A little more than $40,000 could be up for grabs when you purchase your recreational home in BC!
Good news for sure for real estate investors in the recreational market. Naturally there is a lot of new "unsold" recreational inventory around at the moment and this move by the BC government, while a little hard to understand is a welcome break for a sluggish real estate sector.
No rules in regards to the grant are available which actually refers to grants for second home purchases. The rules and regulations are expected to be published this month.
We do know it will be eligible for purchases of second homes up to $850,000 and is to be administered by the Province rather than CRA in relation to HST/GST rebates.
While it is a welcome break, it is curious in my mind why this would be administered as a grant/bonus. Years ago as the federal Conservatives toppled the long reigning Liberal government, there was talk of tax breaks/deferrals on capital gains for real estate investors. To me, this would appear to be a better long term strategy to assist with what is a very significant industry in our province.
For now however, we are dealing with a temporary grant program that will run from March this year to April next year with details coming as to what defines a second property and who is eligible for the rebate from the Province. We await with baited breath!
Ask me about how to start your search for investment properties in BC!
In a growing trend, on the cusp of RRSP season, yet another poll shows that Canadians, by and large do not feel prepared for retirement.
A recent survey from CIBC shows that while Canadians do not feel prepared for retirement, many of them plan to do something about it- starting now. Many identify retirement planning among their top priorities this year.
Furthermore, many do recognize the link between retirement success and developing and implementing strategy: “Planning ahead makes a significant difference, according to the poll - among Canadians who say they have a long term investment plan for retirement, 76 per cent say they are financially prepared for retirement, versus just 25 per cent among those who don't have a plan.”
“Planning for retirement is something almost every Canadian thinks about at this time of year, and our poll results show that many would like to be further ahead when it comes to their retirement plans," commented Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC. "Our poll results reveal a split in the country when it comes to retirement, with those who are actively planning ahead are about three times more likely to feel prepared for their future retirement than those who have not yet mapped out their retirement strategy."
For Baby Boomers who feel panicky, and that time has run out in advance of their retirement, fear not. There is no time like the present, even when it comes to retirement saving and planning.
Furthermore, previous CIBC research shows that 69% of Canadians intend to keep working through retirement age, so for many there is flexibility in terms of saving deadline.
There is also benefit, no matter what stage of life you are in, to understanding what you are investing in, and how that fits into your overall planning. The temptation for many is to wait to the last minute of the RRSP deadline, which can sometimes result in rushed decisions.
“We're all busy, and some Canadians have fallen into the habit of making their RRSP contribution just before the deadline without taking the time to sit down and understand where they are versus their goals, and what they might need to change to keep making progress," added Ms. Kramer. "We encourage Canadians to make this the year you use the time before the contribution deadline to look at your broader financial picture, particularly given the difference we see it making in the confidence people have in their retirement plans."
It’s the entrepreneurs’ lament. For want of a little start-up financing, the world could be missing out on the next, better mousetrap, ultra computer or low-cost, non-polluting fuel source.
So, how does someone with a good business idea find the money he needs to get started?
“Before you leave your job to launch that new business or idea, set up a personal line of credit with your bank,” says chartered accountant Daryl Heinsohn, a partner with Laberge Venne & Partners Professional Corporation in Sudbury, Ont. “It’s a lot easier to get a favourable decision about financing when you’re employed and have a regular income.”
Depending on your circumstances and your idea, a line of credit may be enough to start. But if you still need to ask the bank for a business loan, do some serious homework first.
“Start by putting together a business plan,” says chartered accountant Daryle G. Moffatt, vice-president, operations, with Probyn & Company in Toronto. “Many banks have outlines for business plans on their websites, so don’t reinvent the wheel. Spell out what you’re planning to do, where you want the business to go and the costs associated with it. Explain how the company will be structured. Will you be self-employed or set up a corporation? Identify the key players. Will you have partners? Is it a joint venture?”
“Banks can be a tough sell for business startups,” says Heinsohn in Sudbury. “Aside from term loans, generally don’t count on financing from them for two or three years without a personal guarantee. In addition, they’ll definitely want to see that you have some of your own money in the venture. I tell clients to be prepared to be turned down, but don’t take it personally. Work with your banker and build up rapport.
“There are a few other sources of money,” Heinsohn says, “but not many grants or subsidies these days. However, if your business is conducting research and development, you may be eligible for certain federal and provincial incentives.”
Consider, too, the Business Development Bank of Canada, a federally owned bank that works with small to medium-sized business. “They can sometimes offer flexibility that exceeds what traditional banks can accommodate,” Heinsohn says.
Friends and family can also be a source of help, but there can be major pitfalls involved in those types of deals. Loans that aren’t repaid can cause ill will. Think seriously before you risk damaging any relationships.
Whoever you decide to approach for money, both Moffatt and Heinsohn agree that
your first call should be to a chartered accountant. They will review your business plan and help determine if that idea of yours really has legs. There’s no better substitute for the expert advice they can give you about how to structure the business and best prepare yourself for that meeting with potential funders.
Written by the Institute of Chartered Accountants of Ontario.
If your home ownership fantasies have been rudely awakened by loan officers denying your application, it’s time to take control of your situation and learn what you can do to turn that rejection into an approval.
What are your options? Everyone’s financial situation is unique. With that in mind, here are five different options for making your homeownership dreams a reality.
1. Get a Co-signer
If your income isn’t high enough to qualify for the loan you need and if you can find a co-signer with enough disposable income, part of that person’s income can be considered toward your loan amount regardless of whether the person will actually be living with you or helping you pay the bill. In some cases, a co-signer may also be able to compensate for your less-than-perfect credit. Overall, the co-signer is guaranteeing the lender that your mortgage payments will be paid. If you decide to go this route, just make sure that both of you understand the financial and legal obligations the co-signer takes on when he or she signs the loan documents.
Sometimes conditions in the economy, the housing market or lending business make lenders less generous with loans. If you’re in a climate where everyone is panicking, then it may be best to wait things out. When conditions improve, lenders may become more accommodating. In the meantime, you can work on improving your credit score, reducing your debt and increasing your savings. While you’re waiting, home prices or interest rates could drop. Either of these changes could also improve your mortgage eligibility.
3. Set your Sights on a Less-Expensive Property
If you can’t qualify for the amount of mortgage you want and you aren’t willing to wait, switching to a condo or townhouse instead of a house, accepting fewer bedrooms or bathrooms, or moving to a less attractive or more distant neighbourhood may give you more options. As a more drastic option, you could even move to a different part of the country where the cost of home ownership is lower. When your financial situation improves down the road you might be able to trade up to the property, neighborhood or city where you hope to end up.
4. Ask the Lender for an Exception
Believe it or not, it is possible to ask the lender to send your file to someone else within the company for a second opinion on a rejected loan application. In asking for an exception, you'll need to have a very good reason, and you'll need to write a carefully worded letter defending your case. Your letter should avoid excuses and sob stories and focus only on the facts. Explain how the incident that is preventing your loan from being approved, such as a charged-off account, was a one-time event that will never occur again. This one-time event should have been caused by a catastrophe such as a large and unexpected medical expense, natural disaster, divorce or death in the family. The blemish on your record will actually need to have been a one-time event, and you'll need to be able to back your story up with an otherwise flawless credit history.
5. Team Up With Someone Else
Two incomes are better than one, so if you can't qualify on your own, perhaps you have a family member or friend that you trust enough and like enough to make a major purchase with and live with. It won't be enough to just put them on the loan, of course - they'll need to actually help with the mortgage payments to make it work, and chances are they won't want to pay half the mortgage unless they're living in the new home with you.
To go from rejected to pre-approved, it's important to know what lenders are looking for in an applicant. If you've been turned down for a mortgage, make sure to ask your mortgage professional plenty of questions about things you could do in your specific situation to make yourself a more attractive loan candidate. With time, patience, hard work and a little luck, you should be able to turn the situation around and become a residential property owner.
With the harmonized sales tax (HST) referendum now taking place in British Columbia, it occurred to me that the debate hasn’t really included newer voters, namely those between 18 and 25 who may already be in the work force or in college or university and planning to be in the work force when they graduate.
I’d imagine that a fair number of these voters expect to be in business one day soon, either working their way up the corporate ladder for small or medium-sized businesses, or using their entrepreneurial chutzpah to start new businesses themselves.
If those already in the work force with grey hair, jobs, pensions and mortgages have more or less made up their mind about the HST in B.C., I’d like to direct my comments today to this future generation of business owners, managers and employees.
Why should the HST matter to you and your generation?
First, if the HST referendum and the provincial sales tax (PST) is reinstated, the most significant thing your generation will lose is opportunity.
Your generation will lose the benefits to the province predicted by the independent HST panel chaired by former Alberta Finance Minister Jim Dinning. It forecasted that at least 24,400 new, better-paying jobs would be created in B.C. as a result of the HST, and that it would lead to a $2.5-billion larger economy and $1.5-billion more exports.
So all of you will lose the potential benefits to the economy that two independent organizations have predicted as a result of moving away from the PST to the HST.
Second, Alberta, which has no sales tax, and Ontario, with the HST, will attract some of B.C.’s managerial and entrepreneurial talent who may well vote with their feet and leave B.C. because it will be more expensive to do business here than in Ontario or Alberta. Some of the people moving to Calgary or Toronto may be you.
It’s great to ski and sail in B.C., but you can’t eat great scenery and recreation. If your employer, or the new business you want to create, gets higher tax credits for its business inputs, only has to file one tax return and not two, and doesn’t have to pay sales tax on top of sales tax on top of sales tax, (which the BC PST requires businesses to do), it makes business sense to move your businesses, employees and future to Ontario, where even the premier admits his province will be the happy beneficiary of the HST failing in B.C.
Third, by promising to lower the HST to 11 per cent in 2012 and 10 per cent in 2014, the HST will be two percentage points lower than Ontario’s rate in three years. In fairness to former B.C. premier Bill Vander Zalm, if there’s anything he accomplished (besides unseating a sitting premier and opposition leader), it’s getting the tax lowered. And it’s not just lowered to 10 per cent on those things that were previously not taxed under the PST; by federal law, it’s lowered to that figure on all goods and services by 2014.
Fourth, you’ll lose in terms of income tax increases or social-service reductions. B.C. received $1.6-billion from the federal government for transition costs. There is no reason why a majority government in Ottawa is going to settle for not being repaid or otherwise settling on being paid something less.
If I were a taxpayer in Ontario or Saskatchewan whose taxes contributed to this payment to B.C., I’d be outraged if Ottawa waived or otherwise settled on this amount. It must be repaid and B.C. taxpayers will have to find the money to repay it if we return to the PST.
One of these taxpayers will be you. Another may be the business you want to start.
Fifth, you’ll risk losing expensive but important public services that government won’t be able to afford because the tax base will be too small by simply taxing income.
It’s a demographic time bomb, and it’s best illustrated by looking at the demographics of health care.
The Canadian Institute for Health Information stated that in 2007, the average annual expenditure on health care per person for people aged one to 64 was $1,996. The average expenditure for those over 65 was $10,318.
Add to that the fact that expensive surgical procedures are expected to keep boomers like me alive until well past 80; it’ll be my daughter’s generation that will end up paying far more for my generation’s health care costs than they could ever imagine. God knows what will be left for her and her kids unless new sources of revenue are found.
The tax base to pay the enormous health care and related social service costs of older British Columbians is shrinking as the baby boom generation stops working and enters retirement. When the tax base is smaller because there are fewer people payinger rates (with so many people retired and living off pensions or retirement income, which is taxed at lower rates), it will be left to a much smaller pool of younger people to make up the difference in income tax revenue to maintain our social services.
So unless income and other taxes are disproportionally higher for this smaller group of younger taxpayers in 20 or 30 years, or a new source of tax revenue is found, there’ll be less money available for the things my daughter’s generation might actually expect from government, such as health care and education for their children. Without a broad-based consumption tax on services, high corporate and income taxes won’t generate enough revenue for government to do the things we expect it to do.
It’s all well and good for the anti-HST naysayers with grey hair, pensions, jobs and mortgages to complain oh-so-loudly about the additional tax they’ll now have to pay on restaurant meals, dance lessons and haircuts, but without raising more money from the taxation of services, the income tax burden that your generation will pay 20 or 30 years from now will be absolutely unbearable.
Without taxing services, like the HST does, there will be little money left for your generation to fix the roads that need fixing, deal with global warming and remediate the environment, let alone provide your own kids with a good education and adequate health care.
I’ve explained to my daughter that she should see a vote for the HST as an “intergenerational insurance policy” that will protect her generation from the enormous financial demands of mine.
However, she sees it as “intergenerational middle finger” for those in their twenties not wanting to metaphorically pay buckets of their tax dollars to “change my generation’s diapers in the nursing home” in 30 years time at the expense of their own priorities for government.
In the past several weeks, I've received many questions from people about the new projects that are happening in the Southeast. So I thought I'd send out a quick FAQ email.
As you all may be aware, southeast Calgary has had a bad rap, but all that is going to change. There are many commercial and residential projects in the works to revitalize the mostly undeveloped and underestimated quadrant. Projects like a new hospital, the extension of the ring road and a new mega mall. Yes, you've heard about these projects in the news, but do you know how it will affect the areas in and surrounding the developments?
SOUTH HEALTH CAMPUS
Located at 196th Avenue and Deerfoot Trail S.E., expected to start offering urgent care and ambulatory clinics in 2012, with other services to follow the year after.
When it is fully operational, the hospital will accommodate over 2,400 staff members. A large percentage of these staff members will be from out of town and most probably will want to relocate close to their place of occupation. This will mean that sales of homes around the area will go up, prices will rise due to deman and rentals will increase as well.
To accomodate the potential new residents, home builders and new commercial developments will be busy building in the area.
SETON URBAN DISTRICT
The Seton Urban District is proposed to be the new "Downtown". Plans include residential condo and new housing projects, restaurants, trendy retail shops, spas and fitness, schools, and 24/7 night-life, this is to replica Kensington. Located in between Stoney Trail and Deerfoot Trail, it is the perfect location for visitors coming from the East, West and primarily South. With the major box store chains located at Deerfoot Meadows to the west, there is talk of more US retailers to be occupying more of this Southeast section to create rows and rows of major shopping centres to line the highway. Look for stores like Macy's, J Crew, Marshalls, and others...
SOUTH EAST STONEY TRAIL
The project consists of the construction and maintenance of 25 kilometres of six-lane roadway, 9 interchanges, 1 road flyover, 2 rail flyovers and 27 bridge structures, as well as 12 kilometres of Deerfoot Trail between Stoney Trail SE (currently Highway 22X) and the Highway 2A junction. Encompassing the city, the completion of this span of highway will bring more residents and retailers to the outskirts of the city. The convenience will attract many home owners, renters and developers.
For more information on each of these projects and more, visit the project's site below. Please feel free to contact me anytime if you have any questions. Thank you!
SOUTH HEALTH CAMPUS
Larger than anything around it, the South Health Campus is becoming a distinctive landmark on the south-eastern horizon of Calgary.
SETON URBAN DISTRICT
New urban centre for S Calgary
Seton is about creating a synergy where people are immersed in a modern environment with an eclectic energy in a 24/7 vibrancy.
SOUTH EAST STONEY TRAIL
SEST is the largest single highway project in Alberta’s history, and its largest P3 road infrastructure project. The roadway’s main line will be completely free-flow and have no traffic lights.
Calgary’s own CIR REALTY has just been reported the number one leader in residential home sales in all of Calgary as well as the number one independent brokerage for sales for all of Canada in the new REAL Trends Report released this week.
With 4,317 transactions closed in 2010, locally owned and independent CIR REALTY beat out all other city brokerages.
Other competing Calgary brokerages that made the list of REAL Trends top 200 that followed close behind include Re/Max Central, Royal LePage Foothills, Re/Max House and Re/Max House Mountainview.
Ray Stader, Co-Owner and Manager of IT and Finance at CIR REALTY attribute the brokerage’s commitment to technological innovation, 24 hour REALTOR® support and an unsurpassed professional development program to this accomplishment.
"CIR REALTY has positioned itself as a high-tech, high-touch company that prides itself on developing highly educated REALTORS® and giving them the support they need to do their business from wherever it is they are located. Client’s appreciate the efficiency in which our REALTORS® are able to move through the different stages in the estate transaction process, giving them ease of mind and a great experience."
Stader was fortunate to attend the REAL Trends Conference in Denver last month and is thrilled that as an industry leader, REAL Trends continues to provide the most trusted and accurate residential brokerage research in the business.
"The information that REAL Trends is able to provide regarding the residential real estate industry across North America is crucial to the continual growth and improvement of CIR REALTY and other brokerages," Stader says.
CIR REALTY has over 700 REALTORS®, staff and management spread over four Calgary offices and 11 satellite offices outside of the City. The brokerage has been family owned and operated since 1983.
It may be trickier to ask for extra pickles, but you may soon be able to avoid the judgmental look of a cashier as you supersize your order of fries.
McDonald’s Europe has announced plans to replace some of its cashiers with touch-screen terminals and cash-free payment, a move that will likely play well with consumers looking for options that offer convenience and a sense of control.
Research shows people who use self-service options — already available in many retail outlets in Canada including grocery stores, Canadian Tire and Home Depot — believe it takes less time than waiting for a cashier.
“And at the end of the day, perception is reality,” said Brent Barr, an instructor at the Ted Rogers School of Retail Management at Ryerson University in Toronto.
What’s more, Mr. Barr said, most young people no longer consider paying in cash and the move to payment by swipe card is a reality.
“More and more our society has moved away from the physical cash and moved into the plastic world,” he said. “This is one next step in making it easy for that person to do what they’d like to do.”
Steve Easterbrook, president of McDonald’s Europe, told the Financial Times this week the global fast food giant plans to introduce the self-service ordering at its 7,000 European restaurants. Around the world, retailers will be watching McDonald’s to see how this latest experiment works out, Mr. Barr said.
“They were one of the first in the fast food world and as a result they’ve always been perceived to be an innovator in the market place,” he said, adding that other outlets will be considering whether to try it as well.
The model may work well at McDonald’s given the consistency of its menu and the fact customers generally know what to expect and what they would like to order, he said.
Kaan Yigit, president of Toronto-based technology consultancy Solutions Research Group, agreed the self-serve model, which he said is fundamentally driven by economics and cost-savings, may work well at McDonald’s.
“They [self-serve systems] are best-suited to environments where transactions are simple and predictable. They are more difficult to implement in settings where there are many customizable options or when the product or service is not uniform,” he said.
Parry Sadorsky, associate professor of economics at the Schulich School of Business at York University, said he believes we will soon order food from touch screens in Canada, but cautioned the move could have negative implications for employment.
“All you need is one big chain to do this,” he said, noting that it would likely be tested in major U.S. markets before arriving north of the border.
“It’s good for corporate profits, but not very good for the overall labour force, because you’re going to take out many of the entry-level and low-skill jobs,” Mr. Sadorsky said, adding that it is often those types of jobs that make up the majority of new jobs created each month.
Plus, many young people rely on employment at places such as McDonald’s to get their first work experience, he said.
However, McDonald’s Restaurants of Canada Ltd. is not about to follow its European counterpart’s lead — yet.
“We have no plans currently to implement a similar ordering system,” said the company’s national media relations manager Louis Payette.
“We’re constantly looking at ways to enhance the customer experience when it comes to speed and service and convenience,” Mr. Payette said, adding, “Our customers seem pretty pleased with the fast and friendly service they’re getting.”
What’s more, he said, the company is in “growth mode” with regard to its work force, pointing to the almost 5,000 employees McDonald’s Canada hired on April 19 as part of a National Hiring Day event.
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.