The biggest money mistakes couples make

by Kimberly Palmer, U.S.News

Managing your own money is hard enough; add another person to the equation and it becomes an obstacle course: Does it make sense to combine bank accounts after moving in together? Should you pay off your credit card debt before getting married? Does the higher earner need to cover more of the bills?

Here are six common mistakes that couples make with their money - and how to avoid them, adapted from the new book Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.

Not talking about finances

Sure, discussing who pays for what and how much debt each person brings into the relationship is awkward - but also necessary. Before moving in together, talk about how you plan to share household expenses, whether the person with the higher salary will contribute more, how much credit card debt you have, and how you plan to share big-ticket items like cars. Also, take time to map out the logistics: Will you pay bills out of one shared bank account? Or keep all your money separate?

Don't forget to bring up your long-term goals, too, which can make the discussion a little more romantic. Do you want to swim with dolphins in the Bahamas? Or backpack around Europe together? Agreeing on common goals makes it easier to save.

Combining accounts too early

Putting all your money into one account might be the more romantic option (and prevent any debate over who picks up the tab at dinner), but it can also cause major problems in the event of a breakup. Couples who live together without first walking down the aisle face financial vulnerabilities with joint accounts that married couples don't.

Investments in shared assets, such as a home or car, can be lost during a messy breakup if only one person's name is on the title. Money or labor that went into redoing a former partner's kitchen may never be recouped. And while details vary by state, even assets such as joint savings accounts can go to the person who is first to make the withdrawal. Legalities aside, a lot of couples say they like the independence of having two accounts anyway, at least before they decide they've found their permanent soul mate.

Sharing credit cards, real estate, and other types of debt

If you add your partner's name to the title of your home, then they own it, too - even if you paid for the down payment and mortgage.

"I see it happening too often - a couple gets together, says 'I love you, let's set up house and make this official'. . . and then (one person) signs away half of their equity," says Sheryl Garrett, a certified financial planner based in Shawnee Mission and author of Money Without Matrimony. Couples also need to talk about who would get the first opportunity to purchase the house if they were to break up, at what price would they sell it, and how many days they would have to refinance the mortgage in their own name.

Signing on to someone's car loan or credit card can create similar problems. If you break-up and the other person fails to make their payments, then you're on the hook, too. Even if you've long gotten over the relationship, your credit might feel the after-effects for years.

Ignoring the risk of a break-up

Talking about how you would split things up if you decided to go your separate ways can prevent bad surprises later. Unless children or major assets are involved, there's usually no need to hire a lawyer. In fact, you can just write down the answers to these questions along with any others that apply: Who would stay in the apartment? Who would get the cats? The car?

Since unmarried couples don't get to argue their case in divorce court, it could be your only protection in place if things go south. (The legal ramifications of common-law marriages, civil unions, and domestic partnerships vary by state.) Couples might also want to consider talking about any debts, past bankruptcy filings, and credit report problems, because even if you're not legally liable for your girlfriend's $50,000 student loan, it could end up affecting your quality of life if 10 percent of the household income goes toward paying it off each month.

Putting one person in charge of money

It's normal to specialize in relationships - to delegate dinner planning to the best cook, and gardening to the one with a green thumb. But giving one person all of the money management responsibility can lead to an unbalanced relationship.

Relationship therapist Bonnie Eaker Weil explains that no one should ever feel like he or she has to ask permission before buying something. "I call it 'Mother, may I?' You don't want to get into that position where you're the little girl, or you're the little boy, and the other person is your parents.

You want to have your own money, and certain things are guilt-free, and you just do what you want with it. If you want to buy a latte, or lipstick, or a facial, you do not have to ask permission, because it's your own money," says Weil. Plus, in the event of a break-up, you want to make sure you know where all your money is and how to manage it.

This article is adapted with permission from Kimberly Palmer's new book Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back (Ten Speed Press).

http://ca.finance.yahoo.com/personal-finance/article/yfinance/1886/the-biggest-money-mistakes-couples-make

Lawlessbrown.com

Make Way Turkey - Here Comes Candy!

Sherri and I love turkey dinner with our family and friends and want to wish everyone a Happy Gobble Gobble Day.  It is a wonderful time of the year to reflect and be thankful for everything that we have been blessed with - wonderful families, great friends, fabulous clients and the opportunity to work and live in this amazing city. 

Our favourite time of the year comes after Thanksgiving - HALLOWE'EN.  Between us we have five children who love trick or treating which of course brings lots of candy into the house.  As parents - we NEVER eat it.......OK who are we kidding, we both love candy.

In celebration of Hallowe'en we have decorated our office windows.  We are located on Beacon Avenue in Sidney next to the barber shop so if you are wandering by, please drop in for a visit and check out our windows.  We may even have some Hallowe'en candy........

Enjoy the pictures.
Krista and Sherri
Lawless Brown Mortgage Team

Victoria's CIBC Run for the Cure

Thank you to all those runners who helped make the CIBC Run for the Cure so successful. With your help we WILL find a cure. Sherri and I read this article in the Times Colonist and we found it inspiring. We hope you enjoy it as much as we do.


"When Victoria’s Christopher Mavrikos lost his mother to breast cancer in 1997, he set a goal of raising $100,000 so that one day there would be a cure.

The 31-year-old restaurant manager achieved that Sunday during the Canadian Breast Cancer Foundation CIBC Run for the Cure at the University of Victoria, bringing his total over the last 13 years to $110,000.

He was also recognized as the top individual fundraiser in Canada, securing $29,500 in the months leading up to Sunday’s event.

“I wanted to represent all the women fighting this disease and all the women who will be fighting it until there’s a cure,” he said in an interview after the run.

Mavrikos began hosting the Think Pink breast cancer fundraiser in 2004 — which includes a dinner, live and silent auctions and a raffle — and the event kept getting bigger, attracting local celebrities and bringing in more money.

“That event alone probably raised close to $17,000 to $20,000 [this year],” he said.

He also raised money by shaving his head last week. “I’m sporting a bald head right now. It’s going to be a cold winter,” he joked.

His first Run for the Cure was in 1997, just weeks after his mother, Lynn Veronica Mavrikos, passed away at 38 after a five-year battle with breast cancer.

“I ran along Dallas Road as an 18-year-old wondering, ‘What’s next?’ ” he recalled.

Mavrikos now works at his family’s Italian restaurant, Romeo’s Place, on Hillside Avenue.

Sporting a white T-shirt naming his sponsors, a pink wrist band and a visor, Mavrikos was among the approximately 4,200 people who participated in this year’s run, sponsored by the Canadian Breast Cancer Foundation.

He said it’s always an emotional roller coaster.

“I’m definitely a man on a mission but when I’m running I know there’s someone with me,” he said, tearing up.

Breast cancer survivors and supporters made their way across the one- or five-kilometre routes, raising a total of $563,000.

When Mavrikos accepted his award, he had everyone join hands and “put their hands up in a show of victory.”

Nine runs took place across B.C., with 22,000 people raising $3.6 million.

Canada-wide, the 19th annual event raised a whopping $33 million, well above the $26.5 million raised last year. The money supports prevention and early-detection initiatives, research and health-care workforce issues.

The foundation has set a goal to have a world without breast cancer by 2020.

Mavrikos isn’t quite sure what’s next, now that he’s passed his lofty goal, but he remains committed “to a future without breast cancer.”

The Run for the Cure is the hallmark fundraiser for breast cancer in Canada.

October is breast cancer awareness month and donations can be made until the end of the month. For more information about the Canadian Breast Cancer Foundation, visit www.cbcf.org."

kderosa@timescolonist.com

CIBC downgrades growth outlook

September 22, 2010 By CBC News The Canadian Imperial Bank of Commerce has downgraded its growth forecast for Canada and the United States next year, calling the recovery a "great disappointment." The Canadian Imperial Bank of Commerce has downgraded its growth forecast for Canada and the United States next year, calling the recovery a "great disappointment." The bank's top economist Avery Shenfeld slashed his prediction for GDP growth in 2011 to 1.9 per cent growth from 2.5 per cent for Canada. He also scaled back his target for the United States to 1.8 per cent from 1.9 percent.
"The Great Recession that shattered global growth in 2008-09 is now water under the bridge, but the great disappointment of a sub-par global recovery will be with us for a good while longer," he said. The global economic recovery has largely been based on government stimulus, the report says, and now that that's being unwound, the world's economy is likely to slow.
In the four years before the recession started, the world's economy grew by five per cent per year, the report notes. But the bank now expects that will slow to a 3.6 per cent pace in 2011. Europe is a particular area for concern, but the impact of a weak U.S. economy is going to be felt everywhere, Shenfeld said.
The slowing economy will be enough to compel the Bank of Canada to alter its current path and hold rates steady from now until next spring, the report says. "As a result, the Bank of Canada will wait until spring before renewing a very gradualist path to normalcy in interest ates," Shenfeld said. Last week, Toronto-Dominion bank also lowered its forecast for Canada's economy next year to two per cent growth, down from 2.5. Royal Bank did the same earlier this month, shaving 0.3 percentage points off its 2011 forecast, to 3.2.

The Bank of Canada is currently projecting 2.9 per cent GDP growth next year. Canadian Broadcasting

www.lawlessbrown.com

The Wild Ride of the Victoria Real Estate Market. What the heck is going on??

For many trying to keep up with current market conditions and interest rates is a dizzying experience. When to buy? When to sell? When to refinance? Everyone is trying to predict the most optimal time to make their move. To help answer some of those questions, here are some of the facts and highlights of current conditions.

There are currently around 4 477 properties on the Victoria market which is 23% higher than last year.

• For the purchasers this means a lot of selection to choose from and gives you time to make sound, unhurried decisions.
• For sellers it means you really need to consult your Realtor® in order to price your home realistically in order to attract qualified buyers.

Interest rates have declined to Fall 2009 levels which were at historical lows.

• Now is a great time to secure a mortgage and take advantage of the low rates to keep your monthly payments as low as possible.
• This also gives purchasers some added purchasing power, as it is easier to qualify at lower rates.
• For existing home owners now is the time for a mortgage check up. If you are in higher rates and have some outstanding debts that you are paying high interest rates on, now is time to take advantage and potentially save thousands in interest payments.
• For current rates and rate specials visit lawlessbrown.com or give us a call 250.656.0855

We are always happy to provide advice and help our clients navigate today's markets. If you are unsure of what to do, give us a call and let us help you make the sound choice that is best for you and your mortgage needs.

~Krista & Sherri

CIBC World Markets Inc. trims forecast for rate hikes and currency strength in Canada as economic growth outlook dampens abroad

TORONTO, Aug. 18 /CNW/ - Continuing weakness in the U.S. economy may force the Bank of Canada to put interest rate hikes on hold after September, notes a new report from CIBC World Markets Inc.

"North America's story is again darkening," says CIBC's Chief economist in the latest Global Positioning Strategy report. "We were looking for a material second-half slowdown for the U.S. but as it turns out, it's already happened."

Economic growth stateside from April to June is being revised downward, Mr. Shenfeld notes, and key indicators are pointing to growth that will be slower than anticipated by U.S. monetary policy makers.

And still ahead is a "further fiscal belt tightening in 2011 that will have to be softened, and accompanied by quantitative easing, if the U.S. is to stay out of recession in early 2011 and get back to potential growth by the end of that year.

"Forget about any rates hikes from the U.S. Federal Reserve until sometime in 2012 at the earliest."

While Canada is in much better economic shape - it leads the U.S., Eurozone, U.K. and Japan in first-half growth and has a record gap over the U.S. in the share of working age population holding a job - it "cannot move all the way to normalized interest rates while the U.S. Federal Reserve is still on hold," Mr. Shenfeld contends.

For starters, an interest rate differential of 300-400 basis points would take the loonie "substantially stronger" creating additional headwinds for Canadian economic growth, says Mr. Shenfeld.

Furthermore, the "external environment will be one of less-than-normal growth as fiscal tightening bites in Europe and the U.S., and with our own upcoming fiscal tightening also hitting domestic demand, monetary policy might have to be set at stimulative levels to allow the economy to return to potential and remain there. To keep moving at all, you have to step on the gas if your car is trying to roll up a steep incline."

Mr. Shenfeld doubts that the Bank of Canada "has been shocked enough to forestall a rate hike in September" but his forecast that Canadian growth in Q2 and Q3 will fall below the BoC's outlook will likely warrant a rethinking in the October Monetary Policy Report and in the months to follow.

The report also notes that there are limits to how far the Bank of Canada can diverge from the U.S. Federal Reserve without later regretting it. Episodes in recent years in which rate overnight rates were 2 per cent or more above those stateside resulted in sagging or sacrificed growth. These are "lessons learned, we hope," says Mr. Shenfeld.

"Since a hike at every rate setting date through 2011 would take rates substantially higher than 2%, a pause is coming on the road to tightening."

As a result of the dampened external growth outlook, Mr. Shenfeld has trimmed his call for rate hikes. He sees Canadian overnight rates going no higher than 2% next year as the U.S. Federal Reserve stays on hold.

A less hawkish monetary policy combined with a mixed outlook for commodity prices affected by slow global growth will also likely see the Canadian dollar roughly two cents weaker than earlier forecast over the same horizon, adds Mr. Shenfeld.

The complete CIBC World Markets report is available at: http://research.cibcwm.com/economic_public/download/gps_aug10.pdf

Lawlessbrown.com

Home Sales Tumble!

Garry Marr, Financial Post · Monday, Aug. 16, 2010

Housing sales were down 30% in July from a year ago, and the Canadian Real Estate Association is blaming the drop on the new harmonized sales tax in Ontario and British Columbia.

The Ottawa-based group, which represents 100 real estate boards across the country, said July sales plunged 6.8% on a seasonally adjusted basis from the previous month, a decline “almost entirely the result of fewer sales in British Columbia and Ontario,” where the HST went into effect on July 1.

The slowdown had been expected as consumers rushed to buy homes ahead of the July 1 implementation in those provinces. The HST only applies to services used in purchasing and selling an existing home, such as real estate commission, and not the actual sale price.

Phil Soper, chief executive of Royal LePage Real Estate Services Ltd., said the HST, combined with tougher mortgage rules, expectations of higher interest rates and the bounce back from the recession, drove the market earlier this year. “You take those four things and add them together and you get a highly front-ended year, which we forecast,” he said.

The housing market did get some good news from Royal Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Bank of Montreal, which all lowered interest rates Monday. The five-year, fixed-rate closed mortgage is down to 5.49%, which means that on a discounted basis, consumers can likely lock in a rate of less than 4% for five years.

But John Andrew, a professor of real estate at Queen’s University in Kingston, Ont., doubts the cut in bank rates will be enough to reverse a declining housing market.

“With homes sales down 30%, that’s surprising. I was expecting a drop, but nothing that big. I think prices are next [to decline] although they are holding their own now,” Prof. Andrew said.

“Thank goodness rates are as low as they are. If we were seeing significant increases in interest rates, it would disastrous for real estate prices,” Prof. Andrew said.

The average price of a home sold in July was $330,351, just a 1% increase from a year ago. However, the average price of a home sold in June was $342,662, so prices are off 3.6% from a month ago.

CREA said the lack of activity in British Columbia and Ontario — two of the country’s most expensive markets — likely skewed average prices down. In B.C., sales dropped 14.1% from a month ago on a seasonally adjusted annual basis. In Ontario, the decline was 8%.

The two provinces accounted for 85% of the change in national activity.

“The soft sales figures we’re seeing right now can be attributed in part to accelerated home purchases earlier in the year,” said Georges Pahud, CREA’s president.

He warned activity will be off for the rest of 2010.

“Activity may remain at lower levels for some time, but ultimately we expect a more stable market to emerge, with demand coming back into line with economic fundamentals,” Mr. Pahud said.

Prices are getting a boost from a drop in supply. The seasonally adjusted annual number of new residential listings fell 7.2% in July from the previous month, the third consecutive monthly decrease and the steepest drop in more than a decade.

However, the overall inventory rate, which reflects all housing on the market, is climbing. The number of months of inventory, which represents the number of months it would take to sell current inventories at the current rate of sales activity, was seven month in July. A year ago the number was 4.4 months.

Douglas Porter, deputy chief economist of BMO Capital Markets, said most consumers who were sitting on the sidelines already pushed their purchase ahead in the spring, so he’s also expecting a soft market for the next few months.

“Although with long-term mortgage rates dropping, employment improved and prices stabilized, the longer-term outlook is far from dire,” Mr. Porter said.

Financial Post

Read more: http://www.nationalpost.com/Home+sales+tumble/3405783/story.html#ixzz0wte1RWPV


Lawlessbrown.com

10 things to check before you buy a new home

The process of buying a new home—especially if it’s your first time—is incredibly intimidating. And while there are certain things you may know you’re going to want to change upon moving in (like paint colors or retiling), if you’ve never gone through this before you may not know what else to watch out for before you sign the dotted line (just because a home is gorgeous on the outside, it’s not impervious to having a bunch of costly-to-fix issues that go way beyond the surface—remember The Money Pit?). Here, via apartmenttherapy.com, a handy checklist of all kinds of things a potential buyer should be mindful of:

1. Check the drains to make sure they’re not backed-up. To test, do a load of laundry, fill up the tub and sinks, and try to drain them all at the same time.

2. Open all the windows all the way to make sure they’re able to open and shut completely—fixing them is not only a pain, but a financial drain.

3. Turn on all the faucets and make sure they’re in working order.

4. Light a fire in the fireplace. While cleaning them is pretty easy (just call a professional chimney sweeper), you should also make sure they draft correctly.

5. Taste the water. Even if the city you live in has great water, if you’ve got old pipes, they may send out debris into yours.

6. Flush the toilets. Make sure that the toilets are able to flush toilet paper.

7. Open the electrical panel. Watch out for loose wires or ones that simply don’t connect to anything, which could be a sign of live wires inside!

8. Turn on the heat/air. Not only do you want to ensure they turn out, but check to see if they heat/cool to their designated temperatures.

9. Pull the carpets back. Peel away a corner of the carpet to verify what’s underneath (often there’s hardwood under there) and to make sure it’s not mildewing.

10. Basement moisture. Check for signs of dampness, not just on the walls, but near things like dehumidifiers, which suck water out of the air.

http://ca.lifestyle.yahoo.com/home-garden/articles/archive/yahoolifestyle/yahoolifestyle-10_things_to_check_before_you_buy_a_new_home

lawlessbrown.com