Real Estate Insider: June 2023
Posted on June 16th 2023 by Lalovich
Welcome back, Real Estate Insiders! We’re already into June and things are heating up: renters facing major challenges with low vacancy, the problem with single family zoning, problems with the Landlord Tenant Board, and much more. Go grab a coffee—let’s dive in!
When Interest Rates Are High, Returns Must Be Higher!
Does borrowing to invest with high interest rates make sense? Only if you do it right! Watch this detailed video on how to execute borrowing to invest even with high interest rates.
Should Canada Abolish Single Family Zoning?
While the population is booming due to immigration, the supply is busting. Not enough new construction is being started, let alone affordable housing. Would getting rid of single family zoning and letting people build the type of housing they want to increase density be the solution? This blogger thinks it may be the best start. Read more about the challenges the housing market is facing here.
Houses Are Not Boats
Wet basements are a very common and a very expensive problem. This $10 fix can solve the biggest issue leading to wet basements: keeping water away from the house!
Scary Low Vacancy Rates Are Leaving Some Renters With No Options
With the vacancy rate set to fall to 1%, renters are having a hard time finding and affording places to live. More units are in the pipeline but not expected to be ready until as late as 2025. With home prices and mortgage rates rising as well, owners don’t have much say either. Is there a solution in sight?
Read: Windsor Student Says He’s On The Verge Of Homelessness Because Of Soaring Rental Prices
You Can’t Spell “Wealth” Without “A”
Ancillary Structures are a great way to add additional inventory to a low density neighbourhood and generate wealth for years to come. Learn more about Ancillary Structures by watching this awesome video from Max Suites!
Is Your house Working Hard Or Hardly Working?
Read the three ways your primary residence could make you money!
Read: 3 Ways Your House Can Make Money for You
Being Self-Employed And Getting A Mortgage: Stuff You Should Know
Just because your net income is low due to write-offs—or because your income fluctuates—doesn’t mean it’s impossible to get a mortgage: you just need to know where to go! Read here on where to go to get a mortgage if you’re self employed and what paperwork you should bring with you.
Dammed if you Do, Dammed If You Don’t
Cash Damming is an intricate strategy that can theoretically pay down your principal residence faster while creating tax savings along the way. This strategy needs to be executed by a professional, but if you think you may benefit from it, read more here!
Read: Expert Advice: Rental Cash Damming 101
50% Of Married Couples Live Happily Ever After—The Other 50% Need To Read This Article
This blog explains what happens to your mortgage during a divorce, and why being a co-signed may be riskier than you realize.
Stock Market Versus Rental Property: Which Investment is Better?
This is an age old question with answers that vary by person. This blogger takes a technical approach, explaining why the stock market historically outperforms real estate investments over time when leveraged the same way. Don’t believe me? Read about it here!
B.C.’s Rescission Period Being Used As A “Mischievous Loophole”
This legislation was intended for homebuyers to get a chance to think through their huge financial decision, but like most things, people have found a way to abuse it to their advantage. Read more on why this policy was a “day late and a dollar short”.
Feds Need To Put Money Where Their Mouth Is!
The 2021 election had a common theme: make housing more affordable for Canadians. We are finding out in real time that talk is cheap, and housing isn’t! Taxes make up roughly 31% of a new home’s cost, and only a small fraction of that is being invested back into infrastructure to help with affordable housing.
Read: Time For The Feds To Put More Money Into Housing and Related Infrastructure
Is Being “Double Taxed” A Thing?
If you earn income in a corporation, you won’t be taxed twice when you take some out for personal use. If done correctly, you will actually save money on tax! Read here about the common misconception of being double taxed and how to avoid it!
Rich Versus Wealthy: You Can Have One Without the Other
Being rich and being wealthy are two separate things: you don’t need to have the highest income to generate wealth, you just need to focus on the fundamentals. Learn how the rich and the wealthy are not always the same, and the two items to focus on if you want to build long term wealth!
The Landlord Tenant Board Is Under Fire: Hopefully It Will Get Them To Move Faster!
A recent study revealed the LTB is fundamentally flawed in its operation, with significant changes being required to deal with Ontario’s largest housing affordability crisis on record. Read more about the ridiculous wait times and backlog of cases here.
