Peggy Hill - Barrie Real Estate

The difficult economic environment of the past few years may have stalled your retirement savings plan—or maybe you haven’t even gotten around to creating a plan. And you’re not alone—43 percent of Americans had less than $10,000 saved in 2010.

The good news is that it’s never too late and with the right planning, you can retire comfortably no matter what your age. According to retirement planning specialist Derrick Kinney of Derrick Kinney & Associates, never think that you’re too old to start saving for retirement. As he explains, the years between your 40s and 60s represent a timeframe when many of the financial obligations associated with raising a family have decreased, allowing you to put retirement savings into overdrive.

Kinney offers the following tips for speeding up the process:

• Create a detailed catch-up plan

. Determining the amount of money you will need in retirement can be difficult. You must factor in the inflation rate, your retirement age, the longevity of your retirement and your expected expenses, including your increased medical costs. For obvious reasons, calculating retirement income can get complex fast, but there are online calculators that can provide an estimate. Plus, there are some widely accepted guidelines you can use as a baseline such as planning to live on 80 percent of your pre-retirement income. After you have determined the estimated amount of money you will need to save, use that number to create realistic, yearly goals.

• Redirect spending to build your savings.

Since you are beginning to save later in life, Kinney recommends you save 20 percent of your salary each month. Take advantage of online budgeting websites and smartphone apps that connect to your accounts and track your spending to determine wasteful spending habits. Cut out these habits and redirect the money to your savings account. Also, consider automatically directing any raises you receive to your savings account. You can't miss money you never touched.
• Buy the appropriate insurance. Statistics show that nearly 2/3 of retirees will need long-term care either at home or through an assisted living facility and the cost can be upwards of $50,000 annually. To ensure skyrocketing medical costs won't destroy their financial security, retirees should consider purchasing long-term care insurance as well as health insurance, says Kinney. It's important to realize long-term care insurance does not cover the same day-to-day medical expenses that health insurance covers and if you retire at 59.5 you are on your own when it comes to providing health insurance. Retirees may also want to consider buying life insurance if they have dependents.

Following the above three steps can put anyone on the path to a more secure retirement, even if you're in your 40s, 50s or 60s.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about the Barrie real estate market or this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill

The Canadian Mortgage and Housing Corporation (CMHC) recently released their first quarter 2012 publication which gives us some insight into the state of the market at the end of 2011 and some shifts in the market which indicate changes to come in 2012 for the Barrie real estate market.

There are three main conclusions that the CMHC has drawn from the close of business in 2011. (1) New home starts shifting from single-detached to higher density dwellings, (2) An increase in existing home sales and (3) Barrie's real estate market continued to remain balanced.

(1) Higher Density Home Starts Increase

New constructions has shifted away from single-detached homes and towards higher density dwellings such as rows or apartments. According to CMHC the ratio of single-detached homes to total starts has been trending down since 2007. This downward trend indicates that Barrie is becoming more urban. It is also due to an increase in demand from both aging baby boomers and cost-conscious younger buyers for more affordable high density homes. This is not the case however in Innisfil and Springwater Township whose markets have only seen a slight decrease in the ratio of single-detached starts to total starts.

(2) Existing Home Sales Increase

The price gap between new home sales and existing home sales continued to widen in 2011. The average price of a new single-detached home in 2011 was $418,000 and the average price of an existing home in 2011 was in the range of $282,000 to $249,000. Because of this price gap some buyers looked to the existing homes in order to save on cost.

(3) Barrie Market Remains Balanced

As a whole in 2011 the Barrie market saw steady sales activity and flat new listings. This pushed the sales to new listings ratio higher but still within that of a balanced market. Homebuyers in 2011 remained cautious and most focused on homes with lower price tags. Mortgage rates remained low and full time jobs continued to increase giving buyers the security they needed to enter the market. Sales increased faster than new listings which indicates that first time buyers also returned to the market.

Please feel free to contact me any time to learn more about the Barrie real estate market and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill

Thanks to our friends at Dominion Lending Centre www.MortgagetAndLifestyle.com we have an update for you on mortgage rates:

Rates remained the same on both fixed and variable mortgages this past week. Bond rates continue to be extremely low and stable. We are seeing 5 year mortgages in the 3.09-3.39% range and variable rate mortgages as low as prime -.2%. The 10 year fixed special still seems to be the best deal out there at 3.89%.

Today's rates are historical lows, making now a great time to buy or refinance.

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.25% or more, It might be beneficial to explore refinancing to a lower rate. Bank prime is at 3.00% and the next meeting of the Bank of Canada is on March 8, 2012.

Why is it a Good Time to Buy?

• Mortgage Rates are at historical lows - 5 year fixed rate mortgages at approximately 3%
• Canada has a lot going for it - A stable banking and political environment with a steady real estate market
• Immigration - Because of the economic climate in Canada many people (often wealthy) look to immigrate here. They all need homes when they get here and this will help to ensure that the real estate market in most urban centres will remain strong

Before making a decision to buy you should always sit down and figure out what you can afford on a monthly basis. Make sure that it's a good time for YOU to buy.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about the Barrie real estate market or this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill

When it comes to improving your financial picture, small steps can yield big gains. Whether you’re saving for a down payment or dealing with increased expenses having just moved into a new home, the following tips from SWparents.com are great ways to save money in a variety of areas. Start today and you’ll quickly notice the positive impact on your bottom line:

1. You’ve probably heard this since you were a kid, but really…turn off all lights when you leave a room. Train your kids—usually the worst offenders—to do the same.
2. Have an honest conversation with yourself: If you haven’t used your gym membership in more than six months, cancel it. You can always rejoin and probably take advantage of a better deal when you do. Some gyms will even offer to “freeze” your membership, allowing you to pick back up after a certain period of time.
3. Save Starbucks and the like for a special treat. If you buy a $4 coffee five days per week, that’s $80 per month. Record your coffee-buying expenses for a month and see what your own personal damage is…then adjust accordingly!
4. Ditto for lunch. Even grabbing a burger at a fast-food chain adds up. Start packing your lunch instead. An easy way to accomplish this is by cooking extra at dinner or on the weekends, then packing lunch-sized portions in advance. If you’re banking on making lunch during the morning rush, odds are you’ll run out of time and end up buying lunch instead.
5. Do everything you can to increase your credit score. You will save tens of thousands of dollars in interest from any loans you have simply by having a better credit score.
6. Call every company you have monthly bills with and ask exactly what you are paying for each month. You will be surprised how many hidden fees are mysteriously added to your bills. You will never know this unless you ask.
7. Consider paying interest-bearing loans twice a month instead of once a month. You might be able to knock thousands of dollars off your total bill. Arrange automatic payments with your bank on the first and the 15th of each month.
8. Don’t leave the water running while brushing your teeth or shaving in the shower.
9. Odds are you can reduce your cable bill. With the plethora of options for on-demand and online viewing, chances are you no longer need 200 channels and three DVR boxes.
10. Buy anything and everything you can from second-hand stores. Second-hand doesn’t have to mean poor quality. In fact, most people donate items to these outlets because they are unused or hardly used, making it wasteful for them to be disposed of. Utilize this strategy with kids, who grow out of clothing and shoes at a rapid rate. Many teens also love shopping at second-hand stores where they can get the most bang for their buck, along with vintage or retro items.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about the Barrie real estate market or this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill

We’ve all heard horror stories about the remodeling project that needs to be torn down or redone because it didn’t live up to code. While many believe that investigating building codes is too confusing, time consuming and costly, the consequences of not getting the necessary permits before starting a construction project are both upsetting and expensive.

Securing a building permit before you start planning a renovation can also prove critical should you sell your home in the near or distant future. Potential buyers could request proof of permit for that room above the garage you added. Not having one is a risk most buyers wouldn’t want to absorb.

Building codes were designed to set public-safety standards for things like construction, maintenance, use and occupancy. Codes address all aspects of construction, including structural integrity, fire resistance, safe exits, lighting, electrical, energy conservation, plumbing, ventilation, and correct use of construction materials.

In order to make a change to your property, you need a permit that states your renovations coincide with all applicable building codes. Permits may be needed to cover projects such as the installation of foundations and sprinkler systems, the addition of a porch or deck, changes to driveways and room additions. These codes are modified often, and established and enforced by government officials or politicians. Enforcement tactics can include denying permits, occupancy certificates, or imposing fines.

Codes vary with location—each state, county, city and town can have their own specialized codes for things like electricity, plumbing, construction and fire. Typically, each code or permit requires separate inspections and inspectors. Inquire with your city hall to find out the correct department and process for securing permits.

Some homeowners avoid securing a building permit to avoid a potential increase in property taxes should the renovation result in an increase in the assessed value of the property. However, the extra precautionary step is vital and ensures you won’t suffer from repercussions such as hefty fines, or having to tear down your new deck due to improper construction or zoning. Taking the time to check on your local building codes and obtaining a permit will help ensure your renovation project goes smoothly.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about the Barrie real estate market or this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill