Life on the Shore - Winter 2015
  
FULL_2016_January
What a busy Christmas we had this year, hence the delayed newsletter. Well my son received a new boat this christmas and he's just buzzing with excitement and anticipation for the new regatta season. Also taking advantage of the local ski hills as this is the best season in recent memory, decided to pass on the 50% off on family day, not into the crowds.
Well with all the rule changes put forth by both the federal and provincial governments this year should be quite busy, looking forward to helping everybody out. check out this link;
http://www.repmag.ca/news/b-c--drops-home-tax-to-stimulate-building-in-tough-to-get-into-housing-market-203252.aspx
Don't forget to click on the link above for this months Snapshot of the local market sales and see what you can get for your hot property. Thanks Eldon Whalen for the report.
Minimum Downpayment Changes Effective February 15 & Handy Dandy Downpayment Calculator
Department of Finance
Just a friendly reminder downpayment changes are coming.
February 15, 2016 is a date to keep in mind if you are planning on purchasing a property between the value of $500,000 to $1,000,000.
The government has implemented a tiered downpayment system in hopes to "maintain a healthy, competitive and stable housing market.
The minimum down payment for new default insured mortgages will increase from 5% to 10% for the portion of the purchase price of the property that is greater than $500,000 but less than $1,000,000 (tiered scale).
Example: A property with a purchase price of $675,000 will now require a total down payment of $42,500.
o 5% of the first $500,000 = $25,000
o 10% of the remaining $175,000 = $17,500
Article Attached
Mortgage Downpayment Calculator Here: New Downpayment Calculator
Commercial Mortgage Vs Paying Rent for Commercial Space
Do you dread those increases in lease payments every year and the huge jump every 5 years?
If you have a business and renting out a commerical space, why not own it?
In the short term, the math may hurt operating cash available since it will require a 15% to 25% downpayment to make this happen.
Your cashflow will increase since the mortgage payments (amortized over up to 25 years) would be less than you were paying on your monthly rent.
Long run, with a 10 to 20 year outlook, you would have paid down a large part or all of your mortgage and most likely the value of your property went up considerably.
It's like having a lease that keeps going down every year instead of up!
Big bonus: if you plan to sell the business, you can sell it and have the new owners of that business pay you rent for the property you own (with big rent increases each year!!).
A few years ago, rates were in the 5% to 6% range. Today, it's possible to get it down to 3.00%!! (Or lower on multi-rental properties)
Take-away: It's a win-win. Pay less each month, build equity and eventually rent it out for passive income (at retirement).
Thanks to Robert Klein for encouraging me to help people be more aware of the alternative options out there.
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