As some of you may know, there have been some imposed changes that will decrease our borrowing power when it comes to purchasing a home. As of January 1, 2018, you will need to qualify under more stringent rules in order to get the mortgage you desire.
Assuming all other factors remain unchanged, once the new changes are in effect you would qualify for an amount 18% less than you would under the current mortgage rules. Read more
In the competitive market we face today, purchasing a home can be a daunting task. There are a few things to be aware of that can help make it a little less daunting. The First Time Home Buyers Plan and some new advantages that were recently introduced by the Provincial Government help soften the blow.
To help make this overwhelming transaction a little less arduous, the federal government allows first time home buyers to withdraw $25,000 from their hard earned RRSPs, tax free. These funds do need to repaid back into the RRSP over a 15 year period or the portion due could become taxable. An eligible couple could potentially withdraw a total of $50,000 between the two of them towards the purchase of a First Time Home. For more information on HBP eligibility and repayment schedules click here.
Due to increased home prices in BC (specifically Lower Mainland), the Provincial Government has responded and provided a few additional advantages to those wishing to purchase a home for the first time. These additional advantages are: Read more
A recent article in the Investment Executive, Beware of pitfalls when selling homes, draws attention to implications that can arise as a result of the changes that occurred to the Principal Residence Capital Gains Exemption. The articles mention some important things to be aware of when selling a home that that could interfere with your tax free status of your principal residence and Estate Planning strategies.
These points are: Read more
First Time Home Buyers
If you’re a first-time home buyer in this province (BC), there are few things that you should be aware of as you may be able to take advantage at this time. Nowadays there are two areas to first time home buyers: RRSP limitations and property purchase advantages. The first revolves around tax-free allowable withdrawals of up to $25K per person towards the purchase of a new home. This one isn’t so new anymore, as it’s been around for years.
Would you be surprised to learn that the stock market has out performed real estate in Vancouver over the last decade? According to the MLS Home Price Index , which began collecting data 11 years ago, real estate prices throughout the greater Vancouver area have grown on average from 100bps in January 2005 to 187.75bps in January 2016. This growth represents a 5.89% annualized rate of return and a total return of 87.75%.
For many Canadians the perfect retirement includes owning a vacation property. For some the decision to buy turns out to be a dream come true but for others it can be an expensive nightmare. Here are some things to consider before making the emotional decision to buy a vacation property.
Why do you want it?
Possibly owning a vacation property will allow you to spend more time at a destination you love, it will become a place where you can take your family and friends or you feel it will be a great investment. Whatever the reason, it is important to understand what your motivation is and then evaluate if that’s realistic and reasonable given your current situation. Read more
That Is The Question
Should we downsize our house? If so, when? Maybe never? I think that downsizing too early or without planning can be one of the most costly retirement mistakes. I have seen couples that have downsized, found that they have not liked it, and then purchased a house similar to what they originally owned. The cost to do so was thousands of dollars. Read more