Recreational Properties Poised to Increase in Demand

Record Toronto home prices may have tipped the scales for those looking to make significant lifestyle changes. A few months ago, when the Toronto housing market was at its hottest, I noticed individuals selling their Toronto homes with no intention of getting back into the market. Instead they were deciding to rent in Toronto and invest their money in recreational properties to enjoy a different lifestyle.

Discussions with real estate professionals in caribbean countries revealed a sharp increase in the proportion of their recreational properties being sold to Torontonians. Word from luxury real estate professionals is that three Toronto families have purchased  homes on one street alone at the luxurious Albany Club Resort Community in the Bahamas developed by Joe Lewis. It seems that countries that respect privacy and have reasonable tax structures, such as Belize, Panama and the Bahamas are attracting many well-to-do Torontonians.

A few years ago, many high-income earning Canadians had left Canada to reside in Asian countries with lower taxes. One MetroActive member was able to save over a million dollars in taxes and invested that extra money in Asian recreational rental properties which have been providing him with a net 10% annual return, not including the capital appreciation. He comments, “Why would I pay 54% in income taxes of what I earn above $244,000 and then have to pay 13% in HST when I spend what’s left.”

Recent socio-economic changes in Canada, and specifically Toronto may be adding to the desire to make these lifestyle changes.  Concerns over record-level spending at municipal, provincial and federal levels, combined with deterioration of civil rights and legislation to accommodate special interest groups at the expense of the majority may have tipped the cart too far.

For some Canadian families, it is about selling their city residence to purchase their dream cabin or cottage, but for others is about escaping the big cities, which have been going through a socio-cultural shift that now supports a much different lifestyle than that which they prefer. Even in Canada, demand for recreational properties is soaring.

According to a survey by Leger for RE/MAX, 28 per cent of Canadian homeowners with children under 18 would consider selling their primary residence to finance a recreational property. Before you get too excited, understand that the key word is ‘would’ not ‘will you sell your primary residence’.

Retirees and those approaching retirement, are putting most of the equity from the sale of their Toronto or Vancouver home into a recreational property. Torontonians are the largest proportion of Canadian snowbirds in Florida with a large presence in Arizona. Canadians have also been investing in Bahamian recreational properties for years, and more recently have been flocking to Panama and now Belize.

A few years ago, I started talking about the retirement lifestyle strategy. In a nutshell, it takes the equity in your Toronto residence and provides you with a recreational property in a warm climate with the potential for both increased cash flow and capital gains. It isn’t for everyone, but if you have a Toronto home it could be your best option.

Contact me for to arrange a meeting to discuss this option. Baldo Minaudo 416-564-0245.

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

Drop Your Debt Or Put Money in the Market?

With today’s low rates, the pay down debt or invest debate isn’t as clear cut as it used to be.

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Ever since people started borrowing money centuries ago, people also started worrying about being in debt. Nearly 250 years ago philosopher and economist Adam Smith made a comment that still rings true today: “What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?”

As Smith suggested all those years ago, for most people, being debt-free – and in control of your income – is good for the mind, the soul and the wallet. However, what Smith didn’t have back then was ultra-low interest rates and a robust capital market where one could conceivably make more money investing than paying down debt.

For today’s savers and investors, that’s the big question: pay down debt or invest?

There are many reasons why paying down debt first makes sense. It delivers a risk-free, after-tax return. This is especially true when you consider costly, high-interest credit card debt. The more you put towards paying off debt, the more you save in interest costs and that can equal more money in your pocket.

It can also have a profound emotional impact. In 2012, a study out of the University of Nottingham looked at the links between debt and depression and found that those who had trouble paying their debt obligations also showed evidence of poor psychological health.

Paying off credit card debt first makes the most sense because rates are often high. But when it comes to mortgage debt, the question becomes harder to answer. With some people paying below 3% fixed and variable rates these days, the cost of carrying debt is far lower than it has been in the past.

At the same time, the S&P/TSX Composite Index has returned 4.6% annualized over the last five years, according to S&P Dow Jones Indices, which is higher than the mortgage rate you’re paying.

In other words, if your debt is affordable, putting extra cash towards an investment with the potential for a higher return may be the better option.

With today’s low rates, the choice isn’t as obvious as it used to be, so talk to a financial advisor who has a good overall understanding of your financial situation. They can help you make the decision that’s right for you. And perhaps, you can get a little closer to Adam Smith’s philosophy of happiness.

Jim Pagiamtzis Speaking on Activity based management

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Jim Pagiamzis shares insights on time management

Time
Event Management
Flex time
Fixed Time
Phone calls
Take the dog out!

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The All-in-One as an active asset in retirement

Many homeowners approaching retirement view their home as their nest egg; however, the majority of retirees would prefer to continue living in their current home into retirement. Using the All-in-One, clients can transform their home from a fixed to an active asset, and have flexible access to the equity they have worked so hard to build.

0517_The All-in-One as an active asset in retirement

 

 

EXCLUSIVE: 1381 Queen St East in Leslieville Toronto For Sale

EXCLUSIVE LISTING: 1381 Queen Street East, Detached Victorian Income Property Listed for Sale at $1,539,000

Leslieville Rental Property1381 Queen Street East, detached rental property (3 Units) in Leslieville (Toronto)

This Is A Stunning, Solid, Detached Victorian Home In Leslieville! Three (3) Self Contained Units,  Renovated Including Mechanics.  Beautiful Victorian Detailing…Leaded Glass Windows, High Baseboards, With Soaring Ceiling.  Two 1068 SF Self Contained Suites Tenanted ($1420.00 Per Unit), and One 1500 SF, 2 Storey, 3 Bedroom Suite That Can Rent For Approximately $3000.00 per Month (Owner Occupied).  Solar Panels That Reduce Hydro Bills.   Huge City Lot (23.29’ x 165’) With 6 Car Parking. AMAZING OPPORTUNITY!

Zoned Commercial/Residential.

Address: 1381 Queen St East, Toronto.

For viewing or more information contact: Baldo Minaudo, Broker, Real Estate Homeward, 416-564-0245.

Home may not appear exactly as shown in picture. Buyer solely responsible to verify all details and information. Not intended to solicit clients under contract with a brokerage.

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

Rethinking The Art Of Networking: Jim Pagiamtzis | Tea At Taxevity #12

Learn more about Jim Pagiamtzis Learn more

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http://www.taxevity.com/tea | Get better networking results with PARFP:
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Get tips on handshakes, how long to talk to one person, remembering, trigger questions, shareable/reusable content, voicemail and rethinking what you’re doing.

Our guest is Jim Pagiamtzis, President of 21 Connections. He helps people learn, speak and socialize using proven methods for business revenue and success. You’ll find more about him on LInkedIn (https://www.linkedin.com/in/jimpagiam…), Twitter (https://twitter.com/jimpagiamtzis) and his website (http://21connections.ca).

Tea At Taxevity brings you people who make life better. Recorded live at the Taxevity studios in West Toronto. Your host is actuary Promod Sharma (http://www.linkedin.com/in/promod).

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Highlights from CREA’s latest stats

Looks like the taxes that the government put in place are having their desired effect.  See what is happening across the country with regards to home sales.

by Justin da Rosa 16 Jun 2017

A cross-Canada glimpse at Canada’s housing performance. Nationally, home sales fell 6.2% in May, which marked the largest month-to-month decline in nearly five years. We take a look at province-by-province performance.

British Columbia Prices showed some evidence of rebounding, increasing 4.2% year-over-year to $752,514 last month. Sales, however, were down 7.8% with a total of 12,403 homes sold. “In British Columbia, activity is showing early signs of recovering from last year’s correction in some areas of the province,” CREA said in its updated Resale Housing Market Forecast. “This suggests home buying sentiment may be starting to improve.”

Alberta The oil-dependent province continues to show evidence that it has left the worst of the oil downturn in its rearview mirror. Prices continue to hold steady (+1.3% y/y) at $412,382. Sales were up 9.1%, though, with a total of 6,251 homes sold. “Alberta has firmed up compared to the low reached in early 2016 and the balance between supply and demand in the province has been tightening,” CREA said.

Saskatchewan The average home sold for $302,720 (+2.7% y/y) last month on a total of 1,224 sales (-7.9% y/y).

Manitoba Sales and prices were up in all of Manitoba’s major markets, led by Thompson which saw its prices jump 17% ($224,100) and sales increase by 75%.

Ontario The most drastic sales decline occurred in the Greater Toronto Area, where the market experienced a 25.3% month-over-month drop. Activity was also down “significantly” in surrounding areas, including; Oakville, Hamilton, and Barrie. “Recent changes to housing policy in Ontario have quickly caused sales and listings to become more balanced in the GTA,” said CREA President Andrew Peck. “Meanwhile, the balance between supply and demand in Vancouver is tightening up, while many places elsewhere in Canada remain amply supplied.”

Quebec Quebec saw its sales jump 13.4% year-over-year and the average price increase 5% to $299,542.

Atlantic Canada A tale of balanced markets prevails in Eastern Canada. “To varying degrees, housing markets in … New Brunswick, Nova Scotia and Prince Edward Island had a breakout year in 2016, with rising sales drawing down previously elevated levels of supply,” CREA said. “So far this year, more balanced market conditions have remained in all of these regions.”

 

3 Entrepreneurial Habits that will define You!

For myself, becoming an entrepreneur involved the ability to create and keep long term, beneficial habits – habits which fell into three areas. If you can stay the course within these three areas, you will be on target to reap the rewards of an entrepreneurial lifestyle. https://www.torontostoryarchive.com/3-entrepreneurial-habits-that-will-define-you

Home Capital To Settle Class Action Matters

NEWS RELEASE
HOME CAPITAL ANNOUNCES AGREEMENTS TO SETTLE OSC AND CLASS ACTION MATTERS

TORONTO – June 14, 2017 – Home Capital Group Inc. (“Home Capital”) is pleased to announce it has reached two agreements which together comprise a global settlement with the Ontario Securities Commission (the “Commission”) and with respect to the putative class action commenced in February 2017 by Claire R. McDonald, Action No. 349/17CP (the “Class Action”) relating to allegations of misleading disclosure. The settlements are subject to approval (by the Commission and by the Ontario Superior Court of Justice respectively) and each settlement is conditional upon the approval of the other. The main terms of the two settlements for which approval is being sought are set out below. It is expected that full copies of both agreements will be publicly filed if both agreements receive final approval. Home Capital expects to fund substantially all of the costs of such settlements through available liability insurance.

Commission Settlement

Under its proposed settlement with the Commission, Home Capital will make a payment of $10 million and reimburse Commission costs in the amount of $500,000. Gerald Soloway (“Soloway”) will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of four years and pay an administrative penalty in the amount of $1 million. Each of Robert Morton (“Morton”) and Martin Reid (“Reid”) will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of 2 years and pay an administrative penalty in the amount of $500,000.

Of the $12 million (other than costs) being paid by the respondents in the Commission Settlement, $10 million will be paid by Home Capital directly for the benefit of Home Capital investors who comprise the proposed class in the Class Action (the “Class”). $2 million will be paid to the Commission. Staff of the Commission will recommend that $1 million be allocated to the Class and the remaining $1 million be allocated or used by the Commission in accordance with the Securities Act.

Class Action Settlement

Home Capital will make a payment of $29.5 million to be distributed (net of costs and other expenses) to the Class as defined in the Class Action, all subject to the approval of the Superior Court of Justice as to certification of the Class for settlement purposes (as well as leave under the Securities Act) and after notice to the Class of the proposed settlement, review and approval of the settlement by the Court. The $29.5 million includes $11 million of the payments being made in the Commission Settlement. Releases of all defendants and dismissals in the usual form are part of this settlement. There will be no deduction for legal fees of counsel for the class plaintiff in respect of the $11 million being paid in the Commission Settlement.

Approval Process

The Commission has issued a Notice of Hearing for a date to be set by the Commission, at which time the Commission will consider whether it is in the public interest to approve and give effect to the settlement agreement by making certain orders against Home Capital, Soloway, Morton and Reid as described therein. The parties to the Class Action are in the process of obtaining a date for the initial court hearing.

Company Statement

Brenda Eprile, Chair of the Home Capital Board, stated that “These settlements will enable us to move forward with regaining the confidence of our depositors and shareholders and creating value for all our stakeholders.” She noted, as indicated below, “Home Capital will accept full responsibility for failing to meet its disclosure obligations to the marketplace and appreciates the importance of the serious concerns raised by the Commission with respect to continuous and timely disclosure.” Eprile continued, “The Company also acknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.” Upon final approval by both the Commission and the Ontario Superior Court of Justice, Home Capital believes that it will have taken full and appropriate responsibility for this matter.

Pursuant to the terms of the settlement agreement with the Commission, Home Capital will not be making any further statements on this matter outside of the approval proceedings.

Caution Regarding Forward-looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the Home Capital’s 2016 Annual Report, available on Home Capital’s website at www.homecapital.com, and on the Canadian Securities Administrators’ website at www.sedar.com, for Home Capital’s Caution Regarding Forwardlooking Statements.

About Home Capital Group Inc.

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

Expanding Your Business into the United States in the New Administration

Enhanced Cross-Border Strategies For Canadian Businesses

Whether you are starting to do business in the United States or are contemplating expansion into the United States, join our breakfast seminar in Markham, Ontario on Thursday, June 29, 2017.

Topics of discussion include cross-border sales, US site selection, supply and distribution, NAFTA, regional financial incentives, business structures for the US, tax strategies and business immigration in the US. Also featuring a presentation by the U.S. Consulate in Toronto about investment into the United States and assistance provided by the U.S. Government.

Reserve now. Space is limited!

Breakfast will be served.

Date and Time: Thursday, June 29, 2017 | 7:45 a.m. Registration and Breakfast | 8:00 to 9:30 a.m. Presentations and Q & A

Location: Courtyard Marriott, 7095 Woodbine Avenue, Markham, Ontario L3R 1A3

Cost: $45 (HST Included – HST#139631501), includes breakfast

To register for this event, email your name and telephone number to info@metroactive.org by Tuesday, June 27th (if space is still available). Payment instructions will be emailed to you.

Note: This seminar is presented by Neurose Business Seminars. Neurose Business Seminars is not a MetroActive member and as of yet have not been retained to provide any services to MetroActive.