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32 Issue #101 June 2021 www.sportsenergynews.comom
Neighbourly Advice Fr om Our Local Pr ofessionals
Neighbourly Advice From Our Local Professionals
WHY IS THIS? that they will have a joint life expectancy
Max Ming
Investment Advisor At the core of most of our plans is the of nearly 30 years (meaning the second
question, how long do I plan for? We need person would pass at 92 years of age). This
HOW LONG DO I PLAN FOR? to remind you that you aren’t planning for is a long time and something that we need

In our last column we looked at Life your parents’ (or grandparents’) retirement. to be aware of.
Insurance and what happens financially if Life expectancy has taken huge steps
you die prematurely. This time out, we want forward in the last 50 years and continues If we assume even a 2% inflation
to be much more optimistic and find out to do so. Most people’s key financial (historical low), the cost of living would
what you should be aware of, if, like most of challenge when managing their retirement basically double in 30 years. This means
us, you live a normal comfortable life. income and investments is not a temporary that what costs you $100 today will cost
As advisors, we talk to our clients a lot about why they need to loss of principal, but the slow and steady $200 (or more!) later in retirement. Make
think long-term. This includes emphasizing the need to be more erosion of purchasing power over what sure you have a plan to increase your
concerned with having a plan to generate an income (that will keep could be many decades of retirement. income as much as your living expenses go
up with inflation over decades) rather than with any short-term For instance, take a non-smoking couple up in retirement. This remains an essential
fluctuations in the financial markets. who retires at 62 years of age. Stats tell us part of our portfolio construction.

By Michael VanderMeer Another concern would be trees being or in the near future. Then, there are the
Real Estate Agent too close to your septic system - the roots leaves in the fall - it can be a lot of work
can ruin your bed, and this is one of the keeping your yard clean and the more trees
TREES & HOUSES - A REALTOR’S VIEW
Most people buying a home like a most expensive items to replace in a home. you have, the more work it is. As for me,
nice, treed lot but they do not pay enough Roots can also play havoc on certain sewer I have lots of trees on my lot and find it is
attention to the trees on the lot and where pipes with municipal sewers as well. Trees well worth the work in the fall.
that are too close to fences and property The next time you are purchasing a home,
they are located. There are many things to
consider when buying a home with trees on lines may be problematic now or in the you will want to pay a little more attention
the property as they can be very expensive to have then removed if future as they mature. Trees overhanging to the trees on the lot to see if there could
they start causing problems. on neighbouring properties could affect possibly be any future problems. If you
One of the major concerns is trees being too close to a house. their outbuildings and fences. are a homeowner with a treed lot, you may
The upper branches can extend out over your roof, possibly You also want to consider the age and want to assess possible damages that your
causing damage to your shingles and the roots can cause damage health of the trees on a property as this trees could cause and remove them before
to your foundation and weeping tile system around your home. could also lead to expensive removal now you get into expensive repairs.

The new minimum qualifying rate of 5.25 The market reaction once this round
By Brian Johnston percent will sap the average household’s of tightening is in place is also of great
Mortgage Specialist
buying power by about four per cent, or interest to homebuyers, with many finding
MORTGAGE STRESS TESTS ARE a little more. If you previously qualified themselves priced out of the market, as
GETTING TOUGHER for a $500,000 mortgage, that amount was cheap money and high demand sent prices
Canadian homebuyers will face a reduced to around $479,000 on June 1. soaring during the pandemic. Some buyers
tougher mortgage stress test starting next That said, it’s an incremental hurdle are holding back in hopes of a “post-rule
week, one that will reduce their buying for homebuyers who were already facing change housing slowdown.” The June 1
power and possibly contribute to a cooling a stringent stress test with the current tightening of the stress test comes with
of the market that’s already in progress. minimum qualifying rate of 4.79 per housing markets already showing signs
And while new regulations often create cent. This piggybacks an already very high of calming down. Earlier this month, the
a rush of buyers looking to get in ahead of a rule change, a rush of qualifying rate with a modest increase. Canadian Real Estate Association reported
activity has not been seen this time round. This change is a lot less significant than the number of homes changing hands fell
“Most people in the industry expected to see a very frenzied the one in 2018, so there was not as big a 12.5 per cent from March to April.
couple of months before June 1, but we haven’t seen that,” said rush. The tightening of mortgage rules in I believe that the higher qualifying rate
Joanne Bryan-Tyrell of Upper Canada Mortgage. “There were 2018 did set off a rush to buy, given that will further contribute to this trend, which
certainly some buyers who were eager to buy before the rule homebuyers saw their purchasing power should see the market move from what is
changes, but the mood in the market is definitely far calmer than reduced by some 20 per cent in that round still a tight seller’s market to one that is a
what we expected.” of changes. bit more balanced.