Canadian Economy Improving Slowly For the Season

Canadian Economy Recovering

First Published Date: December 19, 2009

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Dec 19, 2009

Canada is among the countries that are seeing an upswing in the economy, with spending up and unemployment down since last year. Canadians are expecting the economy to continue improving since the recession that lasted for three quarters.

Home sales are up for the first time since last year, with an increase of up to 73%. Experts are hesitant to say that the rising prices of homes are a permanent change, however. There are some who worry that the exponential price increases are going to last for only a short period, and that the current real estate market is simply a bubble. New cars sales are among the factors that show the economy is improving.

New car sales have risen over three percent since September, and while sales are still slightly below average they are consistently improving on a monthly basis. There is some controversy over the rising levels of debt among citizens, who are now taking advantage of the lowered interest rates that have been put into place through government initiatives to help fight the recession. Citizen debts are now at an all time high, and even though the numbers of bankruptcies are down by over 27%, there are fears that debt may be increasing too much for citizens.

Despite debt concerns, most business owners remain optimistic about the future. In fact, nearly 70% of business owners are expecting to see an increase in business over the next year. With unemployment down by 8.4%, the business owners have good reason to be optimistic. Canada has experienced an influx of over 30,000 jobs in September alone, providing relief just in time for the upcoming holiday season.

Among the factors influencing the economic recovery in Canada is international trade. US automakers have begun to supply Canada with a fresh stock of automobiles, which have become less readily available since the recession began. Some experts feel that the relief is temporary, and see the unemployment rates rising again in the near future. Others have predicted a trend that will lead to further economic improvement in the country, with expectation of 2.6 percent growth in 2010, and 3.9 percent growth in 2011.

The Canadian and US economy are very closely tied, since the US is Canada’s number one trade partner. The improvement in the US automobile industry has helped to improve the Canadian economy, but there are also trends in the US that will predispose the improvement of the Canadian economy over the next two years. The US economy has been improving, and the impact will be positive for Canada, as well.

Among other factors that are improving the Canadian economy are stimulus spending, an increased budget for infrastructure, and lowered interest rates which are at an all time low. Canadians can expect to see stimulus spending remain steady throughout 2010, which will improve the economy further. The lowest unemployment rates won’t be expected until 2011, although they have continuously been falling and are expected to remain under nine percent throughout the next two years.

Real Estate in Australia

Real Estate and Property in Australia

First Published Date: June 11, 2010

Australia is one of the most beautiful countries in the world, and it is a common tourist destination. Some travellers go to the country so often, that they begin to think about actually moving to Australia, or buying property that they can go to for a few months each year.

It is not hard to see why Australia is so popular among travellers and potential foreign homeowners. The country, completely surrounded by water, is the sixth largest country on Earth but only has a population of 22,000,000. Australia is also one of the best places to live on the planet according to several studies:

·    The United Nations Human Development Index ranked Australia second in the world, behind only Norway, in terms of Life Expectancy, Education and per-capita GDP.

·    Transparency International ranked Australia eight overall in terms of the level of corruption in the country. This means that Australia is one of the least corrupt countries on the entire planet.

·    The United Nations Education Index ranked Australia first in the entire world in terms of the level of and quality of education within the country.

All of these things come together to make Australia an excellent place to live, or vacation to for months at a time.

Most people buy homes in Eastern Australia, which is where most of the larger cities are located. The interior of Australia is known for its extensive desert, often termed the Outback by those in Australia and outside of Australia. If you are planning on moving to Australia from a foreign country, you will most likely be looking along the coast, or in the major cities. Currently, the three major hot spots for foreigners purchasing properties in Australia are Sydney, Melbourne, Perth, as well as Brisbane and the Gold Cost. These are popular tourist destinations and with the current economic downturn around the world, real estate prices within Australia have fallen, making some larger homes much more affordable.

That being said, homes are still expensive because Australia has seen its housing market rebound impressively. The average prices for homes in Australia are:

·    Sydney:  $577,000

·    Melbourne: $492,000

·    Perth:  $475,000

·    Brisbane: $452,000

If that is more than you can afford, you may look at sharing the property with someone who lives in Australia, who you can use to help pay the mortgage when you are not using the property.

If you live overseas and are not a citizen of Australia, you can only purchase property within Australia that is Off the Plan, New or is vacant land that is going to be developed within the past year.

Property values in Australia will often move up and down in cycles. When property prices go up, it is typically during times of high economic prosperity. As we saw in 2009, when the market was suffering significantly, the housing market fell dramatically in its prices. However, once again, it moved up as time went on and the world moved out of the recession that was gripping it.

If you are thinking of buying real estate in Australia, there are two main methods. These methods are buying at auction and buying through the conventional manner.

·    Buying property in Australia through auction requires a 10 percent deposit available the day of the auction. It is important to remember that if you buy a home in Australia through auction, the deposit is non-refundable, even if you change your mind. This is why it is highly important that you have someone visit the property for you to determine whether or not it is the right place for you to move to. You do not want to buy a home that is in bad shape, as you will end up paying more to fix up the home than you would have if you just bought the home through conventional means. Inspections are always important because they will find things that you may not.

·    Buying property by conventional means in Australia, you pretty much go the same route as you would in any other developed country. You will find a property that you like, put in an offer and if the offer is accepted, you will have the home inspected and then you can move there. If your offer is accepted, you need to pay a holding deposit while the Contract of Sale is being produced. Your holding deposit is completely refundable during the period when the Contract of Sale is being drafted. The Contract of Sale in Australia will outline all the conditions and restrictions of the sale and usually you will pay a 10 percent deposit that is not refundable. In terms of fees, you will typically pay about five percent on the purchase price as well as mortgage arrangement fees and legal fees.

Australia is a stunning country that gets lots of sunshine, is very safe to live in and has a high standard of living. Thousands of people every year decide that they want to leave their cold countries and live in a place where the sun always shines, the people are friendly and the ocean is everywhere. People who love relaxing on the beach, surfing, or just checking out amazing natural sights choose to go to Australia. They may not live there all the time, but they do live there some of the time and they cannot be happier.

As a foreigner, you do have to go through a few hoops to purchase the property but generally it is much easier to buy a property in Australia than it is anywhere in places in Southeast Asia. For many, buying a property in Australia is a better alternative when you want to live in the South Pacific, without moving to developing countries like Thailand or the Philippines.

So, why not think about moving to the Land Down Under, where the sun shines and the surf is nice and warm.

Do You Really Need That Extra Credit Card?

Avoid Extra Credit Cards

First Published Date: Nov 30, 2009

It may appear that today many Canadians are walking a sort of a tightrope and the decision they make may not really be about whether or not to have a credit card but how many they are going to have in the first place. We all know with acclaim that with a credit card you can get to spend money you do not have, as long as you are able to pay up when you earn, there really should be no cause for alarm. Depending on how efficient you are with your payments, this can either be a blessing or a curse.

There is so much freedom and ease in amassing credit cards these days that one may need to really ask themselves if the really need to have that extra card they are applying for, or they just want an extra reason to spend money they have not earned. Because we do not have to pay upfront, there are many people who will get the extra card just in order to beat the limit they have in the other card they have, thus managing to acquire stuff they otherwise would not be able to afford. Of course the truth of the matter is if you are short of cash and you really need something, all you do is pull out your card and the shop attendant will swipe it and you walk away with all you ever needed, just as simple as ABC. It can come in handy when you are between the devil and the deep sea in some situation, which at times could actually be life saving.

We all know also that having a credit card helps you avoid the inconvenience of having to walk around with lots of cash and with a good use of one you will be able to track all your expenses. Shopping can become quite convenient and for those who may want to borrow some cash in future they provide a good credit history for you. There are even some companies who offer special discounts for those who shop using their credit cards and so you can imagine that there are plenty of advantages of owning a credit card. All you need to take care of is the management of your debt repayment and you will be safe.

However, just like with any other good thing there is always the downside of having a credit card. It becomes very easy fro the frivolous spender to amass a big amount of debt in small bits until most off the time they discover they are buried deep in it. In a little while many people discover that they were actually spending money they were not going to have in the next many months, it is no wonder that some people are many months ahead of their income in debt.

So do you need that extra card really? If you have managed your life without one you most likely can move on without a card, do not go for an extra card if at anytime time you have fallen behind in payment with your current one. Depending on what you earn, multiple credit cards may actually mean multiple problems and since the decision is yours to make, remember the responsibility will also be yours to settle the payments.

5 Toronto Skyscrapers Under Construction

Toronto Leads in North America Constructing Skyscrapers and High-Rise Buildings

First Published Date: Jan 14, 2012

World class city Toronto is the leader in building high-rise buildings and skyscrapers in North America. A recent chart published by the Toronto City Council’s Economic Development Committee shows (source www.emporis.com) that there are currently there are 132 high-rise buildings under construction in Toronto. Mexico City and New York City are in the second and third position with 88 and 86 high-rises under construction.

In terms of completed high-rises and skyscrapers, Toronto stands in the second position in North America with 1,875 after New York with 5,000. According to Emporis, a high-rise building is 35 – 100 meters tall (12 – 39 floors) and buildings above 100 meters are considers skyscrapers.
Now, let’s look at Toronto’s top 5 skyscrapers under construction.

Trump Tower – Located in the heart of downtown Toronto’s financial district at Bay and Adelaide at 25 Adelaide St. West, this 900 feet (276 meters) glass and steel tower will be the second tallest building and the tallest residential building in Canada. The original plan was to make it a 70-floor building, but later the builder settled with 57 floors.

College Park Aura – Located in downtown Toronto’s Yonge district at Yonge St. and Gerrard St. at 444 Yonge St., this 873 feet (266 meters) 75-storey skyscraper will be completed in 2014 and will tie Ten York condo in floors. Aura will be Canada’s tallest residential condo.

Number One Bloor – Located in the heart of downtown Toronto’s Bloor-Yorkville’s upscale neighbourhood, Toronto’s most prestigious address Number One Bloor is located at the southeast corner of Yonge St. and Bloor St. This 777-ft. (237 meters) skyscraper will be completed in 2015 and will have 65 floors.

Ten York – Located in downtown Toronto’s financial and waterfront district at York and Harbour St. at 10 York St., this 787-ft. (240 meters), 75-storey skyscraper is a joint venture between city-owned development agency Build Toronto and Tridel.

120 Harbour – Talks are underway to build a 75-storey skyscraper at 120 Harbour St.

What to Do When Your Income Decreases

Facing A Reduction of Income or Wage Cut

First Published Date: December 19, 2015

When you are made redundant, there is usually some form of remuneration payment and the prospect, no matter how bleak it may appear at the time of further and new employment. For some, the lucky few, there is the encouragement of being told that your employment is secure, and that there is also the possibility of a pay rise or promotion further down the track. However, there are some who have been given an assurance of ongoing employment, only at cost of having to work reduced hours and for a reduced pay check at the end of each week.

Meeting the challenge of a reduction in pay is something that can bring out resourcefulness in many different ways.

The first thing that should be done is to make a complete list of what income is actually spent on each month. Often, by the simple process of listing and setting out in writing what each expenditure is, it will immediately be seen which are essentials and which, consistent with maintaining a reasonable standard living can be cut out, or pruned back.

Compare the total of this list with your total after tax income and you will have a precise amount, the deficit that you will have each month if expenditure remains at the same level.

Part of the expenditure will be fixed, in the form of loan or debt repayment. You can look at taking advantage of new lower interest rates by considering a debt consolidation loan, converting all your monthly debt repayments into one, lower interest rate, debt servicing repayment, against which you may be able to offset the interest charge even more by having the repayments made weekly instead of monthly, which can save years of repayments in terms of a home mortgage debt.

Charges for Utilities, and rates are often able to be paid on a weekly repayment arrangement if you make contact with the relevant authorities and inform them of your situation, rather than having to meet the entire cost of pre-payment in one lump sum.

Expenses associated with motor vehicles can be drastically reduced, and give you the possibility of a much needed capital sum, if you consider selling one of two motor vehicles and making use of public transport and  sharing the use of the remaining vehicle. For some, using public transport might mean that a private car is no longer needed.

Look at your savings – it is a good idea to keep some on call funds for possible emergencies – but there is no point in having funds in a savings account, earning little interest if you have high interest debts that you could use this money to repay, and so reduce your monthly outgoings.

Every voluntary expense can be looked at to see what can be discarded, and which will need to be reduced. Subscriptions can be cancelled. It is often tempting to reduce expenditure on food, but this can often be a mistake, as you will need to keep healthy and fit, and to have a lot of spare energy to survive a financial crisis