All posts by Financial Independence Hub

The Advantages and Disadvantages of listing your home in the Winter

Posted By |
Photo by unsplash

By Sean Cooper

Special to the Financial Independence Hub

If you’re thinking about selling your home, you probably believe the springtime is the best time to list it. While that may be true, wintertime can also be a good time to sell. Not only are homebuyers usually more serious then, you’re more likely to have more of your realtor’s attention. Let’s look at the advantages and disadvantages of listing your home in the wintertime.

Advantages

More serious Homebuyers

Although more people may visit your place in the spring, not everyone will be serious. Some will be nosey neighbours who want to see inside your place. Others will be people who are just considering buying a home and haven’t made up their mind yet. This means you can spend a lot of time showing off your home with few offers to show for it.

In the wintertime you better believe homebuyers are more serious. Chances are a homebuyer isn’t venturing out into the cold weather unless they really want to buy a home. Likewise, you’re probably listing your home because you’re serious about selling it. Since both parties are serious, you’re more likely to sell your home.

Fewer Sellers to compete against

When you’re listing your home in the springtime, you better make sure it’s looking its best. If your neighbourhood is popular, there could be quite a few homes for sale that you’ll be competing against for the attention of buyers.

Not so in the wintertime. Since there tends to be fewer people selling their homes, if you’re lucky your home might be the only home for sale in the neighbourhood. This doesn’t mean you shouldn’t stage your home and make sure it’s looking its best, but it does mean if someone really wants to buy a home in your neighbourhood, your home will be the only option, which could lead to a higher selling price for you. Continue Reading…

Borrower and lending practices deepening the burden of debt in Canada  

Posted By |

By Doug Conick, DUCA Credit Union and Chair of Duca Impact Lab

Special to the Financial Independence Hub

Financial institutions play an important role in Canada’s economic well-being. They support growth in personal wealth, job creation and impact the country’s prosperity overall. It is my firm belief that when it comes to the household debt burden of Canadians, there is an even greater role for financial service providers to play. We have a duty to act in the best interest of our clients and proactively contribute to the financial wellbeing of Canadians.

On Wednesday (Jan 15) DUCA Impact Lab released the results of a first-of-its-kind Canadian study to capture the perceptions of Canadian borrowers and lenders, ultimately shining a light on disparities between the two groups. The research uncovers interesting new details about how Canadian borrower and lenders interact with each other and explains how borrowers are impacted by debt. You can find the full report here.

The mounting stress of debt on Canadians

We talked to over 2,000 Canadian borrowers, nearly half of which reported that personal debt has impacted their ability to save and build wealth. It’s concerning that over one-third of borrowers surveyed report avoiding interactions with their financial advisor, despite recent Statistics Canada research which shows Canadians are spending more money than ever on debt payments.

The household debt-service ratio, which represents the percentage of after-tax income used for debt payments, rose to a record 14.96 per cent in the second quarter of 2019. This underscores the increasing need for better understanding among Canadians on how to manage existing debt. Canadians need help but they simply aren’t asking for it.

Our survey also shows debt affects access to healthcare and quality of life. Those surveyed report anxiety, trouble sleeping and poor lifestyle choices like skipping meals, eating unhealthy foods and spending more time alone.

The gap in perception

A quarter of borrowers surveyed say they don’t trust their financial institution to guide them through their debt issues and 37 per cent report avoiding their financial services representatives due to perceived pressures to manage their finances in a way they do not feel comfortable with or because they are recommended products they do not understand. At the same time, 42 per cent of lenders surveyed report they don’t believe their clients fully understand the products they are purchasing.

This demonstrated lack of trust in financial services professionals and gaps in understanding of financial products can lead to a cycle of debt and a missed opportunity to set or prioritize financial goals. Continue Reading…

8 ways to build Home Equity

Posted By |
Nanaimo, BC

By Lynn Donn

Special to the Financial Independence Hub

If you’ve been watching the real estate market in British Columbia, you may have noticed that quite a few Nanaimo homes for sale have a large amount of equity. Equity is the difference between the market value of your home and the mortgage balance owed. Another way of thinking about equity is that it’s the profit you make when the time comes to sell.

Building equity is the largest single benefit of owning a home in Nanaimo or anywhere else. Your home equity increases in one of two ways:

  • Value of your home increases
  • Amount of debt on your home decreases
Add value to your home

Here are eight great ways to build equity in your home by increasing value and decreasing debt:

You have instant equity in your home when home values appreciate. Three things that make home values rise are:

1.) Real estate market in Nanaimo is moving upward: Appreciation is something that happens without you having to do anything. Home prices are more likely to go up in established, attractive neighborhoods and in growing areas around town.

2.) Improvements and updating: Not all home improvements have the same return on investment. So, before spending money on updating, be sure to choose the ones that will add the most value to your home. Smart home improvements include kitchen and bathroom updating, improving curb appeal with low-maintenance landscaping, and adding square footage to your home.

3.) Upkeep & routine maintenance: Although routine maintenance can be tedious, it’s better to keep everything in your kept up than to face a major repair bill like a leaking roof or broken down furnace. Nanaimo homes for sale that have been maintained poorly are also at the biggest risk of losing equity, even when the real estate market is appreciating.

Decrease debt on your home

Decreasing the debt on your home while adding value can build equity surprisingly fast. Techniques to reduce mortgage debt include: Continue Reading…

The benefits of Mobile Pay Stubs

Posted By |

By Gary Bordeaux

Special to the Financial Independence Hub

Both employees and employers can benefit from keeping track of how much money goes into each paycheck. For employers, it’s important to know for business tax reasons. Employees, while also needing to know how much they make for tax reasons, may also need to provide their pay stubs when signing up for government benefits, when renting an apartment, or for a number of other reasons. However, sometimes it can be hard to keep track of paper pay stubs; that’s where mobile pay stubs come in.

What are Pay Stubs?

Before we get into the benefits of using mobile pay stubs, let’s first discuss what a pay stub actually is. When it comes to people who get paper paychecks, the pay stub will be attached to the paycheck.

For those who get direct deposit paychecks, paystubs can be a little harder to find. The employee may have a website they can check to see their pay stubs. If that is not possible, employees may need to contact the payroll department directly to get printouts or computer files of their paystubs.

What are Pay Stubs used for?

What makes paystubs so important? Why do they need to be kept track of? To put it simply, pay stubs are used as a record of how much an employee makes. As mentioned earlier, it’s important to keep track of pay stubs in order to keep track of income or expenses (based on whether it is the employee or employer looking at pay stubs). Since people usually cash their checks right away, keeping the pay stubs is a great way to keep a record of how much they make.

What information do paystubs have on them? A paycheck only shows the net pay (what a person makes after taxes, insurance, and other items are taken out). However, a pay stub will show an itemized list of earnings and deductions. This includes the gross pay, taxes, insurance, retirement savings, and the net (take-home) pay.

Why use Mobile Pay Stubs?

If paychecks come with a pay stub attached, why should people who get paper checks bother with mobile pay stubs? Unless you’re extremely careful with your pay stubs, they can be easy to lose. Continue Reading…

Tricks about residential home construction you wish you knew about before starting

Posted By |

By Daniel Quindemil

Special to the Financial Independence Hub

Designing a home is often one of the best (or worse) experiences for most people.

Building in general is a relatively difficult task, but building your own house can sometimes be nerve racking!

As a construction company, we understand the importance of planning the project beforehand, designing a solid design, getting pricing and the labor and material take offs done early so you can accurately create a budget.

That’s why we wrote this simple guide packed with tricks so you don’t fall into pitfalls some owners and investors fall into.

First, let’s look at the different types of residential projects.

What is Residential Construction?

Residential construction is building or remodeling a structure designed for everyday living.  Residential consists of Single Family, Duplexes, Triplexes, Townhouses, even Apartment and Condo buildings.

Each has its own challenges.

Single Family

Single family construction is typically designed for one family, hence the name single.  They typically are one or two stories, although some places like New York often go more vertical due to availability of space.

Duplexes, Triplexes, and Quadplexes, Twin Homes, Townhomes

These are single structures designed for multiple units.  A duplex will have two units within the structure, triplexes have three, quadplexes four.  A twin home is similar to a Duplex but has two owners.  Duplexes are owned by one party.  Townhomes are a group of units within a structure.  They are usually two or more stories.

Apartments and Condominiums

Apartments and Condos can be single story, but more often multi-story. Apartments are designed for rentals while Condominiums are for purchase, although they look very similar.

How long does it take to design and build?

The short answer: it depends. Every project is going to have its unique budget, schedule, sequencing, and craftsmanship.  All of these will come into play when planning your schedule.

When planning the overall project, you have to take into account four important timelines:

Design time

Timeframe for architects will vary quite a bit depending on size, details, and complexities involved with the project.  Often when an interior designer is involved, the timeline doubles or even triples because of the level of detail required.

Typically a single family and duplex home can be designed in 1-3 months.

Townhouses can take longer depending on the number of units.  Designing a townhouse building is very similar to a duplex and often the units are repeated or “flipped,” which speeds up the design process. Continue Reading…