Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

The Missing Middle: are Townhouses the answer?

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

Shelling out a million for a home is no longer just an issue for downtown dwellers: it now costs that much on average to purchase a detached house in the ‘burbs, according to several new reports.

The February numbers from the Toronto Real Estate Board reveal regional home prices have surpassed two pricey milestones; average detached home prices in the city proper have hit the $1,500,000 mark, and $1,106,201 in the surrounding GTA. That’s tough news for those planning to trade a lengthy commute for affordable housing, as the competitive factors from the hot Toronto real estate market now stretch as far as the Niagara Region.

Too few houses to go around

The latest narrative around GTA housing is the scant supply of listings, with just 793 detached houses changing hands last month. “The listing supply crunch we are experiencing in the GTA has undoubtedly led to the double-digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments,” said Jason Mercer, TREB’s director of market analysis. “Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue.”

And it’s not just the resale market that’s too hot to handle. January numbers from the Building Industry and Land Development Association (BILD) report newly-built low-rise housing –- whether it be detached, semi-detached, or freehold row houses –- also exceed the average million mark, as fresh stock is immediately snatched up. Continue Reading…

Pack your bags, not your stress this March Break

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By Brigitte Gougeon

Special to the Financial Independence Hub 

Taking a vacation is supposed to be a time to relax and enjoy a week away from the stresses of work and daily commitments. But with two in five Canadians planning to travel during March Break, there will be many people worrying about some aspect of their trip.

A recent TD Insurance survey found that for nearly half (49%) of Canadians planning to travel, the potential of falling ill while away was one of the top three causes of stress. Other top travel stress factors were losing a wallet or travel documents (58%) and other personal items such as a camera or mobile phone (41%).

Even though Canadian travellers are worried about the prospect of needing medical care while they’re away, only four in ten (39%) report regularly buying travel insurance. Canadians who don’t regularly buy travel insurance list a variety of reasons for not doing so, including it not being top of mind, thinking they don’t need it or thinking it’s not worth the cost.

Those planning to travel over March Break should take care to make travel insurance part of their broader travel-planning checklist. The cost of not buying travel insurance can have a devastating financial impact. Covering unexpected medical costs out of your own pocket can be financially ruining as, on average, government provincial health insurance will only cover a small portion of medical expenses. And even then, that coverage is capped.

Travel insurance has to be bought BEFORE your trip

Even when taking a short trip across the border –- which many Canadians take for granted –- you never know if something unexpected will crop up, like a fall or accident that requires medical attention. To safeguard you and your family, it’s important you ensure you have the right coverage that fits your unique needs and situation. And remember, you have to get insurance before your trip starts; it won’t protect you if you get the insurance after an accident happens or your trip is cancelled.

Additional travel tips for cutting down on stressors: Continue Reading…

Review & Excerpt of Clay Gillespie’s Create the Retirement You Really Want

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The Financial Post has just published my review of a new book by Vancouver-based financial advisor Clay Gillespie: Create the Retirement You Really Want: And Retire Smarter, Richer and Happier.

You can find the online review by clicking on this highlighted headline: From Dreams to Legacy: New Book Details the 5 Stages of Retirement.

And below is an excerpt from the chapter highlighted in the review. We may also run at least one other excerpt in the coming weeks. Over to you, Clay!

By Clay Gillespie

Special the Financial Independence Hub

Retirement isn’t an event; it’s a process, and it begins years before you actually retire. Working with hundreds of clients over many decades, I’ve come to realize that retirement success is best achieved in five distinct stages. Each stage reflects a different aspect of who you are and where you want to be in retirement, and it all begins with a dream.

       1.) Dreams stage

The Dreams stage of retirement typically begins about five or six years prior to actual retirement. This is the time when people have decided to retire but aren’t yet sure of the date. It’s the time where retirement goals and hopes for the future become defined and a preliminary retirement plan is developed. For couples, especially, retiring now becomes an ongoing topic of discussion, not just something brought up in passing.

2.) Reality stage

The Reality stage usually occurs between 6 and 24 months before retirement and its temporal proximity really starts to hit home. Lifestyle issues come into greater focus, along with fears that one’s retirement nest egg may be inadequate. This is a crucial time from a planning perspective. Old Age Security (OAS) and Canada Pension Plan/Quebec Pension Plan (CPP/QPP) applications need to be made, income streams need to be consolidated, taxes need to be minimized and portfolios need to be optimized for income and growth.

3. Transition stage Continue Reading…

Life Planning Basics: The Importance of an Emergency Fund

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Photo Credit: Pexels.com

by Jackie Waters

Special to the Financial Independence Hub

When setting up your financial life plan, it’s important to understand the absolute necessity of an emergency fund. Before you can start saving for what you want in your future, you have to save some for all the stuff you don’t want or expect to happen.

The main purpose of an emergency fund is to protect against life’s many contingencies. This includes, but is in no way limited to; job loss, medical co-pays, car troubles, home repairs, child expenses, and unexpected travel needs. Without an emergency fund, you’re forced to turn to other means to pay for things you simply can’t ignore. Many turn to credit cards, which increases personal debt and leaves people in insurmountable holes. It’s nearly impossible to invest in your future when you’re sitting under a pile of debt.

How much should be in your emergency fund?

Continue Reading…

5 mistakes to avoid when buying your first Home

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By Alyssa Furtado, RateHub.ca

Special to the Financial Independence Hub

You’re about to make one of the biggest decisions of your life by purchasing a home. And it will likely be your biggest and most complicated financial commitment. So you should make a plan that captures everything you need to do to avoid costly mistakes.

Here’s a list of five mistakes you shouldn’t make when purchasing your first home.

1.) Failing to get pre-approved for a mortgage

It’s vital you know how much you can spend before you start looking for your first home. To figure out how large of a mortgage you can afford, use a mortgage affordability calculator. This will help estimate how much you will be pre-qualified for by a lender, who will conduct a credit check and review your finances. You can arrange for your pre-approved mortgage rate to be held for a period of about 90 to 120 days while you search for the right property.

2.) Not researching mortgage rates

Your first instinct will be to approach your current bank to obtain a mortgage, but you should do some research first to find the best mortgage rates. Continue Reading…