A lot of people are asking this question recently in Canada, and the answer, in short, is YES! If your job is stable, and you still have disposable income (extra money left over after all of your bills) then this is an excellent time to invest in a home.
With the instability in the stock market, that's probably not a great place to have a lot of your money invested unless you are a very seasoned, confident investor. Mutual funds are not doing well either.
So, investing your money in real estate is still a very viable option.
The Canadian dollar is currently trading too closely with the US dollar. Our biggest trade partner is the US, so when our dollar is high, it cost US buyers more to buy goods from Canadian manufacturers. To combat this, it is important for our dollar to remain lower in value to the US dollar, that way, US buyers get more products from Canadian manufacturers for their money.
Bearing that in mind, one way to keep our dollar low is to discourage foreign investors from buying Canadian currency in the currency market (which drives our dollar's value up) and one way to do that is to keep interest rates low because interest rates affect what kind of return foreign investors can expect when buying our dollars.
Simply put, this means that the interest rates should remain stable at this low rate for some time. For those looking to buy, this means its a very good time to do so.
Another reason to buy now is that sales and prices on homes are starting to creep up as consumers are starting to gain confidence in the future economy, and homes are starting to sell at their asking price. In fact, in some parts of the country, above their asking price. So, it would appear that we are near the bottom of the price decline, and as anyone will tell you, buy low and sell high is the best option for any investment, and the price right now is LOW! So are interest rates.
This is a rare opportunity to buy that first home, or investment property while money is cheap, and there are bargains to be had.
Tuesday, September 15, 2009
Wednesday, August 5, 2009
Choose the right Real Estate Agent!
The number one mistake people often make when choosing a real estate agent when selling their home is selecting someone based solely on the fact that they’re a friend or family member who is also a real estate agent. It’s important to let your friend or family member know that you will be interviewing other real estate agents – if for no other reason but to make your friend or family member be on their game to prove they are worthy of selling your home. Remember that this is a business decision, not a personal one.
Following are four keys points to keep in mind when selecting a real estate agent:
1)Interview more than one real estate agent.
This is often a big mistake people make. It is valuable to hear a couple different viewpoints on the pricing of your home, the strategy proposed for marketing and the track record of the candidates. Also remember that if you’re going to be working closely together for a few weeks or longer, it’s important that you also like the person you will be dealing with. If they turn you off in the first meeting what do you think it will be like after three weeks of continuous contact and meetings?
Write out your questions in advance. Do some research, and remember this is an interview. The Internet is full of informative sites that can be used to gather some questions that you should ask your candidates. It also allows you to reflect on their answers later during the deliberation phase to see who you will choose.
2)Innovative and fresh marketing strategies.
Make sure you go with the real estate agent who has a broad, unique and innovative marketing strategy. If the strategy is holding open houses and advertising in the local real estate print media, they’re not offering you anything different than the average agent. Today’s marketing strategy must have a solid Internet and/or social media component as this is the way buyers today are shopping for homes. A staggering 80%+ of buyers today shop online for their real estate. Opt for the agent who comes up with more strategies to get your home in front of as many potential buyers as possible.
3)Price strategy.
This is a big one. Make sure you ask lots of questions on how they came up with the proposed price for your home. Try not to get in the way here. Many homeowners have an inflated view of the value of their home and weak real estate agents will just agree with your over-priced value in order to get the listing, and then just beat you down over the coming weeks to get your price where it should have been. It will sell weeks later than it could have if you had priced it right in the first place. If a real estate agent does not respectfully disagree or challenge you on your inflated price, then you need to ask yourself if this is the right professional for you. If you have chosen your candidates wisely, you are dealing with someone who has sold many homes in your area and knows more about the price than you do. Trust the experts.
Barry Chisholm is a Mortga
ge Professional and Lease Underwriting Agent for one of Canada's largest and most prestigious Mortgage and Leasing Companies.To subscribe to our weekly newsletter, or for more information, CLICK HERE!
Friday, July 3, 2009
Swimming Lessons at your Bank?
Don't tread water when it comes to your credit.
It's sink or swim in light of the current market and tightening
of credit underwriting standards by both lenders and mortgage
default insurers as of late.
Keep in mind that now –
more than ever –
it’s important to be careful what you do between the time
your mortgage is approved and when it funds.
A few mortgage lenders and insurers have been doing
something lately that they have not done in a long time,
and that is pull a new credit bureau in lieu of relying on
your previous history with them prior to funding,
especially if there is a long period between the time
of your approval and when the mortgage actually
funds.
It's important to know when and how to pay off debt,
and when to keep money.
Following are ten tips to keep in mind between your
mortgage approval and funding dates:
1.Don’t buy a new car or trade-up to a more expensive
lease.
2.Don’t quit your job or change jobs. Even if it’s a
better-paying job, you still are likely to be on a probationary
period. If in doubt, give me a call and I can let you know if
this may jeopardize your approval.
3.Don’t change industries, decide to become self-employed or
accept a contract position even if it is within the same industry.
Delay the start of your new job, self-employment or contract
status until after the funding date of your mortgage.
4.Don’t transfer large sums of money around between
bank accounts. Lenders get especially skittish about this
one because it looks like you’re borrowing money.
Be ready to document cash transactions or money movements.
5.Don’t forget to pay your bills, even ones that you are
disputing and you have informed the credit bureau of the dispute.
This can be a real deal-breaker. If the lender pulls your credit
bureau prior to closing and sees a collection or a delinquent account,
the best you can hope for is that they make you pay off the
account before they will fund. You don’t want to have to scramble
to pay off a debt at the last minute!
6.Don’t open new credit cards. Again, just wait until after your
funding date.
7.Don’t accept a cash gift without properly documenting with me
– even if this is from proceeds of a wedding. If you have a bunch of
cash to deposit before your funding date, give me a call before you
deposit it.
8.Don’t buy furniture on the “Do not pay for XX years plan”
until after funding. Even though you don’t have to pay now,
it will still be reported on your credit bureau, and will become an issue
– especially if your approval was tight to begin with.
9.Get credit card balances below 90% of their limit. A maxed
out card, even if you are making payments on time,
is a red flag for lenders.
10.Be prepared to prove where your down-payment came from,
even if it was a gift from a friend or family member. Lenders
want to know you didn't borrow the money from a credit card.
While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure!
It's sink or swim in light of the current market and tightening
of credit underwriting standards by both lenders and mortgage
default insurers as of late.
Keep in mind that now –
more than ever –
it’s important to be careful what you do between the time
your mortgage is approved and when it funds.
A few mortgage lenders and insurers have been doing
something lately that they have not done in a long time,
and that is pull a new credit bureau in lieu of relying on
your previous history with them prior to funding,
especially if there is a long period between the time
of your approval and when the mortgage actually
funds.
It's important to know when and how to pay off debt,
and when to keep money.
Following are ten tips to keep in mind between your
mortgage approval and funding dates:
1.Don’t buy a new car or trade-up to a more expensive
lease.
2.Don’t quit your job or change jobs. Even if it’s a
better-paying job, you still are likely to be on a probationary
period. If in doubt, give me a call and I can let you know if
this may jeopardize your approval.
3.Don’t change industries, decide to become self-employed or
accept a contract position even if it is within the same industry.
Delay the start of your new job, self-employment or contract
status until after the funding date of your mortgage.
4.Don’t transfer large sums of money around between
bank accounts. Lenders get especially skittish about this
one because it looks like you’re borrowing money.
Be ready to document cash transactions or money movements.
5.Don’t forget to pay your bills, even ones that you are
disputing and you have informed the credit bureau of the dispute.
This can be a real deal-breaker. If the lender pulls your credit
bureau prior to closing and sees a collection or a delinquent account,
the best you can hope for is that they make you pay off the
account before they will fund. You don’t want to have to scramble
to pay off a debt at the last minute!
6.Don’t open new credit cards. Again, just wait until after your
funding date.
7.Don’t accept a cash gift without properly documenting with me
– even if this is from proceeds of a wedding. If you have a bunch of
cash to deposit before your funding date, give me a call before you
deposit it.
8.Don’t buy furniture on the “Do not pay for XX years plan”
until after funding. Even though you don’t have to pay now,
it will still be reported on your credit bureau, and will become an issue
– especially if your approval was tight to begin with.
9.Get credit card balances below 90% of their limit. A maxed
out card, even if you are making payments on time,
is a red flag for lenders.
10.Be prepared to prove where your down-payment came from,
even if it was a gift from a friend or family member. Lenders
want to know you didn't borrow the money from a credit card.
While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure!
Why Use a Mortgage Broker?
There are generally two ways to get a mortgage in Canada: From a bank, or from a licensed mortgage professional.
While a bank only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, and trust companies … offering their clients more choice, and access to hundreds of mortgage products!
As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.
Mortgage professionals work for you, and not the banks; therefore, they work in your best interest and give you the mortgage edge.
From the first consultation to the signing of your mortgage, their services are free. A fee is charged only for the most challenging credit solutions, and it’s especially under those circumstances that a mortgage professional can do for you what your bank cannot.
Whether you’re purchasing a home for the first time, taking out equity from your home for investment or pleasure, or your current mortgage is simply up for renewal, it’s important that you are making an educated buying decision with professional unbiased advice.
Some brokerages actually perform other services such as financial advising, or leasing, and can structure your purchase or refinance to personally fit your needs.
Loyalty to your bank can cost you thousands. Get a second opinion from a mortgage professional, and find a mortgage that suits you, not your bank and be mortgage-free faster.
Click here to find out more, book a mortgage consultation, or subscribe to my newsletter.
While a bank only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, and trust companies … offering their clients more choice, and access to hundreds of mortgage products!
As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.
Mortgage professionals work for you, and not the banks; therefore, they work in your best interest and give you the mortgage edge.
From the first consultation to the signing of your mortgage, their services are free. A fee is charged only for the most challenging credit solutions, and it’s especially under those circumstances that a mortgage professional can do for you what your bank cannot.
Whether you’re purchasing a home for the first time, taking out equity from your home for investment or pleasure, or your current mortgage is simply up for renewal, it’s important that you are making an educated buying decision with professional unbiased advice.
Some brokerages actually perform other services such as financial advising, or leasing, and can structure your purchase or refinance to personally fit your needs.
Loyalty to your bank can cost you thousands. Get a second opinion from a mortgage professional, and find a mortgage that suits you, not your bank and be mortgage-free faster.
Click here to find out more, book a mortgage consultation, or subscribe to my newsletter.
Tuesday, June 23, 2009
Don't Finance when You Can Save More by Leasing!
As a leasing professional with Dominion Leasing, Canada's largest lease underwriting agency, I have seen buyers and sellers alike make and save far more money by leasing equipment, software, vehicles, office furnishings, and many other products.
If you are thinking of financing that loader, or paying cash for that new printer, stop and consider the benefits of leasing those items instead.
If you sell heavy equipment, or software, or computer equipment, or ANYTHING that businesses use, consider the many benefits, and INCREASED SALES to be gained by leasing that equipment to your buyers instead of having them pay you cash, or use credit to make that purchase....
First of all, if you are SELLING a product to businesses, you can often up-sell them service contracts, setup and training, consulting services, much more easily if they don't have to pay up front out of their working capital for those added services. By leasing the product to them, and including those added services in the lease, they only pay the first and last month's lease payment up front and in most cases those lease payments are 100% deductible! This makes it A LOT easier to afford those added products and services you offer, saving them even more on their taxes! MUCH more in fact, than writing the same equipment off using the capital cost allowance.
ALSO, if they re-sell that equipment later, the lease payments written off are not clawed back but the capital cost allowance would be!
IT'S A WIN/WIN SITUATION!
If you would like more information on how you can lease equipment for your business, or how you can lease your product to your customers, call me, Barry Chisholm, in Greater Vancouver 604-961-2734 or in Canada toll free 1-888-465-0707, or visit my website at http://www.barrychisholm.ca/.
Other benefits of leasing:
If you are thinking of financing that loader, or paying cash for that new printer, stop and consider the benefits of leasing those items instead.
If you sell heavy equipment, or software, or computer equipment, or ANYTHING that businesses use, consider the many benefits, and INCREASED SALES to be gained by leasing that equipment to your buyers instead of having them pay you cash, or use credit to make that purchase....
First of all, if you are SELLING a product to businesses, you can often up-sell them service contracts, setup and training, consulting services, much more easily if they don't have to pay up front out of their working capital for those added services. By leasing the product to them, and including those added services in the lease, they only pay the first and last month's lease payment up front and in most cases those lease payments are 100% deductible! This makes it A LOT easier to afford those added products and services you offer, saving them even more on their taxes! MUCH more in fact, than writing the same equipment off using the capital cost allowance.
ALSO, if they re-sell that equipment later, the lease payments written off are not clawed back but the capital cost allowance would be!
IT'S A WIN/WIN SITUATION!
If you would like more information on how you can lease equipment for your business, or how you can lease your product to your customers, call me, Barry Chisholm, in Greater Vancouver 604-961-2734 or in Canada toll free 1-888-465-0707, or visit my website at http://www.barrychisholm.ca/.
Other benefits of leasing:
- does not eat up your existing credit line; a lease is a contract, NOT A LOAN, so it does not count against your available credit, freeing up that credit to put into R&D, expansion, or investment elsewhere
- lease payments can often be structured to meet your budget, or your customer's budget
- payments can even be seasonal, so you only pay during the months you are actually making money with your seasonal business, farm, etc.
- sellers are paid immediately by the funding institution upon delivery to the buyer, and all collections and credit checks are done buy the funding institution, so once your buyer signs the lease, you don't have to do anything else but deliver your product, and you will be paid in full! This cuts down on collections and losses for non-payment or recovery of merchandise.
- as a Dominion Leasing representative I am also a sub-mortgage broker in residential and commercial mortgages so I can offer very uniquely structured deals to help you and your customers get the most out of their equity and assets, and help both your businesses. Again its a WIN/WIN...
Monday, June 22, 2009
Easily Re-caulk your Bathtub!
Whether you are selling your home, or renovating it yourself to increase its value, or just to beautify it for yourself, the bathroom is one of the most important rooms in the entire house when it comes to home equity. Nothing will destroy the looks of even the best bathroom like poorly applied or mildewed caulking.
One thing many homeowners doing their own renovations find frustrating is removing and replacing caulk in their bathtub and around fixtures. So much so, that I have had people offer to pay me just to do this for them.
Thanks to my wife, I have been labeled the 'caulk master' by friends and family.
Here's what you need: 1" or 2" plastic putty knife or razor scraper; clean cotton cloth; rubbing alcohol, small container of clean, cool water or a nearby tap.
First thing you should do when removing caulk from your bathtub is plug the drain. You don't want any of it getting down there and clogging it up. Next, you need to know if your tub is metal or acrylic. Most of us already know what our tub is made of, but if you don't, just tap on the side of it, and you can usually tell. If you are unsure, assume it is acrylic when following these instructions.
This is important, because if it is metal with an enamel finish, you can use a razor scraper fairly safely to scrape off the old caulk. If it's acrylic, you will want to use a plastic putty knife to avoid gouging or scratching the finish. It is also important to be aware of the wall finish surrounding the tub. A razor scraper is fine against tile, however, if you have an acrylic tub surround, again, you'll want to use a putty knife instead. Either of these items can be purchased at any hardware store quite inexpensively. (Usually a couple of bucks.)
Scrape off as much as you can without using too much pressure, and sweep or vacuum out the bits you have scraped off. You most likely won't get it all off, as there are often tight little spots or stubborn stuck on bits that will have you shamelessly cursing and sweating over needlessly. Don't worry, the next part helps immensely with this problem....
Once you've scraped and cleaned off as much as you think you can, take a clean, dry, cotton cloth, and wet a corner of it with rubbing alcohol. Emphasis on 'rubbing' as this will take a bit of work, but with just a little effort, rubbing those tough spots with the cloth and alcohol will clean it up very nicely and get rid of the residual caulk that is stubbornly clinging to your fixtures. If you are scraping around fixtures such as taps, again, you'll probably want to use the putty knife to avoid scratching them.
Once you have the entire area cleaned with the rubbing alcohol, dry it with a clean, dry cloth, and you should be ready to begin re-caulking.
I prefer white latex tub and tile caulk for the joints in my bathroom. However, there are now a whole host of colors to choose from if you prefer to use something that more closely matches the color of your tub or your tile. If you have a caulking gun, you can purchase tubes of caulk, however, it also comes in squeeze tubes much like toothpaste tubes, and for most jobs, one or two of these squeeze tubes will do just fine.
Cut the end of the tube open with a razor knife or scissors at a 45 degree angle just far enough down so that the opening is roughly one eighth to one quarter of an inch around or, a little less around than a pencil. Starting in a corner of the tub, hold the tube at the 45 degree angle and squeeze the tube until the caulk starts coming out. As it does, slide the end of the tube along the edge you're caulking at a pace so that you have a bead about one eighth of an inch bulging out of the crack. Once you've done this along the entire crack, wet your index or middle fingertip with water and lightly run it along the bead, smoothing it out. BE CAREFUL here to check for any sharp edges before doing this, or you could end up cutting your finger (and your nice white caulk will end up pink....). If there are sharp edges along the tub or tile, consider wearing a rubber glove for this part, or wrap your finger in a wet cloth. There are those who recommend using the end of a popsicle stick for this as well, but whenever possible, I find there's no better tool than what God gave me, and I use my finger.
The trick here is to keep wetting your finger! As soon as you feel it becoming dry, wet it again, or you will drag the caulk and get smears. Sometimes you will have to do this several times to get a nice, smooth, clean bead, but if you take your time and do this part correctly, it will look quite nice. You can wipe away any messy spots with a damp cloth, and repeat the smoothing process. You have a few minutes before the caulk starts to skin over to work with it, so take your time and you'll be glad you did.
The mistake most people make when doing this, is they use too much caulk. It spreads out on either side of their finger as they smooth it and this leaves an edge in the caulk for water to collect and get under the caulk, which loosens it, and allows mildew to grow in it. Use the caulking sparingly, and smooth it nicely, so you end up with a seamless seal and it will last a long time.
One thing many homeowners doing their own renovations find frustrating is removing and replacing caulk in their bathtub and around fixtures. So much so, that I have had people offer to pay me just to do this for them.
Thanks to my wife, I have been labeled the 'caulk master' by friends and family.
Here's what you need: 1" or 2" plastic putty knife or razor scraper; clean cotton cloth; rubbing alcohol, small container of clean, cool water or a nearby tap.
First thing you should do when removing caulk from your bathtub is plug the drain. You don't want any of it getting down there and clogging it up. Next, you need to know if your tub is metal or acrylic. Most of us already know what our tub is made of, but if you don't, just tap on the side of it, and you can usually tell. If you are unsure, assume it is acrylic when following these instructions.
This is important, because if it is metal with an enamel finish, you can use a razor scraper fairly safely to scrape off the old caulk. If it's acrylic, you will want to use a plastic putty knife to avoid gouging or scratching the finish. It is also important to be aware of the wall finish surrounding the tub. A razor scraper is fine against tile, however, if you have an acrylic tub surround, again, you'll want to use a putty knife instead. Either of these items can be purchased at any hardware store quite inexpensively. (Usually a couple of bucks.)
Scrape off as much as you can without using too much pressure, and sweep or vacuum out the bits you have scraped off. You most likely won't get it all off, as there are often tight little spots or stubborn stuck on bits that will have you shamelessly cursing and sweating over needlessly. Don't worry, the next part helps immensely with this problem....
Once you've scraped and cleaned off as much as you think you can, take a clean, dry, cotton cloth, and wet a corner of it with rubbing alcohol. Emphasis on 'rubbing' as this will take a bit of work, but with just a little effort, rubbing those tough spots with the cloth and alcohol will clean it up very nicely and get rid of the residual caulk that is stubbornly clinging to your fixtures. If you are scraping around fixtures such as taps, again, you'll probably want to use the putty knife to avoid scratching them.
Once you have the entire area cleaned with the rubbing alcohol, dry it with a clean, dry cloth, and you should be ready to begin re-caulking.
I prefer white latex tub and tile caulk for the joints in my bathroom. However, there are now a whole host of colors to choose from if you prefer to use something that more closely matches the color of your tub or your tile. If you have a caulking gun, you can purchase tubes of caulk, however, it also comes in squeeze tubes much like toothpaste tubes, and for most jobs, one or two of these squeeze tubes will do just fine.
Cut the end of the tube open with a razor knife or scissors at a 45 degree angle just far enough down so that the opening is roughly one eighth to one quarter of an inch around or, a little less around than a pencil. Starting in a corner of the tub, hold the tube at the 45 degree angle and squeeze the tube until the caulk starts coming out. As it does, slide the end of the tube along the edge you're caulking at a pace so that you have a bead about one eighth of an inch bulging out of the crack. Once you've done this along the entire crack, wet your index or middle fingertip with water and lightly run it along the bead, smoothing it out. BE CAREFUL here to check for any sharp edges before doing this, or you could end up cutting your finger (and your nice white caulk will end up pink....). If there are sharp edges along the tub or tile, consider wearing a rubber glove for this part, or wrap your finger in a wet cloth. There are those who recommend using the end of a popsicle stick for this as well, but whenever possible, I find there's no better tool than what God gave me, and I use my finger.
The trick here is to keep wetting your finger! As soon as you feel it becoming dry, wet it again, or you will drag the caulk and get smears. Sometimes you will have to do this several times to get a nice, smooth, clean bead, but if you take your time and do this part correctly, it will look quite nice. You can wipe away any messy spots with a damp cloth, and repeat the smoothing process. You have a few minutes before the caulk starts to skin over to work with it, so take your time and you'll be glad you did.
The mistake most people make when doing this, is they use too much caulk. It spreads out on either side of their finger as they smooth it and this leaves an edge in the caulk for water to collect and get under the caulk, which loosens it, and allows mildew to grow in it. Use the caulking sparingly, and smooth it nicely, so you end up with a seamless seal and it will last a long time.
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