Some foreign buyers get break from tax they face on Vancouver real estate + MORE Mar 17th

I’m pleased to introduce a second stock picking method to the readers of my MoneySense blog. I’ll dub it the Climbing CATS approach in keeping with the cute pet theme. But the loyal followers of the Safer Dogs shouldn’t despair because I’ll regularly rotate between the two methods. As a result, my next blog will contain the Dogs, the following one will present the CATS, and so on.
The Climbing CATS strategy is based on a momentum plus value combination, which has been has been efficacious to us in the past. It starts with reasonably-sized Canadian firms and then focuses in on value stocks. Call them Cheap And Thrifty Stocks, or CATS, if you will. But it also looks for firms with strong relative momentum that have Climbed higher in recent times. Thus, the Climbing CATS strategy is born.
More specifically, when it comes to size we start with a list of about 200 of the largest stocks that trade on the TSX. We then narrow down the search to stocks that have low-to-moderate price-to-earnings ratios…

With interest rates certainly having bottomed in the U.S., we are at a key juncture in the bond market. The U.S. federal reserve has raised interest rates twice in three months, and two more hikes are expected this year.
All of this is to say it’s a challenging market for fixed-income holdings. In this environment it is imperative to keep costs as low as possible to preserve whatever returns these investments are offering. Fixed-income exchange traded funds (ETFs) have the edge in this regard.
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Investors then might welcome more low-cost options. So it’s worth noting that low-cost leader Vanguard (with BlackRock’s iShares hot on its heels) nearly doubled its lineup of domestic fixed-income ETFs in February, its first new offerings in the category since 2014.

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Roughly one in five of the 525 ETFs trading on Canadian stock exchanges are in fixed income…

(Andrew Rich/Getty Images)
It’s here again. Tax season, that is. Most savvy Canadians are sighing deeply and scouring the Internet— and the brains of their accountants— to answer questions and find (legal) ways to keep more money from the taxman. And of course, MoneySense is here to help. Our experts have provided the answers to plenty of your tax questions. See if any of your queries were asked below.
1. So what exactly is capital gains tax?
Capital gains tax applies when you sell a taxable investment—such as stocks, ETFs, or a rental property—for a higher price than what you paid for it. But not your entire profit is actually subject to the tax. Here’s what that means.
2. Can I avoid paying capital gains tax?
Ah, the golden question. No, you can’t entirely avoid paying this tax when it’s applied. That’s called tax evasion. But there are smart ways to pay less of it and strategies to keep more of your money. Luckily, if you’re selling your home (and it’s your principal residence), you can claim an exemption and not pay any tax on the sale of the house…

After the Prime Minister hits up Broadway. Michael Chong is “spotted” in Guatemala. Kevin O’Leary misses a flight. Niki Ashton backs away from Beyonce. See who’s up and who’s down in and around Parliament Hill’s corridors of power. And check out the rest of our weekly power rankings.
WHO’S UP:

JUSTIN TRUDEAU
The Prime Minister seemed to be at the centre of the international stage this week. He rolled up to a Broadway theatre to watch Come From Away in the same motorcade as Ivanka Trump, then conducted an exclusive interview with NBC’s Tom Brokaw. The week ended with Matthew Perry claiming on Jimmy Kimmel that he and a friend had beaten up Trudeau when they were kids. But he said he’d done it because the future PM was much better at sports, which is the childhood-trauma version of telling a job interviewer your worst fault is perfectionism.

MICHAEL CHONG
If his leadership bid doesn’t work out, the Tory hopeful could apparently try his hand at a career as a stock photo model…

A tax on foreign home buyers in Metro Vancouver is being changed to exempt people who have come to British Columbia as part of the provincial nominee program.
Premier Christy Clark says the exemption is aimed at helping attract skilled workers to the province, particularly in the tech sector.
The government brought in the 15 per cent tax last August in the Vancouver area after months of scorching house sales.
The exemption is available to people who purchase a principal residence in Metro Vancouver.
People who came to B.C. under the provincial nominee program and who purchased a principal residence on or after Aug. 2, 2016, will also be able to apply for a retroactive exemption.
The province is also making rebates available to foreign nationals who became permanent residents or Canadian citizens within one year of purchasing a principal residence.
To be eligible, those people must continuously live in the property as their principal residence for a full year.
The provincial government says 6,000 people arrived in B…