Taren Gesell

Condo sales across the GTA and Hamilton area continues to struggle with sales in Q2 down 70% from the 20-year average and 66% from Q2 in 2023. Out of all of the launched presale units in 2Q2024, only 17% sold! Due to the lack of sales, there are now over 25,000 units for sale – it seems sellers have not adjusted their expectations down to where demand sits. There are an estimated 10,000+ units being completed in the second half of this year, adding to the supply-demand imbalance. From the Globe and Mail: “In Toronto, the average price per square foot was $1,529 in the quarter ended in June, according to Urbanation. That is more than double the $606 price per square foot in 2014. In the regions surrounding the city, the average price per square foot was $1,153 in the second quarter of 2024, compared with $484 in 2014.” Would you pay over $800k for a 550-sq. ft. condo? To me, that’s a tough value proposition. If you had 20% to put down on that condo, say you got it for $800k even, your mortgage would be $640,000. At 5%, that puts your monthly payment at over $3,700. Plus condo fees, plus taxes, plus…etc… you’re well over $4,200 per month. Compare that to the average monthly rent of a one-bedroom of ~$2,500. The natural justification is that you’re not building any equity while your rent. Note that almost ¾’s of your mortgage payment goes to interest, not equity, for the first 10-years. For renters, you can take that difference ($4,200 - $2,500 = $1,700/mo.) and save/invest it. This simply suggests that prices at these levels are tilting the math towards renting.

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Why private investments in Canada are booming right now and what you should know about them.

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The Worst LIE: Young People Prefer A Lifetime Of Renting Yeah, it's insanity but it keeps popping up lately: lifetime renting could be a "lifestyle choice" Calgary Mayor Jyoti Gondek thought "travel" & "mobility" makes home ownership unnecessary Toronto Star article today We will certainly see more of this utter foolishness moving forward It's the perfect lie to take Government off the hook for the disastrous state of Housing in Canada It tries to legitimize the hellacious imbalance between Boomer Real Estate wealth at young peoples expense It's actually a crap lie: these BS Artists should have done their homework & dreamt up a better distraction from the failure to rebalance the current Housing disaster in Canada I have a suspicion that with New Homes to BUY Construction Starts falling off a cliff in Canada And Purpose Built Rental construction surging that promoting Lifetime Renters represents a idiotic twist that tries to validate these trends Young people would absolutely PREFER to buy homes they just can't due to Insanely Crazy House Prices & high rates in most of Canada Why? Same reasons as always: - To live in a home a Landlord cannot throw you out of - To be able to change the home to your liking - To eventually pay off the mortgage & be payment free in retirement Simple true obvious stuff Let's call the "May prefer to Rent" the lie it is - Ron Call Butler Mortgage TODAY for more information and insight into this ever-changing market! We are here to help! 1-877-568-9255

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A penalty in hockey is bad. A penalty on your taxes? Even worse. No one likes sitting in the penalty box – it’s time lost, momentum killed, and it gives your opponent an advantage. The same can be said for tax penalties. While a hockey penalty might cost you a game, a tax penalty could cost you a lot more. Just like in hockey, avoiding penalties when it comes to your taxes requires careful strategy and discipline. Some of the most common tax penalties happen because of simple mistakes that can easily be avoided. For example, filing your taxes late can hit you with a penalty of 5% of your balance owing, plus 1% for each month your return is late. That’s like taking a high-sticking penalty in overtime. Another common mistake? Underpaying your taxes or failing to report income. It’s like leaving your net wide open for the other team to score. The Canada Revenue Agency doesn’t let these errors slide, and they can lead to hefty penalties and interest on the amounts you owe. So how do you stay out of the tax penalty box? 1. File on Time: Even if you can’t pay the full amount right away, file your return on time to avoid the penalties. 2. Report All Income: Whether it's from a side hustle, investments, or hockey coaching gigs, be sure to report every dollar. 3. Plan Ahead: If you know you’ll owe taxes, start saving throughout the year so you’re not caught off guard when the bill comes due. 4. Work with a Professional: Just like a coach helps keep your game sharp, a tax professional can ensure you’re on the right track, helping you avoid costly mistakes and maximizing your tax savings. Avoiding penalties isn’t just about following the rules – it’s about keeping your financial game strong and protecting your hard-earned wealth. Just like on the ice, a disciplined approach can make all the difference between winning and losing. Have questions about your tax situation? Drop me a message.

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What you need to know about the Bank of Canada’s latest rate cut. Josh Nye, Canadian Fixed Income Strategist, shares three key takeaways.

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Thinking of retiring early? Taking CPP before age 65 results in a permanent reduction of your monthly benefits. For every month you take CPP before age 65, your benefits are reduced by 0.6%, which amounts to a 7.2% reduction per year. If you can comfortably support yourself without early CPP benefits, delaying might be beneficial. We can help you assess your current and projected financial needs; there is no one-size-fits-all answer.

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The Canada Revenue Agency has announced a 1% decrease to the prescribed annual interest rate on amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. These rates will be in effect from October 1st to December 31st, 2024. The interest rate on amounts owed to CRA will be 9% and the amounts owed by the CRA to corporations will be 5% and to non-corporation and individual taxpayer overpayments will be 7%.  Also included in this announcement was that the interest used to calculate taxable benefits for employee and shareholder low interest loans will be 5%. #seaglasswealth #CRA #taxes #intheknow #keepingyouinformed https://lnkd.in/gK__4Rzb

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Thinking of selling before the June 25th capital gains tax hike? Remember to include any major improvements you’ve done to your cottage or rental property. This affects your adjusted cost base and will reduce the amount of tax payable on your capital gain. A capital gain is the selling price minus the purchase cost, acquisition costs and the amount spent on improvements made while you owned the property. This combined amount is called the adjusted cost base.

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If you’re in the market for a property with duplex potential, this listing in Hamilton might be just what you’re looking for. Located at 358 Guelph Street, this home has a solid structure and a spacious layout, providing a fantastic opportunity for investors considering a duplex conversion. https://lnkd.in/gbHat7eR Mortgage Options First Time Home Buyer https://lnkd.in/g2Gp8mi3 Note: For First Time home buyers you can plan out your closing costs and monthly expenses as well. Investment Rental Property: https://lnkd.in/gdFrbVdU Note: Cash Flow Analysis: The app can calculate rental income and expenses, allowing investors to determine the net cash flow from a property. Note: The mortgage option report provides a detailed breakdown of the total monthly costs for purchasing a property. It includes the following: - Purchase Price - Down Payment Amount - Property Tax - Condo Fees - Mortgage Amount - Interest Rate Used - Term and Amortization: - Balance at the End of the Term If you want to use my APP to help you compare options you can download it using this link below. https://lnkd.in/g_qXGks6 Here’s why this property stands out: 1. Location: Situated in Hamilton, an area that’s experiencing growth and development, this property is in a prime spot for rental income and appreciation in value. Proximity to amenities, public transportation, and local businesses adds to its appeal. 2. Structure and Space: The existing layout offers ample space, allowing for creative configurations when converting into a duplex. The high ceilings and traditional architecture can be transformed into a modern and efficient duplex while retaining some original charm. 3. Investment Potential: With the rising demand for multi-unit properties, a duplex conversion could yield significant rental income. As the rental market in Hamilton continues to grow, there’s a strong potential for steady cash flow and long-term value. 4. Customization Opportunities: Since the property requires some updates, you have the flexibility to design the duplex to suit your preferences and attract desirable tenants. Whether you focus on upscale finishes or budget-friendly renovations, the possibilities are endless. If you’re interested in exploring this opportunity further, take a closer look at the listing and consider arranging a viewing. This property could be the start of your next investment success story. Nicole Vandervelde

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I recently shared insights with The Globe and Mail on the importance of a close advisor-client relationship—especially for vulnerable clients. A trusted advisor who knows your financial habits can better protect you when red flags arise, something that’s harder to achieve in larger institutions where advisors are stretched thin. Choosing an advisor who can offer personalized guidance is an investment in both your peace of mind and financial security. #FinancialPlanning #TrustedAdvisor #ClientProtection #WealthManagement #FinancialSecurity #PeaceOfMind

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Let's talk about one of the most tax-efficient estate planning strategies available in Canada - Insurance within a Corporation The last two weeks we have covered estate planning topics for Holding Companies (Holdco's): 1) 3 layers of taxes on your Holdco when passing the assets onto your heirs 2) Estate Freeze to get future growth in the hands of your heirs The reason life insurance in a Holdco is so efficient is that the entire amount of insurance proceeds (death benefit less cost base) creates Capital Dividend Account (CDA) room. This CDA room is what your heirs can use to pay out as a tax-free dividend. The trick here is to size the expected net insurance benefit to offset the tax bill to preserve the value of their inheritance, rather than giving part of it to Ottawa. Just like a personal WL policy, we usually see the policy premiums funded with money that you're never going to spend personally – it would all be going to your heirs anyways. Due to the very unfavorable triple taxation of leaving corporate assets to your heirs, the fact that WL proceeds can be ripped out tax-free makes their after-tax returns extremely compelling.

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Why does it matter whom you name as the executor in your will? Oftentimes the person named for this is usually someone convenient – your surviving spouse, sibling, parent or child. While this is usually a sensible choice, it may not always be the best one When naming an executor, here are four points you may want to consider - Availability – at the beginning of the settlement of an estate, an executor will be faced with sudden and intense demands on their time. A good question to ask is whether you would be able to give up a large portion of your available time for the next 6 months - Complexity – depending on the size of the estate, settlement of an estate becomes less and less simple. Issues could be in the form of business succession, tax planning and family law among others - Competency – a basic grasp of financial concepts will be helpful to start the process, however an executor should be ready and able to learn new concepts quickly in their role to be able to make the decisions necessary in the settlement of the estate - Relationships – just like anything involving money, it is not just about the numbers but the emotions that come with it. This is where qualities like impartiality, objectivity and fairness become extremely important Given the work involved, it would be advisable to talk to the person you have named ahead of time to better manage expectations and make sure it is a responsibility they are comfortable taking on. If you need a helpful checklist to facilitate the conversation, comment below or message me directly Comment below with thoughts and questions For more information on these and other planning strategies, please message me separately #willplanning #estateplanning #financialplanning

🏖️ I had clients who sold a vacation property last year.  The property's value had increased significantly in the previous 15 years, and they had a significant capital gain.  They still had to pay in April, even after contributing to RRSP and other tax planning measures.  📜 They recently received a notice from CRA suggesting they pay quarterly installments.  Here are some points on instalments:   🤔 CRA assumes that you will have the same income this year as last year, and the instalments are a way of receiving revenue from you throughout the year.  If you don’t sell another property this year and your income returns to what it was, your overall tax owing would be less than the previous year.  CRA has an installment chart that will help determine if you will owe anything at the end of the year. 😳If the notice is a suggestion, you can elect not to pay the installments but be warned of the consequences. 🤷‍♂️ What happens if you don’t pay the instalments?  If you don’t owe anything at the end of the year, then nothing.  You paid the correct amount of tax throughout the year.  If you do owe, you will be charged interest and penalties.  The current interest rate charged by CRA is 9%.  🙈 What happens if you pay them and it turns out that you didn’t have to? You will get a refund when you file your taxes for the year for the extra tax you overpaid. I have been told by several accountants that CRA doesn’t pay interest to you on instalments. 🚀 I am noticing that with the rise of GIC rates in 2022, clients are having higher interest income, causing some to make quarterly or higher quarterly payments. I would highly recommend paying the instalments if higher investment income is the reason for them. 👉 CRA requires you to pay instalments if you owed over $3,000 last year and over $3,000 in either of the two previous years($1,800 in Quebec).    🤝If you have to pay, it is worth talking to your accountant and planning around it. #cra #instalments

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