The Housing Bubble, Critical Illness Insurance & Trump vs. Hilary

History is prone to repeating itself. When foreign buyers take over a market government intervention is rarely as affective as they hope it to be. In countries like Singapore, Hong Kong, and London when a foreign ownership tax was implemented it caused a decline in property values by 10%. And now with Vancouver implementing this same taxation on foreign owners my real estate agent clients have begun to experience a slowing in housing sales. There is trouble in the bubble. During the housing crisis in 2008 market analysists reported a shocking $1.45 of debt for every $1 earned, in Vancouver the current average household debt is a staggering $1.65 for every $1 earned. The reason this is worrisome is that if interest rates rise at all most British Columbians are over leveraged and would not be able to afford the increase in their mortgage payments resulting in a mass of foreclosures reminiscent of 2008.

My September “get to know a product” is critical illness insurance. Everyone seems to know what life insurance is and the value it brings, life insurance is the poster boy for insurances. Critical illness insurance seems to play second string even though statistically speaking the average person is 4x more likely to suffer a critical illness vs a death before the age of 65. How many people do you know who have been diagnosed with cancer? Had a heart attack? Lost the use of a limb? Critical illness insurance allows the patient to focus on recovery without needing to suffer immediate financial burden. I would be happy to show you how critical illness insurance could play a part in protecting your greatest asset…you.

Lastly, as the US election begin to gain momentum it’s obvious how polarizing these two candidates are. When I talk with my clients who have US investments their eager to know how the outcome of this election will impact the US markets. I feel like the winner will be whoever stumbles across the finish line first. With Hilary’s corrupt deals and hacked emails and Trump’s big foot stuck in his even bigger mouth it’s every candidate for themselves. Our team is keeping a close eye on it and time will tell what our best decision will be for our clients. 

Please contact me if you'd like to discuss any of these topics further.