Ben's thoughts on a Retirement Plan for a low-rate world.

Since 2007 I have been a licensed Real Estate Salesperson, and since 2008, I have also been a Real Estate Investor.  More or less from the start of my career in the Real Estate business, I have seen a low rate environment. 

The persistent low rates have caused prices to remain stable, or increase in several markets, despite a tumultuous economic background.  The have allowed homeowners to refinance and take advantage of lower payments or shorter amortizations, and in some cases may have saved homeowners from default (perhaps after a job loss, or layoff). 

If you have read the news at all in the past two years, you've likely seen repeated messages from Mark Carney at the Bank of Canada, warning Canadians to stop gorging on cheap credit, as many Canadians may be leaving themselves vulnerable to shocks when rates inevitably move upwards.  At the same time, you're seeing messaging from Banks and Investment firms claiming that the current crop of Baby Boomers is about to begin retiring (The first of the BB's turns 65 in 2012....  Yikes), and that many of them are entering their retirement years without sufficient savings to live the type of lifestyle they have grown accustomed to in their working years.  In addition, we're now entering into an era of fiscal austerity in Canada, and especially Ontario.  With government programs such as Old Age Security and Canada Pension Plan in a state of constant revision, can you really afford to be complacent with your retirement plans?  The banks and the investment firms all say "Save your money," or "Top up your RRSP" or "Open a TFSA" etc. etc. etc.  But in a low rate, stagnant growth, high risk monetary environment, who feels confident socking 10% of their income away in an RRSP? You could always invest in GIC's, but the paltry 1- 1.5% growth offered in these guaranteed investments will result in a net loss, as we see inflation surging forward at over 2%.  Are you counting on a Pension?  I wouldn't.  Who knows what might happen to that pension you've socked your money into for 20 + years?  Many examples exist TODAY of Pension mismanagement. 

And here's my point.  If you are worried about the risk exposure or lack of growth in your RRSP portfolio, mismanagement of your pension, or cuts to government social assistance for retirees, and you want to explore a different avenue for investment, TAKE CHARGE of your retirement plan.  Look towards Investment Real Estate as a supplementary income for your retirement years.  USE MY EXPERIENCE and THE CURRENT MARKET SITUATION TO YOUR BENEFIT. 


So, why aren't you using today's low rate environment to your advantage?  Leveraging the bank's cheap money and the practical value of real estate to improve your equity position and ultimately build a solid retirement income level is a great plan to supplement your existing RRSP plans, company pension, and government assistance. 

It's too much work, Right?  Wrong.  Managing income properties isn't overly difficult.  As with any investment strategy, there ARE some risks involved in it, obviously, however increasing numbers of young adults are more interested in risk that they can understand and control, rather than risk exposure at the hands of some bureaucrats in the European Union, or the United States Senate.  With my experience, we can get you on a plan to minimize your risk exposure and start building the portfolio that will earn you the income level you desire in your retirement years.  This takes time though, so we should start NOW!!!

Banks are now fighting for your mortgage money, with 5 year fixed rate mortgages at 2.99% as of March 7, 2012, and 10 year fixed rates at 3.99%.  Crazy!  Seize this opportunity. 

Come talk to me today, and I'll show you my Real Estate Investment portfolio, and get you started on the path to passive income in retirement. 







Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca RE/MAX a-b Realty Ltd., Brokerage. www.a-brealty.com

Woodstock Recreation and Leisure Fair

The 8th annual event is Sunday, March 4, 1-4 p.m. at Cowan Park on Ridgewood Drive.

Organized by Woodstock Recreation Advisory Committee this free community event features information on minor sports, adult sports, hobbies (photography, crafts, etc), groups who research history, collecting clubs, choirs, dancing, acting, singing, musicians (arts and creative arts), service clubs, and sports clubs to join -- perhaps badminton, cycling, lawn bowling, curling and even kids' tackle football.

For more details contact Glynis Hill at the City's Community Services department at 539-2382.

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Title Insurance - More Than Just Fraud Protection

How much do you really know about title insurance? This article explains how title insurance can protect you against more than just fraud...

What's in a title? - Mortgage Broker News


Ben Sage, Sales Representative.
Re/Max a-b Realty Ltd., Brokerage.
519-536-7535
521 Dundas St.
Woodstock, ON N4S 1C3
www.facebook.com/SageAdviceRealEstate
www.bensage.com
www.oxfordcountyhomes.ca

Panicky Beurocrats threaten to put a damper on the Real Estate Market again....

In a chilling reminder of what happened to our market as of July 1st, 2010, it is today being speculated that Jim Flaherty, our wonderful Finance Minster may act to stem the scourge of consumer credit that us Canadians are apparently awash in. 

Pundits have been ironically warning us for nearly a year, as our spending lifts the country further from the throws of a double dip recession, and distances us from our under-water American counterparts, that our growing household debt is a problem. 

Am I talking about raising interest rates?  Not likely at this point.  This certainly wouldn't help our escalating Loonie keep pace with the rest of the world.  What is being suggested today has far more sinister consequences for the real estate market.  For buyers and sellers alike. 

The reduction of the maximum mortgage amortization from 35 years to 30 years (or even 25?). 

Two years ago, maximum amortizations were reduced from 40 to 35 years. The results on the Real Estate market were difficult to track, as local pricing / market trends were all over the place in 2008. 

This time around, I'm 100% certain that it will chill an otherwise recovering new and re-sale housing market in Woodstock.  Let's look at a scenario.

December 2010's average sale price in Woodstock was $183,107.

Assuming 5% down over 35 years at a fictional rate of 3.94%, your payment would be $760.65

At 30 years, payments translate to $821.28

Under the same terms, at 25 years amortization, the payment balloons to $909.37

With Woodstock property taxes increasing at par with assessment phase-in, HST now in full effect on Hydro, gas, and other services,  the dawn of Metered Water services, Time-of-day Hydro usage, Rising Garbage tag prices, and other financial pressures on the household, what do you think could happen to the value of your home? 

Fewer buyers able to buy, fewer sellers able to sell for "what they need" out of a home... 

Basically, a big chill.  2007-2008 all over again.

The time to list is now.  Seriously!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Status Report - Woodstock Residential Market Update, January 2011

2010 was a very interesting year in Real Estate Sales in the Woodstock and District Real Estate Board.

Here's a look at some of the numbers:

The average sale price in 2010 was $218,216, up  3.44% from an average 2009 sale price of $210,957. For reference, 2008's average sale price was $215,202, and 2007 was $210,510.

Here you can view a Line graph of Historic Sales Values in Woodstock for the 2009 and 2010 Calendar year, as well as a bar graph illustrating the number of Residential homes sold in Woodstock for the same period.

It is interesting to note the trend - As predicted by myself and many in the sector at the conclusion of 2009, due to low interest rates and deferred purchasing, the first half of the year would be a busy time, with prices being pushed higher by steady supply and increased demand. Take a look at what happened to average sale prices after July, 2010.  The impact of the HST  had a large psychological effect on the buyers in the marketplace.  Additional factors that caused the decrease in sales volume and subsequently in the average sales price (by tipping the supply and demand scale) include the threat of rising interest rates ("buy now before the rates go up!), and tighter lending requirements. 

Going forward into 2011, I am confident that we will see very much a repeat of 2010 in terms of overall volume and average sales prices.  We've seen a pretty stagnant growth pattern year over year since 2007, and next year should look somewhat the same.  I expect slightly fewer number of sales year over year from 2010, and average sale prices to remain strong, but not growing much past the $220,000 mark.  It is expected by many industry analysts that we will have a very strong first half of 2011, followed by a stagnation in the latter parts of this year.  In other words, the graph should look strikingly similar.

Though we do not have any major factors on the horizon that might influence the market (such as the HST introduction), we do have several smaller factors influencing market strength.  The ongoing threat of higher interest rates has been somewhat subdued by latent recoveries in the domestic and American markets, but the recovery is gathering steam.  This means that EVENTUALLY interest rates will start to climb, and when they do, this is bound to have a negative impact on housing values.  It's been said that rates may begin to climb at the conclusion of spring 2011.

What does this mean for you?

Well, if you're thinking it's time to sell, the time to act is NOW.  Catch the wave that is likely to crest in March or April if you're looking for the best value in 2011. 

If you're buying, suppressed demand in the market means you will have time to act, but shorter supply trends indicate that prices are likely to increase throughout the year.  Be aware of interest rate trends, and make sure you get a RATE GUARANTEE if you are planning to buy.  If rates go up, you will be able to purchase less house for similar cost, so it makes sense to act soon. 

If you have questions about this post, or Real Estate in general, feel free to email me here.

I wish you all a safe and prosperous 2011.  I'm here, and ready to help!



Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Fall/Winter 2010 Woodstock Condo Report

After a tough year for Condominium sales in 2009, the prospects for selling a condominium in the Woodstock market are definitely improving, as signs of stability are returning to the broader economy.  A return to moderate confidence in the market has fueled a rebound in the Condo market throughout 2010.  Compared to only 60 condominium units sold (4 new) in the entirety of 2009, the market has shot back with a 21% rebound this year, with Year to Date sales of Condominium units in Woodstock totaling 73 (and we sit at November 30th).  5 of these reported sales were of new condominiums.

We have also seen some new and exciting condominium developments in Woodstock, including Woodstock's first "Stacked Townhouse" Condominium Complex in the South end of Woodstock.  With prices starting at $169,900 with a garage, this style of affordable luxury is certain to catch on.  They are a commuters dream, just seconds from Highway 401.

In the northeast end, The Builders Group is listing Residential attached condominiums, in 2 storey non-traditional style.  For the budget minded, these units start at $219,900.

In the Alder Grange subdivision, on the north end of Woodstock, sales continue of new Ranch-style attached condominiums, with either single or double garages, in 2 - 3 bedroom configurations, while across Highway 59, you have additional choices available, with Bungalows and Loft style Condominiums.

Employment prospects in Woodstock and Area remain promising, with CAMI on 6 day rotations indefinitely.  This plant is expected to churn out 250,000 vehicles in 2010, a record for this facility.

Toyota has been and continues to produce the RAV4 in its Woodstock facility, and many Woodstonians make the 25 minute drive up the 401 daily to produce Corolla's in the Cambridge facility.  The Woodstock factory employs roughly 2000 people and produces 150,000 RAV4's annually.

If you're making the commute from Cambridge or London into Woodstock, may I suggest looking at some affordable Condominium options?  With Condos ranging from $65,000 up to $300+, we certainly have something that suits your budget, and needs.

I'd be happy to help.

For more information on Condominiums in Woodstock, head on over to Your Condo World website, or email me and we can chat!










Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Woodstock cracks top 100 cities for Growth and Entrepreneurship.

The Canadian Federation of Independent Business has just released a report outlining the top 100 Canadian Cities for Entrepreneurial growth. The report utilizes many different factors to achieve ranking, such as presence, growth, health, and policy environment for small businesses.

Congratulations to Woodstock for cracking the top 100 - #97! Only 4 places behind Toronto, the economic engine of the country!

For more details, check the full report, here.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON