Posts Tagged ‘money tips’
Friday, January 24th, 2014
You’ve heard the old saying – “Location, location, location.” The real truth is “Location, condition, and price.” And price trumps every other factor. Location affects the value of a home, but it’s price that sells a home. Oceanfront, mountainside, or penthouse, the most desirable location in the world won’t sell at the wrong price. Every property has a potential buyer, but like rock, paper, scissors, it’s sometimes hard to know which factor is going to win the showdown. A good location will sell at a fair price. A bad location will sell at a fair price, too. It just won’t be as a high as it would be for a good location.
A home in good condition will sell for a fair price. A home in poor condition will also sell at a fair price. Again, it won’t be as high as a comparable home in better condition. But neither location or condition will sell any house. Only one thing does that – price. So if you’re a seller waiting for that “special buyer” who will appreciate your faded pink and black bathroom tile, your vintage orange shag carpet and is willing to help you put your kids through college because of your real estate prowess, you’re going to have a long wait. So if your home is represented by an agent, and it’s been on the market for a long time, chances are it’s your own fault Maybe you didn’t listen to your agent when he said you’re pricing your home above the market. Maybe you got mad at the first few folks who looked at your home and didn’t make offers. When the showings stopped completely, maybe you accused your agent of not doing a good enough job. You put the blame on everyone except where it belongs – on you. It’s not about you, what you want, or how much you need for your retirement.
It’s about the price.
Source: RealtyTimes.com
Tags: edmonton real estate, money tips, Tips
Posted in Edmonton, Tips | Comments Off on It’s The Price That Sells a Home
Wednesday, January 22nd, 2014
History has shown that economic recoveries following recessions are typically both strong and durable. As shown in the chart, once the recovery takes hold and the economy does start expanding, it is rarely for a short time. In fact, periods of expansion that came on the heels of downturns averaged 57 months or close to 5 years. After 1960, the average period of expansion following a recession was even longer at 71 months or close to 6 years. Although the transition from an economic recession to an economic recovery can be choppy, once recoveries arrive, they tend to be longstanding.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Statistics, Tips | Comments Off on Economic recoveries tend to be both strong and durable
Thursday, January 9th, 2014
| With some lenders moving towards collateral charge mortgages, it’s important to understand the differences between a collateral and a standard charge mortgage.
The primary difference is that a collateral charge mortgage registers the mortgage for more money than you require at closing. For instance, up to 125% of the value of the home at closing with TD Canada Trust or 100% through many credit unions, instead of the amount you need to close your transaction (as is the case with a standard charge mortgage).
The major downside to a collateral mortgage becomes evident at your mortgage renewal date. For borrowers who want to keep their options open at maturity and have negotiating power with their lender, this isn’t the best product feature because collateral charge mortgages are difficult to transfer from one lender to another.
In other words, if you want to change lenders in order to seek a better product or rate in the future, you have to start from the beginning and pay new legal fees, which range from $500 to $1,000. With a standard charge mortgage, in most cases, the new lender will cover the charges under a “straight switch” in order to earn your business.
In addition, with a collateral charge, it could be difficult to obtain a second mortgage or a home |
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equity line of credit (HELOC) unless your home significantly appreciates in value.
Lenders offering collateral charge mortgages promote the benefit that it makes it easier and more cost effective to tap into your equity for such things as debt consolidation, renovations or property investment. There’s no need to visit a lawyer and pay legal fees – the money is available as your mortgage is paid down. Yet, if you read the fine print, you may still have to re-qualify at renewal.
A standard charge mortgage gives you the ability to move to another lender at renewal should you want to without incurring legal fees, and many borrowers find it more beneficial to keep their options open. If you need to borrow more with a standard charge mortgage, you have the option of a second mortgage or a HELOC, which also enables you to take money out as your mortgage is paid down.
Navigating through the mortgage process alone can be tricky. Working with a mortgage professional who has access to multiple lenders will help ensure you receive the product and rate catered to your specific needs.
As always, if you have any questions about the information above or your mortgage in general, I’m here to help! |
Source: Dominion Lending Centres Newsletter
Tags: edmonton real estate, housing market, money tips, mortage rates
Posted in Edmonton, Mortgage, Mortgage Rates, Tips | Comments Off on Collateral Versus Standard Charge Mortgages
Monday, December 9th, 2013
In a study of over 1,000 Canadian households, Ipsos Reid findings show that advised households have substantially higher investable assets than non-advised households. For example, advised households with income levels between $35,000 and $55,000 had nearly 5 times the level of investable assets compared to non-advised households. Further, these observations are consistent across all income levels and age groups. Advisors provide a wide range of valuable services to clients, including the planning and maintenance of targets, helping them to choose the right vehicles and the right asset mix to achieve those targets. And these results show that good advice adds value.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Tips | Comments Off on The Value of Advice
Friday, December 6th, 2013
In a concentrated portfolio, market volatility can be very pronounced. However, when investors “diversify” their holdings and invest for the long term, they can offset this volatility without significantly reducing returns. As shown in the chart, in any one-year period, the returns of the S&P/TSX Composite Index have been as high as 86.9% and as low as –39.2%; a range of over 126%. This is extreme volatility. However, if investors extend their time horizon, this volatility decreases significantly. For example, in any ten-year period the returns of the S&P/TSX have been as high as 19.5% and as low as 2.8%; a range of only 16.7%. This volatility is offset even further with a more diversified portfolio as shown.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: money tips, Tips
Posted in Investing, Statistics, Tips | Comments Off on Reducing Volatility…Not Returns
Monday, December 2nd, 2013
Over time, unpredictable events can take place that have a negative impact on the financial markets such as, the effects of foreign currency over the last 10yr period. We can help you build a diversified portfolio in order to reduce market risk and to help maintain and grow your wealth.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Tips | Comments Off on Prepare for the unexpected
Friday, November 29th, 2013
We live in a world where information is available every minute of every day. Shown below is how often the terms economy or recession came up in media reports over the past five years. Note the intensity of coverage during the financial crisis of 2009. The height of headline frenzy came in March, 2009 in retrospect the bottom of the market, resulting in many investors exiting at one of the worst possible times to do so. The markets have subsequently risen by more than 50%. The bottom line? Short-term sound bites and news clips can cause us to lose sight of what’s important, and to take impulsive action when we need to remain calm.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Tips | Comments Off on On the media and the markets
Friday, November 22nd, 2013
Over the past 40 years, the S&P/TSX Composite index has experienced 14 negative calendar return years.
As shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns.
These results demonstrate the resilience of the markets, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Tips | Comments Off on The Resilience of the Markets
Monday, November 18th, 2013
Using a portfolio approach to properly diversify your assets can reduce the negative effects that any individual security or asset class may have on the performance of your portfolio. Financial markets don’t always move in the same direction. When stocks are rising, for example, bonds may decline in value. Similarly, different types of equities or even investment styles are more successful in some market conditions than others. By carefully diversifying your portfolio, we can reduce your risk and enhance your chances of successfully attaining your long-term goals.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Edmonton, Investing, Tips | Comments Off on Stay Focused
Wednesday, November 13th, 2013
One of the most visible indicators of investor sentiment is daily market volatility. When indexes exhibit extreme moves as measured by +/- 1% price changes on any given day, it is likely that emotions (fear or greed) are driving investment decisions. Why? Because the fundamental value of a business does not change by 1, 3, or 5% in any given day, in this case the market is revaluing the enterprise not on fundamental value, but on emotion. As seen below, volatility by this measure increased dramatically at the end of 2008, as investor concerns over the future resulted in extreme price fluctuations. In contrast, volatility declined throughout 2009, suggesting a more fundamental approach to pricing assets.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com
Tags: investing, money tips
Posted in Investing, Tips | Comments Off on Investor sentiment drives market action
