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S ines the Spotlight on
32 Issue #97 February 2021 www.sportsenergynews.comom
S ines the Spotlight on
Neighbourly Advice From Our Local Professionals
Neighbourly Advice Fr om Our Local Pr ofessionals
market. That’s it. connections vastly outperform someone with the
Max Ming
Weeks later, an unrelated story hit the best education and resources? There will never
TALENT
Investment Advisor news. Richard was a former vice chairman at a be a story like this in medicine, engineering, etc.
large investment firm, who declared bankruptcy These stories only happen in investing.” T ALENT
The Psychology of Money and was fighting foreclosure on two homes, one 1397 Brookdale Ave., Cornwall
For those who work with us, receive our newsletter, of which was 20,000 sq. ft. with a $66,000/month Housel explains this happens because investing
or follow our insights posts on social media, you mortgage payment. He was the opposite of Grace; is not the study of finance, but the study of how
may have noticed that much of our investment educated at Harvard, so successful he retired people behave with money. Investing isn’t simply
advice is based on behavioural finance and in his 40s to pursue other interests. But heavy what you know, it is also hugely affected by
controlling emotions. Here is an interesting story borrowing and other decisions did him in…the how you behave. Over the long-term, the most
by Morgan Housel from collaborativefund.com same year Grace left a fortune to charity, Richard important variable to investing success may also
about two investors who’s paths never crossed: stood before a bankruptcy judge.” be the only variable you can ultimately control: Collectors Edition
“Grace was an orphan at aged 12, never married, The author goes on to say that the purpose of your own behaviour.
no children, and lived most of her life in her one-bedroom house while working this story is not to say you should be like Grace
her whole career as a secretary. She was a lovely lady that lived a humble life. or avoid being like Richard, but it is to point out That is why one of our true values is acting as a
That made the $7 million she left to charity at her death in 2010 (at the age of that investing is the only field where a story like sounding board for clients. This means we offer
100) more confusing. Where did she get all that money? There was no secret this is possible. “Where else can someone with a second opinion, insights, and facts to help you
formula, just a humble savings and 80 years of compounding in the stock no education, no experience, no resources, and no become a successful long-term investor.

By Michael VanderMeer the table from other interested parties. $10,000 more than when originally presented
Broker 2. A buyer who is trying to bully in on everyone as a bully offer. Additionally, there was another
else’s chances might in fact pay more if they offer even higher than that one! This scenario
PREEMPTIVE OFFERS: WHY SELLERS have to compete with others’ offers. covers all three of my points about why not to
SOULD NOT ALLOW THEM 3. A realtor may tell you that you stand a chance deal with a preemptive offer. With that being
A preemptive offer is a polite word for a of losing that buyer if you do not deal with the said though, it is up to the seller to decide
bully offer. In a seller’s market, we generally offer, but I feel if the buyer wants the house that whether to deal with these offers or hold to the Cuyler
recommend that our sellers not deal with any badly, they will wait like everyone else. There original presentation date.
offers until a few days after the listing hits the are not many listings on the market right now Let it be!
market to give multiple buyers an opportunity and so it’s very unlikely that a buyer would walk Mike V.
to submit an offer. A preemptive offer occurs when a buyer has their agent away from a home they want. Do you have any real estate questions
submit an offer with an irrevocable time and day before the date set for In a recent sale on one of my listings, a bully that you would like answered?
presentation. This type of is an attempt to avoid multiple offers and assure offer was received. Although the offer was over Send them anonymously to mike@ Moli narao
that they purchase the home. asking and had no conditions, I recommended sportsenergynews.com and your
I keep seeing sellers/agents allowing preemptive offers, but in a seller’s that the seller not take it as we were getting a lot
market, I strongly advise against them as pointed out below: of action and interest in the property. The same question could be featured in an
1. Although they may be very attractive, you could be leaving money on offer came back in on presentation day and was upcoming issue of Sports Energy News.

would likely have defaulted on their rates over the course of the year. Not only did
By Brian Johnston payments, leading to more severe personal mortgage rates end the year lower than where
Mortgage Specialist and economic consequences. they started the year, they reached all-time

Looking Back: Bank of Canada’s COVID Response lows, with rates for most terms falling below
The Bank of Canada’s role in keeping 2.00%. And in December, HSBC unveiled
It’s safe to say that COVID-19 was the big the lowest mortgage rate in Canadian history, Char Lan Rebels
the country’s financial system liquid and
news maker for 2020. On the mortgage front, a 5-year high-ratio insured variable rate of
maintaining confidence throughout the year
one of the biggest themes of the year ended 0.99%.
was very important as well, evidenced by
up being the downward trend in interest rates.
the lowering of the key lending rate from Unstoppable Real Estate Market Jr “B”
The resilient housing market not only held
1.75% in February to just 0.25% by the end
its ground in the face of a global pandemic, Despite a plunge in home sales and a dip in
of March. Over the course of the year, the
but it continued to produce record-high house home prices in the early days of the pandemic,
Bank bought up tens of billions of dollars in
prices. Here’s an overview of some of the the real estate market quickly regained its
government bonds. By the end of October, footing, and by the fall was once again posting
year’s top stories.
the Bank had acquired $156 billion worth fresh price highs.
COVID-19 and Mortgage Deferrals of bonds or about 32% of the bond market, As of November, the Canadian Real Estate
The COVID-19 pandemic was indisputably the largest event of according to Governor Tiff Macklem. At the Association reported an average sale price of
2020, and one with far-reaching effects. One of the key reasons current pace, the central bank is expected to $603,000 (up 13.8% from 2020), or $481,000
Canada’s housing and mortgage markets held up so well is thanks control more than half of the country’s bond (+19%) after removing the high-priced
to the unprecedented response from the country’s mortgage lenders, market by the end of next year, according to markets of Toronto and Vancouver. With
including the mortgage deferral options offered by most of them. estimates by CIBC’s, Ian Pollick. housing supply ending the year at a record
At the height of the program, nearly 800,000 mortgages were in Mortgage Rates Reach Historic Lows low, prices are expected to continue with an
deferral. By December, the majority of those mortgage holders have
One very important impact for homebuyers upward momentum, albeit at a more moderate
successfully transitioned back to making their regular payments. It’s
was the steady downward decline in mortgage pace, according to forecasts.
clear that without mortgage payment relief, far more homeowners