How to go about securing the best return for your investment in Canada.
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The best RRSP investments 2021 + MORE Feb 24th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
EQ Bank review 2021 + MORE Apr 29th
Table of contents
Who is EQ Bank?
EQ Bank—quick review
How to make deposits and access funds with an online EQ Bank account
What you need to know about the EQ Bank Savings Plus high-interest savings account
GICs at EQ Bank
How EQ Bank’s international money transfers, powered by Wise, work
What.... More »
Buying ETFs in Canada Tool: The MoneySense ETF Screener + MORE Oct 20th
If you’re researching ETFs to buy, you’ve come to the right place. Below you will see the tables for different ETF categories, offering ETF options from some of the best ETF providers in Canada. We’ve included some helpful ETF asset class, geography, provider, tickers, as well as one-year retu.... More »
In a Slump? 4 Promotions Ideas to Bring in Restaurant Customers Oct 23rd
Being a restaurant owner or manager is currently one of the world’s most challenging jobs. A few months into the Coronavirus pandemic, most states imposed lockdowns and bans on sit-in dining were. As their customers stayed home, these establishments saw their revenues go into a steep decline.
.... More »
Six key concepts to help you weather the investment storms Jul 25th
The key to surviving the roller coaster ride of investing, writes investment adviser David Aston, is to maintain a balanced portfolio of quality stocks and bonds and to focus on long-term investing.... More »
Should you buy a vacation property?
– moneysense.ca
The benefits of owning a vacation property are obvious. A cottage, cabin, condo or trailer a short drive from your home can provide a quick weekend recharge. A property down south can serve as a regular vacation destination or extended winter stay for a snowbird.
There are many emotion-driven reasons for buying a vacation property, or not. I like to evaluate a property purchase from a financial point of view—and here’s how.
Say a property’s purchase price is $500,000. Whether you use cash, a mortgage/home equity line of credit, or a combination, there are other costs to consider. If you purchase with cash that you could otherwise invest at a 4% return (to use a conservative assumption), there is an opportunity cost of not investing that money. If you borrowed money, despite current mortgage rates being around 2%, over the long run the interest rate is likely to go higher. On a $500,000 property, there may therefore be an initial cost of 4%, or $20,000.
Property taxes, utilities, insurance, condo fees and maintenance could easily add another 2% to 4% per year in costs…
There are many emotion-driven reasons for buying a vacation property, or not. I like to evaluate a property purchase from a financial point of view—and here’s how.
Say a property’s purchase price is $500,000. Whether you use cash, a mortgage/home equity line of credit, or a combination, there are other costs to consider. If you purchase with cash that you could otherwise invest at a 4% return (to use a conservative assumption), there is an opportunity cost of not investing that money. If you borrowed money, despite current mortgage rates being around 2%, over the long run the interest rate is likely to go higher. On a $500,000 property, there may therefore be an initial cost of 4%, or $20,000.
Property taxes, utilities, insurance, condo fees and maintenance could easily add another 2% to 4% per year in costs…
