What’s in your emergency fund? Do you have cash on hand to get your through unexpected lean times?
Rob Carrick over at the Globe and Mail think’s it’s time to focus on building your emergency fund in 2016.
Now seems an opportune time to return to the emergency fund theme. The Bank of Canada indicated last week that it would consider using negative interest rates, an extraordinary measure already in use in some European countries, if the economy worsens significantly. Governor Stephen Poloz believes the makings of a recovery are in place, and he doesn’t expect to have to resort to negative rates. And yet, oil prices last week hit their lowest point in six years.
I took a look at our household emergency fund recently and decided we needed to up our game. How about you?
Definition of an emergency fund: Money sitting in a high-interest savings account at a bank or credit union. These accounts are insulated from the ups and downs of the stock and bond markets, and easily accessible online. Interest rates are pitiful on these accounts, but the emphasis is on safety over returns.
Read the full article here.
Ulsterman dug up this blast from the past: a posting from this here site in 2006. At that time we recommended Vancouver real estate as the easy road to riches. If you followed that advice you’re probably reading this now on a solid gold iPad while you recline on silk cushions with your feet in a bath of Diva Vodka.
YOU can GET RICH in REAL ESTATE!
Are you ready to become so INCREDIBLY RICH that you no longer have to adhere to the standards and conventions of ‘civilized’ society? Are you TIRED of eeking out a day-to-day existence while you can smell THE REEK OF WEALTH all around you? Would you like to be able to walk through the mall without any pants and be so EXCESSIVELY WEALTHY that no one can utter a word about your pantless state, lest you unleash your personal squadron of vicious attack lawyers destroying their lives and reputations?
Well NOW you CAN!
Yes! Thanks to the MIRACLE of BOUNDLESS increases in PROPERTY VALUE you can now become a MULTI-MILLIONAIRE by investing in real-estate. And the best thing about it? This process requires NO EXPENSIVE COURSES OR SPECIAL EQUIPMENT. You don’t need any special skills or knowledge – In fact, you don’t even need a brain! THAT JUST HOW EASY IT IS!
Here’s how its done:
1) buy real-estate
2) sell real-estate (for more than you bought it for)
3) repeat and profit!
This SIMPLE MONEY-MAKING PLAN will see you swimming in your own personal GOLDEN BATHTUB filled with 50 dollar bills within a week. Within a month you will have SO MUCH MONEY coming in that you can hire people to MAKE MONEY FOR YOU. Within a year you will be so RICH, so INCREDIBLY WEALTHY that you will be able to buy yourself a SOLID GOLD SPHERE THREE HUNDRED MILES IN DIAMETER!
You will have the power to BUY AND SELL other people for your own amusement. Earth will be your playground and all that hear your name will COWER IN FEAR. So what are you waiting for? GET RICH NOW!
Why am I sharing my MONEY MAKING SECRETS with you? Because I care. I know that you personally have the RIGHT STUFF to dominate the globe and I want you to SUCCEED. And just to show you my generosity, my utter lack of personal greed or selfish motivation, I have just the thing to get you started. It’s a small leaky condo on the east side and it can be your stepping stone to UNLIMITED MIND-BOGGLING RICHES.
Remember, it’s never too late to take this advice! It’s entirely free and worth every penny paid! Stop slumping and start Trumping!
There’s a city in Canada that has a temperate climate – it’s not frozen half the year. It’s widely acknowledged as a beautiful place with access to nature and people are willing to pay some of the highest prices in the world just to buy a bit of real estate there.
And yet the citizens are some of the most unhappy in the country?
What gives you bunch of ungrateful louts?
According to Statistics Canada the entire province of BC is filled with a bunch of unhappy people. Not a single city in BC even cracks the top ten happiest places in Canada.
And our fair city of Vancouver? Well 33rd place isn’t really that bad is it?
Stop crying and move to Quebec already if you’re so miserable!
Garry Marr writes about the situation in Alberta over in the Financial Post. The drop in oil prices has hit their economy first and hardest with sales down by 30-40% over a year ago and growing listings.
So how do you prepare for a surprise economic hit like that?
Simple. Save up to cover for job loss, keep your debts and bills manageable and don’t get into a situation where you have to sell when everyone else is selling.
Unfortunately Canadians aren’t doing so well on the debt front:
Debt reached an all-time high in the fourth quarter, relative to income. Statistics Canada says the debt to disposable household income ratio is 163.3%, much of it attributable to housing costs.
Read the full article here.
We should be well and deep into the ‘boy who cried wolf’ territory by now.
How long have you heard warnings that interest rates may be going up?
We’ve all become so used to hearing that it’s going to be a big surprise if they do.
The CBC has an article that says interest rates will go up this year and here are 4 ways Canadians should prepare.
#3 is ‘don’t rush to buy a home’:
Higher interest rates could also lead to a correction in the housing market.
“The big issue as far as I can see is that people panic and think they have to get into the housing market before interest rates climb. But they have to recognize the overall long-term impact of interest rates actually climbing,” says Laurie Campbell, CEO of Credit Canada Debt Solutions.
Homebuyers who rush out to purchase homes to beat a spike in rates could end up with homes dropping in value.
“I think people have to be vigilant about any big purchases they may be making in the next little while. Housing in particular,” Heath says. “If someone is considering purchasing a house, they have to really look at more normal interest rates during their budgeting.”
Read the full article here.
Looks like somebody has figured out the easiest and best way to make tons of money in Real Estate.
It’s not buying and flipping condos, it’s not renting out rooms and sheds, it’s not even as a developer building towers or a realtor taking a commission on each sale.
No, all those things would take way too much work.
The best way we’ve ever seen to get rich off of real estate is simple: sell your name to developers.
This way you take no risk in the market and make money no matter what happens.
So what are you waiting for? Get selling!
Many Franks pointed out this article in the Globe and Mail and then pulled out a whole bunch of gems.
“Here’s a hilarious litany of Vancouver real estate orthodoxy straight from the punch bowl:”
…the city renowned in popular mythology as a place with such astronomical house prices that its young will be forced to live in basement suites forever…“
That’s right, buy or basement suites forever, your choice.
…There’s definitely sacrifices. I budgeted. I didn’t eat out. Some could say I missed some life experiences. But if you have that [home ownership] as your goal, anything is possible…”
It’s amazing whats possible if you just skip life experiences.
…the proliferation of condos and townhouses here gives them a lower-priced product to choose from compared with other cities that are dominated by houses…
Not only a magical city, but also one of the only ones around that has condos and townhouses!
…siblings or friends will buy an apartment together until they’ve built up enough equity to sell and take their proceeds…
Because what could go wrong with that?
…they’ve decided they’re going to buy in, no matter what…
NO MATTER WHAT!!
…buying became an emotional decision about moving to a new life phase. “This was the first step of being an adult,” said Mr. Richard…
Emotional decisions are an important first step of being an adult.
…some young homeowners have become slightly evangelical about the need for others to realize it’s possible if they stop being so clueless about money…
All it takes is a little knowledge.
“They don’t know anyone who owns, they don’t understand money, they just don’t think it’s possible. I keep telling them: “It’s a conspiracy to keep you as renters. Then you can pay someone else’s mortgage.’”
As Many Franks says “Amazing how much paydirt you can pack into a single article.”
Getting tired of the word ‘bubble’ yet?
With all the news stories and predictions of an Canadian real estate market crash, it’s time for the leader of this great nation to chime in with his opinion:
…Harper told a New York business audience that he did not anticipate a housing crisis in Canada, and that that there was no comparison between the Canadian housing market now and the U.S. market before the crash of 2008.
He said only small percentage of Canadian households would be vulnerable to interest rate hikes or a downturn in prices.
On the flipside of the argument is a securities analyst with a book to sell and a negative message:
In an interview published in the Globe and Mail today, MacBeth predicts a serious crash in house prices as soon as this coming spring, and advises people with large mortgages to sell, and rent.. His book, When the Bubble Bursts, forecasts a drop of up to 50 per cent in housing prices.
Read the full article here.
You want the pride of ownership.
And maybe buying a condo is like training wheels for real home ownership.
You get the practice of paying property tax and maintenance.
But over at the Globe and Mail Rob Carrick is trying to talk down the market again – he says maybe you should rent the condo and save the difference on the cost of buying.
“I would say buyers in their 20s probably won’t live in that condo for five years,” Mr. Fleming said. “They’re going to either outgrow it, or find a mate and want a bigger, better or different place.”
Even if you meet someone and live together in your condo, you’ll probably want to move when you have kids. Mr. Fleming said an increasing number of couples are starting families in condos, but a house is still seen by most as the best place to do this.
Moving from a condo you own to a house will cost you a lot. If you used a real estate agent to sell the place, you might pay a $15,000 commission plus HST to sell a $300,000 condo. “It’s expensive to move,” Mr. Fleming said. “Hopefully you purchased that condo for $250,000.”
Read the full article here.
Just in time for the spring buying season the Province newspaper has published a public service announcement about the hottest lower mainland markets.
What do the experts say are the hottest markets in BC?
2.Maple Ridge / Pitt Meadows
3.Fort St. John
Surrey seems to do quite well with REIN – they took the number one investment spot in the province last year and also in 2012, 2011, and 2010.
Have you bought your surrey home yet?