Category Archives: Pay off Debt or Invest in Real Estate

Know Your Options

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Life has a habit of throwing unexpected twists at us when we least expect them. While none of us should live our lives in a constant state of worry, it’s important to know that, should financial troubles from the loss of a job or other unexpected situations strike, you can count on the advice of your mortgage broker to see you through it.

Life changes involving illness, change of work status or change of marital status can affect your ability to make your mortgage payments, so if you anticipate a change in any of these things please call to discuss your payment options as soon as possible.

If you have to default on a payment, lenders can sometimes grant you temporary payment relief and give you options for a repayment plan, depending on the situation. Mortgagors with a good payment record can often work out a temporary agreement that will allow them to make reduced payments for a specified period of time.

Remember, lenders do not want you to default on your mortgage any more than you do. It is in everyone’s best interest for you to demonstrate good financial discipline when times are good, so you have the best chance of full cooperation from your lender if you ever run into difficulty.

Please call me if you anticipate needing a “Plan B” for your loan obligations!

253 Verdun Road. Oshawa

Trendy, Thoughtful, Fully Renovated, Charming Brick Home.

Located on Quiet Street Close To All Amenities. Everything New Including Kitchen W Granite Countertops, Main Floor Powder/ Laundry Room, Hardwood Floors On Main Floor, Wide Square Baseboards, 200 Amp Service And Panel, Gas Furnace, Ac, Paved Driveway, Concrete Walkway, 2 Porches Plus Walkout From Dining Room To Gigantic Deck Overlooking Huge Shady Back Yard. Everything Except Furniture Included.

Home Shows Amazing! All of This for $355000.

Positive Cash Flow!

271 Nassau Street. Oshawa

Income Generated each month, in this Property, Close to Schools, Transit and Shopping. Main Floor has two units, and one upper unit. Yearly rental income is $ 33684. . Expenses are: Taxes $3428, Water $1096, Gas $1555, Hydro $5670.39. Home is fully rented, and ready for a new owner to collect the rent cheques.  Call Today!

 

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271 Nassau St. Oshawa
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Upper Unit Living Room
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Upper Unit Kitchen
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Bedroom
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Main Floor 1 Bedroom Unit
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Main Floor Unit
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Main Floor Unit
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Main floor Bedroom
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Triple Closet
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Large Yard
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Parking for 6 Cars
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New A/c 2015
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Main Floor Unit + Basement
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Kitchen
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Living Room
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Bedroom
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Bedroom

 

Where Do Extra Payments Go?

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If you were lucky enough to get a raise earlier this year, or found yourself in possession of a one-time lump sum, you may have asked to have that extra amount applied directly to your mortgage. If you have a relatively new mortgage, you may be wondering why the interest portion of your monthly mortgage payment is not noticeably declining by now.

The reason is that the interest portion of your payment is calculated on the outstanding balance of your mortgage which, especially in the early years, makes up a significant portion of your monthly payments. As your mortgage term progresses and your principal starts to shrink, the amount of money that goes directly towards the principal increases while the amount that goes toward the interest declines.

Any time you make extra payments, they go directly toward reducing your overall principal balance, and with that lower principal you’ll pay less in interest overall and shave years off your mortgage.

Please ask for an example, based on any extra amount you may be able to put toward your mortgage on either a one-time or a monthly basis, of how much time AND money you could save!

For More Information, Contact The Mash Team!

10 Ways to Avoid a Tax Audit

We have several times, and its very stressful.

Here are 10 ways that may help you to Avoid an Tax Audit

1.  Don’t Ignore the CRA’s requests for further information

2. Don’t have large or unusual changes in deductions or credits. 

3. Don’t claim large home-office deductions.

4. Don’t Claim 100 per cent business use of a vehicle. 

5.  Not reporting income from a T-slip. 

6. Don’t Report  income much lower than other residents in the same area. 

7.  Don’t Claim an aggressive tax shelter. 

8.  Don’t have Recurring losses from a rental property. 

9.  Avoid being Self Employed

10.  Don’t Have a lot of money in your TFSA 

Source: CRA 201242540

For The Complete Article: Click Here: 10 Ways to Attract A CRA Auditors Attention

 

Interest rate and how it affects you

 

Saving strategies to pay off your mortgage

Many financial planners will agree that one of the best financial strategies available to homeowners is to pay off your mortgage as quickly as possible and eliminate years of paying unnecessary interest. Here are a few strategies to help you cut years off your mortgage:

  • Shop around – When your mortgage comes up for renewal, you aren’t limited to using the same lender. Take a look at what other financial institutions or mortgage brokers have to offer. We can put you in touch with a choice of lenders and help you evaluate the various options available to you.
  • Consider all your options – When evaluating mortgages, remember there are other factors that can have an impact on cost in addition to the interest rate. The opportunity to make supplementary payments against the principal has significant value. Penalties for early termination can also have an impact on how quickly you can retire your mortgage debt.
  • Make payments as frequently as possible – Most lenders will allow you to change the frequency of your payments during the term of an existing mortgage. Speak to your lender and choose the most frequent schedule of payments available to you. Choosing weekly payments versus monthly can literally save you thousands of dollars and help you pay off your mortgage years earlier.
  • Generate additional income from your property – Renting out a portion of your property to earn income is a time-honoured practice that still holds true today. Sacrificing some living space in the early years of your mortgage can ‘jump start’ your payment schedule. Lump sum payments applied directly to your principal early in your mortgage term will have make a major impact on paying off your home quickly and achieving financial independence. This can easily be done in the Durham Region as long as you meet the Regions guidelines.

 

Buy or Rent – What’s right for you?

A key reason many people choose to rent instead of buying their own home is their reluctance to sign their name to a long-term mortgage agreement. But when you come right down to it, very few of us can expect to go through life without paying the cost of a place of residence in one form or another. As a renter, you’ve probably already made a commitment to a fixed schedule of payments for housing – but instead of a mortgage, it’s a lease or rental agreement. In reality, rather than being a negative, one of the major advantages of a mortgage agreement is that payments can be locked in for an extended period—which can work in your favour. Since no one can guarantee what your rental payments may be three or even five years down the road, your mortgage agreement can actually protect you from the unexpected increases you may experience when you rent.

pdu8ckjklu4k_Nelson_Coldwell__0396-webStill, some people are intimidated by the large amount of debt that is represented by a mortgage agreement. Yet if you added up all the rental payments you could expect to pay over a space of many years, you may find that going the mortgage route is actually the more affordable of the two options. And at the end of the process, renters are left with nothing to show but a pile of receipts. With today’s low mortgage rates and some creative financing, the cost of buying a home may be lower than you think. Your Coldwell Banker real estate professional can show you how owning your own home may be more affordable than you ever imagined.

While making mortgage payments may actually be more affordable than paying rent, let’s not lose sight of the biggest financial benefit of all. The simple fact is, when you rent, you’re building someone else’s ownership equity in the property where you live. On the other hand, when you buy a home, you’re making an investment in your future, while a portion of your mortgage payment builds personal equity for you. If you decide to sell sometime in the future, that equity is something you’ll take with you as you make your next move.

Lastly, let’s not forget the creative freedom and pride of ownership that comes with owning your own property. When you buy, you decide about the home improvements and decor changes you want to make. You decide colour schemes and where to hang that favourite picture. And you’ll also earn the added equity that any such improvements may add to your home. Spending money to improve a rental property just puts value in someone else’s pocket.

If you’re tired of paying off someone else’s mortgage for them, then why not call me, your Coldwell Banker real estate professional for a no obligation consultation to help you find out how to make your dream of home ownership a reality.

Understand the consequences before you sue

I received this today from Mark Weisler. I thought I would pass it on.

A wise philosopher once said: “I went bankrupt twice in my life; the first time when I lost a lawsuit, the second time when I won.”

I couldn’t have said it better. In most cases, the only winners in lawsuits are the lawyers, who get paid, no matter whether they win or lose. Here are 5 things to consider before you ever think of suing anyone.

1. Lawsuits take a lot of time.

Even if you sue in Small Claims Court, it will typically take 1-2 years before your matter is heard. There will be a lot of time spent on preparing and filing documents, attending settlement hearings and finally the trial. How do you feel before going to traffic court to fight a speeding ticket? Stressed out? Multiply that by 100 when it comes to how you will feel throughout any court proceeding.

2. Even if you win, you may not collect anything

Even if you win your lawsuit, there is no guarantee that you will collect anything, especially if the person you are suing ends up having no money. In the meantime, you still have to pay the lawyer or paralegal who was working for you. Before suing anyone, make sure they have a job so that you can at least try to go after part of their wages if you are successful in court.

3. It is not easy to sue lawyers or real estate agents

Many unhappy buyers and sellers contact me for advice about suing their real estate agent or lawyer as a result of a bad experience buying or selling real estate. You must remember that real estate agents and lawyers are both protected by errors and omissions insurance policies. What this means is that if you sue them, their legal costs will be paid by the insurance company. In the meantime, you have to pay a lawyer right away to get started with your lawsuit. I have seen many litigation lawyers ask for a minimum of $5-10,000, up front, just to get started on a lawsuit.

4. Beware of social media

I have written about many real estate related court decisions over the years, primarily to educate buyers, sellers and investors as to how to be properly prepared so that they do not make the same mistakes themselves. However, when you write about a case, you also mention the people who are involved. I have received many complaints from people who have either lost or even won a lawsuit, because of the negative feedback they have received as a result of their case being mentioned on the internet. For example, a distinguished professor wrote to me that although they had achieved many awards in their career, the first thing anyone now sees when they google the professor’s name is the negative portrayal in my article. In another case, the winner of a case started receiving hate mail from readers, who thought they acted unethically even though they actually won their case.

Remember, once you sue and there is a decision, it can be made public for the whole world to see via the internet.

5. The worst settlement is better than the best lawsuit
In my opinion, if you have the opportunity to settle any lawsuit, take it. The settlement will typically remain confidential, so no one will learn about the case and most important, you will be able to put the matter behind you. There is no such thing as a bad settlement.

Think twice before suing anyone. It is usually not worth it.