Wednesday, February 28, 2018

Real Estate Insider: February 2018 News Report










Welcome back to the Real Estate Insider, readers! This past month, we came across a variety of hot topics you'll want to invest some reading time in, including how marijuana may boost the value of your home, why you should know your credit score, and why you shouldn't chase the lowest mortgage rate!

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There are a lot of factors to consider when deciding on either a fixed or variable rate mortgage, and everyone is different. Luckily, ‘RateSpy.com’ has compiled a checklist to make your decision easier! Check it out: >>

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Mortgage rates are seeing a steady increase for the first time since the early 1990’s, and that trend isn’t stopping next renewal term! Are you prepared for a rate increase? Read more about current trends here. >>

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DON’T GET TRICKED BY CHASING THE LOWEST MORTGAGE RATE! There are so many other factors that could save you so much more money in the long run! Read about them all here. >>

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There are a lot of expected benefits from the legalization of marijuana, and a boost in housing prices may be one of them! A Study in America found homes close to recreational ‘pot shops’ saw an increase in value by about 8%. Read more here. >>

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Are you aware of you Debt-To-Income ratio? It may be time to take a look! Learn what it is and why it is so important when qualifying for a mortgage or line of credit! >>

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With the recent real estate “Boom” in Toronto, we have seen the number of people getting their real estate license do an equally impressive “Boom”, but how many of these new agents are successful? How many Toronto realtors are doing less than 1 deal per year? The number will almost certainly shock you, and they are all laid out for you here. >>

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While young adults living with their parents give them the ability to save money, study has shown that it may be draining the parent’s retirement funds by more than 24%! Read more about the increasing trend here. >>

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Do you want to invest in Real Estate but maybe aren’t ready buy an investment property? Here are 6 ways to passively invest in the growing real estate market! >>

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Capital Gains tax has been a hot topic in recent months; especially since house flipping and income properties have increased in popularity. But what about when you are about to inherit some real estate from a relative? How does the taxation work? Read this article to find out the best way to approach these situations. >>

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Knowing your credit score is important! Get your credit score and report for free here! >>


Friday, February 23, 2018

Russel's Review: The Real Estate Retirement Plan By Calum Ross



A lot of people ask us for recommendations on real estate and related books to read.  Well, today we are going to start a new periodic series on the blog that reviews recent real estate books that we’ve read.  So without further ado, here goes…


What is the Book?

The Real Estate Retirement Plan – An Investment and Lifestyle Solution for Canadians by Calum Ross with Simon Giannini.


What You'll Learn

The book starts by talking about traditional retirement and why, for many reasons, today’s younger and middle aged population will not be able to look forward to some of the typical retirement income sources of previous generations (ie workplace pensions, generous government entitlements, etc). The population needs to prepare itself for funding their own retirements going forward.

It then segues into a "good debt vs bad debt" discussion about how the public has no problem borrowing to buy depreciating assets like cars or other toys, but find it risky to borrow to invest and buy cash flowing and appreciating assets (ie real estate or equities). People need to start viewing their personal balance sheet more like a corporation, get rid of their bad debt, and also convert their dead equity (ie equity in their personal residence) into productive equity by using it to invest.  The best way to do that for most people would be to refinance equity in their home to buy additional investments, either cash flowing real estate or dividend paying equities. Come retirement time, this strategy should pay off in spades, and the author shares many examples.

Later in the book it talks about building your team, such a mortgage broker and real estate agent, and later about investing in real estate and how to profit from this borrow to invest strategy long term.


Why I Recommend It

I agree with the majority of the concepts in the book and put them into practice personally and with our clients all the time.  It's especially good for beginners as it's written with easy to understand terms.


My Critique

Some of the examples used I thought were pretty rosy. This is definitely not a get rich quick concept; more of slow, steady climb in wealth concept. Don’t want to people thinking this stuff is easy!

So there you have it folks.  Our first book review on the blog. If there are any other books you are interested in hearing about feel free to drop us a line .

Check out our video review of this book here!

You can order a copy online today at Amazon and Indigo. Happy reading!