Focusing on being thankful...

Yesterday was Thanksgiving here in Canada.  As families and friends gathered to share food and conversation I ventured into the realm of what it is that I am truly thankful for this year.

Outside of the regular answers I normally give, great husband, good kids, my health and the health of our parents, etc, I thought about the other things that I take for granted.

Friends - One of the reasons that I think I am such a happy person is that I know I have great friends that love me!  They are the kind of people that you don't have to call every day or week, but when you do see them it is like old times all over again. We just pick up where we left off...I love this.  

Great neighbors - we really do have fabulous people that live around us.  Sharing their birthdays with us, bringing over Christmas baking and just general friendly waves to each other from the driveway.  I think it should be criteria when buying a house to ask the current owners "How are the neighbors?"  Truly they can make or break a great home.

Weather - yes, I do live in Vancouver or as some people refer to our region as "Raincouver", however it has been an amazingly wonderful August, September and start of October.  We even had all our doors open cooking our turkey yesterday and it was 18 degrees Celsius!  In Vancouver we rarely get snow, and mostly live in a climate that if it gets below -5 Celsius that is cold!  Our trees and grass is green most of the year and my husband has actually boasted that he has gone sailing, golfed and skied (in the mountains) all in the same day.  I love this city.

My home - I live in a single detached house in the Lower Mainland (just outside of Vancouver) and it is just the perfect size for our family of four with a dog.  We are always under a renovation of some sort (being married to a Contractor has it's pluses and minuses),  but really the house is ideal.  With comfortable interior, a park across the street and great access to walking trails, we have it all here.

I guess my thought behind this blog post was to reflect on what it is that we do and see each day.  Don't wait until something is gone to appreciate it.

"Be grateful for all that is in your life, for we only have but one!"

What are you grateful for?

Divorce...Through the Looking Glass

So your relationship is over?

For how long have you known this...5 minutes, 5 hours, 5 days/months/years?

The reality of divorce is that it is just that...a "reality check". 

I speak from experience as 10 + years ago I went through a divorce.  I was the instigator and the "bad guy", but I also think that I was the realist.  We had grown up and apart and I was done.

My kids were 4 and 2 years old and I was 30.  It was hard, stressful, scary and sickening, but in the end it was a HUGE character mirror for me.  I really saw what I had done up until that point as a blur, and I was moving forward for the first time with a sense of clarity that I hadn't ever felt I had experienced.  It was enlightening.

Since my experience I have talked to many other women and families about relationship breakdowns and I have found a common thread...Many of us plod through life, on the daily grind, forgetting to really stop and think.

As Melissa Carr of the Thirties Grind blog puts it..."Get up, go to work, raise kids, pay bills, sleep. Repeat".

This process can work for some people that have a solid relationship with a person who is like minded and can share in the daily duties, but if you live in a one-sided world, you may have considered, or are currently thinking about, the idea of getting out.

In the end, here is the reality check that I talked about.

Your life will change in the following ways:

1. Friends will disappear.
2. Money will become tighter more than ever before.
3. Kids will go through a multitude of emotions.
4. Parents will either help or hinder you (but there will be a strong reaction from your family one way or another).
5. You will see less of your kids (this may mean every other weekend or every other week).
6. You will have to share in the raising of your kids (new girlfriends or boyfriends will enter the picture)
7. You will have to deal with people who look at you differently because you are divorced (some bad reactions and some sympathetic)
8. You will have to advocate for yourself
9. You will have to learn how to: clear a plugged toilet, re-light the furnace, deal with auto mechanics and pay household bills.
10. You will have to put lots of "work" into things that may have been neglected (ie. your appearance, your job, moving out of your comfort zone)

In the end, the BIG lesson that I came away with is that life is really a wall of mirrors that you are forced to look at from time to time.  The good, the bad and the ugly are shown and your perception of who you are is everything.  Forget about what other people say and get to know yourself!

One final word of advice for parents going through a divorce: It is over for you, but your kids will live it forever, so don't talk badly of your ex-partner and learn how to get along.

Healthy kids are possible, but it is the early on lessons of who their parents are and how they treat each other that is everything!

Do you know of a positive divorce experience?  Please share...

Takes a Village...

We all come from somewhere and today my Dad has taken my two kids (12 and 14 year old) to his hometown of Trail, BC.  He goes back every year (sometimes twice a year), to see his old friends and their senior parents to "chew the fat".

I used to think it was strange to do this, but as I get older I think it is nice, kind and downright respectful to consider the people who helped raise you.  Really...let's face it, it does "take a village to raise a child".

As a kid I was raised in East Vancouver and boy was it a melting pot of people.  In my neighborhood there were 8 different nationalities on one block!  I used to joke that it was like eating at the food fair at the mall everyday going to a friend's house, but really it was.

As kids, we all got along and played together daily, and we spent time at each others homes, listening to different languages and participating in various customs.  It was needless to say, educational and amazing.  I know the person I am today is a direct result of the people that I was raised around, and I really am glad they were all there.

You see, in my world in the  70's and 80's you would have smelled Indian food, heard Chinese music, saw Greek flags and spoke English.  I believe that because of this I am tolerant, interested, and worldly because of my childhood surroundings...and I have many people to thank for this.

So now, as an adult, living with my own family and friends, I would encourage anyone to re-visit what made you into the human being you are.  I bet it was not just your parents, but your neighbors, teachers and friends parent's too!

Thank you to the following families (in no particular order): Wada's, Duncan/Wersta's, Chu's, Kardakaris', Sahota', Bauer's, Naidu's, Nixon's, McRae's, Tomei's, De'Arlieaveria's, Dosanj's...the list is endless.

Because of all of you I can cook a mean curry dish, say "poli-kala" sing a Chinese counting song, bowl, play softball, celebrate Christmas, Dhawali, Easter, etc., and show my kids the beauty of all of it in our Canadian house.   

Liz XO

Job vs. Personality...Are You In Your Dream Job?

Do you ever wonder if what you are doing for $$ is really your ideal job?

For many years I have worked, making good $$ along the way, and I have been fairly lucky with having jobs that I loved.  When I stopped liking what I did, I changed it. 


Musicians and artists often struggle with this as most of the time, what they love doesn't pay well, or is spurratic.  This is not good and should be re-worked to make it a lucrative job.

Many people have re-worked a job idea to include $$ making ideas to change up the way they are paid (think music or book downloads vs vinyl/disc or paper versions).  This is not only brilliant, but it will pay off in more ways than one. 

An ideal job should not feel like work, but rather a welcome challenge on a task/hobby you like to do, that someone pays you for.  

I urge everyone that reads this blog to assess your job:

1. Do you enjoy going to work most days?
2. Are you making enough money to warrant your working pay vs. daycare, transportation, clothing costs?
3. Do you go the "extra" mile if need be at work, or  do you require being asked/ordered?
4. Are you able to express your views in the workplace?
5. Are you able to be creative if necessary?

There are many questionnaires on the internet that you can take to find out your best job/field for you, but it is always best to find out what type of personality you are first to determine your ideal employment.  The Meyers-Briggs Test is an excellent test to take that gives you an accurate understanding of what you are good at, and where you would be best suited to work. 

I recently took it myself and found that it was correct for what I enjoy to do.  Now, I am considering adding to my $$ making endeavors to enhance my job and personal "loves".  Always changing, guess that is the Gemini in me :-).  

Keep in mind that kids born today will working in a job in 20 years that has not even been invented yet!  Use your imagination, ask your friends...

I recommend that you consider at least taking the assessment.  It may be a good place to start.

Get back to me with your experiences and/or thoughts.  I would love to hear what ideas and employment you have chosen to spend your precious time on. 

Vancouver goes Pop?

So here we are again discussing the real estate market and the common question that I am often asked..."what do you think the market will do over the next year?"

My answer most of the time is "I really don't have a clue" and the reason for this is that I am realistic and don't think that anyone really knows.

The strangest things have been happening to the market in the past 5 years and I think anyone who says they have it figured out is crazy.  No one can really be certain of anything today, least of all in real estate!

To list off some of the events that have affected the real estate market and for that matter, mortgage rates here are the following:

• Fall 2008 - American sub-prime mortgage crisis hits with eventual US government bail out
• 2009 - Worldwide banks affected by US economy
• March 13, 2011 - Tsunami in Japan that put a country to it's knees and eventually brought a major immediate need for lumber (hello, British Columbia?) - our natural resources in need = job stability and therefore people start buying houses.
• 2011 - Asian buyers love Vancouver and send the house prices in certain neighborhoods upward.
• 2012 - Announcement that CMHC was getting close to hitting their cap for spending allowed by the Canadian Government, therefore seriously affecting their offerings to the banks.

One of my favorite local bloggers here in Vancouver "The Thirties Grind" recently was interviewed on CBC regarding her thoughts on the market here in Vancouver as she often does blogs on the absurdity of the prices here.  We definitely agree on the idea that the market is really an abnormality here in Rain City. 

Anyway, my thoughts are if you need a place to live, and you can afford the payments with a half decent lifestyle, then why not.

The one solid piece of advice that I do have is DO NOT over extend yourself just to get into a house.  It is NOT worth your mental and physical health breakdown if things start to go sideways with real estate.

What are your thoughts on the Vancouver market?  Do you think we are in a bubble or not?

Pre-Approval or Rate Hold...what is the difference?

Due to the sheer size of content in this blog I have also created a vlog that you can watch on my channel on YouTube.

Everyday I speak to people about a mortgage and usually many are confused as to the different financial terms used within the banking industry.  A perfect example of this confusion is prior to purchasing a new property, the difference between getting a "pre-approval vs a rate hold".  Everyone tells new home buyers that they should "get pre-approved", but what does that mean, and how are you really to do this?

The difference in terms is vast and hence why I feel it an important topic to discuss.

Here is what typically happens...you wander into your bank to do some banking activities and you remember about that "pre-approval thingy" your friends/family have told you to get.  You ask the bank teller non-nonchalantly "what are your mortgage rates right now"?  Immediately you are told that it would be best to speak to a bank Mortgage Specialist and well, look at that, they can see you in the next few minutes!  You are escorted into an office and asked a series of questions about your income and debts (which many times most people cannot pull exact #'s from memory, or for that matter, remember their spouse's income & debts?)   From the information provided, they do up a quick "rate-hold" for you so that you don't miss out on that special deal they are offering.

You think you are "pre-approved" and this is where I say to you...Uh Uh Uh, MISTAKE, you only have a rate hold!

Rate hold's essentially are a guaranteed interest rate, for a typical owner-occupied property, that the bank is willing to hold for you for anywhere between 90 and 120 days.  The lender usually bases the rate hold on your total income, less your basic debts you have disclosed to the bank.  Problem is, there really has been no due diligence done to ensure that you actually qualify for this rate, or that it is for applicable the type of the property you are wanting to buy.  This could potentially be a real eye opener at crunch time, when you have an offer on a property and the bank is telling you, sorry, you actually you don't qualify for this low rate.   WHAT? 

There are many things that can cause a bank to deny your maximum mortgage amount that you thought you qualified for with a "rate hold".  Some examples are:

1. Your debt load has increased since you last spoke to someone regarding financing
2.  The property you want to buy does not qualify for the rate they held for you (i.e. rental property, mobile home, condo that has building envelope "issues", etc.)
3. The bank's lending criteria has changed and they no longer provide the type of mortgage you need (i.e. low down/0% down financing, self-employed stated income mortgages, etc.)

This is where people are shocked by the process and sometimes feel trapped into just taking whatever will work in order to not lose the house they have fallen in love with.

Now a true "pre-approval" is one where you sit down with a Mortgage Broker or bank Mortgage Specialist, with all your income paperwork proof (i.e. 2 year's recent tax returns or notice of assessment summaries, all your current debt information - car payments, credit card bills, etc) and you sign a consent form allowing the Broker to pull your credit report.

From this total package that is made up for you, the Broker can determine your credit worthiness.  This is so much more advanced for serious buyers, so that if you are actively looking to buy in the next 3 to 6 months, you know where you stand with your financing.

Many Brokers will also provide you with a written letter for your Realtor to see so that they know exactly what you can afford.  These pre-approval letters are time-sensitive (rates change all the time so the letter will typically have an expiration date on it).

Now some people ask, "why should I allow the Broker to pull your credit now"?   Well this is simple, really you don't want any surprises when it comes time to having the financing go through and it also offers you the ability to know if you need to clean up some of your debts before purchasing. 

I have many times pulled people's credit reports to find that there are things on there that they were not aware of on their credit report (i.e. outstanding child support payments, utility bills from 4 years prior, etc).  I have found that if you face things head on as soon as you are aware of them, you have a far better chance of improving your credit score to qualify for the best rate possible.

A BIG side note I would like to offer you regarding credit...if you go to the bank and have them pull your credit report it is called a "hard pull" or, in effect, will lower your credit score by as much as 5 points for up to 6 months.  If you go to multiple banks yourself to shop rates, and give each bank the permission to pull your credit score, you can substantially reduce your credit score and therefore mess up your good credit.  Many people do not realize this.  

If you go to a Mortgage Broker we do what is called a "soft pull" or a basic credit check that does not affect your score.  We can then use this credit score to share with multiple lenders OR to coach you on the best way to improve your rating.  In effect, a Mortgage Broker does offer you a far better way to shop for the best rates, without ruining your score and potentially your interest rate savings.

There are so many things to think about when buying, but having the proper information from the start with little to no surprises during the purchase process, can make everyone's life so much easier.

Let's face it, no one wants to have a last minute fiasco happen on one of the largest purchases you will ever make.  Spend the time to make sure you are prepared when the time comes and you find the perfect home!

Happy house hunting!

Liz
    

Rentals...mortgage helper or headache?

Everyone loves to make $$ or save $$ and recently I had an interesting conversation with a lady in regards to putting in a rental suite in her basement.

She retired last year and now is down to her pension and investment dividends as her income and quite frankly is worried if that is enough income.  She has been kicking around the "income suite" idea for a few years now, but has thought it not the best idea having a "stranger" living under her.

Problem is, her basement is HUGE and totally unfinished.  It is 1,500 sq/ft of prime real estate and if she doesn't put in a suite, she figures she should at least finish it to increase her property value.   

Big issue is the $$ needed to finish this area and hence her phone call to me.

She currently does not have a mortgage and dreads the idea of getting one.  This is where I came in with some financial tax facts that she never was aware of that may make this idea far more appealing than initially thought.

• Mortgage interest is not tax deductible on a principal residence property in Canada, however if you have a rental unit within your principal residence, you can claim the expenses related to the rental part of the building.   Canada Revenue Agency has a Rental Income Guide that explains the formula used under "Personal Portion".  

• Canada Revenue Agency will also allow you to write off 100% of the repairs and maintenance of the rental, so this is excellent in her case as she can update the suite and write off the entire renovation costs (check with your Accountant for more specifics).

For her taxes next year her Accountant will calculate her rental income collected together with her total income claimed, BUT they will now be able to offset her income with allowable rental expenses (i.e. a portion of property taxes, any maintenance costs, portion of property insurance, etc.).

This makes the rental suite option far more appealing as it offers a way of reducing her income tax payable with the expenses she can claim.

Also, rental suites:

1. Increase property value as a "mortgage helper" as most buyers are savvy to the idea of offsetting their housing costs with a renter.
2. Create a source of income from your home.
3. Help to offset your monthly housing costs.

Really this is an excellent way to use the extra space you have in your home that you would otherwise just have to pay for entirely out of your after tax dollars!

Trick is to get a good solid renter who is respectful and trustworthy.  That is totally another blog on how to screen potential renters, but you get the idea.

As I always say, when needing to increase your income, look around first and think about what you already have.  You never know, it may be something as simple as renting a room to a student.

Until next blog...

Liz