| Timing the top and bottom of markets is a fool’s game, filled with risk and chaos. However, you can identify the opportunities, reduce your risk, eliminate chaos and achieve great returns in any market conditions…as long as you understand the “9 Questions To Ask” and the secrets to analyzing the answers. Read full article. Industry News December 9, 2009The Bank of Canada kept borrowing costs at a record low 0.25% yesterday and reiterated they will probably stay at that level through the middle of next year, while expressing cautious optimism that global economies are on the mend.
"Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010," Governor Mark Carney and his rate setting panel said in a statement.
The "main drivers and the profile of the projected recovery" are unfolding as policymakers predicted they would in their last quarterly forecast in October, the central bank said, and because global economic developments since then have been "slightly more positive," the global outlook has improved modestly.
Still, the bank warned that "significant fragilities remain" and sought to temper speculation that it may raise interest rates before July 2010. The bank noted that third-quarter economic growth was held back by weak exports, and said "persistent strength in the Canadian dollar" could be a "significant further drag on growth and put additional downward pressure on inflation."
Click here to read the full Globe and Mail article.
The seasonally adjusted annual rate of housing starts reached 158,500 units in November. This is an increase from 157,400 units started in October, according to CMHC.
"The improvement in housing starts continued in November," said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "Despite a small decline in November's multiple home construction, overall starts numbers were up due to a solid increase in singles starts." The November total is the highest of the year.
The seasonally adjusted annual rate of urban starts increased by 0.7% to 141,100 units in November. Urban multiple starts decreased slightly from 72,500 units in October to 71,300 units in November. Single urban starts increased by 3.4% to 69,800 units in November.
November's seasonally adjusted annual rate of urban starts increased by 10% in Quebec, 8.2% in the Prairies and by 6.2% in British Columbia. The rate of urban starts decreased by 8.3% in Ontario and 9.8% in Atlantic Canada. Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in November.
The value of Canadian building permits hit a 13-month high in October in another sign the Canadian economy is emerging from recession.
Building plans jumped 18% to $6.1-billion, Statistics Canada said Monday. Economists polled by Bloomberg had expected a 1% increase in the month.
The increase comes amid growing evidence Canada is climbing out of recession. The economy eked out an expansion in the third quarter of this year, while last month it churned out 79,000 new jobs, two reports showed last week.
Click here to read the entire Globe and Mail article.
Canadians are the most active social networkers of any country in the Western world, according to the results of a new survey.
More than half of all Canadians (57%) surveyed said they are active users of social networks such as Facebook and MySpace - primarily Facebook - compared with 51% of the online population in the US and just 38% in the UK, according to the report from market research firm Forrester Research Group.
"We know how popular and successful Facebook is in the US and how popular these networks are in parts of Asia, so to see that a higher percentage of Canadian online users were visiting and using social networks every month than any of the other markets, that's pretty impressive," said Forrester Principal Analyst Nate Elliott, the lead author on the study.
While Elliott said that researchers are still trying to figure out exactly why Canadians are so engaged with social networks, there is some evidence that suggests geography may play a role in determining how plugged in the populace is in a given country.
Click here to read the full article in the Financial Post.
Although Alberta is still the best place in Canada to invest, it's quickly losing ground to its neighbours, according to a Fraser Institute report on the provincial investment climate in Canada.
Alberta once again topped the rankings in the 2009 report with a score of 8.5 out of 10, but Saskatchewan came in at 6.6, up from 5.9 in 2008, followed by British Columbia with a score of six, up from 5.8. Newfoundland and Labrador ranked fourth with a score of 5.4.
Ontario ranked fifth with a score of 4.9, down from a score of five out of 10 a year earlier, while Quebec and Nova Scotia tied for eighth place with a score of 3.3.
The Provincial Investment Climate Index is ranked on seven components: corporate income tax; fiscal prudence; personal income tax; transportation infrastructure; corporate capital tax; labour market regulation; and burden of regulation.
Click here to read the full article in the Financial Post.
Regulators are moving closer to a settlement with a group of major banks and brokerages that sold asset-backed commercial paper (ABCP) before it froze during the credit crisis, leaving panicked investors with no access to more than $30 billion of their money.
The final tally for the settlement is likely to be under $200 million, sources said, which would make it one of the largest such penalties in Canadian history, but would be smaller than what regulators initially sought. Firms involved in the settlement talks include National Bank of Canada, Bank of Nova Scotia, Canaccord Financial, Credential Securities Inc and Bank of Montreal, sources said.
While the talks are expected to result in a deal by year-end, they could still falter, forcing regulators to go to court to try to secure fines from firms that don't cooperate.
The Ontario Securities Commission is doing just that with Coventree Inc, the company that created most of the paper that froze, and two of its key executives, Dean Tai and Geoff Cornish. The OSC alleged Coventree made misleading statements about the amount of sub-prime mortgages underlying some of the paper, and said the firm and the two men "acted in a manner that is contrary to the public interest" and in breach of securities law.
Click here to read the full Globe and Mail article.
Borrowers are coping with their debts better than expected in the wake of the recession, quarterly results from Canada's major banks suggest.
There are signs that the number of consumers struggling with payments is stabilizing, and businesses are increasingly able to pay off their loans. For Canada's banks, this suggests the total toll the economic downturn inflicts will not be nearly as bad as suspected when the slump first hit.
The first wave of the crisis, caused by a sudden lack of liquidity, did less damage to Canadian banks than it did to their global competitors, many of whom were crippled by writedowns and toxic exposure in their capital markets businesses.
It now appears the second wave, caused by the recession, will have less of an impact on Canadian banks' bread-and-butter lending businesses than it is having on many institutions, especially in the US. While it's a touch too early to call a bottom yet, many bankers now predict the amount of soured loans will peak by April, the halfway point of the current fiscal year.
Click here to read the full article in the Globe and Mail.
The House of Commons has voted in favour of a harmonized sales tax (HST) for Ontario and British Columbia.
MPs passed a ways-and-means motion last Thursday amending the Excise Tax Act to implement the controversial tax, which combines the GST and provincial sales tax.
The Conservatives, Liberals and Bloc Quebecois supported the motion, which passed 192-32, while the NDP opposed it. Quite a few MPs were absent for the vote.
Many fear a backlash from voters, who are becoming increasingly angry about the prospect of paying more for a host of goods and services.
The Ontario and Quebec governments support the tax. Several other provinces have already moved to an HST. - The Canadian Press
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Why You Need a Home Inspection |
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It's easy to get caught up in the speed, drama and pressure of bidding on a house that you are willing to skip a few steps to make sure you acquire the house of your dreams. You're suddenly willing to pay a few thousand more than you had intended. You're willing to go for a quicker closing date. You're even willing to skip the home inspection process, and just ask a knowledgeable family member to check it out for you. Slow down. Relax. |
Don't let yourself fall in love with a house until you've had the house examined by a professional. The house could have any number of problems in structural, roofing, exterior, foundation, heating, plumbing, electrical, insulation etc. Even with newer homes, or ones that look flawless in your eyes, you'll never know what lies beneath the surface unless you hire a registered home inspector to check it out for you.
Home inspections have been around for quite a while, and for good reason. This process, which can cost between $300 and $500, is often a condition on buying a house. It usually takes a few hours and is easy to arrange. Hiring a professional home inspector is a small investment of your time and money. But, it's well worth the expense because you won't have to deal with costly and unexpected surprises once you've bought your home. Also you can gain a wealth of information about the condition of a property before you buy it. A home inspection is not intended to provide warranties or guarantees, and is not to be mistaken as a warranty on the house.
The final sale of a home can hinge on the results of a home inspection—even for a million dollar home. While a home inspection is a critical component of buying and selling a home, knowing your home inspector is just as important.
Recent surges in the popularity of home inspections have created an over-populated inspection industry where not all inspectors have the training or experience to do a good job. Be wary of low-priced home inspectors whose only credential is a certificate acquired online, or by correspondence, or from attending a three day course. There are some people in the home inspection industry who are not fully qualified—if at all—and they should not be recognized as home inspectors.
Home inspection is a discipline that requires special training, knowledge and communication skills. Anyone can say that they are a home inspector. That is why it is important to choose an inspector wisely.
Reputable home and property inspectors generally belong to CAHPI-Canadian Association of Home & Property Inspectors, which has set standards and is recognized by the Real Estate Associations and federal and provincial governments. CAHPI is the only national non-profit professional organization in Canada that rigorously tests home inspectors about their technical knowledge and diagnostic expertise prior to joining the organization as well as requiring continuing education after admission to keep current with new technology and building practices. Membership categories are based on the individual members' qualifications and experience. A member cannot advertise or promote his or her membership until they have reached the minimum standards of a practicing member. To become a member of CAHPI, an inspector must meet professional and educational requirements followed by a review.
Home inspectors should have a general understanding of all the various systems and components in a home. Many have practical experience or a background in engineering, construction and related building trades. Look for people who belong to CAHPI and who have taken some courses, such as defect recognition, building sciences or civil engineering. The more experienced a home inspector is, the more they have seen, the more likely it is they will be able to detect any less obvious problems.
Seasoned, professional home inspectors will be full-time home inspectors and are bound by a strict code of ethics and must adhere to specific standards of practice. You should ask to see proof of their membership in a provincial association. In most provinces, a member cannot advertise their membership in the association until they have reached the minimum standards of a practicing member.
To guard homebuyers against incompetent, negligent and bogus home inspectors, the association in your province will be pleased to clarify their membership categories and any particular inspector's membership level. Determine if the inspector intends to meet the CAHPI national standards of competency.
Hire a "Registered Home Inspector"
What home buyers need most is a source of trustworthy, competent, qualified home inspection professionals. Ask your real estate agent to recommend a good home inspection company. Talk to your family and friends about their experiences with home inspectors. It's also well worth contacting the Canadian Association of Home and Property Inspectors (CAHPI), a national organization that has links to the provincial associations. Check out www.cahpi.ca. The site will refer you to a list of Registered Home Inspectors in your area. Visit www.ashi.org to find more detailed information about home inspection. Be present when the professional home inspector assesses your potential home. Ask questions and take notes of what repairs need to be done. They will give you their initial reactions as they are inspecting your home, and will follow up with a comprehensive package of information on the condition of your home. It is an invaluable piece of the home buying puzzle.
Newer homes also need inspection
Since the 1980s, when Canada Mortgage and Housing Corporation (CMHC) ended its consumer protection role through construction inspections, housing quality has suffered. For instance, CMHC estimates that more than 65,000 homes in B.C. suffered serious water infiltration problems in B.C.'s leaky condo crisis of the 1990s—a crisis that continues to this day. While B.C.'s crisis is perhaps the best known disaster in Canadian history, defective homes are a serious problem across Canada. In 2005, the Canadian Home Builders' Association (CHBA) estimated that 10% of Canada's builders are problematic. Other estimates find 20-25% of home builders as problematic. Although there are good builders in Canada, consumers and Realtors have no reliable means of knowing who they are. Consumers who find themselves with a defective home and an unresponsive builder naturally turn to their home warranty program for assistance. This too can be problematic. In Ontario, for example, new home purchasers face a mandatory payment to TARION for warranty coverage. Purchasers should recognize TARION as an insurance company that will require that you prove your claim.
TARION does not serve as an advocate for the purchaser. The TARION claim process is complicated, and, therefore, must be pursued with great care in order to avoid pitfalls. Municipal government officials involved in the home construction process usually acknowledge home construction industry and warranty program problems, but often simply advise the homeowner that they can settle their issues through civil litigation. Given the time and high costs involved in the legal system with no guarantees of success, the courts are not a viable option for most Canadians.
Given a system that is not conducive to construction dispute resolution, many homeowners conclude that they have no option but to quietly sell their flawed homes without disclosing the known problems to potential purchasers, despite the fact that sellers are required by law to disclose known defects. Home buyers protect their investment by retaining a competent registered home inspector to inspect the home, regardless of whether it is newly built or a resale home. While some problems may remain hidden behind drywall, a registered home inspector can often detect problems unrecognizable to the average consumer.
Deal with the bad news
It can be heart breaking to find out all the problems after a home inspection, but be realistic. Remember that no home is perfect. What you need to decide is whether or not you are willing to fix the problems. Ask yourself these questions:
1. Can you afford the recommended renovations or repairs?
2. Does the house meet your needs in its current condition?
3. Knowing these problems, is the house still a good investment?
Once you've had a home inspection, you'll have peace of mind that you've made an educated decision on buying a home. It's worth it!
Article provided By: Nalliah Thayabharan
Registered Home Inspector
Member of CAHPI-Ontario and ASHI
Expert Building Inspections Ltd
Markham ON 905 940 0811
www.expertinspector.com
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