via moneyville.ca
1. The housing market isn't really a market.
2. It's always a good time to buy
3. Location Location Location
Monday, March 21, 2011
Real Estate: 10 things you need to know
Real Estate: 10 things you need to know
It's true what they. When buying a house, location is everything.
Shutterstock/ShutterstockReal Estate:By Tony Wong - Business Reporter | Wed Mar 9 2011
- Recommend (19)
Next to public speaking, buying or selling a home is at the top of many people’s fear and loathing list. A home is the biggest investment you’ll ever make and while exciting, the potential for things to go wrong is pretty big.
Here are 10 things to consider when buying a home.
1. The housing market isn’t really a market
At least not in the way you might think. While housing analysts like to compare real estate returns to stock market returns, it is a misleading comparison.
The first big difference is that a stock market is a place where you can by and sell immediately. In the real estate market you can wait months for the home you want to come on the market and just as long to find someone who wants to buy yours. The price you expect may not bear any resemblance to the one you get.
The long run return on stocks is also a lot better. The average stock in the Standard & Poors 500 index, a basket of blue chip U.S. stocks, has returned about 6.3 per cent a year after inflation in each of the last 25 years. The average increase in the value of a Canadian home over the same period petty much tracks the rate of inflation which during the same period was 2.5 per cent.
A home is also more than an investment. It has all kinds of intangible qualities, including a neighbourhood you want to live in, a spot with a particular view or landscape, a type of architecture that you enjoy. So, while it’s tempting to think of your primary home as a profit centre ripe for a flip, that shouldn’t be the main purpose.
Besides, your Microsoft stock can’t keep you warm at night. (Unless you bought it when Bill Gates was still working out of his garage. In which case, you probably have your own heating company.)
2. It’s always a good time to buy
No it isn’t. People who bought at the height of the market in the 1989 real estate bubble, didn’t break even until prices bounced back in 2002. That’s 13 years. And even then they didn’t make their money back. Factoring in inflation, they actually lost money. House prices don’t go up forever. Buy when your circumstances dictate, not because your neighbor the agent says it’s a good time to.
3. Location, Location, Location.
Yah, they’re right. You’ll pay more initially, but investing in a property in the good neighborhood close to transit will pay dividends down the road when it comes time to sell
4. Buy the cheapest house on the street
Some people argue you shouldn’t, because the home will compare poorly to the other homes when you sell.
I say go for it. It may already be discounted because it looks like a shack compared with other properties and provides far more upside if you spruce it up in the future. A rising tide can also help to lift all boats. As the street gentrifies, infill housing will continue to keep property values high. Getting your foot in the right address is half the battle. Hello Park Place!
5. Do I need an agent?
No, you don’t. While a good realtor can be a huge asset, not everyone needs professional advice. If you have time, selling your own home can save you a ton of money on commissions. With the advent of the internet, and the opening up of the Multiple Listing Service there are many more services for the aaaRSS Feed
1. The housing market isn't really a market.
2. It's always a good time to buy
3. Location Location Location
7 Tax Mistakes That Could Trigger An Audit
Someone out there is watching you. And that someone, occupying a cubicle deep in the bowels of the Canada Revenue Agency, is just itching for an excuse to get out of the office and conduct an audit -- of you.
Here are seven mistakes that HR Block says are most likely to put you under the CRA microscope.
1. Forgotten T slip: You are the boss of your income and CRA wants to know every nickel you’ve earned -- even if you don’t have a T slip. CRA has one of those lightning fast matching programs that will zero in on you if an employer has filed one and you don’t report it. And if you fail to report income from a T-slip twice in two years the penalties could be substantial.
2. Hobby or business: Growing shiitake mushrooms in your basement rec room may be a whale of fun but creating income reducing losses from it could get you into trouble. If there is no reasonable expectation of a profit and years of losses, expect an auditor to come knocking at your door.
3. Incorrect support credit claims: Filling out line 220 is likely to give you a free pass to a CRA review because support payments for children are deductible only if your agreement was dated before May 1, 1997. And if you are supporting a spouse or common-law partner the agreement or court order must be filed with the CRA.
4. Claiming regularly reviewed credits: In a six-year period I had four CRA reviews -- two after claiming moving credits and two following tuition transfers from my two daughters. These claims are top of the CRA’s let’s-take-second-look list. Just make sure you keep your moving receipts and the signed T2202A form to back up the tuition transfer.
5. Out of the ordinary: If you claim 50 per cent of your home expenses and 95 per cent of your car expenses for
business use, chances are you will trigger an audit. Be reasonable, truthful and, when it comes to auto expenses,
keep a log book.
6. High life on low income: Few taxpayers have ever heard of a net worth assessment but the CRA can conduct one if they suspect your claimed itty bitty income is covering up under-the-table work. The CRA actually has a snitch line and if you have annoyed someone who knows your income doesn’t match your lifestyle you may find yourself with a lot of explaining to do.
7. The cheatin’ habit: If you’ve been a little less than honest in the past, and been caught, the CRA is more likely to circle back for a repeat review.
As always, honesty is the best policy on the tax front -- oh yes, and keep those receipts for six years, just in case.
Contact me at Alison Griffiths
via moneyville.ca
Found this an interesting read. Hope you will too.
Don't forget...April 30, 2011 is the tax filing deadline for personal income tax for the 2010 tax year.
Saturday, March 19, 2011
Tuesday, March 15, 2011
AVOID A WET BASEMENT THIS SPRING
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AVOID A WET BASEMENT THIS SPRING
AVOID A WET BASEMENT THIS SPRING
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Friday, March 11, 2011
Variable Rate, Fixed Rate or Both?
Aware of all the potential changes that are coming in the next few weeks and a strong realization of the material impact that they could have on the mortgage marketplace, there is great focus on and conversation about what mortgages should look like now and what the wise choices for consumers are.
Knowing that the odds are heavily stacked for a rate increase sooner rather than later, the real question comes down to locking in now, or choosing the variable rate option.
It seems, overwhelmingly, from those with their fingers on the pulse of the mortgage market, the answer is variable rate.Check out this articlePropertyWire,Ca's journalist, Heather Wright, has conducted exclusive interviews with Phil Soper, President of Royal LePage, Robert Hogue, Senior Economist with RBC and Jeffrey Schwartz, Executive Director of Consolidated Credit Counseling Services of Canada. Read their predictions for the 2011 Housing Market in Canada here: Balance and stability, two words that recently seemed foreign and unlikely, at least in reference to the Canadian Housing Industry. Now that the economic downturn is fading...Speaking exclusively to Propertywire.ca, Nick Ametrano, Vice President of MonsterMortgage.ca, says; "Just look at some of the facts. Last summer when the variable rate started to increase, the 5 year fixed rate was around 4.5% and people panicked as banks were advertising that they should lock in as rates are going up! Three months later the fixed rate was back down to 3.7% and the prime rate has not increased since then...all that happened was that banks profited by preying on people’s fears, consumers who took that bad advice lost out again. Plus, let’s not forget the 20% of consumers whose mortgages are renewing this year, in June 2006 they would have locked in at rates between 5.5% and 5.75% when prime was 6%. When they renew today they are ecstatic. “
“Bottom line...You save more money taking a variable rate mortgage – it’s that simple. If you are uncomfortable with the variable rate concept, spend some time and learn how to manage your mortgage on your terms. If you are willing to pay 4.5% for a fixed rate mortgage, set your variable payment at this amount and off you go. You will sleep well at night knowing that prime would need to go up .25% 10 times before you even hit that level and your payment never changes. In addition, while you are sleeping, you are paying down your mortgage at twice the level of a regular payment. You will find yourself thousands of dollars ahead of the game and you will be able to pay down your mortgage years ahead of schedule.“
Speaking exclusively to Propertywire.ca,Taz Rajan, Mortgage Planner with Quantus Mortgage Solutions, agrees; "For me, taking a variable rate mortgage is not just a type of mortgage, it’s a strategy. The strategy is, we can afford payments on the 5 year fixed but if we take the variable and keep our payments the same as they would be on the 5 yr fixed we can save thousands of dollars in interest and over the long term, outperform the fixed rate. If you are employing this strategy and can afford an increase of up to 2% in rates then stick with the variable. It’s the right fit for you.“
Rajan does believe though, that for those who feel the need to lock in, now is the time; “Most clients take the variable and then play ‘Russian roulette’ with fixed rates and timing when to lock in. If you are thinking of locking in at some point, I say that point is now. We’ve seen fixed rates start to rise. We know that the spreads are uncomfortably narrow and bond yields look like they may rise. These are all indicators that fixed mortgage rates are going up. We also expect the variable rate to rise by the end of 2011”
Scotiabank suggests a mortgage diversification product to address both sides of the debate; "Some Canadians prefer the peace of mind of a fixed-term mortgage, while others enjoy the flexibility of a variable mortgage, but the decision doesn't have to be either/or," said David Stafford, Managing Director, Scotiabank Real Estate Secured Lending; "You wouldn't invest all of your eggs in one basket, so why would you borrow that way?"
Ametrano, because of all the historical evidence of rate trends, and because of impact on long term savings for the client, suggests that there are problems inherent that approach; "Many financial institutions promote this type of product and our answer to clients who ask about it is...it is like betting on both teams at the hockey game . You can’t win.”
What do you think? What are your client trending towards? Join the debate by joining our Community and Forum
Related Articles
- Condominiums: Strong Favourite in the Montreal Area in 2010
- Subdued Housing Market In Calgary Gives Buyers Choice
- Canadian real estate market unlikely to see dramatic correction.
- 2011 Will See Great Improvements In Corporate Profitability, Conference Board of Canada
- Bank of Canada Announcement - Rates Remain Unchanged
via propertywire.ca
Makes sense to me!
Wednesday, March 9, 2011
St Thomas Aquinas Oakville Gets a New School!.wmv
via youtube.com
Check it out! I was at the fabulous and new St. Thomas Aquinas Catholic Secondary School in Oakville which is beaming with even more pride now. Go Raiders!
Tuesday, March 8, 2011
St. Thomas Aquinas Oakville Gets a New School!
Absolutely Gorgeous is the only way to describe the brand new school.
© 2011 YouTube, LLC
901 Cherry Ave, San Bruno, CA 94066
Monday, March 7, 2011
When is an agreement binding?
via propertywire.ca
Effectively, there are two choices:
1) as soon as the offer is formally accepted, as in "signed, sealed and delivered", and
2) when all the conditions are satisfied, waived or fulfilled.
Naturally, it makes a difference in terms of interpretation. Some people say 1) and other people say 2).
There are several essential elements of a contract:
1) Parties, (legal capacity)
2) Lawful object (not illegal)
3) Intention to create contract (consideration or seal)
4) Mutual agreement (offer and acceptance)
5) Agreement in respect to terms (genuine intention)
6) Agreement must be certain (definite and clear).
Once those essential elements are all present, then we have a legally binding agreement. There may very well be conditions that need to be fulfilled, satisfied or waived as the contract proceeds, but at the outset, we still have a "binding agreement".
In dealing with the conditions, the contract itself may specify the consequences, but nevertheless, we started out with a legally binding agreement.
So, why all the problems? Apparently, many waivers, amendments, fulfillments etc. will include a phrase to the effect that "... this agreement is now firm and binding". That is just confusing. It was already "firm and binding". There just happened to be an outstanding condition that required resolution.
The result is that some practitioners have come to the conclusion that the contract was not "firm and binding" at the outset, but rather later, upon resolution of the condition. That view would be in error.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
Sunday, March 6, 2011
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