Heritage Investment Properties -- what the heck happened to them? | General financial discussion | Discussion forum

This is just a guess but...in the USA investment companies like that mostly went under selling MBS (mortgage backed securities). Anyone offering a 12% return today is either in an extremely high risk catagory (Junk bond status) or selling something highly speculative.

A 2% return today is VERY good for secure investments.

Remember we are in a DEFLATION period of 0.9% currently, meaning you can "add" that .9% to your ROI right now.

Mike

Thanks Mike. Real estate values in Vancouver "speculative"?! Say it ain't so!! 2% return is very good? Really? Only a year ago most HI savings accounts were in the 4 to 5% range, which means it was worthwhile to save one's money. These days, what's the point?

Totally agree with you. 2% is "good" for today, but is really bad historicly. Like you, I miss the days of 4-5% accounts where savers were rewarded for being smart and prudent with their money and debts. Today, it pays to be a debtor, at least till the rates go back up again, which sould be sooner than June 2010.

The CDN gov't can control the prime rate, but not the bond rates (fixed mortgage rates). Watch what happens, people will get fooled into taking the VRM because it's "cheaper" now, then the rates will go up 1-2% next year and that fixed will be at 7-8% (when they could have locked in at 5.8%), and VRM will be increasing each year.

Mike