All posts by Financial Independence Hub

It’s still possible for Singles to buy their own home: Here’s how

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By Marc Kulak

Special to the Financial Independence Hub

Buying a home can be daunting, especially for people who want to buy on their own. And that number is growing. In fact, according to a survey we at TD Canada Trust recently conducted, single homeowners represent a quarter of Canadians buying or intending to buy a home.

A large part of this trend is driven by unexpected life circumstances: Canadian homebuyers who are divorced (69%) or widowed (35%) more likely to purchase solo, along with a growing number of single Canadians who say they’ll go it alone (67%).

From personal experience, I know that being creative –- and realistic –- on ways to afford to own a home is going to get you in one faster. Here are a few ideas to get you started:

Buying solo doesn’t mean living solo

Just over one-quarter (27%) of single Canadians who have or intend to purchase a home alone would consider having a tenant to make solo home ownership more affordable, while just under one-quarter (23%) said they would consider a roommate. Having rental income can help pay down the mortgage principal more quickly. Be sure to qualify for your mortgage without rental income so you have flexibility if you decide a roomie or tenant is not for you.

Think beyond the picket fence

Before you make any commitments, do your research and seek out professional financial advice to know what you can afford. For example, you can check out the TD Mortgage Affordability Calculator online to see what budget works best for your situation. Remember, it’s not just a mortgage payment you have to manage – other costs including property taxes, insurance, and ongoing maintenance will add up. Your mortgage payments should be low enough so you can take care of all your monthly expenses, meet your savings goals and still have some wiggle room. It’s also important to have slush funds set aside to cover emergencies and household maintenance.

Protect your investment

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Generational Business Transition: The Apprentice

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By Ian Campbell

Special to the Financial Independence Hub

Synopsis

Love, hate or tolerate U.S. President Donald Trump know that the business-focused reality show he personally hosted for some years was not named “The Apprentice” without careful thought. No doubt that also was true of his hiring several of his children into his businesses.

Over the past 50 years I have advised many “strong personality” owners of both small and very large privately held companies on matters involving business valuation and transition. That experience suggests business owners – likely in combination with more than one advisor – often work to include one or more of their children in management positions in their businesses.

While there are exceptions, in my experience nepotism infrequently works as well as it is planned. That said there are some sparkling successes, where the latter often lead to successful multi-generational business transition – and long-term family business legacies.

So what high-level reasons cause private business owners to hire younger family members – effectively creating an “apprentice environment” – and to often do that when they themselves are in their “prime business years?”

This commentary explores those reasons: none of which are particularly complicated, and none of which are hard to understand in the context of family business owner aspirations.

Family business transition defined

In this article “generational business transition” means the transition of business ownership – and often management – to one or more succeeding generations. Multi-generational business transition means business transition beyond two generations.

Principal “family hire” reasons summarized

There are always exceptions to generalities. Further, in the case of family business transition senior family generation members in control of a family business may make wrong-headed assessments of next generation children or make ill-conceived business management related decisions about one or more of them for over-emotional reasons or simply as a result of bad judgment.

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Do global bond yields matter any more?

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U.S. 10-Year vs. 10-Year German Bund

By Kevin Flanagan, WisdomTree Investments

Special to the Financial Independence Hub

Do global bond yields matter anymore? Following the results of Election Day and the subsequent response in the U.S. bond market, this was certainly a valid question. Indeed, with U.S. Treasury (UST) yields ascending rather visibly, a key investment force (relative yield advantage vs. the rest of the G7 universe) that had helped keep UST yields in check, if not push them even lower, seemed to fall off the fixed-income radar.

With the first quarter of 2017 now in the books, and the markets almost five months removed from the U.S. election, we thought it would be useful to provide some insight as to where the UST 10-Year yield resides now, and consider whether the relative yield advantage still exists.

While it has not always been a one-way street to the upside, G7 10-year yields have all risen to varying degrees, with the one notable exception being the UK, where gilts have actually seen a decline of 6 basis points (bps) since November 7. Italian 10-year yields fall on the other end of the spectrum, as the 10-year has experienced an increase of 61 bps, while the gain in France has been pegged at 50 bps. To put this in some additional perspective, the rise in the UST 10-Year was +56 bps. Rounding out the 10-year yield tallies: Canada +41 bps; Germany +18 bps and Japan +12 bps.

It should also be noted that the experience thus far in 2017 seems to have been a bit more country/region specific and not just the kind of broader move in global rates that investors have witnessed before. To be sure, here in the U.S., Treasury yields have been responding to developments in Washington D.C., such as the Fed pushing up its first rate hike three months earlier than expected and continued political headlines in the first few months of the Trump administration.

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The stress of moving sideways in high-priced housing markets

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

Think breaking into the Toronto real estate market is tough? Try making a lateral move; there’s a whole new crop of challenges facing those looking to cash in on their home’s equity, according to a recent bank report.

While much has been made over the plight of first-time buyers, they’re not the only ones feeling the pinch. Home owners with a long-term position in the market and who have become considerably house-rich — namely baby boomers — are also put off by the market’s challenges.

And while this generation has received criticism for hunkering down in their family homes rather than adding them back to the supply of low-rise, detached housing, the fact is many would love to cash out: but they face the same hurdles as their millennial counterparts.

According to a recent poll conducted by CIBC, two in five Canadian homeowners planning to sell their homes are poised to profit on their home sale — but 62% are reluctant to put it on the market due to the high cost of buying another home.

“In today’s market, homeowners are facing a conundrum as to whether to buy, sell or stay put,” says David Nicholson, vice-president of CIBC Imperial Service. “Buying or selling your home is one of the biggest decisions you’ll make. That’s why it’s important to make the decision for the right personal and financial reasons and see past the noise in the marketplace. Evaluating the pros and cons as part of an overall financial plan can help you decide what’s best for you.”

Sixty-seven per cent of boomers (aged 55 and up) indicated they wished to downsize to a smaller home, condo or nursing / retirement home.

The search for affordable options

Most downsizing boomers aren’t looking to acquire another million-dollar detached property, but recent price surges within the condo market may leave them feeling as though their options are limited. The Greater Toronto Area market has infamously experienced a 33% year-over-year price increase, and much of that double-digit growth has spilled over into the condo segment.

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How to profit from the Domain Name business

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By Katrina Manning

Special to the Financial Independence Hub

We’ve all heard of domain names purchased 10 years ago for $10 dollars and selling for $20 million today — or some other story of similar nature.  As a result, you might be interested in buying and selling domain names either full-or-part-time for profit. It seems so easy and simple: just pick the right domain name, hold on to it for a while then sell for profit.

But is it really that simple? Well, since everyone is online –you can imagine that the ocean is wide. And you don’t want to start with a bit of research. You need a map, and we’ve created one for you here.

Stay focused

There are millions of domains already registered, especially the easiest ones that consist of one word such as apple.com, Facebook.com and so on. On the other hand, there are countless combinations of available domain names to register, especially if you consider the thousands of new domain name extensions such as .ng domain or .eu domain names.

As you can see, it is critical to keep your focus narrow. What subjects are you already familiar with, which can make the process much simpler? Do you have experience with animals or tech? Have you worked in the entertainment or service industry? Think about the industries you are most familiar with first, and start with that. Why is this important? Well, you don’t want to target prospective buyers based on their potential for sales if you don’t have insight into the industry you are aiming at.

In other words, don’t just rush to buy multiple domain names you think would appeal to health care clinics you’ve identified as potential buyers. You might not be aware of any industry-specific rules that govern facets of legal advertising. You won’t make much of a profit, if any, if you buy domain names your target audience can’t use. This is where it pays off to take the time to understand your audience.

Take the time needed to learn

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