Tag Archives: Financial Planning

Make the Right Investment in Your Home

Has owning your home become the new retirement savings plan? According to recent statistics, more and more Canadians are investing in their home rather than their RRSP. While half of Canadians haven’t contributed to their registered retirement savings plan, close to 70 percent of households currently own their own home.

It’s an interesting shift, and one that could prove extremely beneficial to budget-savvy individuals. Jason Heath, a certified-financial planner with Objective Financial Partners Inc. explained the rationale in a recent Financial Post interview, stating that “your money grows tax free” in your property, whereas RRSP savings feature fully-taxable withdrawals. Continue reading →

Consumer Debt Hits A New High

A report released this morning by TransUnion shows that, despite repeated warnings, Canadians are back on the borrowing bandwagon, pushing consumer debt to a new record high.

According to the report, the average Canadian’s non-mortgage debt hit $26,221 in the second quarter of 2012, up $192 from the previous quarter. This is the highest per person debt level since the credit bureau started tracking this type of data back in 2004.

The increase in average debt spanned the country, although Saskatchewan reported a slight dip on a quarterly basis and Alberta recorded a decreased annual debt growth. Continue reading →

Why You Should Buy Commercial Real Estate Now

Tired of paying high leasing rates at your current commercial location? Well, what if you knew you could save more in the long term if you opted to buy a building for your business today? Low interest rates, low vacancy rates and a tight supply are creating the perfect purchasing situation for entrepreneurs across the country.

According to Steve Murphy, senior vice-president of commercial and treasury management at BMO, now is a particularly good time to invest in commercial property, both for their own uses and for leasing opportunities. “There is a strong demand for these properties by users, who are often able to lease out part of the property for additional rental income.” Continue reading →

Were Flaherty’s Changes Too Late?

The fourth round of changes to Canada’s mortgage rules were designed to clamp down on an overheated housing market. Now, a week later, analysts are wondering if Finance Minister Jim Flaherty jumped the gun. Detractors are pointing to a real estate market that was already beginning to decline, both in terms of sales and price. Tightening mortgage rules during a period of corrective market action could grind the market to the halt.

While the Toronto market remains hot, overall the Canadian housing market has cooled. The Canadian Real Estate Association recently released that its benchmark index for home prices was up to 5.2 percent in May from a year earlier. Most notably, gains in the Vancouver market were shrinking. Not surprisingly, Toronto’s rate was up about 7.9 percent from a year ago. Continue reading →

Can the Canadian Housing Market Fix Itself?

The Canada Mortgage and Housing Corporation released its second quarter housing market outlook today, stating that housing starts will likely moderate by the end of the year. While the market has remained hot through the first half of 2012, the Housing Corp. believes that both new and existing home market activity will eventually slow and even out.

Housing starts are expected in the range of 182,300 to 220,600 units this year, which is up from the roughly 164,000 to 212,700 forecasted back in 2012. The CMHC’s deputy chief economist, Mathieu Laberge, attributes this unexpected growth to condo construction, noting that the numbers varied significantly from month to month. Continue reading →