The Tax-Free Savings Account – Now a Reality!

Canadians have been asking for it for years and finally, beginning 2009 we’ll have a new tax assisted savings vehicle; The Tax-Free Savings Account (TFSA).
 
What Is a TFSA?
 
The new TFSA is an easy way for investors to put away cash tax-free.  It will allow you to invest money without paying tax on the income it earns.
 
How does a TFSA work?
 
The mechanics of the TFSA are relatively simple. All Canadian residents, 18 and older, will be permitted to contribute up to $5,000 annually. The contribution amount, which is not tax deductible, will be indexed annually to inflation. If an individual does not contribute in a year or contributes less than the maximum amount, he or she can use that contribution room in any subsequent year.
 
What is the difference between a TFSA and an RRSP?
 
Like RRSP’s, income through a TFSA is earned free of tax. However, unlike RRSP’s, that income is not taxed on withdrawal. Withdrawals can be made at any time and be used for any purpose, with out attracting one penny of tax. And what’s more, any funds withdrawn from the TFSA (income and capital) are added to an individual’s contribution room and can effectively be re-contributed in any subsequent year.  This means that the TFSA can be used time and time again to save for various expenditures over a lifetime.
 
Here are just a few different types of investor profiles that illustrate how the TFSA can be used to your advantage…

Why didn’t my house sell?

Don’t be discouraged that your home didn’t sell. The sinking feeling may begin long before your listing expired, but your home might not have sold for reasons that have nothing to do with how desirable it is, or how fast the local market is moving.

So Why Didn’t Your Home Sell?

Don’t risk making the wrong choices and losing both time and money on your investment–Again. Before you hire your next realtor, ask the right questions to save your time, money, and frustration.

Expired: Selling Your Home After it Didn’t Sell

You are probably wondering what went wrong? Like all homeowners, once you put your home on the market you expected it to sell. Most homes do sell but as you’ve found out some don’t sell.

If you are still interested in selling, then the home sale you want is still within reach. Below are some thoughts to take into account before you decide to put your house back on the market.

First of all, ask yourself…Are you committed to selling? Are you committed to do what it takes to properly market your home for today’s market? If not then don’t sell. It will only cause you stress. Life by itself is crazy enough. Why add the stress of selling a home when you are not willing to do what it takes to sell it in today’s market.

If you are committed to selling then read on.

There are four reasons why I think a home did not sell. They are lack of communication, price, condition and marketing.

Lack of communication

Teamwork between an agent and a seller is very important. Did you get the proper feedback? What did buyers say about price and condition? Was this communicated back to you? What did other agents say about your property? Was this communicated back to you? What did you do with the feedback you received from your agent? Our team uses an automated response request to all agents who show your property. They are emailed a short commentary to complete and together we can review the resulting comments.

Price

Was your home priced correctly? Did you price your home based on what you “need” to get from your home or did you price it according to the current market? An overpriced home reduces buyer’s interest and it also makes competing homes look better. Experience has shown, the longer a house is on the market the lower the initial offer will be.

Condition

Going back to communication, what was the feedback you received from the showings? Was it positive or negative? If negative, was it something you could change? If someone didn’t like the floor plan, well there is nothing you can do about that. But if several mentioned your paint job, then you may have to consider hiring someone to repaint. Again, it goes back to “how committed are you to selling?” We offer the services of a professional Home stager to help with the presentation issues.

Marketing

How was your home advertised? Gone are the days when all an agent had to do was place a sign in the yard and it would be gone. I have found it takes more than just putting a house in MLS. Look for an agent that is willing to go beyond just putting a sign in the yard. Thinking outside the box is my way of thinking. If you need help call me at 519-215-0107