Page 12 - Sports Energy News, Cornwall, Issue No 107

12 Issue #107 December 2021 www.sportsenergynews.com

om Our
Advice Fr
Neighbourly Advice From Our Local Professionals
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By Brian Johnston segment as a growing concern, likely while.”
Mortgage Specialist responsible for helping to drive rapid This, in turn, creates added risk within
price growth. the market, Beaudry added. “That can
HOUSING INVESTORS DRIVING UP “A sudden influx of investors in the expose the market to a higher chance
PRICES housing market likely contributed to of a correction. And, if one occurs,
Over a quarter of all home purchases in the rapid price increases we saw earlier the damage can spread far beyond the
2021 were made by buyers who already this year,” said Deputy Governor Paul investors,” he said. “That’s because, for
own a home, investors in many cases, Beaudry in a speech this week. “In such a many households, their wealth and access
according to data from Teranet. The Bank case, expectations of future price increases to low–cost credit are tied to the value of
of Canada has highlighted this rising can become self-fulfilling, at least for a Continued on page 33

versus a rental property where your money consider the costs of these items over a
By Michael VanderMeer goes to a landlord. The second advantage 20-year period versus the condo fees
Real Estate Agent
is that IF you are mortgage-free, your taxes throughout the same period they are not
and condo fees are far less than your rent that different - the only big difference with
CONDO LIVING - IS IT RIGHT FOR would be. condo fees is that you pay the fees over
YOU? Some skeptics about condos will bring
Condos provide the security of home up the issue of monthly fees. Even if you time versus the larger bills you receive on
ownership without a lot of the obligations are mortgage-free, you are going to have some of the bigger items associated with
such as maintenance, repairs, grass cutting, a monthly expense. What these skeptics home ownership. The bonus of the fees
is that you have no grass cutting or snow
and snow removal. If you are a snowbird or travel extensively don’t consider is that even if you own a removal to worry about. As a homeowner,
throughout the year, condos are a worry-free home ownership - all home, you are going to have maintenance
you need to do is lock the door and take off. Even those who have fees. There is the day-to-day maintenance even if you do it yourself, there are some
summer cottages may want to take advantage of owning a condo of a home and the long-term maintenance costs to grass cutting and snow removal.
and only having to maintain one property during the summer. of a home. Things like windows, shingles, If you pay someone else to do it, the cost
Condo ownership is also a good investment over renting for a furnaces, and hot water tanks all have can easily exceed a couple of months’
couple of reasons. First, your property value goes up yearly a life span of about 20 years. When you worth of condo fees.

in the financial world. The word ‘savings’ spouse the successor holder, meaning
Max Ming P.Eng. CFP ® suggests cash in a bank account earning your account is re-named in the surviving
Financial Planner
minimal interest, where the true value of spouse’s name and remains intact. Or you
a TFSA is promoted when used as a Tax- can list a beneficiary which means the
The new Tax-Free Savings Account
Free Investment Account. TFSA assets go directly to the beneficiary
(TFSA) contribution limit for 2022 was Retirement Planning: Secondly, it is
released this month, and it is $6,000, important to understand how a TFSA can and do not flow through the estate (avoid
bringing the TFSA dollar limit from probate). It is also important to understand
fit into your retirement plan. Once you’re
$75,500 to $81,500. As such, this month retired, money from your RRSP/RIF, that in many cases, TFSA will be the last
we’ll highlight three under utilized aspects money you access in your lifetime (select
pension, and government benefits (CPP,
of TFSAs that we see. investments accordingly). One reason is
OAS, GIS) are all taxable income to you.
Investment Selection: The first is using ultra low interest (savings OAS and GIS specifically are reduced (or that when fully withdrawn (at death) a
account or GIC) products for TFSA accounts that are being eliminated) at a certain level of taxable TFSA withdrawal is not taxable, where
positioned to use later in life (5+ years away). The true power income each year. Withdrawals later in the balance of your RRSP is fully taxable
of a TFSA is cultivated when investing for the long-term. Money life have no effect on your taxable income, as income at death. Give consideration
put into a TFSA can be invested in almost any type of investment meaning any claw back of government on how that impacts your estate and
(including mutual funds, ETFs, stocks, and bonds). Decisions on benefits (and your overall tax rate) may be legacy plans. For most people these
how to invest TFSA money are very important, as the ability to minimized if planned properly. accounts should be considered a long-
capitalize on tax-sheltered growth and compound returns over Estate Planning: Lastly, it is important term investment with probably the biggest
long periods of time can really add up. Knowing this, you may to understand what happens to your potential for asset accumulation in your
agree that a TFSA could be considered the worst named product TFSA upon death. You can name your lifetime.

With our 2021 “Just Homes Listing Program”, Homeowners will never pay more than

3 3/4%+ HST commission which includes full weekly local newspaper

advertising until sold, internet promotion and even an open house program when needed.
Owned and Operated by M. Jean Cameron Real Estate Limited
Serving the Community since 1959
613-933-3283 The savings may not stop here. When we sell your home directly to a buyer
check us out on the web at: without another real estate brokerage involved in the sale, we further reduce our
www.soldsmart.ca
sandy@homesnet.ca commission to only 2% + HST
“Not intented to solicit properties already listed for sale”