Smart Ways to Spend Your Income Tax Refund

Smart Ways to Spend Your Income Tax Refund

You’ve filed your taxes (or you’re planning to very soon) and you’re expecting an income tax refund. To some, this perceived windfall can be a sign to go on a spending binge.

According to Canada Revenue Agency, the average income tax refund for the 2018 tax year to date is $1,735 – about the cost of an all-inclusive vacation for one in the sunny south, a few nice dinners out, or a very decent shopping spree.

If you’re getting an income tax return, that means you’ve overpaid taxes and you’re simply getting some of that back. Stop treating your tax refund as “extra” cash. Here are some smart ways to put that tax refund to work.

Pay down debt.

It’s unlikely that you’ll miss this chunk of money, since you’ve technically already paid your taxes and are just getting some of that back. Use it to pay off some debt and reduce the interest you’re paying on that loan. Less interest paid means more money in the bank for your living expenses.

READ MORE: How much will it cost to buy a house?

Stash it away.

Leaving that cash in a savings or chequing account makes it easy to access – and spend. Take advantage of tax savings in 2018 by depositing your 2017 refund into your Registered Retirement Savings Plan or a Tax-Free Savings Account.

READ MORE: How to buy a home you can afford

Update your home.

While your tax refund may not be enough to fund a full-blown renovation, the average refund is definitely enough to cover some upgrades in your home. This can boost your return if you’re planning to sell this spring. If you’re planning to stay in the home, you’ll enjoy the added liveability – and some shiny new faucets!

READ MORE: Boost your home’s value with $1,000 or less

Boost your mortgage payment.

Depending on your mortgage terms and conditions, you may be able to make a lump-sum payment. You’ll pay less in interest and more in principal. While $1,765 may seem like a drop in the bucket, every dollar counts.

READ MORE: Understanding mortgages

Build your down payment.

If home ownership is part of your future plan, deposit your tax refund into a “down payment” fund. An RRSP is a great option. You’ll enjoy a tax break, and you can borrow up to $25,000 (tax-free!) for your down payment and other home purchase-related costs when you’re ready to buy.

READ MORE: What is a down payment?

Always consult your financial advisor to determine the best solution for your needs and goals.

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

www.gelderman.ca

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The reason single Canadians aren’t buying real estate

The reason single Canadians aren’t buying real estate

Single Canadian homebuyers are a financially savvy bunch, with modest debt levels compared to the national average, according to RE/MAX’s recent Single Buyers Report. While it’s understandable that two incomes can make buying real estate easier (and less intimidating!), there is still reason to consider a solo property investment.

Economic uncertainty and expensive home prices are the top their list of worries, single Canadians noted in a recent Leger survey commissioned by RE/MAX. However, it’s important to remember that buying real estate in Canada is one of the safest and most reliable financial investments anyone can make.

Top benefits for singles buying real estate:

1. Long-term investment benefits in a safe and secure market.The ROI potential and opportunities available in a housing market like Canada are endless. Home ownership will always remain a worthwhile investment.

2. Asset growth.As home prices continue to grow nationally, particularly in cities like Toronto and Vancouver, home ownership for many singles will continue to be a great opportunity for asset growth over the long term.

3. Income potential with a rental property.For singles looking for additional income, owning a home can yield big benefits like helping to pay a mortgage off even quicker!

Gelderman.ca Real Estate Team

RE/MAX Aldercenter Realty

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The Difference Between Condos and Apartments

The Difference Between Condos and Apartments

Understanding the difference between condos and apartments is important for both buyers and renters. The main difference between the two is that you can buy a condo, whereas an apartment is available strictly for rent. However, there is more to it than that. If you are asking yourself, “what is the difference between a condo and an apartment?” we’ve got all the answers here.  

What is the Difference Between a Condo and an Apartment?

Condos are multi-unit dwellings that can be found in high-rise, low-rise, medium-rise, and townhouse designs. The individual units are purchased through either the builder for new construction condos or through the owner for resale condos. Condo complexes are managed by a condo corporation, which collects monthly condo fees from unit owners.

Individual apartment units are only available for rent. The building is often owned and managed by a corporation that leases out the units to tenants. Where it can sometimes be a little confusing is that many condo units are available for rent by their owners. So, although the condo is owned, the owner can choose to rent it out.

What is the Difference Between the Rent for a Condo and an Apartment?

There are a number of differences when it comes to renting a condo and an apartment. First, in a condo, your landlord will usually be an individual, but with an apartment, you are renting from a property management company. Second, with a condo, you might be dealing directly with the landlord for repairs and to pay your rent, whereas with an apartment there is usually a superintendent who handles repairs and rent collection.

Are There Different Rules for Condos and Apartments?

If you are a renter, that is an especially important question. When renting an apartment, the rules are set up and enforced by the property management company. The same rules apply to every tenant and every unit in the building. If you are renting a condo, there are a number of different factors at play. First, there will be rules set by the HOA that can apply to not only the unit you rent but to the way you treat the entire complex. Second, you also have to deal with the rules laid down by the landlord. These rules can range from no pets to no smoking and from no nails in the walls to no painting.

As a condo owner who wishes to set the rules, it is important to be aware of the landlord and tenant act in your region to ensure you are not breaking any laws. As well, if you intend to purchase a condo to then rent the unit, always check with the HOA first. Many buildings restrict the number of units that can be rented.

A Comparison of Costs

For apartment rentals, your rent level remains the same based on the length of your lease. Although some apartments offer month-to-month or short-term leases, there is usually an agreement of a year. Once the lease ends, the landlord can raise the rent as long as it remains within the rights of the landlord and tenant act. Prices will vary based on the area, the demand, and the current market rates. In some cases, rent will include utilities while in others it won’t.  

When you rent a condo, you usually have the same fixed monthly rental fees, but there can be special arrangements made if it is agreeable to you and the landlord. Your landlord sets the monthly rent and will often include their HOA fees and utilities.

In most cases, you will pay more in rent for a condo than an apartment when looking at the same general location. That can be as much as $700 per month in cities such as Toronto. In fact, in many cities, it is often cheaper to buy a condo than to rent one, in the long term.

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

Visit our web site HERE

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Fraser Valley Housing Market Statistics - February 2019

Fraser Valley Real Estate Market 

Gears up for Spring

SURREY, BC – Coming off a mild January, the Fraser Valley real estate market saw an increase in sales activity and overall inventory in February along with decreased prices in several of its communities.

The Fraser Valley Real Estate Board processed 982 sales of all property types on its Multiple Listing Service® (MLS®) in February, a 25.3 per cent increase compared to sales in January 2019, and a 29.1 per cent decrease compared to the 1,385 sales in February of last year. Of the 982 total sales, 354 were residential detached homes, 236 were townhouses, and 288 were apartments.

Darin Germyn, President of the Board, said of the market: “With inventory continuing to build, and prices softening across many of our areas and property types, buyers will be well positioned to make a move this spring.”

There were 6,406 active listings available in the Fraser Valley at the end of February, an increase of 6.9 per cent compared to January 2019’s inventory and an increase of 47.6 per cent year-over-year.

The Board received 2,216 new listings during the month, a 15.1 per cent decrease compared to January 2019’s intake of 2,609 new listings and a 3.4 per cent decrease compared year-over-year.

“Demand within our region varies depending on the community, with both residential detached homes and attached properties garnering interest when priced effectively,” continued Germyn. “If you’re looking to list, contact a REALTOR® who can help you understand the local market and what price point will bring you the buyers you’re looking for.”

For the Fraser Valley region, the average number of days to sell an apartment in January was 40, and 39 for townhomes. Single family detached homes remained on the market for an average of 43 days before selling.

HPI® Benchmark Price Activity

• Single Family Detached: At $958,900, the Benchmark price for a single family detached home in the Fraser Valley increased 0.5 per cent compared to January 2019 and decreased 3.7 per cent compared to February 2018.
• Townhomes: At $516,000, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 1.2 per cent compared to January 2019 and increased 2.8 per cent compared to February 2018.
• Apartments: At $409,700, the Benchmark price for apartments/condos in the Fraser Valley increased 0.2 per cent compared to January 2019 and decreased 3 per cent compared to February 2018.

Find the full February Statistics Package HERE

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

Visit our web site HERE: www.gelderman.ca

Know someone moving ANYWHERE in the WORLD? Call us today--we know the BEST agents everywhere!!

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Office Phone: 604-743-7653

RE/MAX 2019 Western Canada Ski Resort Property Report

RE/MAX 2019 Western Canada Ski Report

Perception vs. Reality: Ski resort properties are more attainable than Western Canadians think

• Seventy-one per cent of Western Canadians who are interested in purchasing a ski property are looking for all-season resort capabilities
• Twenty-three per cent of Western Canadians believe they can afford a property at a ski resort
• Those living in an urban (27 per cent) and suburban (24 per cent) area are significantly more likely to be interested in owning a ski property in the near future, compared to those living in a rural area (16 per cent)

Kelowna, BC, February 12, 2019 – While ski resort properties continue to be relatively affordable, 67 per cent of Western Canadians don’t believe they can afford them. According to a recent RE/MAX survey of Western Canadians conducted by Leger, only 23 per cent of respondents claim to be able to purchase a ski resort property.

No longer just used as only winter vacation homes or winter sport destinations, ski resorts in Western Canada are now all-season resorts, with many offering summer outdoor activities including mountain biking, hiking, golf courses and more. Of those interested in purchasing a ski resort property, 71 per cent are most interested in properties with these all-season resort capabilities.

“The perception is that ski resort properties are unattainable or only for the extremely wealthy,” says Elton Ash, Executive Vice President, RE/MAX Western Canada. “However, in reality, the story is very different, with multiple ski resorts in Western Canada boasting affordable prices, making them attractive investments for both local and foreign buyers.”

In fact, the survey found that snow levels and quality of snow (53 per cent), proximity to restaurants and retail (51 per cent) and mountain elevation (37 per cent) were secondary to the interest in all-season resort capabilities, confirming that these types of ski resort properties are top of mind for buyers. This is also true for investors, both local and foreign, who rent out their properties when not in use.

Those living in an urban (27 per cent) and suburban (24 per cent) area are significantly more likely to be interested in owning a ski property in the near future, compared to those living in a rural area (16 per cent).

“With so many potential buyers of ski resort properties coming from urban and suburban areas, it’s clear that more Western Canadians are interested in pursuing some sort of lifestyle change,” says Ash. “With ski resorts now boasting activities all year round, they’re more appealing to urban and suburban dwellers who want a change of pace.”

Individual RE/MAX brokers from six important ski resort destinations provided insights on their respective markets:

Big White (Kelowna, B.C.)

Buyers in Big White come from Toronto, B.C.’s Lower Mainland and Kelowna itself, seeking a lifestyle-driven investment while also renting out their properties to subsidize the purchase. The majority of buyers are Canadian with a good contingent of foreign buyers from the United Kingdom and Australia in the mix. Big White’s claim to fame is that it’s the country’s largest ski-in and ski-out resort and produces good powder every year. Prices start at about $100,000 for a studio apartment, while a two-bedroom starts at about $230,000. Townhouses go for approximately $300,000 while a freehold property would run you at least double that of a townhouse.

Silver Star Mountain Resort (Vernon, B.C.)

Buyers at the Silver Star Mountain Resort come from Alberta and B.C.’s Lower Mainland and are largely composed of semi-retirees looking for investment properties/active retirement options while younger families and individuals are looking at investment speculative homes. Properties in the region are easily rentable due to the numerous rental management options available. Due to the mountain’s high base elevation, there is more snow and less rain compared to other regions. Prices start at about $216,000 for condominiums and townhouses and $300,000 for two-bedrooms, both of which have increased since 2018.

Whistler Blackcomb (Whistler, B.C.)

Buyers in Whistler Blackcomb come from B.C.’s Lower Mainland though there is some foreign investor activity. Voted as the number one destination for skiing in North America, the Vail Epic Ski Pass allows for the ability to travel between other mountains in the area – a big draw for serious skiers. With such high demand, some properties are deemed as restricted use and are only allowed to be used 56 days of the year (28 in the summer and 28 in the winter). Prices start at $389,000 for a studio ($230,000 for those zoned as restrictive use), and go up to $439,000 for a one-bedroom, $565,00 for a two-bedroom, $534,000 for a townhouse and $1.5 million for a freehold property.

Canmore (Canmore, AB)

Canmore boasts a number of different mountains and attracts buyers from Alberta mainly. Buying activity, largely driven by baby boomer/retiree local to Canmore itself and buyers from Calgary and Edmonton looking by a lifestyle change, peaks from March to July. There is a considerable amount of investment activity in the area as well. Prices start at $370,000 for a one-bedroom condominium and $464,000 for a two-bedroom condominium.

Revelstoke Mountain Resort (Revelstoke, B.C.)

Canadian buyers at Revelstoke Mountain Resort come from Whistler or Squamish, while foreign buyers come from Western Europe, East Asia and Australia. Canadian buyers are composed of middle-aged to active retirees. Buyers are looking for a mix of winter vacation home and investment property. The downtown area is situated quite close to the mountain, making location of property largely a non-issue for buyers. Prices start at $525,000 for a strata and at $500,000 for a freehold property, both of which have increased from the previous year.

Sun Peaks Resort (Sun Peaks, B.C.)

Canadian buyers at the Sun Peaks Resort come from around British Columbia and Alberta, while foreign buyers come from the United States, Australia and the United Kingdom. The area primarily attracts families who choose to settle in the area due to the presence of a K-12 school and medical centre (along with some retirees). Buyers are also attracted to the quality of snow on the ground due to the drier conditions. There is limited investor activity, with some condominiums and townhouses specifically zoned for short-term rentals. Prices start at $380,000 for strata properties and $759,000 for freehold properties, the latter of which has seen a considerable increase since last year.

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

www.gelderman.ca

Know someone moving ANYWHERE in the WORLD? Call us today--we know the BEST agents everywhere!!

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Office Phone: 604-743-7653