tell the story of how this all came to be... and introduce you to the team behind AltaPacific.  The AltaPacific website will remain formal in explaining the MIC and hopefully will answer many of your formal questions.  We hope to put a face to AltaPacific through our regular blog posts.  I will strive (along with assistance from the founding partners) to explain how investing in real estate is the best, safest and most exciting investment vehicle.

If you're an investor, a potential investor... or if you're a potential loan applicant; we're looking forward to getting to know you better.  Keep an eye on our blog for more detailed insight into investing in real estate and how MICs work (well, we'll focus on how our MIC works for the most part).  This blog will be less about AltaPacific and more about intelligent investing and some of the experiences we've had.  Blog posts will be kept brief because we're all busy and quite frankly I'm not going to have time to get long winded.

It's all business but its also all about having fun and helping people along the way.