Thursday, August 25, 2011
So you want to be a landlord, there are advantages .... writing off the interest on the mortgage, insurance payments, repairs etc while your tenant pays down the cost of the house as (hopefully lol) the value goes up. This is what I've learned having a few home rentals on the go and you can decide if its for you or not. A) Location (like your principle residence) is key, as you want the price of your rental to go up so make sure the area is desirable, also if you can afford it look for a duplex or triplex so if one renter leaves you still have income coming in. B) Borrow as much as possible for the building, follow the Golden Rule (get wealthy by using someone else's money) so you get the tax benefit of writing off the mortgage interest (more borrowed, more interest) to offset the rent as that's considered an income plus this way your keeping
your own money to pay down your own mortgage/bills and putting the extra into other investments. Also most banks will ask for15-20% down payment because they deem it a business, so what i did was lived in
the house for awhile that way there was a
lower minimum amount required (as its considered principle residence), then moved out and started being a landlord. C) Try to be handy with repairs or have friends who are as paying a tradesmen for all your issues will make you not want to be in the business. Or I always looked for a tenant who was of that talent and i reduced the rent for them so a win/win as they took pride in their work as they got paid for it and you had no worries with all the little things that would arise.....and trust me, everything does gets beat up a lot quicker than your own home. On that thought, at first i had to keep telling myself not to be in "love" with the property, as it was an investment and don't be disappointed if your folks didn't keep it just so. For example i went with commercial carpet or laminate hardwood floors, stuff that is durable but it wouldn't be what i would use in my own residence D) Look for smaller yards as its less to take care off and a deterrent for those big backyard bashes E) Be
Monday, June 27, 2011
Friday, June 24, 2011
and most are hidden or never seen on your statements!!
Thursday, June 9, 2011
Wednesday, March 30, 2011
knowing your time frame will tell you how much to be put aside each month, then we look for investments that payout 6-8 % as the historical inflation rate has been 3%, so easy math; so depending on how many years we have the ratio could be 60% stock/40% bonds or maybe a 50/50 split. If you have a big window maybe do margins if your in the 20-30 age bracket and have the tolerance for risk B) Boost your savings in your RRSPs to save taxes paid to the government and if your employer matches up to 50%......well there is nothing better than investing with someone else's money lol C) Increasing your income; hard to find a higher paying job so maybe work part time on the weekends or start a small company on the side to generate more cash D) Real Estate; you know my opinion on house ownership with my past blog, but the 'X' Factor is location, location and did a mention location hahaha, so do your homework on this subject. Also look at buying flats/duplex's so you can live in one and rent out the others and take advantage of your 'sweat equity' for some repairs/cosmetics around the property while your renters are paying down your mortgage for you.....nice!!
Sunday, March 13, 2011
are saving for which makes it easier, also talk about where you want to be in 2, 5 or even 10yrs and what are the big goals? After you agree on those subjects, discuss what each of you are willing to give up to attain your future retirement together. In closing, don't you want to control your own destiny?..... i thought so!
Wednesday, February 16, 2011
Monday, February 7, 2011
Saturday, February 5, 2011
Sunday, January 30, 2011
Thursday, January 20, 2011
no such thing as a minimum purchase required or a maximum allowed B) Merchants can charge a "convenience fee" if providing a service to bypass long lineups and/or travel to buy the item, but no other surcharges C) The only time the merchant can ask for identification if the card holder has forgotten to sign the back of the card or isn't ledgable..... if they keep insisting? go to another store. To summarize, you can use these cards to your ADVANTAGE as they are/can be a smart part of your financial planning.
Wednesday, January 19, 2011
Monday, January 17, 2011
Wow words out, i might have to look for a bigger
place...nothing quite like saving money to peak people's interests. A) Personal Taxes; we all hate to pay but guess what, this is what keeps our country going with our public education, quality health care, drivable highways, etc. Think of it this way, we all have a friend who never wants to pay their share when out somewhere as a group and that really sounds fair....not!! Also the government is smart as
it gives its citizens opportunities to take care of themselves and o
ne of those vehicles is through tax free retirement plans....everyone wins, you lower your tax bill and the Feds don't have to take care of you. So look into either a company or self directed plans and do it monthly and again automatic withdraw to keep it out of sight out of mind. Another new program in Canada is the TFSA ( Tax Free Savings Account) well worth looking into at your favorite financial institution. B) Loans/Credit Cards; ok you has fun accumulating the debt but now its time to pay back!! Not a lot of love in the air right now is there? Try asking your bank for a debt consolidation loan to pay off all the bills and into one manageable lower interest payment, then do yourself a favor and act out Edward Sissorhands on all but one of those plastic credit cards and keep the spare on hand for emergencies, and no not the all inclusive resort that just went on sale but for the "A" list items if in between pays. ( usually 20+ days to pay the CC off without interest) C) Life Insurance;
Tuesday, January 11, 2011
taking in roommates you can either apply your sub rent directly to the mortgage (it will come straight off the principle saving you thousands of dollars over the term in interest) or if renting you can invest monthly your borders money making you wealthy in time. B) Groceries... we all need to eat but it doesn't have to cost as much by buying in the bulk sections so saving on volume and not paying for the packing. Also whats with society eating all this prefab meals anyway, ever wonder how it keeps its shelf-life so long? So never mind talking about the health issues with the "convenient" way to eat, save big dollars by doing the cooking yourself by picking a day and prep your meals for the week with say a roast beef, turkey etc and be inventive to keep it tasty. C) Clothing....there is such a mark up on clothes even when it is 50% off your still paying too much so look for those stores that mark down the designer brands and save the big $$$ and looking is half the fun is it not? Also learning to mix and match outfits which will reduce the need for more threads hanging in the closet (if you do not have an eye for it just ask a friend who does) and for under-garments and kids outfits any discount box store will do. Also ever notice how some people are styling no matter what they are wearing, its because they are in shape so in other words spending a lot of money on a suit/shoes etc. is not going to change your look....take care of the body first!! D) Transportation....everyone circumstances are different here, without saying using the car less saves you coin and if living near work/school the use of public transport/car pool or walking is great. But if buying a car look for the lease buybacks...why? it will have low mileage and warranty as the new car dealers take on the fleets from the rental car agencies to keep rotating their new products to them Or go to any established used car dealer which offers the same and save big money, i know buying new seems glamorous but there is such a depreciation loss once you drive it of the lot, so
just buy some nice air freshener and and think of all the coin you just saved (lol). E) Furniture.....another mark up king!! used pieces or mark downs due to scratches/nicks is just as good. Personally i rummage through old antique stores and find some unique pieces at great value. So as you see its all how you look at things, as my best friend says....."look beyond the bumpers"
vacation, car, etc. we need to get our financial "house" in order. To begin.... make a list of what comes in for income and what goes out for expenses (dates for both). Much like writing down what we would eat to make changes in our waistline, this we will call a financial diet and trim the fat from our expenses to fill that wallet of yours. Here is an example list; A) Rent/Mortgage B) Groceries C) Credit Cards D) Car/Transportation E) Clothing F) Personal Taxes G) Health Care H) Life Insurance I) Furniture J) Eating Out K) Entertainment ( movies/bars etc) L) Recreation. So like any business you need to have enough income coming in to pay the bills and so your not running into the red.....are you that delusional, then you should run for political office (lol) as that is why most governments have a deficit! Also living on credit does not work either as the interest will kill you and you are working for free, not much incentive to get up Monday morning is it? Us humans are a funny breed, what we consider a must as part of our wants and needs in most cases has to change. There is an "A" list of bills;
having a place to live, to eat, clothing and transportation. Its the eating out, needing that $5 latte, meeting the boys for a weekend downtown (every weekend lol), extra pair of shoes to go with the 100 you have all ready, spa treatments, a gym membership that comes out each month that you never use.....you get what i am talking about. As North Americans we have grown use to being in debt, well if you want more out of life you need to change that mindset. So with just a few small changes in lifestyle you can achieve whatever your dream is by paying yourself first, say 10% of your monthly salary ( set it up with either work or your bank for automatic withdraw and you will not miss it) and put that on the "A" list and then start reducing some of those off your wants column . So if your goal is a home for example, a downpayment/closing costs is $10,000 or that holiday in the South Pacific at the same price, then by paying yourself $300 per month for 33 months......then get ready to turn the house key baby or book that flight to Australia. Just give up an extra few nights at the bar or brown bag it to work three times a week, make your fav coffee at home for pennies a cup, whatever as the above list will tell you what to cut back on. I am not saying to give up on everything as its a matter of perspective on what you really want in life, so look in the mirror and you decide.