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Sales Start Off Strong in 2010 TORONTO - Wednesday, February 3, 2010 SINGLE FAMILY RESIDENTIAL BREAKDOWN January 2010 Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years preceding 2009. “The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour. “Increasingly confident consumers moved to take advantage of affordable home ownership.” The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year. “Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower in the second half of 2010
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Sales Start Off Strong in 2010 TORONTO - Wednesday, February 3, 2010 SINGLE FAMILY RESIDENTIAL BREAKDOWN January 2010 Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years preceding 2009. “The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour. “Increasingly confident consumers moved to take advantage of affordable home ownership.” The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year. “Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower in the second half of 2010
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David Rosenberg is chief strategist for Gluskin Sheff + Associates Inc. and a guest columnist for Report on Business Canadian market watchers will get some good news this week. The predictions for a "blowout" reading on fourth-quarter GDP are already out there and it is likely to be an abnormally strong number. But for anyone who thinks a big number is likely to help lock in a rate hike this summer, I would suggest that is not going to happen. In fact, my view is that the Bank of Canada will not be raising rates until mid-2011 - at the earliest. This is critical to the outlook for Canadian money market and bond yields since futures have priced in nearly 100 per cent odds of a 25 basis point rate hike this June, and another 25 basis points by September. (A basis point is 1/100th of a percentage point.) The central bank has already told us that its base case is for 2.9 per cent real GDP growth this year and 3.5 per cent next year, with the starting point on the "output gap" being 3.7 per cent ("output gap" is the gap between the actual level of real GDP and where real GDP would be if the economy were at full capacity). Remember that an output gap that big in any given quarter classifies as a 1-in-20 event. Moreover, baselining these expected growth rates against the latest estimates of potential growth puts the output gap at a smaller level of 1.55 per cent this year, narrowing further to 0.25 per cent in 2011. The history of the Bank of Canada is such that - outside of when it had to defend the Canadian dollar - it typically does not embark on its tightening phase until the output gap is close to closing. Even during the aggressive John Crow era, the bank's modus operandi was to time the first rate hike just as spare capacity was being eliminated, and not much before. On average, the first central bank rate hike following a recession takes place one quarter before the output gap closes (there is still a gap, but it is small at 20 basis points). If such a strategy is replicated this time around - and the cause for being on pause longer in the context of a historic deleveraging cycle is certainly quite strong - then the very earliest the bank will move is the second quarter of 2011. Under this scenario, based on some back-of-the envelope calculations I just did, the unemployment rate at no time declines below 7.5 per cent through to the end of 2011. The peak in the jobless rate was 8.7 per cent in August, 2009. Going back to prior recessions, the central bank does not begin to tighten rates until the jobless rate is down an average of 150 basis points with a range of 130 basis points to 170 basis points. Unless the bank wants to be pre-emptive - highly unlikely when it acknowledges in its economic outlook last week that "the recovery continues to depend on exceptional monetary and fiscal stimulus" and that "the overall risks to its inflation projection are tilted slightly to the downside" - then to raise rates before the middle part of 2011 would be totally inconsistent with its current forecast. More to the point, while bored Bay Street economists analyze every word to see if the bank is more or less "hawkish" than in its previous outlook, what is important for investors is to assess the bank forecast and decide what it means for the degree of excess capacity in the economy and what that implies for the future inflation rate. The bottom line is that even with the fragile recovery, the bank sees more downside than upside risk to its inflation projection, and, to reiterate, for it to start tightening policy until the jobless rate falls below 7.5 per cent would be a break from past post-recession actions. And whatever future "policy tightening" is needed could also come via the overextended loonie, limiting any need for an interest rate adjustment in the time horizon that the markets have discounted. This is a source of debate on Bay Street, but the bank is still sensitive to the growth-dampening impact of an exchange rate too firm for its own good. To wit: "The persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to act as significant drags on economic activity in Canada," the bank says. In a nutshell, the Canadian market is already braced for 50 basis points of tightening from the Bank of Canada by September. With that in mind, it is difficult to believe that there is any significant rate risk here; if anything, the surprise will be that the bank is on hold for longer. If that proves to be true, then there is actually more downside than upside potential to Canadian bond yields, particularly at the front end of the coupon curve. The reason the markets think the bank may pull the trigger is because of this one sentence that shows up in every press statement: "Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target." So the central bank has really only given a pledge to keep rates where they are until mid-year. But June is only five months away and so one would have to think that at one of the next three meetings, the Bank is going to have to update this particular sentence or cut it entirely and leave the market without a de facto time commitment. Either way, the moment the bank changes this sentence is the moment the market will put on hold its expectations of a new rate-hiking cycle coming our way. Until then, homeowners opting for variable rate mortgage financing will likely not have to face the interest rate music. Shared with us by
Mark Mighton
Mortgage Specialist
Homefree Mortgages phone: 905 338 8458
fax: 905 338 7365 www.homefreemortgages.ca The Better Way to Borrow
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Truly spectaular home in a very desirable neighbourhood. Close to everything. 3 bedrooms with master ensuite. Large family room located on second level. Main floor has large eat-in kitchen with stainless appliances. Living and dining rooms have hardwood floors and dining area has walkout to large deck and fully fenced yard. Call to view this beauty today ! take the tour at www.tbaird.com
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This week ReMax hosted our annual Kickstart to 2010 and what a blast it was over 4000 ReMax Realtor from across the country attended. We had some phenomenal speakers / trainers to help each of us get off to a Roaring start to the year. The best part however was making a true connection with other Realtors. I hosted a Personal Promoter table so I could connect directly with other Realtors in the hopes of making a direct connection to them if I had a client that were to move to their area. I currently have two clients relocating and easily made the right connections for them. I am truly looking forward to putting all of the new things I learned into practice. If you are looking to buy or sell your home connect with me I am one of the top Realtors in South Mississauga.
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January 5, 2010 Given the massive Canadian stock market decline and ensuing rebound, investors also had a rocky 2009. Patricia Lovett-Reid, a certified financial planner and senior vice-president at TD Waterhouse Canada Inc., says that while investors “climbed a huge wall of worry” in 2009, Canadians are still stashing money in “safe” places, like cash and savings accounts. “Even though the stock market turned in March, people are still terrified to move up the yield curve,” she said.
Ms. Lovett-Reid expects that will start to change in 2010, when people re-evaluate not only their investment portfolios but also increase their savings rates, tackle debt loads and develop a financial plan – some for the first time. “This will be the year when people feel they really need to take back control of their money,” she said. “It is empowering to be in the driver's seat and I think 2010 will let us do that.” 1) Take control of your finances
Take the time to get a professionally developed financial plan that meets your personal goals. Take a course or a seminar to brush up on your financial know-how. It does not matter how much money you do or don't have, this is the time to get in the driver's seat. “Your financial plan is going to be the GPS to control your emotions and make rational decisions this year,” says Ms. Lovett-Reid. 2) Pay down debt
As a rule of thumb, pay off your high-interest and non-tax deductible debt first. Consider consolidating your debt, cutting up secondary credit cards and, if possible, make more than your minimum monthly payments. “When the holiday spending hangover comes, tackle those January and February balances hard. Try avoiding any new credit card debt for the first few months,” Mr. Roulston says. 3) Spend less
With only so much money coming in, decide what really matters to you. Set a family threshold with specific goals, one that curbs the urge to impulse buy. “Frugality is our reality now and living within your means has taken a new meaning. A budget allows you to take corrective action, it gives you a road-map,” says Ms. Lovett-Reid, adding that she and her husband review their family budget each week. 4) Save more
Canadians are saving about 4.8 per cent of their personal income, down sharply from roughly 10 per cent back in the 1980s. The trick to saving is simple: don't spend everything you earn. Mr. Roulston suggests having one spend nothing day each month. Another option is to automatically divert a small portion of each paycheque into a separate bank account designated for saving. 5) Develop a personal investment policy statement
Aside from your investing plan, articulate – and stick with – a personal philosophy for your portfolio. Ms. Lovett-Reid advises her clients to sit down and write out their investment goals, risk tolerance, and required rate of return. Once you have it in writing, review it at least once a year. 6) Rebalance
Aim for 2010 to be a year of balance. Are you sitting on too much in cash? Move up the yield curve incrementally. Are you too heavily invested in equities? Try to get a good mix of bonds, stocks and other investments. “This is the year to find a required rate of return for achieving your goals. Go back to your asset allocation and stay true to that,” says Ms. Lovett-Reid. 7) Get tax efficient
For many Canadians, paying the taxman is their single biggest expense. Even in the midst of an economic recovery, people can still take steps to deduct, defer and divide their way to a lower tax bill. Consider splitting income with family members, using the home renovation and child fitness tax credits, or juggling asset allocation and life insurance to ensure the most tax-friendly transfer of wealth. 8) Get insured
Not every Canadian absolutely needs insurance, but everyone should at least think about what would happen to their family if they suddenly passed away or became critically ill. Would your family be able to maintain the lifestyle they are accustomed to? “Depending on how you answer that will dictate whether you need to incorporate life insurance into your overall plan,” says Ms. Lovett-Reid. 9) Don't give up
Watching the value of your portfolio drop by 25 per cent is as difficult as losing that extra 25 pounds. Developing and living according to a financial plan takes time and patience. “Make sure the investment plan reflects your goals and risk levels,” says Mr. Rosentreter. Rebalance yearly to capture gains and remember that “staying on plan presents the greatest likelihood of achieving desired results long term.” 10) Review, adjust and enjoy
The recent economic and stock market downturns have taught people the need to spend responsibly, within the context of a financial plan and their lifestyle. Having a solid financial foundation in place frees you up to do all those things that give your life more meaning. “That alone will reduce your financial anxiety,” says Ms. Lovett-Reid. Roma Luciw, Globe and Mail passed on through Angelo Lograno _ Premier Mortgage
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David Paddon, THE CANADIAN PRESS
TORONTO - Canada's residential real estate market is expected to remain unusually strong through the first half of this year after a strong finish to 2009, according to a survey published Thursday by Royal LePage. The Royal LePage analysis is consistent with other recent reports on the state of the Canadian real estate market, which has rebounded over the past 12 months after sales dried up in late 2008 and hit a multi-year low in January 2009. The Canadian market's sudden plunge was sparked by a credit crunch that originated in the U.S. housing and lending industries - eventually spreading globally, causing a worldwide recession in the late summer and early fall of 2009. However, the Canadian real estate market has been much quicker to recover than its American counterpart, in part because of a more stable banking industry, historically low interest rates and improving consumer confidence. Royal LePage executive Phil Soper says Canada's real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year." The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs, he said in a statement. Royal LePage says house prices appreciated in late 2009, with fourth-quarter price averages higher than in the fourth quarter of 2008. The average price of detached bungalows rose to $315,055 (up six per cent), the price of a standard two-storey home rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent). Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver, which is frequently Canada's most expensive real estate market, experienced a particularly robust quarter, with home prices rising across all housing types surveyed. "No other sector of the economy has been as highly affected by economic stimulus as housing," said Soper. "As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property." Royal LePage estimates that Vancouver's real estate prices will rise a further 7.2 per cent this year, although February may be soft because of the Olympic Winter Games that will be held in the city and nearby Whistler, B.C. Detached bungalows in Vancouver sold for an average of $828,750 in the fourth quarter, up 11.4 per cent from the same period last year. Standard condominiums in Vancouver went up 11.8 per cent year-over-year to an average of $452,750. Prices of standard two-storey homes in Vancouver rose 9.6 per cent year-over-year, selling at $917,500. In Toronto, the average price of a standard condo rose 2.9 per cent to $309,316, detached bungalows rose 9.9 per cent to $446,214 and standard detached homes increased 3.5 per cent to $564,175. In Montreal, the average price of a detached bungalow rose to $245,125 (up 3.1 per cent; a condo increased to $216,667 (up 16 per cent) and a two-storey house increased 12.3 per cent from a year earlier to $345,789, Royal LePage said. The Greater Montreal Real Estate Board reported Thursday that the number of sales last year increased 41,802, up three per cent from 2008. The median price of a single-family home was $235,000 last year, up four per cent from 2008. "Although sales decreased the first four months of 2009, Montreal's real estate market rebounded and finished the year on a positive note," said Michel Beausejour, the Montreal board's chief executive. The group that represents Toronto-area realtors reported Wednesday that there were 87,308 transactions last year through the Multiple Listing Service, a 17 per cent increase over 2008. In December, there were 5,541 sales in the Greater Toronto Area (average price $411,931), up from 2,577 sales in December 2008 (average price $361,415), according to the Toronto Real Estate Board. The Toronto board also said the number of sales of existing homes rebounded in the latter half of 2009 after a slow start at the beginning of last year. Royal LePage's average price estimates for other Canadian cities include: -St. John's, N.L.: Detached bungalow, $217,167 (up 14.3 per cent); standard two-storey house $298,833 (up 14.1 per cent). -Halifax: Detached bungalow, $238,000 (up 10.7 per cent); standard two-storey homes, $265,333 (up 1.8 per cent). -Charlottetown: Detached bungalow, $160,000 (up 1.9 per cent); standard two-storey $195,000 (up 3.7 per cent). -Saint John, N.B.: Detached bungalow, $228,000 (up 1.3 per cent); standard two-storey $299,000 (up 1.5 per cent). -Moncton, N.B.: Detached bungalow, $152,300 in the fourth quarter (up 1.5 per cent); standard two-storey home, $131,000 (up 4.0 per cent) -Fredericton: Detached bungalow, $182,000 (up 12.3 per cent); standard two-storey, $210,000 (unchanged). -Ottawa: Detached bungalow, $332,417 (up 3.4 per cent); standard two-story home $331,917 (up 3.7 per cent). -Winnipeg: Detached bungalow, $241,650 (up 9.9 per cent); standard two-storey home $275,500 (up 10 per cent). -Edmonton: Detached bungalow, $299,286 (down 0.7 per cent); standard two-storey home, $340,557 (down 1.2 per cent) -Calgary: Detached bungalow, $412,478 (up 0.5 per cent); standard two-storey home, $427,067 (up 2.3 per cent). Have a great weekend! Supplied by Angelo Lograno Premiere Mortgages
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Credit crunch, debt crisis — call it what you will, but the current economic climate is spurring people to get their own finances in order. For Jack and Sarah Stewart, of Toronto, this means tackling the $40,000 in debt they've allowed to balloon during the past eight years. With their mortgage coming up for renewal, they're thinking of clearing the slate and rolling the burden into their mortgage.
"We want to consolidate our debt, but we're not sure if increasing our mortgage is the best way to do it," says Jack, who asked that his and his wife's names be changed to protect their privacy.
He's not alone. Laurie Campbell, executive director of Credit Canada, says it's a question people grapple with all the time. "Homes in the past have been your sacred cow," she says, referring to the drive to pay down one's mortgage as quickly as possible.
These days, however, with people juggling debts and paying varying rates of interest, increasing one's mortgage can be a smart move, even if it takes longer to pay off.
Lowering interest rates
Peter Majthenyi, a mortgage planner with Mortgage Architects, in Toronto, says it's a common theme as homeowners strive to bring down the overall interest they pay, as well as reduce their monthly obligations. He prefers to think of it as repositioning one's debt, and in his experience, "in almost all cases, it's justified."
"If you have debt that is sitting at 18 percent interest, then it certainly makes sense," says Campbell, adding that it's something to consider only if you have enough equity in your home and if your mortgage is coming up for renewal (read the fine print to find out if the penalties for breaking a mortgage outweigh the possible benefits).
Majthenyi notes that if you're working with the same lender, there's often no penalty involved with increasing your mortgage before the term expires.
The Stewarts seem like prime candidates. They have a $200,000 mortgage on a house worth about $425,000. They have plenty of equity, they're up for renewal at the end of the year and they say they're serious about getting their finances in order. Ideally, they'd roll the debt into their mortgage, continue an accelerated payment program whereby they pay every two weeks and they would not increase their amortization period, but instead increase their payments.
Dealing with debt
It's a good plan, says Campbell, who thinks all mortgage holders should accelerate their payments. She also likes the idea that they plan to stick to a 17-year amortization instead of renegotiating another 25-year mortgage. However, she stresses that none of this amounts to much if the Stewarts are going to continue the same spending habits and find themselves in a similar position five years from now. "They have to understand what got them into this $40,000 debt in the first place. They have to make sure they don't fall victim to that again."
She recommends cutting up credit cards, especially store cards, which have higher rates of interest, and not using one's line of credit like a bank account.
The Stewarts say the bulk of their debt was incurred for renovation costs, including a new kitchen and installing hardwood flooring, but admit their spending habits need a makeover. "We're always dipping in to our line of credit because we're strapped for cash," says Sarah Stewart. "I think if we consolidate the debt, it'll increase our cash flow and we'll be able to live within our means."
Jeanette Brox, a Certified Financial Planner with Investors Group in North York, Ont., always encourages her clients to look at the big picture when it comes to financial health: "My job is to make them think outside the box." She says helping people manage debt, while securing their future, is essential. "People need to think beyond what our parents did, which was paying down the mortgage," she says. "I used to think that way too, but I don't anymore."
In her view, the Stewarts and others like them need to take an aggressive approach if they ever want to get ahead. Not only do they need to improve cash flow, but they also need an emergency fund for unforeseen expenses, not to mention a retirement plan.
Planning for the future
Brox admits a lot of people would balk at the idea, but she thinks the Stewarts, both in their early 30s, should not only roll their debt into the mortgage, but increase their mortgage an additional $35,000 for a total of $275,000. To make payments more manageable, she'd also recommend increasing the amortization period to 25 years. She would invest $25,000 in mutual funds and further $10,000 in a money market account (earning about two percent interest).
"This is what I call a lifestyle fund," says Brox, adding that part of the interest cost on the mortgage would be tax deductible. "It's a win-win situation, but you've got to be really disciplined."
That means using their increased tax return to pay down the principal on the mortgage, thereby helping compensate for the interest cost of carrying the additional $35,000. The other bonus is that within five years (or so), the $25,000 registered retirement savings plan, or RRSP, will have grown to about $40,000. She stresses this is a long-term plan and people have to realize that the market is going to rise and fall.
"It's all based on comfort level," says Brox, adding that the biggest mistake she sees with people who reposition debt is that they don't have a long-term plan and, as Campbell, pointed out, go back to old spending habits. "People need to have their whole financial picture analyzed. It's something to consider, but you need to work with a planner or bank manager."
Lines of credit
There's a whole school of thinkers that shudder at the thought of increasing one's mortgage. At the core of this is that you're trading unsecured debt for secured debt and paying interest on that debt for the entire life of your mortgage, which can dramatically increase the cost of borrowing. In addition, refinancing also involves added legal costs (in most cases a minimum of $500). An alternative is consolidating debt onto a line of credit or home equity loan, which have higher interest rates than a mortgage, but can be paid off more quickly.
This works in theory, say our experts, but rarely in real life. "A lot of people just make the minimum payment and never get it cleaned up," says Brox.
"I'm wary of open lines of credit because they can easily stay at $50,000 forever," says Campbell, adding that an increased mortgage payment forces people to be more disciplined in paying down debt.
As for paying the debt for the entire length of your mortgage, all the experts stress that the way to combat this is by channelling extra funds back into the mortgage and paying off the mortgage early. This could mean accelerated payments, using tax returns or bumping up the payments. "We're putting all the money back into the principal of the mortgage," says Majthenyi, who points out that an extra $10,000 on a mortgage costs about $50 a month, while a $10,000 loan requires minimum payments of $300.
In the Stewart's case, it's costing them about $1,000 a month to cover $40,000 debt. If it's part of their mortgage, it translates into about $200. Ideally they'd direct the bulk of that money back into their mortgage through an annual lump payment or by increasing individual payments by a few hundred dollars.
Repositioning debt into one's mortgage is a sound option for people who are committed to changing bad habits and/or taking a long-term approach to getting their finances in order.
When it comes to money, Brox says that people need a big-picture plan, not a band-aid solution: "A lot of times it's not what you make but how you manage it."
Michelle Warren is a freelance writer in Toronto.
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December 18, 2009/ January 1, 2010 -- While low interest rates have enhanced affordability, they are only one factor contributing to the market’s strength. The steady stream of newcomers to the Greater Toronto Area, all of whom have housing needs, are another important factor.
According to Canada’s 2006 Census, a detailed statistical report issued every five years, our proportion of foreign-born citizens has been growing since 1951 and has reached its highest level in 75 years.
It found that nearly one in five people in Canada are now foreign-born. In fact, Canada ranks second only to Australia, where 22 per cent of the population is foreign-born.
The GTA’s immigration statistics are even more staggering. In Toronto, nearly 46 per cent of the population is foreign-born. That’s the highest percentage in North America and even higher than any of Australia’s major cities.
Our diversity of employment opportunities and housing stock attract people from all over the world, the majority of whom currently hail from India, China, Pakistan, the Philippines and Sri Lanka. A third reason that newcomers are drawn to our country though, is to join family and friends, and with a strong support system in place, many immigrants are buying homes more quickly than before.
The 2006 Census reports that 72 per cent of immigrants live in dwellings owned by household members, up from 68 per cent in 2001, with the most significant increase being among those living in Canada for less than 10 years.
This equates to more housing demand not only in Toronto, but in the surrounding area as well. While the City of Toronto attracts the majority of newcomers at nearly 60 per cent, the number of immigrants in the 905 Region is also increasing. In Markham nearly 57 per cent of the population is foreign-born, in Mississauga nearly 52 per cent of residents were born outside of Canada and in Brampton that figure is 48 per cent. In Vaughan the number of foreign-born residents is comparable, at nearly 45 per cent, with Ajax and Aurora not far behind at 30 and 22 per cent respectively.
Regardless of where you live in the GTA, you can thank immigration for bringing thousands of new potential buyers to you each year. While the figure has fluctuated between 70,000 and 100,000 throughout the past decade, in 2007, the year for which most recent data is available, we welcomed 93,000 newcomers to our city.
A recent Scotiabank report notes that due to Canada's aging population and low fertility rates, a decade from now, 75 per cent of the country's population growth could come from immigration as compared to the current rate of approximately 60 per cent.
This equates to a steady demand for housing in our city as newcomers are drawn to Toronto’s exceptional mix of cultural, employment and housing diversity.
As Canada’s gateway to the world, the Greater Toronto Area’s future and specifically, that of its real estate market is unquestionably bright.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.
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Does the thought of changing your neighbourhood go through your mind more often than not? The Stress of a daily commute can subtract years from your life. If you want to have more time for yourself and reduce stress Move Closer to your Office. Here are some key indicators on when you really should consider making that move. 1. You Have Outgrown Your Neighbourhood Your uber-trendy, urban borough seemed just the thing five years ago. But suddenly, you’re annoyed by the loud music spilling out of bars, clubs, and your neighbour’s stereo. It is time to face the facts: you are growing up, but your neighbourhood is not. Instead of wasting time judging your neighbours, consider a quieter or more sophisticated locale. 2. You Constantly Scan the Classified Ads You’ve never been in a good position to sell your home, but have often dreamed of moving. A larger home. A smaller home. A country home. A city home. Lately, you find yourself scanning the classifieds, picking up home magazines, and even writing down phone numbers and website addresses. Speak with a professional and determine where you stand. It’s probably time to make your dream home a priority. 3. You Are Starting a Family Selling a home and moving is a big job, and starting a family an even bigger one. You don’t want to be stuck doing both at the same time. If you are seriously thinking about having a child, it is also time to start thinking seriously about buying a family friendly home. There’s nothing worse than packing and moving while pregnant, or worse, with a toddler underfoot. 4. Your Family Has Grown Are your kids sharing a bedroom? Is your yard too small for a swing set? Do you often think wistfully of backward barbeques by the pool? Then the time has to come to consider buying a home that will grow with your family. If you live in a city, it may be necessary to consider moving to the outskirts, where property is less costly. 5. You Have Made a Job Change You’ve changed jobs and the commute is killing you. Although you’re happy with your home, you’re not happy with the extra hour you must travel to work each day. The reality is that the stress of a daily commute can subtract years from your life. If you want to have more time to spend patting yourself on the back for corporate successes, move closer to the office. 6. Home Renovation is Not Enough You are constantly working on a home improvement project, but are never satisfied. Perhaps you are simply a home-Reno junkie. Or perhaps, this endless fussing and fixing is a sign that your home just isn’t doing it for you anymore. 7. Your Neighbourhood Is Going Downhill Crime is on the rise, you feel nervous when the children are at school, and barely feel comfortable walking to the corner store. Do not waste time waiting for the situation to improve. Sell before your property value goes down in tandem with the quality of your neighbourhood. (Source: hgtv.ca) Courtesy of Angelo Lograno Premier Mortgage Centre 905-429-4000
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A new year signifies new goals, new challenges and new beginnings. It’s a time for reflection, but it is also time to plan ahead for a better year. Each year Canadians resolve to make the New Year better than the last with a list of resolutions. Everyone can make a New Year’s resolution, but we all know that the hard part is keeping it. Use these tips to help you stay on track well into 2011. 1. Write your resolutions down and think long term Writing out goals makes them seem more official. Take the time to really plan out resolutions and add in specific details you can work toward and use as milestones. Be realistic about the number of resolutions you write down. If you have too many, or if they are too aggressive, you could derail yourself before you even begin. Think about your resolutions in terms of the whole year, too, not just this month or this week. Having long and short term goals will help you to stay motivated and keep on track long after the New Year’s confetti is gone. 2. Find a New Year’s resolution buddy Having someone to lean on during challenging times, share stories with and celebrate successes with can make a big difference in keeping New Year’s resolutions. 3. Plan ahead Take the guesswork out of New Year’s resolutions by planning ahead to ensure you meet your goals. For instance, if your resolution is weight management, plan the week’s meals ahead of time or build your own custom meal plan using online meal planners. Or, consider following an existing plan such as the Special K Challenge or Jenny Craig. 4. Keep up the good work Experts say it takes about 3 weeks for something, such as exercising, to become a habit and 6 months for it to become part of your personality. Sticking to your goals will get easier over time and eventually, your good habits will become part of your regular routine. 5. Reward yourself and don’t give up Be sure to celebrate successes and milestones along the way, and if you fall off the wagon, pick yourself up, recommit to your goals and keep going. It doesn’t have to be January 1st to start working on being the best person you can be. (Source: newscanada.com) courtesy of Angelo Lograno Premier Mortgage 905-429-4000
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If you’re like most people, you probably don’t spend much time in the attic. In fact, the vast majority of Canadians go up to their attics only when dealing with a leaky roof or “animal intruders” like bats or squirrels. During the winter however, attics are vulnerable to an even greater and potentially more damaging problem: ice damming. Ice dams are large accumulations of ice that collect on the lip of your roof or in the gutters. Once they’ve set in, ice dams can cause melting snow or rain to accumulate under your shingles and seep into the attic and your home. Houses more prone to ice dams often have inadequate insulation or major leakage of warm air from the home into the attic. They also have complicated roof shapes that concentrate water drainage into small areas and a “patchy” melt pattern when covered with frost or snow. Therefore, one way to avoid ice damming is to ensure that attics are well sealed and insulated. However, should ice damming occur, quick fixes range from attaching electric cables to attacking the ice with an axe. But each of these “home remedies” also comes with its own drawbacks, ranging from creating an eyesore or damaging your shingles, to creating the possibility you will slip and fall off a ladder. Fortunately, there are more effective solutions to help you protect your house, your health – and potentially save thousands of dollars in roof repairs. The Canada Mortgage and Housing Corporation (CMHC) has the following tips on how to spot, prevent and remove ice dams from your roof. Depending on your roof and the age of your home, these solutions include: Waterproofing your roof by placing a self-sealing membrane under the shingles. Air sealing the attic floor between your house and the attic space. Insulating thoroughly with the best insulation possible, where necessary. By spending the time to fix the problem properly the first time, you’ll help prevent ice damming from occurring. For more information on Attic Venting, Attic Moisture and Ice Dams and other fact sheets on owning, maintaining or renovating your home, visit Canada Mortgage Housing Corporation’s website at www.cmhc.ca or call CMHC at 1-800-668-2642. Compliments of Angelo Lograno Premiere Mortagage 905-429-4000
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Timothy R. Homan and Bob Willis, Bloomberg The U.S. economy next year will turn in its best performance since 2004 as spending perks up and companies increase investment and hiring, says Dean Maki, the most-accurate forecaster in a Bloomberg News survey. The world's largest economy will expand 3.5% in 2010, according to Mr. Maki, the chief U.S. economist at Barclays Capital Inc. in New York. The rebound in stocks and rising incomes will prompt Americans to do what they do best --consume, said Mr. Maki, a former economist at the Federal Reserve. Faced with dwindling inventories and growing demand, companies will soon become confident the expansion will be sustained, he said. Household spending "will pick up steam as we move into the second half of 2010," said Mr. Maki who topped all 60 forecasters in the Bloomberg News ranking of gross domestic product projections for the first three quarters of 2009. "The overall picture for 2010 will be an economy growing rapidly enough to bring down the unemployment rate" to an average of 9.6%. Mr. Maki, who specialized in researching household finances at the Fed from 1995 to 2000, said the economic recovery this time will be similar to past rebounds. Consumer purchases improved after last year's 61% plunge in gasoline prices and will keep growing in 2010, reflecting the surge in stocks. Faster growth will push Treasury yields higher and help the dollar strengthen as the Fed raises interest rates, he predicts. Mr. Maki holds a doctorate in economics from Stanford University near Palo Alto, Calif. His dissertation addressed Americans' response to the phasing out of tax deductions for interest on consumer loans. He received a bachelor's degree in economics from St. Olaf College in Northfield, Minnesota, and joined the investment banking unit of London-based Barclays in 2005. "One area that we put more weight on perhaps than others is the stock market," he said in an interview. The 67% gain in the Standard & Poor's 500 Index since a 12-year low on March 9 has helped shore up family balance sheets, putting Americans in a better position to spend. The prospects for a stronger rebound are consistent with recoveries from past recessions, he said. "We don't believe this time is different from all other business cycles," said Mr. Maki. "The consensus view that growth will stay subdued all through next year -- there's no parallel to that in modern U.S. history." Mr. Maki's forecast for 2010 is among the highest of the 58 economists in a Bloomberg News survey this month. He is more optimistic than Jan Hatzius, chief U.S. economist at Goldman Sachs Group Inc. in New York, who was No. 1 among forecasters of GDP during the 12 months through June 2009. Mr. Hatzius estimates the economy will expand 2.4% in 2010, and his 2.5% first-quarter growth forecast is half the pace Mr. Maki anticipates. Ed McKelvey, who works with Mr. Hatzius, said the Goldman team forecasts "subpar growth" next year because "employers will be reluctant to hire" and households will exhibit "a bias toward higher saving." Budget difficulties at state and local governments and credit constraints will also restrain the economy, he said. Mr. Maki's projected 5% rate of expansion in the first quarter, the fastest since the same three months in 2006, will reflect the need for companies to replenish inventories cut at a record pace in the first nine months of this year. Ramped-up production to increase stockpiles and investment in equipment will propel the expansion early in the year, leading to employment gains that will bolster spending in the second half, he said. "Businesses overreacted to the downside during the recession," said Mr. Maki, who says he tries to keep fit by playing tennis and jogging with his dogs. "As firms turn to expansion mode rather than survival mode, they start raising both employment and investment spending in a similar way." A rebound in corporate spending may be one reason investors have been eager to snap up shares of industrial equipment makers. The Standard & Poor's 500 Industrial Machinery Index, which includes Cleveland-based Eaton Corp., a producer of circuit breakers and fuel pumps, and Craftsman brand tool-maker Danaher Corp., based in Washington, has outperformed the broader measure, rising 35% so far this year, compared with a 25% increase for the S&P 500. Economic growth will push the yield on the 10-year Treasury note up to 4.5% by year-end, Mr. Maki said, compared with a yield of 3.8% at the end of last week. Maki says central bankers will lift the U.S. overnight bank lending rate target to 0.5% in the third quarter, from zero to 0.25 % currently, and to 1% by year-end. His colleague at Barclays, David Woo, global head of foreign- exchange strategy, predicts the dollar will end 2010 around US$1.40 per euro. Mr. Maki's top position in the Bloomberg ranking is based on estimates submitted in January for GDP. He forecast that month a 2% expansion for the third quarter. The U.S. economy expanded at a 2.2% annual pace, according to a Dec. 22 Commerce Department report. He also predicted a 4.5% contraction for the first quarter of 2009, followed by a 1% decline in the period from April through June. The Commerce Department later reported contractions of 6.4% and 0.7%. Neal Soss, chief economist at Credit Suisse in New York, was the second most-accurate forecaster of GDP over the first three quarters of 2009. He projects the economy will grow 3.3% next year. John Lonski, chief economist at Moody's Capital Markets Group in New York, was No. 3. He sees a 2.7% expansion. Robert MacIntosh, chief economist at Boston-based Eaton Vance Management, was the most pessimistic forecaster on employment this year -- and the most accurate. He expected unemployment to reach 10% in the fourth quarter and average 9% this year. The rate fell to 10% in November from a 26-year high of 10.2% the previous month, according to the Labor Department. Mr. MacIntosh agrees with Mr. Maki that the economy will rebound in 2010, forecasting growth of 3.5%, and that the jobless rate will average 9.5%. "The combination of exports, investment and consumption will be enough to give us, on paper at least, a decent-looking economy," said Mr. MacIntosh, a graduate of Harvard University in Cambridge, Mass., with an MBA from Dartmouth College in Hanover, New Hampshire. He manages US$4-billion in municipal bonds for Eaton Vance. He sees an "upward trend" in payrolls, with the first positive reading coming as early as January. The gains in hiring will lower unemployment "modestly," he said. Mr. Hatzius and the economists at Goldman Sachs project the unemployment rate will average 10.3% next year, compared with a median estimate of 10% for 58 responses in this month's survey. Bart van Ark, chief economist at the Conference Board, a New York-based research firm, forecasts a 10.4% average unemployment rate next year that he said will restrain household purchases. Mr. Van Ark, the best forecaster of consumer spending for the period from January through September, said he sees household purchases rising 1% in 2010 after falling 0.6% this year. Mr. Maki forecasts a 2.1% gain in 2010. "Even though we do see a pickup in recent quarters, it's not a signal that the consumer is going to lead us out of the recession into solid growth territory," said Mr. van Ark. "The consumer cannot play that role" any longer. Supplied to us
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Timothy R. Homan and Bob Willis, Bloomberg The U.S. economy next year will turn in its best performance since 2004 as spending perks up and companies increase investment and hiring, says Dean Maki, the most-accurate forecaster in a Bloomberg News survey. The world's largest economy will expand 3.5% in 2010, according to Mr. Maki, the chief U.S. economist at Barclays Capital Inc. in New York. The rebound in stocks and rising incomes will prompt Americans to do what they do best --consume, said Mr. Maki, a former economist at the Federal Reserve. Faced with dwindling inventories and growing demand, companies will soon become confident the expansion will be sustained, he said. Household spending "will pick up steam as we move into the second half of 2010," said Mr. Maki who topped all 60 forecasters in the Bloomberg News ranking of gross domestic product projections for the first three quarters of 2009. "The overall picture for 2010 will be an economy growing rapidly enough to bring down the unemployment rate" to an average of 9.6%. Mr. Maki, who specialized in researching household finances at the Fed from 1995 to 2000, said the economic recovery this time will be similar to past rebounds. Consumer purchases improved after last year's 61% plunge in gasoline prices and will keep growing in 2010, reflecting the surge in stocks. Faster growth will push Treasury yields higher and help the dollar strengthen as the Fed raises interest rates, he predicts. Mr. Maki holds a doctorate in economics from Stanford University near Palo Alto, Calif. His dissertation addressed Americans' response to the phasing out of tax deductions for interest on consumer loans. He received a bachelor's degree in economics from St. Olaf College in Northfield, Minnesota, and joined the investment banking unit of London-based Barclays in 2005. "One area that we put more weight on perhaps than others is the stock market," he said in an interview. The 67% gain in the Standard & Poor's 500 Index since a 12-year low on March 9 has helped shore up family balance sheets, putting Americans in a better position to spend. The prospects for a stronger rebound are consistent with recoveries from past recessions, he said. "We don't believe this time is different from all other business cycles," said Mr. Maki. "The consensus view that growth will stay subdued all through next year -- there's no parallel to that in modern U.S. history." Mr. Maki's forecast for 2010 is among the highest of the 58 economists in a Bloomberg News survey this month. He is more optimistic than Jan Hatzius, chief U.S. economist at Goldman Sachs Group Inc. in New York, who was No. 1 among forecasters of GDP during the 12 months through June 2009. Mr. Hatzius estimates the economy will expand 2.4% in 2010, and his 2.5% first-quarter growth forecast is half the pace Mr. Maki anticipates. Ed McKelvey, who works with Mr. Hatzius, said the Goldman team forecasts "subpar growth" next year because "employers will be reluctant to hire" and households will exhibit "a bias toward higher saving." Budget difficulties at state and local governments and credit constraints will also restrain the economy, he said. Mr. Maki's projected 5% rate of expansion in the first quarter, the fastest since the same three months in 2006, will reflect the need for companies to replenish inventories cut at a record pace in the first nine months of this year. Ramped-up production to increase stockpiles and investment in equipment will propel the expansion early in the year, leading to employment gains that will bolster spending in the second half, he said. "Businesses overreacted to the downside during the recession," said Mr. Maki, who says he tries to keep fit by playing tennis and jogging with his dogs. "As firms turn to expansion mode rather than survival mode, they start raising both employment and investment spending in a similar way." A rebound in corporate spending may be one reason investors have been eager to snap up shares of industrial equipment makers. The Standard & Poor's 500 Industrial Machinery Index, which includes Cleveland-based Eaton Corp., a producer of circuit breakers and fuel pumps, and Craftsman brand tool-maker Danaher Corp., based in Washington, has outperformed the broader measure, rising 35% so far this year, compared with a 25% increase for the S&P 500. Economic growth will push the yield on the 10-year Treasury note up to 4.5% by year-end, Mr. Maki said, compared with a yield of 3.8% at the end of last week. Maki says central bankers will lift the U.S. overnight bank lending rate target to 0.5% in the third quarter, from zero to 0.25 % currently, and to 1% by year-end. His colleague at Barclays, David Woo, global head of foreign- exchange strategy, predicts the dollar will end 2010 around US$1.40 per euro. Mr. Maki's top position in the Bloomberg ranking is based on estimates submitted in January for GDP. He forecast that month a 2% expansion for the third quarter. The U.S. economy expanded at a 2.2% annual pace, according to a Dec. 22 Commerce Department report. He also predicted a 4.5% contraction for the first quarter of 2009, followed by a 1% decline in the period from April through June. The Commerce Department later reported contractions of 6.4% and 0.7%. Neal Soss, chief economist at Credit Suisse in New York, was the second most-accurate forecaster of GDP over the first three quarters of 2009. He projects the economy will grow 3.3% next year. John Lonski, chief economist at Moody's Capital Markets Group in New York, was No. 3. He sees a 2.7% expansion. Robert MacIntosh, chief economist at Boston-based Eaton Vance Management, was the most pessimistic forecaster on employment this year -- and the most accurate. He expected unemployment to reach 10% in the fourth quarter and average 9% this year. The rate fell to 10% in November from a 26-year high of 10.2% the previous month, according to the Labor Department. Mr. MacIntosh agrees with Mr. Maki that the economy will rebound in 2010, forecasting growth of 3.5%, and that the jobless rate will average 9.5%. "The combination of exports, investment and consumption will be enough to give us, on paper at least, a decent-looking economy," said Mr. MacIntosh, a graduate of Harvard University in Cambridge, Mass., with an MBA from Dartmouth College in Hanover, New Hampshire. He manages US$4-billion in municipal bonds for Eaton Vance. He sees an "upward trend" in payrolls, with the first positive reading coming as early as January. The gains in hiring will lower unemployment "modestly," he said. Mr. Hatzius and the economists at Goldman Sachs project the unemployment rate will average 10.3% next year, compared with a median estimate of 10% for 58 responses in this month's survey. Bart van Ark, chief economist at the Conference Board, a New York-based research firm, forecasts a 10.4% average unemployment rate next year that he said will restrain household purchases. Mr. Van Ark, the best forecaster of consumer spending for the period from January through September, said he sees household purchases rising 1% in 2010 after falling 0.6% this year. Mr. Maki forecasts a 2.1% gain in 2010. "Even though we do see a pickup in recent quarters, it's not a signal that the consumer is going to lead us out of the recession into solid growth territory," said Mr. van Ark. "The consumer cannot play that role" any longer. Supplied to us
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