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Can a house really generate savings? We hear so many owners complain about all the money they can pump into a house that you might end up thinking that a house is a bottomless pit when it comes to your budget. The real pessimistic owners complain about always having to pay and pay.

Two writers offer various ways to reduce our household bills. They have opposite approaches. The first one opts for classic savings; the second one takes the road less traveled.

A reporter for the business pages of La Presse newspaper, Stéphanie Grammond offers her advice in her paperback Acheter sans se faire rouler. In terms of insurance, she invites owners to use common sense. You can save a lot over the years by doing certain renovations, getting an alarm system, not making insurance claims for every little thing and having a deductible higher than $300.[……]

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We know a father who had the bright idea of introducing his two sons to the stock market. The kids’ ages? About 12. Oh, that’s so young, you think! But the father knew exactly what he was doing.

[caption id="attachment_558" align="alignright" width="383"]Jeu Enfants Hypotheque ISTOCKPHOTO financement iStockphoto[/caption]

The two sons were paperboys for years. The father said: “Give me part of your savings, and I’ll explain the selection criteria for companies. We’ll make choices together. If you make a profit, you keep it. If you lose money, I’ll reimburse you.” The two sons had made a tidy sum of money by the time their dad told us the story. And that doesn’t include the priceless knowledge that they acquired.

Can we teach children that young about how mortgages work? Yes, says author Gail Vaz-Oxlade, although the ideal age is around 14. As soon as a child shows an interest in owning a property in the future is the time to take action. Make the learning process like a game: You become the lender and your child becomes the future owner. [……]

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The concept of diversification is a crucial element to consider when investing. It is rooted in the very principle that investors should avoid putting all their eggs in one basket.

 

But why should the notion of diversification remain limited to investing? Why not adapt it to mortgages, the largest debt each of us will probably acquire in our lifetime?

 

To meet the needs and preferences of its clientele, National Bank offers the Made-to-Measure mortgage[1]. This solution allows you to divide your loan amount among several layers, depending on your profile, your financial goals, as well as your financing needs and preferences.

[……]

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[caption id="attachment_461" align="alignright" width="338"]finance_avril_2013 Source: iStockphoto LP[/caption]

The construction of intergenerational homes has not experienced its expected popularity. Condominiums have mesmerized investors in recent years, at the expense of rental properties. However, senior citizens are omnipresent, and numerous. And do you know what? Their numbers are increasing every year. We haven’t seen anything yet.

Are you thinking of investing in real estate? The senior citizen housing market is a prime category. But you have to know the preferences of retirees and future retirees and how to adapt to them.[……]

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For many people, a house seems like a miraculous investment: Owning a home solves most financial problems and is the ultimate pension plan.

It’s an undeniable fact that a house is a long-term and effective investment. Most property owners and experts agree on this. But placing all your bets on a house is a huge risk.

Patrick Charlebois, investment advisor and manager at Bank National Financial in Trois-Rivières, cautions his clients. He definitely recommends purchasing a home and lists the advantages: good financial investment, better quality of life and a valuable asset for retirement.

Becoming an owner helps you to obtain a good credit file, to develop discipline for the family budget and to acquire the habit of saving money. But property owners may commit an error by placing all their hopes on their property.[……]

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[caption id="attachment_309" align="alignleft" width="383"] Source: iStockphoto LP[/caption]

For three years now journalists and economists have been warning us: “Watch out, interest rates are going to go up!” And then the rates stay down. Because they keep crying wolf, we don’t listen anymore—and that’s where the danger lies. One fine day, the rates are going to start rising and for some of us, it’ll be too late.

That’s the message from the Financial Consumer Agency of Canada (FCAC).

“While interest rates are now at all-time lows in Canada, it is likely that they will rise sometime in the future. Canadians need to look at how much debt they are carrying, particularly in the amount of their mortgages, home equity lines of credit, personal lines of credit and variable-rate personal loans,” says FCAC Commissioner Ursula Menke. “By doing a debt check-up, consumers can take a close look at their present debt burden and think about whether they would be able to handle it if their payments increase.”[……]

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According to a survey for Desjardins General Insurance, 35% of 18 to 34 year-olds in Quebec don’t have home insurance. The percentage for the rest of the population is 23%.

Why are people in Quebec not insuring their home, especially young people?

  • 31% responded that it was because they forgot.
  • Another third of respondents said it was too expensive.
  • 18% said they didn’t have enough valuable property.

However, Desjardins General Insurance says that it could cost less than 65 cents a day. One figure that may help us see clear: about half of renters age 18 to 34 who don’t have insurance don’t know what civil liability is.[……]

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