“Everyone, whether they have a job or not, will need a place to live—whether it is in an apartment or a home. Especially in the South Asian community, we can get a house anywhere without a job because we can live together and share a place. So the house market has not been affected in the GTA for that community.”

Mike Chettri has worn many hats throughout his life. Blossoming over the years as the familiar immigrant taxi driver to the neighborhood corner store owner to what he is most known for, a booming real estate agent within the GTA, Mr. Chettri has finally found a hat that he will not only wear with pride, but ultimately keep for good.

With his name engraved as the 2011 Hall of Fame recipient, apart from his fellow four thousand other Remax agents in the GTA, Mr. Chettri attributes his success to mainly his customer service skills that have eventually resulted in many word of mouth referrals. “I teach all my clients about how to handle their money. I give them advice on their house and where to buy. That is what made me on top. It made me stand out.”

With his ten years of customer service in the real estate industry, Mr. Chettri has shared with our Generation Next reporter a few of his words of wisdom for potential buyers looking to take advantage of the next hot thing in the real estate market.

As condos within the downtown core are becoming somewhat of a trophy item for young professionals, Mr. Chettri encourages investors that it is a worthwhile investment for not just the younger generation, but the older ones as well. “The youth in the next generation are definitely interested in the condos for living, but the older generations are buying condos for investments. Since I work mostly with condos, the way that I see it is that the condo market will remain strong. Right now the condo market is selling approximately 700 dollars per square foot. If you buy one condo now, in three years, the price will be 1,000 dollars per square foot. So for every square foot it would be a 300 dollar profit. Over the next three years, the condo market in Toronto will grow stronger.”

As condos continue to be sought out, there are still many factors that individuals should consider before taking that next step. Mr. Chettri cautions new buyers on what factors can become a major assets when deciding on where one chooses to live. “Look at the city plans over the next five years of where you want to move to. See what is being developed so that in five years the price will go up in your investment.” Thinking ahead is the key to Mr. Chettri’s advice to his clients as many buyers can later flip their investment into a profit that will ultimately land them in a bigger and better property in the future.

Even with the recent economic setback, with many Canadians struggling to find full-time jobs, Mr. Chettri is optimistic that this will not have a great impact on the real estate market. “Everyone, whether they have a job or not, will need a place to live—whether it is in an apartment or a home. Especially in the South Asian community, we can get a house anywhere without a job because we can live together and share a place. So the house market has not been affected in the GTA for that community.”

With the GTA continuing to fill orders for more condos and houses to be built for their clients, residents are becoming more and more familiar with the buzzing chainsaws of the 6 am morning construction worker. Mr. Chettri believes that many residents should take this as a sign, especially for potential investors, as he believes that the high property demand has yet to be satisfied with enough supply.

Experience the electrifying Voltage lightning display and the 2012 Chevrolet Volt, the electric car that goes farther.  Check out the Volt MY DRIVE app, and then get in and take a Volt for a test drive.

Need some help balancing work and life?  Take a lunch-time break at the Chevrolet Orlando Stage with our three life experts.  CityLine’s Nanny Robina whips up dinner for four in seven minutes.  Erica Ehm from YummyMummyClub.ca talks about her family trip to Orlando in an Orlando, with tips to help you cope on those long drives, and Wendy Woods helps you relax and have fun with Laughter Yoga.

Plus, you might win entering the Orlando Parking and the Orlando Packing challenges.

Get into the 2012 Chevrolet Sonic.  It’s fun, turbocharged.  Get inside a Sonic and mash up your favorite tune with a mix from world-renown DJ Dopey.  Watch as Toronto Graffiti artist SKAM creates a 40’ work of art, live throughout the day.

And then at 7:30, join us for a free concert with FITZ AND THE TANTRUMS, live on stage.  Come to Yonge-Dundas Square on October 4^th, and text for a chance to win a 2012 Chevrolet Sonic to be given away during the FITZ AND THE TANTRUMS concert.

Test drive Sonic, Orlando and Volt, at Yonge-Dundas Square on October 4^th, have fun, and see how Chevrolet is Driving Our World Forward.

Debanshu Majumdar, Regional Head - Americas answers the press questions as Sudhesh Giriyan, Vice President Xpress Money listens intently

2011 has been a “very very important year” for Xpress money, said Sudhesh Giriyan, Vice President Xpress Money at Xpress Money launch ceremony in Toronto. With 35,000 locations in India, Xpress money is making its mark both in the corporate world of money transfers and at individual level.

It distinguishes its services from its competitors in a variety of different ways:

One, the text message is sent to the recipient the moment funds are transferred.

Two, the funds are instantly available

Three, there is no charge in case of cancellation

Four, network of strong and reliable partners in South Asia

Five, strong IT capability, and,

Six, superior customer service.

Xpress Money charges modest $8 to send money to India ($8 fee is the starting off fee) and $0 to send money to Pakistan.

While people may get unsettled when asked to provide detailed documentations to send money overseas from Canada, Mr. Debanshu Majumdar, Regional Head Xpress Money says that Xpress money will be compliant with all the laws the Canadian legislators have put in place.

With uncertain global climate, Canadian governments at all levels are trying hard to create business friendly environment in Canada. With its plans to spread its network across GTA, Montreal and Vancouver, Xpress Money will undoubtedly create jobs in Canada. It plans to have 150,000 active locations. Some of these locations will operate in Canada. It’s vision is to have Xpress Money agent at every 2 kilometers. Xpress money will also be launching an online money transfer system from Canada as early as November 2011. Canada will be the first country to offer Xpress Money online service.

Mr. Giriyan noted that 4 per cent of India’s GDP is contributed by Indian Diaspora living abroad. He stated that Canada is a premier market as the Indian Diaspora is strong and viable in Canada.

Here in Canada, Mr. Majumdar says that they have outreached to organizations like Indo Canada Chamber of Commerce, Canada Pakistan Business Council and other South Asian organizations.

The Canadian housing market is becoming highly segmented and multi-dimensional which is making traditional measures, like average prices, increasingly irrelevant in gauging the health and state of the sector, finds a new report from CIBC World Markets Inc.

“Glancing at popular metrics such as the price-to-income ratio or the price-to-rent ratio, it is tempting to conclude that the housing market is already in clear bubble territory and a huge crash is inevitable,” writes Benjamin Tal, Deputy Chief Economist at CIBC, in his latest Consumer Watch Canada report.

“Tempting, but probably wrong. When it comes to the Canadian real estate market at this stage of the cycle, any statement based on average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming.”

He notes that while the average house price in Canada rose 8.6 per cent on a year-over-year basis in May, that number slows to 5.6 per cent if you take Vancouver out of the picture. Remove Vancouver and Toronto and the average price increase drops to 3.7 per cent.

According to the information provided by Landcor, foreign money accounted for only 2.6 per cent of all sales during the same period. However, Mr. Tal believes that could be a serious underestimate, as it is based on where property tax assessments are mailed, and would exclude offshore buying on behalf of children or other local proxies. “There are many reasons to believe that a significant portion of what is perceived to be buying by offshore investors is, in fact, driven by Chinese immigrants that are integrated into the community but still maintain strong links to mainland China, with many residing and working in China while their family establishes roots in B.C.”

Mr. Tal feels the price correction in Canada will be gradual as the two key triggers for a price crash – a significant and quick increase in interest rates and/or a high-risk mortgage market that is very sensitive to changes in economic factors – are not at play in Canada.

“In Canada, a sharp and brisk tightening cycle is unlikely. The market expects a gradual increase in short-term rates in the coming years. The rising number of mortgage holders that carry a variable rate mortgage will be the first to feel the pain. But if history is any guide, they will return quickly to the comfort of a five-year fixed rate the minute the Bank of Canada starts hiking.”

He also believes that the country is in relatively good shape when assessing the two sub-segments of the mortgage market that traditionally account for most defaults: mortgage holders that carry a debt-service ratio of more than 40 per cent and those with less than 20 per cent equity in their house.

Just over six per cent of households have a debt service ratio of more than 40 per cent—a number that has risen by a full percentage point since 2008. “However, this ratio is still well below the ratio seen in 2003, when the effective interest rate on debt was more than a full percentage point higher, and no correction in house prices ensued,” adds Mr. Tal.

“All other things being equal, even a 300-basis-points rate hike by the Bank of Canada would take this ratio to only just over eight per cent. Not surprisingly, Vancouver has the highest ratio of households with high debt-service ratio, followed by Toronto.”

A little more than 17 per cent of the Canadian residential real estate pool is in properties with less than a 20 per cent equity position, a number that has been rising over the past few years. More than 80 per cent of households with less than a 20 per cent equity position are first time buyers.

“Digging deeper and looking at the households with both low equity positions and high debt-service ratios, we found that this fragile segment of the market accounts for only 4.6 per cent of total mortgages—a number that has been on an upward trend over the past few years,” says Mr. Tal. “Shock the system with a 300-basis-points rate hike and that number would rise to a still-tempered 6.5 per cent. Historically, even in that group, the default rate has been well below one per cent. Thus, short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.

“As a result, while house prices are likely to adjust as interest rates eventually climb, the national pace of any correction is likely to be gradual. That could still entail a period in which housing underperforms other assets as an investment class, until rising incomes and a tame price trajectory bring the market back to equilibrium.”

With two locations to serve community in Peel region, Homelife Maple Leaf Realty Ltd. has managed to attract and recruit more than 135 agents in just one year. Homelife Maple Lead Realty Ltd. has taken over three other companies in last one year. The company has as diverse staff as its clients says Mr. Narender Sehgal, owner of Homelife Maple Leaf Realty Brokerage.

Addressing declining professionalism among realtors, Mr. Sehgal noted that “if a person really wants to be a realtor and to make it a profession, they have no choice but to learn. They have to find a broker and brokerage to train them well and give them tools to succeed. Many brokerages lack training. At Homelife Maple Leaf, we recognize that sales force has to be well trained to bring value to customer for the money they spend with us.”

Narender Sehgal (owner of Homelife Maple Leaf Realty) with his wife, two daughters and a son

(L-R) Sher, Anu, Haren Patel, Narender Sehgal, Ruchi, Indra, Rama, Amarji and Sarabjeet

(L-R) Suhas Soni, Sonal Shah (VP of Centum Supreme Mortgages), Jamie, Mehak, Anjellah and Sultan-- Homelife Maple Leaf Realty staff members

Rajanda Aujla with Sukhdev Sahota

Youth has become instrumental in real estate market. A number of university and college students are obtaining licenses to work as realtors. What is their work ethic like?

“Younger generation is much much professional, they are skilled in computer, they give customers the value of their money,” says Mr. Sehgal who has build a brokerage that has many people between the ages of 20 – 30.

Are these young realtors taken seriously by those who are spending hundreds of thousands of dollars?

“People may look young, but their knowledge and expertise is overwhelming..they have blown my mind away. They have keen sense of professionalism, they are service oriented, they know it’s the biggest investment of life, and that they should be patient,” he said.

Many realtors note that in the GTA especially in Peel region, more and more South Asians are buying property. “South Asian community is controlling more than 50 per cent of the real estate market..we believe in buying real estate, we believe in owning..we believe when we buy real estate, we get connected to the land. And this philosophy that has come to us from our parents, we are keeping it alive,” stated Mr. Sehgal in response to the question about how crucial South Asian community is in real estate world of the GTA.

As far as the Harmonized Sales Tax (HST) of 13 per cent is concerned, Mr. Sehgal is not much worried about it. “HST has affected the market but not as much as  we expected it to because it applies to commission not to the property value,” he said.

Mr. Sehgal was celebrating the first successful year of Homelife Maple Leaf Realty Ltd. with his agents and clients.

He noted that India is “the great emerging tiger” where “we [MPPs and MPs] can help the doors open to people interested in doing business with India because “we trust you [Indo-Canadian community]..you’re part of the [Canadian] family,” he said.

Mr. Delaney had visited the Indian state of Gujrat. He said that Chief Minister of Gujrat Narendar Modi and the Ontario government are on the same page when it comes to promoting bilateral trade between Canada and India. He noted that Canada can help India in sectors like water purification and water management. Conversely Canada has a lot it can learn from India.

Mr. Delaney noted that the trade between Canada and India equals the trade between one state of the United States and India – West Virginia.

ICCC had held its Open House at RBC-Meadowvale Conference Centre, Mississauga. At the event, President of ICCC Vinay Nagpal made opening remarks. These remarks were followed by Kundan Joshi’s presentation of ICCC. Paul Ferley, Assistant Chief Economist of RBC spoke about the state of Canada’s economy with special emphasis on the latest economic and interest rate trends. Dr. Vivian Rambihar, an eminent Canadian cardiologist addressed  the topic of proactive healthcare, with particular focus on the South Asian community.

______

Higher unemployment rates left Americans doubtful of stimulus injection by Obama administration

-          Paul Ferley, Assistant Chief Economist, RBC

Recently there has been a tremendous emphasis on trade between Canada and India both at Ontario as well as the federal government level. While the government sees huge potential in exploring Indian market, this potential has not been translated into dollar figures quite as high.

Mr. Paul Ferley had made a presentation to over 100 entrepreneurs at Indo Canada Chamber of Commerce’s Open House. Generation Next spoke with Paul Ferely, Assistant Chief Economist with Royal Bank of Canada to determine where the gap lies and how can it be filled to translate it into meaningful trade between Canada and India. Here’s our conversation:

GN: Your presentation indicates that the increase in Canadian exports to India has increased only about 3 per cent, and the imports are almost flat. Can you reflect on that?

There has been increase in terms of Canadian exports to India, so it is a bit of upward trend. We have seen some improvement on the balance side [in trade between Canada and India], but the dollar amount remains fairly small. It’s tough on expert’s side because our trade is dominated by the US, and, so, so bilateral trade with a number of other countries looks fairly small. We have seen some improvement with respect to India. But we have not seen rapid development of trade as we are seeing with China. China remains a larger economy than India.

GN: Why do you think there is this gap when political will is so evident? Can immigration related matters be one reason?

It’s the question individual companies can answer. One reason can be there is lack of understanding as to how Indian economy operates, what channels one needs to go through  to move the product in that country and how to distribute it. What we may be going through is that companies are becoming more familiar with how economy [in India] operates and once that information is in hand, Canadian companies may have more success in exporting products to India.

GN: You have also indicated that ‘stimulus injection’ is needed by the US economy. However American people rejected the notion of stimulating the economy as is evident from the midterm elections in the US. How do you respond to that?

It’s an interesting point. There has been modest rebound in the US economy..unemployment rates remain high. That is the problem that Obama encountered. Economic data is improving but it’s a moderate haze.  That persistence in unemployment rate left Americans thinking ‘are we really out of recession;’ that was the obstacle Obama administration found itself up against.

GN: How does that translate into Canada?

Our rebound is modest..our economic growth is outpaced as it benefits from higher commodity process. But unemployment rate is coming down..

GN: But this economic growth and happiness about 430,000 full time jobs and so on is not felt by average Canadian families.

Many families that lost jobs during the economic downturn are looking around saying ‘recovery, I don’t see it,’ and quite justifiably so we haven’t had growth strong enough to create jobs.

Leading a delegation of business executives from Gujarat to Toronto to invite Canadian businesses to the Vibrant Gujarat 2011 event scheduled for January 2011, (www.vibrantgujarat.com) Pandiyan emphasized that Gujarat has given investors an assured return on investment of over 15 percent after taxes – a return that is unmatched in India.

The delegation comprises the who’s who of Indian corporate houses and includes senior executives from Reliance Industries, GMR Group, Adani Group, Suzlon Energy, Torrent Pharma and several others.

Earlier, welcoming the delegation to Canada, Vinay Nagpal, President of Indo-Canada Chamber of Commerce, emphasized, “The Indo-Canada Chamber of Commerce will be the facilitator to open the right doors for your state and businesses in Canada. We will go that extra mile for you to promote the right business connections.”

Nitin Shukla, the CEO of Hazira LNG Private Limited, and P. B. Vanchi, Director, GMR Group – both organizations with deep roots in the province – shared their experiences as investors in the province and lauded the Gujarat administration for its proactive, business-oriented style of operations.

D. Charandasi, Consul, represented the Consulate General of India in Toronto at the event.

The global market for sukuk (Sharia-compliant bonds) has grown in recent years. Total outstanding sukuk rose from $8 billion in 2003 to around $100 billion in 2008. Sukuk provides companies and governments with access to financing while also offering a much needed Sharia-compliant instrument to investors.

Background

Sukuk (plural of sakk, “legal instrument, deed, check”) is the Arabic name for a financial certificate, but commonly refers to the Islamic equivalent of bond.  Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest.  This is a good alternative to fixed income products, since interest bearing bonds are not permissible in Islam.  The main difference between sukuk and bonds is that sukuk holders take direct ownership of an underlying asset or pool of assets, whereas a bond is purely the financial debt of the issuer. Sukuk do not pay interest; rather they generate a return through actual economic transactions in the form of sharing or leasing the underlying assets.

Conservative estimates by the Ten-Year Framework and Strategies suggest that over $1.2 trillion of assets are being managed according to Islamic investment principles. Such principles form part of Shari’ah, which is often understood to be ‘Islamic Law’, but it is actually broader than this in that it also encompasses the general body of spiritual and moral obligations and duties in Islam. In the Persian Gulf and Asia, Standard & Poor’s estimates that 20 per cent of banking customers would now spontaneously choose an Islamic financial product over a conventional one with a similar risk-return profile.   Malaysia accounts for around 47 percent of global sukuk issuance by market value, followed by the GCC (Gulf Cooperation Council), which is the source of a further 46 percent. Other Sukuk issuers include institutions in Singapore, Sri Lanka, Thailand, the UK and US.

The Canadian market has been slow to market Sukuk.  However the recent issuance of a North American corporate Sukuk bond should help improve visibility.  In November 2009 GE (General Electric) Capital Sukuk’s were issued.  They mature Nov. 26, 2014, offer a 3.875% coupon, US$, and are rated AA.  The actual yield may be higher than the 3.875% coupon if they can be bought slightly below the $100 unit price.

If you are interested in buying Sukuk bonds Brent Hourd, Senior Wealth Advisor, ScotiaMcLeod can help you further.  His minimum account size is $300k, but this amount can also include other investments (stocks, bonds, funds, etc) offered by ScotiaMcLeod.

Most Sukuk bonds are $100,000 minimum investment per issue, with the most easily accessible ones in US$.

Mr. Hourd can be contacted at brent_hourd@scotiamcleod.com. You can also visit http://www.advisors.scotiamcleod.com/sukukbonds. This article is only intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any investment mentioned. Speak with a Wealth Advisor before acting upon any information.

TiEQuest is an annual business venture competition held in Toronto to encourage entrepreneurship, engage emerging entrepreneurial talent and to foster the entrepreneurial ecosystem. Founded in 2005, the mission of TiEQuest is to connect entrepreneurs with angel investors, venture capitalists and fund managers.

TiEQuest attracts over 200 entrepreneurs every year. The contestants include existing and emerging entrepreneurs, patent holders and/or applicants, university students and alumni across North America. TiEQuest offers over $150,000 in prizes to the winners. To encourage participation of youth, TiEQuest offers the New Entrepreneur Prize to the best student team. In addition the top teams also have an opportunity to win up to $1,000,000 investment from sponsors.

TiEQuest has over 25 success stories, where the contestants were able to take their business idea to successful enterprises, which have obtained financing, signed partnerships, acquired customers and generated revenues. The contestants see value in participating in the competition as it offers networking opportunities with leading entrepreneurs and investors, recognition with investment, legal and accounting firms, opportunity to practice the process of pitching their venture to investors, and opportunity to turn an innovative idea into a real businesses.

“We were connected with an advisor who challenged us and helped us refine our business plan.” says Cognovision Solutions Inc., TiEQuest alumni and winner of Most Innovative Company at the 2009 Canadian Innovation Exchange.

“TiEQuest promotes an entrepreneurial climate that stimulates new ideas and collaboration, which are key contributors to the development of groundbreaking products and services” says Hon. Harinder Takhar, Minister of Government Services

TiEQuest is different from other business plan competitions as it offers mentoring to the contestants. We connect contestants with industry experts, successful entrepreneurs and professional advisors. As mentors, TiE charter members introduce contacts and insights on where to go. TiEQuest enhances the opportunity for obtaining financing. We have 30+ venture capitalists, angel investors, fund managers and other business leaders acts as judges. The participants get an opportunity to present to the investors. In addition, the sponsoring funds offer expression of interest to the top teams. The competition is designed to go through multiple stages to help polish business idea and promote networking opportunities. The judging criteria include value proposition, marketability, viability, management strengths and investibility.

“Various prizes received in TiEQuest have helped us to raise new money and guide us through numerous hurdles during our commercialization efforts.” says Liquid Fiber Displays Inc. Winner of TiEQuest 2008

“TiEQuest provided us a great platform to explore venture financing. It has given us the interest of some of the big players and a visibility to secure better terms.” says Echologics Engineering Inc., Winner of TiEQuest 2007

TiEQuest is organized by TiE Toronto, a chapter of global, not-for-profit network of entrepreneurs and professionals dedicated to the advancement of entrepreneurship. TiE provides a platform for mentoring, networking and education. TiE’s mission is to foster and advance entrepreneurship across the globe. Its principle objective is to provide a platform on which people with entrepreneurial spirit and those interested in economic value creation can come together to share ideas. TiE endeavors to cultivate and nurture the ecosystems of entrepreneurship as it sees this to be the single most powerful instrument of prosperity.

TiE was founded in 1992 in Silicon Valley by a group of successful entrepreneurs, corporate executives, and senior professionals with roots in the Indus region. There are currently more than 16,000 members and over 2,500 charter members in 53 chapters across the globe. TiE charter members comprise of leading entrepreneurs, venture capitalists, fund managers, CXOs and professionals advisors. TiE regular members are aspiring entrepreneurs and professionals. Dedicated to the virtuous cycle of wealth creation and giving back to the community, TiE’s focus is on generating and nurturing the next generation of entrepreneurs.

TiEQuest 2010 is now accepting applications. Visit www.tiequest.org for details.

 Author: Suresh Madan is the President of TiE Toronto and Chair of  TiEQuest Business Venture Competition