Mortgage Broker Victoria BC

Victoria Safe from "Bubble," Real Estate Board Says!!

2011-12-22T11:31:00.000-08:00

The capital region is largely insulated from economic factors affecting housing in other parts of the country, says the head of the Victoria Real Estate Board, responding to a warning from economists that home prices are showing signs of a "classic bubble."

"The important thing to remember is that real estate is local," board president Dennis Fimrite said Monday. Not only has B.C.'s economy proven stronger than those elsewhere in Canada, the local market is bolstered by the limited amount of land for construction.

"If you look specifically at Victoria, we haven't seen any slowing of the economy here, although there's a little bit of government downsizing. There are still developers who are breaking ground on new projects."

Victoria's economy is protected because this is a retirement town, a government centre with a strong high-tech sector and an attractive place to live, he said.

A new report from Bank of America Merrill Lynch economists Ryan Bohren and Sheryl King said that in contrast to the U.S., Canadian home prices set new highs this year and are "now showing the signs of a classic bubble.

The report estimates the housing market nationwide is 10 per cent overvalued, adding the number would be higher if mortgage rates weren't at record lows. "Under more normalized interest rates, home prices would actually look 25 per cent over-valued based on current prices."

Although Canada is somewhat shielded from the fallout of Europe's debt crisis, it is not impregnable, they said. The housing market is one of the most vulnerable sectors in a weakening economic environment as Canadians head into 2012 holding record debt and the unemployment rate shows potential to rise.

Bohren and King expect housing prices will decrease by about five per cent as demand slows in the first half of next year, with prices flattening by the end of 2012 as economic activity picks up.

However, a grimmer scenario could see home prices slide by 10 per cent if unemployment rises above eight per cent and the S&P/TSX falls below 10,000, the report said.

Greater Victoria's employment rate of 6.1 per cent is better than that for Canada as a whole, at 7.4 per cent.

Last month, a total of 482 properties sold through the Victoria Real Estate Board's multiple listing service. The average price for a single-family house was $592,034 and the median was lower at $530,000. The average price of a condominium was $320,558 and the median was $296,000.

Casey Edge, executive officer with the Canadian Homebuilders Association's Victoria office, noted that Bohren and King singled out the condominium market as being vulnerable, specifically mentioning Toronto. "But if you look at B.C.'s overall housing starts for the year, condos are also driving the B.C. numbers, mostly coming from the Lower Mainland.

Single-family housing starts in most B.C. communities, including Vancouver, have seensignificantdeclines this year, said Edge, blaming the province's harmonized sales tax and transition back to the provincial sales tax. "As a result, single-family-housing starts are the lowest in 10 years."

By the end of the year, Edge expects between 616 and 626 new single-family homes will have been built in 2011 in Greater Victoria. Previously, the lowest number of starts was 629 in 2001, followed by 635 during the 2008-2009 global meltdown.

"The silver lining in this very dark cloud is a buyer's market has emerged," Edge said.

cjwilson@timescolonist.com

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria

2011-11-25T12:53:00.000-08:00

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria:
Here to help you! The mortgage process can be stressful and overwhelming;
we've been there and that's why we are here for you!

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria

2011-11-16T13:13:00.000-08:00

LAWLESS BROWN MORTGAGE TEAM at CityHub Victoria:
The mortgage process can be stressful and overwhelming; we've been there and that's why we are here for you!

3 Classic Mistakes Sellers Make when Staging a Home for Sale

2011-10-12T15:38:00.000-07:00

Posted by Carole VanSickle on Tuesday, October 11th 2011

According to numerous surveys, potential buyers make critical judgments that determine whether or not they are going to purchase a home within just minutes of entering that home. Some research indicates that they make that decision within seconds of opening the front door! In order to maximize a property’s appeal, it is vitally important to enhance the advantage initiated with good “curb appeal” by staging the interior of the home as well. You have probably heard real estate agents talking about baking cookies to give a home a, well, “homey” feel, but baking alone does not stage a home adequately in today’s competitive market. In this report, we’ll review some of the “classic” mistakes that people make when staging a home and how to fix them for optimal buyer appeal.

Classic Mistake #1: Mistaking Clutter for Décor

You know that you’re supposed to remove your personal items from a staged home when possible to make it easier for buyers to imagine living there themselves. However, you also should stick to minimalism when it comes to “décor” items. The seller’s personal taste should be as little in evidence as possible, which means that not only should the million “Precious Moments” figures be packed away for the sales process, but excessive containers, sprays of dried flowers and even lighting should be removed. Does this mean that you should eliminate all lamps and flour canisters? Not at all! But it does mean that the five tiffany lamps could probably be thinned to one or two and outside of the classic “flour, sugar, coffee and tea” canisters, extra kitchen storage should be out of sight as well. When it doubt, pack it up! Your buyers want to see clean, clear surfaces that are open for their own personal decorative interpretations.

Classic Mistake #2: Out of Sight is Not Necessarily Out of Sight

When you consider purchasing or renting, do you simply walk through a property and then leave? No! You look around; you open closets and you peer inside cabinets to check out the storage options. And in today’s competitive market, storage is huge. So you need to stage the interior of your closets and cabinets the same way you stage the rest of the rooms in a home: with clean, clear lines and surfaces. If cabinets are full of dishes, that’s definitely life. But you want it to be very clear to buyers that they will have plenty of room for storage. Pack up extra dishes, seasonal items and any non-uniform glasses or storage containers so that your cupboards are neat and organized. Is this the way your buyer likely lives? Probably not. Is it how they wish their cupboards looked? Probably so. And giving them the cupboards, cabinets and closets of their dreams could be the thing that pushes a buyer toward your property and away from another one.

Classic Mistake #3: Small Repairs can be a Big Deal

While it may not be necessary for you to oil the hinges on the front gate in order to get a good price on your home, it could make a huge difference in how a would-be buyer perceives your property. Often, sellers are so consumed with major repairs on their homes that they forget the little things. And, unfortunately, it’s the little things that buyers tend to notice. Hit all hinges with a little WD-40 and if you have cracks in the wall, dripping faucets or burnt-out light bulbs in the bathroom vanity, take a few minutes – or even a few hours – to address these tiny cosmetic details before a buyer comes to view your home. It will make the property more inviting and can even make bigger issues like the fact that you couldn’t afford to paint this year seem like something easily-remedied because the buyer has already started to imagine living there.

Staging is definitely a delicate “science,” and there are a lot of schools of thought out there on how to get the most out of your home when it comes to presenting it to buyers. Generally speaking, “less is more” in nearly all staging decisions, so if you opt not to hire a staging professional, just go with your gut when it comes to removing items from the general viewing area and not your emotional attachment to an item. Remember, you get to take that item with you, so if it attracts you personally rather than contributing to the look of a room you are better off removing it so that your buyer can better imagine themselves in that setting.

Thank you for reading this article in the Bryan Ellis Real Estate Letter’s Educational and Training Series.

lawlessbrown.com

No rate hikes until 2013: BMO

2011-10-05T11:47:00.000-07:00

·· By Eric Lam, Financial Post

BMO Capital Markets pushed its rate hikes forecast back to 2013 on Tuesday, citing continued serious economic risks both home and abroad.

The new forecast pushes the expected time frame for the Bank of Canada to raise its benchmark interest rates back from previous expectations of the second half of 2012.

As recently as this spring, economists had been speculating about a rate hike before the end of 2011, but the market turmoil of the past few months sparked by the eurozone debt crisis has changed all that.

"As global economic risks have escalated, casting commodity prices and the Canadian dollar much weaker, the Bank of Canada's diminishing tightening bias has probably diminished further," Michael Gregory, senior economist with BMO Capital Markets, said in a report.

Mr. Gregory noted that the market has now actually swung all the way into cut territory pricing in two 25-basis point rate cuts by April 2012. But with inflation slightly below target, a weak loonie and credit markets still functioning, movement in either direction is unlikely.

"The policy easing bar remains high. Short of signs of imminent recession, the bank should remain on hold," he said.

Mr. Gregory also forecasts the loonie to tumble further, down to US93¢ before recovering to parity by 2013.

lawlessbrown.com

It’s Time to Think About Winterizing Your Ride

2011-10-04T22:30:00.000-07:00

Driving in the colder months will require you pay attention to a few things on your car. Winterizing your car is important if you want it to continue to be reliable.

Get a Good Tune up

(we can help you with this)

Nothing is worse than breaking down in the dead of winter. Instead of chancing this, have your vehicle looked over and tuned up. Check for cracked hoses, dry belts, water pumps, spark plugs, and the battery. If any of this needs to be replaced do this before the cold weather rolls in.

Check the Cooling System

Antifreeze will protect your car in extreme temperatures. It's not a bad idea to flush the system and start new before winter comes. While this isn't necessary, it's going to save you from a frozen engine block. At the very least, check the levels and make sure the system isn't leaking.

Replace Wiper Blades

Have you ever tried to drive in freezing rain or snow with worn down wiper blades? No fun! Wiper blades are inexpensive and there is no reason to not have them replaced before cold weather sets in. Also be sure to turn the blades off before stopping your car. If they end up freezing to the window while the car is parked you can burn the motor out when you turn the car back on.

Keep your Gas Tank Full

Keeping your tank full during the winter serves a few purposes. First, keeping a full tank will allow you to start up the car more easily on very cold mornings. Secondly, if you do happen to break down or get stuck you will have fuel to keep the engine idling and keep you warm while you await rescue.

Test your Rear Defroster

Driving with an icy rear window isdangerous.. Be sure your defroster is working before you need it. Also keep a good ice scraper handy for the other windows.

Understand Your Car

It should go without saying, but many people drive around not knowing if they have front wheel or rear wheel drive. In the winter, this is pretty important to know. You should also know if you have anti lock brakes, traction control, stability control, and other features that may change the characteristics of your car while driving on ice or snow.

If you have any questions, come in and chat or give us a call. We also answer Facebook and email.

Cheers

Chris and Blaine

5252 Motorsports

Where Torque and Horsepower Meet

The secret to the sudden increase in variable rate mortgages

2011-09-23T11:44:00.000-07:00

Why could I get Prime minus .90 last week and today it is Prime minus .25?

September 22, 2011 (Vancouver)

A great question, says the Mortgage Brokers Association of BC (MBABC), especially when fixed interest mortgage rates are remaining the same. The quick answer? As with many things, it all boils down to money.

Over the last couple of months, banks and other lenders have been offering historically low variable interest rates to qualified homebuyers in an effort to attract new clients and mortgage business. In the short term, lenders have been prepared to accept these low profit margins with the knowledge that, as the prime rate inevitably rises, so too will their profit on variable mortgages – a similar ‘loss leader’ tactic used by retailers to get consumers into their door.

“However”, says Geoff Parkin, MBABC’s president, “the recent announcement by Bank of Canada governor, Mark Carney has changed the mortgage lending landscape.” Carney stated that, because of poor performing global markets and continuing economic uncertainty, the benchmark interest rate would remain unchanged. The long-term outlook indicates continuing low fixed interest rates with no significant increases to the Prime rate. “In a nutshell”, says Parkin, “the bank’s theory of anticipating rising profits on variable rates was proven wrong. They’ve had to quickly respond to this situation by reducing the variable rate discount in order to gain back profit.”

What does this mean for consumers who have variable rate mortgages? Much of the same, says Parkin. “We continue to see low fixed rates and the variable rate is under 3.0%. There may still be value in going variable over fixed, but because consumers all have different financial situations and mortgage needs, we recommend they obtain expert financial advice from their MBABC mortgage broker.”

courtesy of MBABC

LawlessBrown.com

HIGHLIGHTS OF THE WEEK

2011-09-16T11:59:00.000-07:00

United States

• A coordinated move among leading central banks to provide short-term U.S. dollar funding in Europe helped instill confidence, and contributed to a solid rally in equity markets this week.

• Yet worries about the economy have not changed, so markets will be carefully tuned into the Fed’s policy meeting next week.

• This should prove a most interesting meeting indeed, as the ongoing divergence of opinions at the Fed come to the fore. Proponents of more stimulus will point to a weak economy and sluggish job growth, meanwhile the hawks will point to the ongoing rise in inflation.

Canada

• Stricter mortgage insurance rules have taken some steam out of the Canadian housing market. Home sales fell 0.5% in August, a fifth contraction in the past seven months, while home price pressures eased. However, the impact has not been overly dramatic and the level of housing activity remains healthy.

• Shaky consumer confidence will likely weigh on the housing market in the near term. However, a continued low interest rate environment will likely help support a modest pick up in housing demand in early 2012.

• The key implication of a lower-for-longer interest rate environment, and the resulting elevated level of housing demand is that the Canadian household debt-to-income ratio is likely to rise further.

Courtesy of TD

lawlessbrown.com

BoC holds key rate at 1 percent

2011-09-07T12:15:00.000-07:00

* Cites Europe, U.S. woes as backdrop for policy shift

* Sees Canadian growth resuming in second half of year

* Says inflation pressures dampened

* Cdn dollar gains, markets pare rate cut expectations (Adds details)

By Louise Egan and Randall Palmer

OTTAWA, Sept 7 (Reuters) - In a dramatic policy shift, the Bank of Canada said on Wednesday it saw less need to raise interest rates, becoming the latest major central bank to take a more cautious stance about the worsening global economy.

The bank held its overnight rate unchanged at 1 percent, where it has been for the past year, and took its previous talk of a rate hike off the table.

"In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished," the central bank said in a statement.

In its July interest rate announcement, the bank said stimulus "will be withdrawn" provided the economy kept growing, leading markets to expect a rate hike later this year.

That forecast looks outdated now, given the European debt crisis, slowing U.S. growth and volatile markets.

Investors were not surprised by the more dovish tone, although many had expected a sharper policy reversal. Most economists still expect the next move in rates to be up rather than down, but it could be a year or more before that happens, and the bank's cautious language left the door open to an eventual move in either direction.

Goldman Sachs this week became the first major financial institution to forecast a Canadian rate cut later this year.

"There is really not much hint that the bank is considering cutting rates, but at the same time, they've pretty much put rate hikes firmly on the shelf," said Doug Porter, deputy chief economist at BMO Capital Markets.

Courtesy of Reuters

LawlessBrown.com

Misconceptions about mortgage brokers

2011-09-06T11:25:00.000-07:00

A Few Misconceptions

Misconceptions occur in every business and the mortgage business is no different.

A recent example is this post by Boomer & Echo (B&E), a prominent blog that we typically enjoy. In it, B&E opines on why not to use a mortgage broker.

In the piece, the author gets some stuff wrong. As often happens, we came across it in our weekly blog scan and feel obliged to offer some counterpoints.

B&E makes four claims. They are:

Brokers push 5-year fixed rates.

Counterpoint: Brokers sell a higher ratio of variable-rate mortgages than bank salespeople, and have for quite some time. That’s per executives we’ve questioned at banks with both broker and retail channels (e.g. CIBC and Scotiabank). In general, however, all mortgage professionals (bank or broker) sell a lot of 5-year fixed product. It’s the most popular term (has been for decades), it’s the easiest to qualify for, and it has the most competitive discounting (albeit, not presently).
Loyalty to your bank pays.

Counterpoint: The Bank of Canada concluded exactly the opposite (more). To summarize, it’s research found that existing customers pay more than new customers. What’s more, no one lender continually has the best mortgage options. By comparison shopping, good brokers can save homeowners interest and identify the lender with the right flexibility/value tradeoff. The best brokers provide expert term analysis, proper deal structuring and helpful strategies to reduce a borrower’s amortization.
Bankers have better reputations

Facts: The RBC specialist incident last April proved that reputation should be judged individually, not by virtue of where a mortgage advisor works. Generally, brokers and bank specialists are both paid by commission and the commission is similar whether they sell a 5-year fixed or variable. Neither is holier that the other in that respect, except that bank reps are hired to push only one brand.
Your better off doing it yourself

Counterpoint: We have visions that people will someday get a mortgage online like they buy a stock at iTrade. But we’re not there yet. Good brokers provide counsel that saves time and money. Do-it-yourselfers sometimes discount the value of advice, mesmerized instead by brokers/bankers who can save them a few basis points in rate. For most, that’s a mistake because:

Few individuals grasp the mortgage math needed to perform proper term selection. Term selection impacts borrowing cost far more than rate selection. A “good rate” alone does not equal a “good deal.”
There are lots of creative techniques that skilled advisors can use to help people whittle down principal quicker.
Lenders rarely disclose all of their mortgage restrictions until you sign their contracts. Brokers know the benefits and pitfalls of multiple lenders, and advise borrowers in advance.

It is possible to pick your own investments, do your own taxes or write your own will, but people still hire financial planners, accountants, and lawyers. There’s only so much time in a day and we can’t specialize in everything.

In all of those industries there are great and not-so-great practitioners. Brokers are no different. Interview several before picking one. Ask questions like:

Which lenders they use most often and why
How long they’ve been in business full-time
Why their term recommendation is mathematically sound for your specific needs.

Sense if you can trust them. If they seem to care about you, and are competent, and make you feel comfortable, you’ll be glad to have them on your side

Courtesy of Canadian Mortgage Trends

lawlessbrown.com

HIGHLIGHTS OF THE WEEK

2011-08-12T13:12:00.000-07:00

United States

• It was a particularly turbulent week for financial markets. On Monday, the S&P 500 was down 6.6%, but is poised to end to week only 1.5% lower.

• In an attempt to shore up confidence in the economy, the Fed replaced its promise to keep rates low for an extended period with a conditional commitment to leave interest rates unchanged through mid-2013.

• Retail sales and initial jobless claims were both stronger than expected and point to a modest acceleration in Q3 growth.

Canada

• Global financial markets were put through the wringer this week – there were some up rallies, but mostly lows. The S&P/TSX composite index remains down so far in August.

• The apparent crisis of confidence that permeated markets came from all angles: (1) the ramifications of Standard and Poor’s downgrade of the U.S. government; (2) lingering concerns about the debt crisis in Europe and whether big players like France will be swept up in the fiscal troubles plaguing the continent; and (3) disappointing international trade numbers which have raised the risk of a Canadian economic contraction in Q2.

• In this environment, the Bank of Canada (BoC) is put in a difficult position. With the Fed on hold until mid-2013, the BoC is likely unable to raise rates by more than one percentage point over the next two years.

Courtesy of TD

Lawlessbrown.com

Five costly reno mistakes to avoid

2011-07-13T10:00:00.000-07:00

Shelley White Globe and Mail Update

I recently wrote about my kitchen renovation for Home Cents, detailing how I managed to keep my budget under $25,000 while still ending up with a functional and beautiful room.

There were a lot of comments (thanks for those, by the way) - some people thought I’d paid too much, some thought I’d paid too little. But there did seem to be a consensus that the post demanded some photographic evidence. So, due to popular demand, here are the before and after photos of my kitchen renovation. And please note: I took them myself, so excuse my not-quite-awesome camera skills.

Although I’m enormously pleased with how the renovation turned out, I certainly wouldn’t say the project was free of mistakes. In fact, there are some small things I might do differently if I had to do it all again (you may spot a couple of those in the photos, in fact).

So how can you avoid renovation missteps before they happen? HGTV has put together a useful collection of the 25 Biggest Renovating Mistakes. It’s quite a comprehensive list, but here’s a sampling of some of the factors I could relate to:

Gutting Everything
It can be tempting to want to just tear everything out - including the walls - and start from scratch. But that is where the additional costs can come creeping in. My contractor wisely elected to take a look inside the wall we were going to take down before totally ripping it out. Once we found out that tearing the wall would add challenges and money to the job, we changed the plan and kept the wall.

“I see this time and time again where people just start, and they think they’re going to pull a piece of wallpaper off, and by the time the process is over, they’ve completely gotten themselves into a deep, dark hole that’s very difficult to get out of,” says Mr. Eric Stromer, host of home reno show Over Your Head.

Inaccurate Measurements
I measured once, twice, three times and then again before ordering cabinets. My contractor was also meticulous with his measurements, but I could see how things could go quickly off the rails is someone was sloppy or rushed.

When dealing with counter tops, always choose a company that will come and do the measuring for you, preferably using a cardboard template. That way, the onus is on them to ensure it fits correctly. That also allows you can take a look at the template and make sure you’re getting the shape you want. When you’re talking about a slab of stone worth thousands of dollars, you don’t want to take any chances.

Going Too Trendy
“People often make the mistake of wanting to be too hip and trendy in their new home by picking the latest, hottest, coolest things,” says Ms. Carmen De La Paz of HGTV show Hammer Heads. “What they don’t take into consideration is that trendy means that it’s short term.”

Five years ago I had my heart set on aqua-colored glass tile for my kitchen back splash. Sure, it would have looked good for a couple of years, but take it from someone who really loved her royal blue and bright yellow kitchen when she painted it 11 years ago – your taste will change. Unless you’ve got the extra cash to redo your kitchen, the best thing to do is keep it classic and simple. I think our choices will stand the test of time, but you can be the judge of that.

Ignoring Lighting
Hammer Heads carpenter Ms. De La Paz put it this way: “Another mistake that homeowners will often make is not taking into consideration the lighting in their home. The lighting in your home can completely change the colors, the feeling, the ambiance.”

In other words, ignore lighting at your peril. When I first planned our new kitchen, I completely forgot about lighting. Our old kitchen had one overhead lamp that cast a lot of shadows. Thanks to our contractor’s suggestions, we’ve got a number of pot lights on a dimmer plus under-cabinet lighting, and the difference is vast.

Failure to Anticipate Chaos

Now that it’s over, I can look back on our renovation experience and think, “It was a piece of cake.” But around week three, our kitchen was an utter mess. For readers that wondered why my family and I spent $2,200 to rent a condo instead of sticking it out at home – that place was a dust pit. Moving out was essential for our sanity and our health - drywall dust is not good for anyone.

Your reno might go smooth as molasses, but just in case, it’s a good idea to assume it will be dustier, messier and more annoyingly inconvenient than you ever could have imagined.

lawlessbrown.com

Average House Prices a Misleading Gauge of the Health of the Canadian Real Estate Market: CIBC

2011-07-12T13:48:00.000-07:00

Detailed analysis shows a highly segmented market that will see prices drop over time, but preconditions for a market crash don't exist

TORONTO, July 7, 2011 /CNW/ - The Canadian housing market is becoming highly segmented and multi-dimensional which is making traditional measures, like average prices, increasingly irrelevant in gauging the health and state of the sector, finds a new report from CIBC World Markets Inc.

"Glancing at popular metrics such as the price-to-income ratio or the price-to-rent ratio, it is tempting to conclude that the housing market is already in clear bubble territory and a huge crash is inevitable," writes Benjamin Tal, Deputy Chief Economist at CIBC, in his latest Consumer Watch Canada report.

"Tempting, but probably wrong. When it comes to the Canadian real estate market at this stage of the cycle, any statement based on average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming."

He notes that while the average house price in Canada rose 8.6 per cent on a year-over-year basis in May, that number slows to 5.6 per cent if you take Vancouver out of the picture. Remove Vancouver and Toronto and the average price increase drops to 3.7 per cent.

By digging into the details on the high profile Vancouver market he found that the gap between average and median prices is reaching an all-time high. While the average house price climbed 25.7 per cent on a year-over-year basis to more than $800,000 in May, he found that by removing properties that sold for more than a $1 million there was a much more moderate price appreciation in the market. It also reduced the average sale price by $220,000 to just over $590,000.

"What makes Vancouver abnormal is the high end of its property market," says Mr. Tal. "And in this context many, including Bank of Canada Governor Mark Carney, point the finger at foreign—mainly Asian wealth—as the main driver here."

Data on the extent of the role that Asian investors have played in Vancouver housing prices is quite limited. Mr. Tal's analysis of data obtained from Landcor Data Corporation suggests that only 10 per cent of the nearly 4,500 transactions involving foreign money over the past five years were above the $1 million mark, with an average purchasing price of just under $600,000.

According to the information provided by Landcor, foreign money accounted for only 2.6 per cent of all sales during the same period. However, Mr. Tal believes that could be a serious underestimate, as it is based on where property tax assessments are mailed, and would exclude offshore buying on behalf of children or other local proxies. "There are many reasons to believe that a significant portion of what is perceived to be buying by offshore investors is, in fact, driven by Chinese immigrants that are integrated into the community but still maintain strong links to mainland China, with many residing and working in China while their family establishes roots in B.C."

"Looking beyond the average price numbers reveals a highly segmented and multi-dimensional market that is probably influenced by different forces," says Mr. Tal. "But even a multi-dimensional market can overshoot—and the likelihood is that prices in the Canadian market and its sub-segments are higher than what can be explained by factors such as income growth, rent and household formation. Given that, the housing market will eventually correct. The only question is what will be the mechanism of that correction."

Mr. Tal feels the price correction in Canada will be gradual as the two key triggers for a price crash - a significant and quick increase in interest rates and/or a high-risk mortgage market that is very sensitive to changes in economic factors - are not at play in Canada.

"In Canada, a sharp and brisk tightening cycle is unlikely. The market expects a gradual increase in short-term rates in the coming years. The rising number of mortgage holders that carry a variable rate mortgage will be the first to feel the pain. But if history is any guide, they will return quickly to the comfort of a five-year fixed rate the minute the Bank of Canada starts hiking."

He also believes that the country is in relatively good shape when assessing the two sub-segments of the mortgage market that traditionally account for most defaults: mortgage holders that carry a debt-service ratio of more than 40 per cent and those with less than 20 per cent equity in their house.

Just over six per cent of households have a debt service ratio of more than 40 per cent—a number that has risen by a full percentage point since 2008. "However, this ratio is still well below the ratio seen in 2003, when the effective interest rate on debt was more than a full percentage point higher, and no correction in house prices ensued," adds Mr. Tal.

"All other things being equal, even a 300-basis-points rate hike by the Bank of Canada would take this ratio to only just over eight per cent. Not surprisingly, Vancouver has the highest ratio of households with high debt-service ratio, followed by Toronto."

A little more than 17 per cent of the Canadian residential real estate pool is in properties with less than a 20 per cent equity position, a number that has been rising over the past few years. More than 80 per cent of households with less than a 20 per cent equity position are first time buyers.

"Digging deeper and looking at the households with both low equity positions and high debt-service ratios, we found that this fragile segment of the market accounts for only 4.6 per cent of total mortgages—a number that has been on an upward trend over the past few years," says Mr. Tal. "Shock the system with a 300-basis-points rate hike and that number would rise to a still-tempered 6.5 per cent. Historically, even in that group, the default rate has been well below one per cent. Thus, short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.

"As a result, while house prices are likely to adjust as interest rates eventually climb, the national pace of any correction is likely to be gradual. That could still entail a period in which housing under performs other assets as an investment class, until rising incomes and a tame price trajectory bring the market back to equilibrium."

The complete CIBC World Markets report is available at: http://research.cibcwm.com/economic_public/download/cw-20110707.pdf.

lawlessbrown.com

HIGHLIGHTS OF THE WEEK

2011-06-24T11:25:00.000-07:00

United States

• The Fed’s acknowledgement that underlying inflation is no longer perceived as subdued was an important signal to the markets and highlighted that core inflation is gradually inching higher.

• At the same time, the Fed trimmed its economic growth forecasts for 2011 and 2012, but left its 2013 unchanged. While growth forecasts came down, the view remains that the slowdown is transient.

• The troubled housing market will remain the major domestic downside risk to economic growth. In May, the demand for housing weakened as both new and existing home sales declined.

• On a positive note, the stronger than expected durable goods orders offers a positive sign about economic growth as we head into the second half of the year.

Canada

• Risk remained the dominate theme in Canadian financial markets this week.

• The Bank of Canada issued a publication this week stating that some risks were more heightened than they were in the spring. Examples of the top risks on the central bank’s list include: (1) European sovereign debt concerns; (2) U.S. fiscal and debt challenges; and (3) elevated household debt levels here at home.

• Markets responded well at week’s end to developments in Europe, but a resolution to the crisis remains fleeting. A plunge in crude oil prices on Thursday didn’t help matters either.

Courtesy of TD

lawlessbrown.com

Top 8 House-Hunting Mistakes

2011-06-09T10:29:00.000-07:00

Buying a home is a very emotional process, but if you allow those emotions to get the best of you, you may fall prey to a number of common home buyer mistakes. Since buying a home has many far-reaching implications - ranging from where you will live to how hard it will be to make ends meet - it's important to keep your emotions in check and make the most rational decision possible.

There are eight common emotional mistakes that people make when buying a home. Avoiding these pitfalls will help you find the best home-sweet-home.

Mistake 1: Falling in Love With a House You Can't Afford
Once you've fallen in love with a particular home, it's hard to go back. You start dreaming about how great your life would be if you had all the wonderful things it offered - the lovely, tree-lined streets, the jetted bathtub, the spacious kitchen with professional-grade appliances. However, if you can't or won't be able to afford that house, you're just hurting yourself by imagining yourself in it. To avoid the temptation to get in over your head financially, or the disappointment of feeling like you're settling for less than you deserve, it's best to only look at homes in your price range.

Start your search at the low end of your price range - if what you find there satisfies you, there's no need to go higher. Remember, when you buy another $10,000 worth of house, you're not just paying an extra $10,000 - you're paying an extra $10,000 plus interest, which might come out to double that amount or more over the life of your loan. You may be better off putting that money toward another purpose.

Mistake 2: Assuming There's Nothing Better Out There
Unless you are a high-end buyer looking at custom homes, chances are that for any home you find that you like, there are quite a few others that are nearly identical to it. Most neighbourhoods have multiple homes that are the same model. Further, most neighbourhoods are full of homes that were all constructed by the same builder, so even if you can't find an identical model for sale, you can probably find a house with many of the same features. If you're considering a condo or townhouse, the odds are also in your favour.

Even when you have a long list of must-haves, there are probably several homes out there that can meet your needs. If there are snags with the home you've decided you like - such as major repair issues, an inflexible asking price or a difficult possession date - consider moving on. Being open to keep looking will save you from making rash decisions you might regret later.

Mistake 3: Being Desperate
When you've been looking for a while and you're not seeing anything you like - or worse, you're getting outbid on the houses you do want - it's easy to get desperate to get into your new house now. However, if you move into a house you'll end up hating, the transaction costs to get rid of it will be costly. You'll have to pay an agent's commission (up to 5-6% of the sale price) and you'll have to pay closing costs for the mortgage on your new house. You'll also deal with the hassle and expense of moving yet again. If you decide not to move but to try to make the best of what you have, remember that alterations and renovations are expensive, time-consuming and stressful. If you have time on your side, it's OK to wait until something that suits you comes along - as long as your demands are realistic for your budget, you are bound to find something you live with.

Mistake 4: Overlooking Important Flaws
For any of the three reasons we just discussed, you might be tempted to ignore major problems with the house that will be difficult, expensive or impossible to change. Carefully consider your options before you make a commitment, and consider waiting until something better comes along. New houses come on the market every day.

Mistake 5: Overestimating Your Handyman Skills
Don't buy a fixer-upper that's more than you can handle in terms of time, money or ability. For example, if you think you can do the work yourself then realize you can't once you get started, any repairs or upgrades you were planning to make will probably cost twice as much once you factor in the labour - and that may not be in your budget. Not to mention the costs involved to fix anything you may have started and the fees to replace the materials you wasted. Honestly evaluate your abilities, your budget and how soon you need to move before purchasing a property that isn't move-in ready.

Mistake 6: Rushing to Put In an Offer
In a hot market, it may be necessary to pull the trigger very quickly if you find a home you like. However, you have to balance the need to make a quick decision with the need to make sure the home will be right for you. Don't neglect important steps like making sure the neighbourhood feels safe at night as well as during the day and investigating possible noise issues like a nearby train. Ideally, you'll be able to take at least a night to sleep on the decision. How well you sleep that night and how you feel about the home in the morning will tell you a lot about whether the decision you're about to make is the right one. Taking the time to consider the decision also gives you a chance to research how much the property is really worth and offer an appropriate price.

Mistake 7: Dragging Your Feet
It's a tough balancing act to make sure you make a careful decision, but don't take too long to make it. Losing out on a property that you were almost ready to make an offer on because someone beat you to it can be heartbreaking. It can also have economic consequences. Let's say you are self-employed. Perhaps for you more than anyone else, time is money. The more time and energy you have to take out of your normal activities to search for a house, the less time and energy you have available to work. Not dragging out the homebuying process unnecessarily may be the best thing for your business, and the continued success of your business will be essential to paying the mortgage. If you don't pull the trigger quickly, someone else might, and you'll have to keep looking. Don't underestimate how time-consuming and routine-disrupting house shopping can be.

Mistake 8: Offering Too Much
If there's a lot of competition in your market and you find a place you really like, it's all too easy to get sucked into a bidding war - or to try to pre-empt a bidding war by offering a high price in the first place. There are a couple of potential problems with this. First, if the house doesn't appraise at or above the amount of your offer, the bank won't give you the loan unless the seller reduces the price or you pay cash for the difference. If this happens, the shortfall on your bid as opposed to your mortgage will have to be paid out of pocket. Second, when you go to sell the house, if market conditions are similar to or worse than they were when you purchased, you may find yourself upside down on the mortgage and unable to sell. Make sure the purchase price for the home you buy is reasonable for both the house and the location by examining comparable sales and getting your agent's opinion before making an offer.

Conclusion
It's natural for emotion to come into play in the home-buying process. Buying a house is a big decision, but this is exactly why you need to ensure you are making rational choices, rather than getting wrapped up in the notion of a dream home. Slow down, overcome your emotions and, ultimately, make a home-purchase decision that's good for both your feelings and your finances.
Amy Fontinelle,

lawlessbrown.com

Bank says it will raise rates if economy continues to expand as expected

2011-05-31T11:24:00.000-07:00

By Julian Beltrame, The Canadian Press

OTTAWA — The Bank of Canada has signaled that interest rates will likely rise later this year, as long as the still-fragile economic recovery continues to build.

For the sixth straight announcement date the central bank on Tuesday delayed the tightening regime it had begun almost a year ago to the day and kept its trendsetting policy interest rate at one per cent. But in an accompanying statement, the bank did alter its advisory on future action, indicating it will start moving rates closer to their normal levels if the recovery continues on track.

"To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn," it said.

"Such reduction would need to be carefully considered."

It's the first time the bank has signalled in an interest rate announcement that it will eventually have to raise rates, although governor Mark Carney has been warning Canadians in speeches and news conferences that higher rates are coming for more than a year.

Financial markets appeared to react to the new language — the loonie jumped nearly a cent to 103.28 cents US following release of the statement at 9 a.m.

But analysts also said nothing was carved in stone.

The bank's ambiguous phrasing in adding "carefully considered" to its signal of monetary tightening, said CIBC chief economist Avery Shenfeld, puts the odds of a move in July at less than 50 per cent. He predicted the bank will begin tightening in September — about where most economists were prior to the announcement — with the overnight rate being raised to 1.75 per cent by the end of the year.

Another analyst, Scotiabank's Derek Holt, said he was sticking to his prediction of an October restart date but recognized that Carney would feel the need to signal that ultra-low rates would not be around forever.

The markets were starting to think that the Bank of Canada had already given up on this year for moving rates north, and Carney wanted to disabuse investors of the notion, Holt said.

"In the last few weeks we'd seen markets move toward taking out any expected Bank of Canada moves at all this year and I think the bank was getting a little uncomfortable with that."

Holt said the bank seems to be as uncertain about how the recovery will unfold as is most of the world. Policy-makers, including Carney, have of late taken to setting off warning flares about rising risks to the world economy, although the tone in the bank's statement was less alarmist this time.

The bank statement Tuesday appeared to take a slightly darker view of the modest nature of the U.S. recovery and the European debt crisis than it did in April, while repeating its concerns about Japan's dual natural and nuclear disasters

But it continued to say that the global recovery is proceeding broadly as outlined in its last policy review, and so is Canada's. While supply chain disruptions emanating from Japan will cause Canada's second-quarter growth to fall sharply, the negative impacts will be short-lived.

"Although temporary supply chain disruptions are expected to restrain growth sharply in the current quarter, this is expected to be unwound in subsequent quarters," the bank reasoned.

As well, Carney remains convinced that inflation pressures caused by high commodity prices are a temporary phenomenon, at least in Canada.

"The bank expects that high energy prices and changes in provincial indirect taxes will keep total CPI inflation above three per cent in the short term," it says. "Total CPI inflation is expected to converge with core inflation at two per cent by the middle of 2012 as excess supply in the economy is gradually absorbed, labour compensation growth stays modest, productivity recovers and inflation expectations remain well-anchored."

The risk to higher inflation is that household borrowing grows, given low rates, but on the other hand, the bank says, the strong Canadian dollar should keep prices of imports in check.

Lawlessbrown.com

10 Ways to Upgrade Your Home’s Exterior

2011-05-03T12:25:00.000-07:00

By: Paula Margulis

HGTV

Now that the snow has melted and seasonal debris has been wiped clean, does your sweet abode look a little worse for wear? It may be time to give your home’s exterior some TLC. Improving your home’s curb appeal can increase its value and help you enjoy the property in the warmer weather to come.

Landscaping
Now’s the time to plan and plant the blooms that will flourish all season long. From seeding grass to fertilizing flowers, the sooner you get to it the sooner you can start enjoying. Don’t forget to include plants and shrubs that can dress up your home in fall and winter as well. Potted arrangements take things up a notch, adding yet another level of sophistication to your outdoor display.
Windows
If you noticed drafty doors or windows this winter, now’s the time to replace them or outfit them with new and improved weather seals for better year-round efficiency. Shutters and other trims might benefit from a coat of paint or two as well.
The Front Door
The front door gets its share of abuse all winter long. See if it could use a coat of paint, or maybe it’s time to replace it altogether. Upgrading the hardware, adding a knocker, replacing your house numbers or mailbox can also dress up your door.
Outdoor Lighting
Aside from serving as an element of safety and security, lighting can also add great charm to your home and landscaping. Accent lights can highlight your home’s best assets and there are myriad styles on offer to help you achieve the look you want.
Walkways and Driveways
Giving your driveway and walkway a facelift doesn’t have to be an overwhelming or expensive venture. In some cases, resealing or adding a simple coat of concrete paint will do. Still, if you’re willing to invest some time and elbow grease, adding new pavers can really help your property dazzle. There are many affordable, easy-to-install stone and concrete options that will add colour, texture and durability to your walk-up.
Porches
Porches can be a bigger investment but are often well worth it when it comes to modernizing and enhancing your home. You might just need to repair or update, or perhaps it’s time to build again from scratch. Whatever option you’re looking at, make safety and durability your top priorities to get the most out of your investment.
Siding
It may be a bigger endeavour, but updating the face of your home is the ultimate way to give it a fresh look and add to the value of your home. Whether you have siding (for example, vinyl siding, wood siding, cement fibre siding, aluminum siding) or masonry (brick veneer), inspect for maintenance and consider a good powerwash to uphold attractiveness and functional integrity.
Furniture
No matter your budget, there’s a chair, loveseat or conversation set for your front porch. Adding furniture makes your entry even more inviting. Plus, who doesn’t love people-watching from the front porch on a warm summer evening?
Extras
Look for outdoor-friendly accessories to truly make your porch an outdoor room. Curtains can add privacy to an open porch and cushions make furniture more comfortable. Add an outdoor rug and even artwork in durable frames or natural materials to finish your space.
Keep It Clean
It sounds simple, but just maintaining a tidy property can itself add great appeal to your home. Keeping gutters and eaves clean, bushes pruned and property free of debris and rubbish will make you the envy of the block.

lawlessbrown.com

The Lost Art of the Love Letter

2011-04-29T12:41:00.000-07:00

In the midst of the Royal Wedding Bliss and all the nostalgia surrounding the royal couple, it seems only fitting to share this lovely piece of penmanship that reminds us of what declaring your love for someone really meant.

The current age of the social networking generation has everyone messaging, texting, poking and updating in 140 characters or less. It seems that with all the high tech gizmos and gadgets we may have lost the fine art of penning a Love Letter and the raw emotions and feelings behind them.

I have a dear friend who allowed me the privilege of looking through some of her old cards and letters and we came across this lovely little note that has very evidently been treasured by its receiver "Miss Rebecca".

It reads as follows:

November 4th, 1856

Dear Miss Rebecca

I take the liberty of sending you these few lines to let you know my intentions. I have Admired your fine looks and genteel person you are the only one that I admire. All I ask is to share your love with me, but perhaps you are engaged with some other young man but if you are you will be kind enough to let me know and if not perhaps we may have the pleasure of meeting shortly. If you allow me to call to see you please send me an Answer as soon as you can.

No more at present but remain your sincere Lover
James Lynch

With just a few lines and well chosen words James has declared his love and intentions for Miss Rebecca. Quite simply this is one of the most beautiful notes I have ever read. I know that all though its a bit old fashioned, I don't know a single lady who would not swoon at such words.

Krista Lawless

2011-04-19T15:01:00.000-07:00

RBC Specialist Fires Low Blows & Goes

Courtesy of canadianmortgagetrends.com

Banks have extensive policies governing what their representatives can tell the public. The alleged actions of RBC mortgage rep Corinne Schindler demonstrate why.

Schindler has reportedly been circulating this flyer, which grossly mischaracterizes mortgage brokers in relation to bank specialists. It’s a document that demonstrates a stunning lack of knowledge, professionalism and discretion.

The piece, which displays RBC’s logo and web address, has gone viral and caused a PR embarrassment at the nation’s biggest bank. Incensed brokers from across the country have demanded that RBC retract the misstatements on the specialist’s behalf.

Here is a sample of the distortions attributed to Ms. Schindler (our perspectives follow each line):

1. Brokers charge “set-up fees" and "other hidden costs"

· Truth: Broker fees are exceedingly rare on prime residential mortgages. When fees or borrowing costs are warranted, provincial regulations require full disclosure.

2. “Ask a broker what their compensation will be for completing your mortgage.”

· Truth: Broker compensation is geared primarily to the term and secondarily to the rate. As with any incentive-based model, conflicts can exist, but no more so than with various bank rep models that pay more commission for selling a higher rate.

3. Brokers pick lenders "based on only the lowest rate, no other factors"

· Truth: Rates are commodities so successful brokers always prefer to leverage trusted advice and relationships. To build each, brokers become experts in their craft, which includes term selection, product comparison (from multiple lenders...key point) and strategic mortgage planning.

4. Brokers…"cannot fit your mortgage solution together with your overall financial plan."

· Truth: Needs assessments are a fundamental tool that brokers utilize. Brokers are trained to uncover future needs that financing might have to address.

5. "Brokers will not be there in a few months when you need to ask questions about your mortgage or change the terms of conditions"

· Truth: Referrals are a broker’s lifeblood and maintaining relationships is impossible without exceptional post-closing support.

6. “You have to be careful to deal with an institution that will give you a great rate term after term."

· Truth: Banks’ renewal models are designed to maximize profit. That’s done through selective pricing (i.e. not offering the best rate to everyone up front). It’s a fallacy that banks reward loyalty with great rates. (Here’s some relevant research).

********

After poking around at RBC, this piece appears to be Schindler’s own doing. This advertorial is definitely not in RBC’s marketing library we’re told. Moreover, RBC’s corporate materials are far more polished (i.e., generally no grammar or formatting issues, missing slogans, mistruths, etc.).

From what we hear, Schindler violated RBC compliance guidelines and sent it out without RBC’s or her manager’s consent.

In response to all this, RBC provided us with a comment:

“The opinions expressed in the document by the mortgage specialist do not reflect the positions, strategies or opinions of RBC. We are following up directly with this mortgage specialist to ensure future collateral accurately reflects the RBC brand.”

We have a better idea. How about no “future collateral” from this individual period?

Fiduciaries that mislead the public for personal gain are hazards and liabilities to their employers. Anyone who would author this sort of content should be sent packing because Lord only knows what she's telling clients in private.

Incidentally: We’ve been holding this story since last Wednesday, awaiting comment from RBC and trying to get Schindler’s side of the story to give her the benefit of the doubt. On the two occasions we did reach her, she hurried off the line, promising to call back. Needless to say, after multiple contact attempts, we never heard back.

www.lawlessbrown.com

Window closing’ on ultra-low mortgage rates

2011-02-08T11:32:00.000-08:00

Tim Shufelt, Financial Post · Monday, Feb. 7, 2011

Amid the noise of volatile-but-improving economic indicators, mortgage rate hikes are likely to repeat like a chorus in the coming months.

Canadian banks are raising interest rates on mortgages, marking the beginning of a trend as they correlate with rising bond yields and expected monetary tightening.

That’s making a strong case for borrowers to lock into fixed rates before it’s too late, said Benjamin Tal, deputy chief economist with CIBC World Markets. “The window is closing.”

TD Canada Trust and CIBC both announced Monday hikes to their residential mortgage rates, the first increases since changes to the rules of borrowing were announced by the federal government last month. The other big banks where expected to follow the moves shortly.

Effective Feb. 8, the interest rate on the banks’ benchmark five-year closed fixed rate mortgage will increase 25 basis points to 5.44%. The country’s other major lenders are expected to soon follow suit.

Toronto mortgage broker Paula Roberts said rising borrowing costs will compel more of her clients to abandon ultra-low variable rates in favour of higher, fixed-rate mortgages.

That can be a tough decision for borrowers to accept higher payments, but not one that should strain a mortgagee’s finances, she said.

“If you can’t afford [your payments] ... that’s a problem,” Ms. Roberts said. “That’s why the government has changed the rules.”

In two stages over the past year the federal government announced changes to the conditions of mortgage lending — shortening the maximum amortization from 35 years to 30 years and requiring borrowers to qualify for a fixed-rate plan, even if they are opting for a variable rate.

Many who only qualify under the old rules, however, will try to secure mortgages before the shorter maximum amortization periods come into effect next month, Ms. Roberts said.

“There are going to be a lot of people that will enter into their agreements by March 18.”

Much of the momentum in mortgage rates can be attributed to a bond selloff and rising yields across the board. That effect is partly a reflection of building global inflationary pressures as well as a global economy that is proving more robust than expected.

“In my opinion, the bond market will not be the place to be over the next six months, and if that’s the case, you will see mortgage rates continue to rise,” Mr. Tal said.

In addition, anticipation of increases to the Bank of Canada’s benchmark lending rates is building, also contributing to rising yields, which puts pressure on fixed-income mortgages.

If there was any lingering doubt that the Bank will soon raise rates, last week’s jobs report erased them. The report showed Canada added four times more jobs than expected in January.

“[It] creates a fairly powerful story for the Bank of Canada, which is clearly concerned on the domestic front,” said Camilla Sutton, chief currency strategist at the Bank of Nova Scotia. “I think there’s a material change.”

So do investors. The probability that the central bank will boost its key policy rate by May, as measured by overnight index swaps, jumped to almost 75% after the jobs data. http://www.financialpost.com/news/Window+closing+ultra+mortgage+rates/4239243/story.html#ixzz1DMwQzyWP

lawlessbrown.com

Release: Department of Finance tightens CMHC rules

2011-01-17T09:44:00.000-08:00

TD Economics

For the second time in twelve months, the Department of Finance tightened rules on residential mortgages to help slow the pace of household debt accumulation. Changes include shortening the amortization period to 30 years (which had already been shortened from 40 to 35 years in 2008), withdrawing CMHC insurance of home equity lines of credit (HELOC), and a reduction in the maximum refinance percentage from 90% loan-to-value to 85%. Changes to the amortization period and the refinancing ratio will take effect March 18 and the HELOC change will take effect April 18, 2011.

lawlessbrown.com

2011-01-10T14:49:00.000-08:00

Building Your Brand with Social Media

Susan Gunelius

Tapping the vast audience of the social Web is a low-cost way to catapult a small-business brand onto the global arena. Building your brand using social media allows you to develop new (and strengthen existing) relationships, which often leads to everything from brand awareness, loyalty and word-of-mouth marketing.

While perhaps initially daunting, the trick is to break the process into manageable pieces. From creating your online destinations to connecting with influencers, following these five steps will get you on your way to building your brand and boosting your business.

1. Create branded online destinations.

This is the first step to raising brand awareness and loyalty. Companies with the most successful social media branding surround consumers with online experiences that allow them to select how they interact with the brand.

Consider using popular, free options like blogs, Twitter, Facebook, LinkedIn, YouTube, and so on. Of course, for small-business owners without the manpower to effectively manage too many destinations, you should consider testing each of these to determine which social media service you're most likely to stick with over the long haul. This will become your core destination. All your other online destinations should link back to the core.

2. Establish entry points.

One of the most important aspects to accomplishing this with your branded online destinations is to continually publish meaningful content that adds value to the reader's experience. The goal is to publish useful information that people will want to talk about -- and then share with their own audiences. This creates additional ways for people to find your branded destinations and it can lead to higher rankings from search engines like Google.

Here's one way to think about it: If you have a website with 10 pages of content, there are 10 ways for search engines to find your site. If you attach a blog to that website and write a new post every day for a year, you will have 365 more ways for Google to find your site, and your brand.

I call this the compounding effect of blogging. You cannot buy that kind of access to a global audience.

3. Locate your target audience and bring them back with you.

Where does your target audience already spend time? You need to spend time in those places, too, and engage in the conversations happening there. Get started by conducting a Google search for keywords that consumers would be likely to use when searching for a business or products like yours. Follow the paths that those consumers would follow and you're likely to find them.

Join relevant online forums and/or blogs, and write posts, publish comments and answer questions. Once that audience understands that you're there to genuinely offer useful information and not to self-promote, you can start leading them to your own branded destinations -- particularly your core branded online destination.

4. Connect with influencers.

As you search for your target audience, you should identify online influencers in those communities and get on their respective radars. To do so, leave comments on their blogs, follow them on Twitter and retweet their content. You can even email them to introduce yourself.

The key is to make sure they know your name and understand that you add value to the online conversation. This also exposes you to their audiences.

5. Give more than you receive.

Success in social media marketing depends on being useful and developing relationships. If you spend all of your time promoting then no one will want to listen to you. It's not a short-term tactic, rather a long-term strategy that can deliver sustainable, organic growth through ongoing, consistent participation.

A good rule of thumb is to apply the 80-20 rule to your social media marketing efforts. Spend no more than 20 percent of your time in self-promotional activities and conversations, and at least 80 percent on non-self-promotional activities. In time, you'll see your business grow from your efforts. And it starts with leveraging these fundamentals.

lawlessbrown.com

The biggest money mistakes couples make

2010-11-08T14:56:00.000-08:00

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!

2010-10-09T11:53:00.000-07:00

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

2010-10-04T09:43:00.000-07:00

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

2010-09-22T15:17:00.000-07:00

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??

2010-08-27T11:58:00.000-07:00

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

2010-08-19T11:59:00.001-07:00

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